Derek Neary
Northern News Services

Fort Simpson (Sep 21/01) - Fort Simpson village council got a look at the financial future Monday night, and the future looks extremely bleak.

With pending GNWT funding cuts amounting to $1 million over the next two years, council will have to make some difficult and unpopular budgetary decisions. Unless, of course, senior politicians can be persuaded to alter the proportional funding scheme in the legislative assembly next month.

"If they want to do this they're cutting the legs out from under us as we're trying to move ahead as a community," Mayor Tom Wilson said.

Accountant Doug Cooper and Municipal and Community Affairs (MACA) officials Tom Beard and Maurice Helyar appeared as a delegation at Monday's council meeting. Cooper informed the councillors that the village is already facing a $351,000 deficit this year. With block funding cuts slated to begin next year, Fort Simpson is projected to incur a $1.3-million deficit. By 2003, the deficit would grow by an additional $1.6 million.

In order to adjust to the funding reduction, and to start building reserve funds for aging assets and infrastructure, the village will have to make drastic cuts to its own budget, Cooper said. It will also have to consider raising mill rates and water rates as well as increasing user fees for recreation, ambulance service, garbage collection and building rent, he suggested. He added that council should also apply for as many grants as it can.

"The role of SAO (senior administrative officer) and council today is more that of fundraiser," said Cooper.

Wilson said he's fully prepared to confront the ministers in Yellowknife.

"I wanted this (presentation) because we need something to start planning our attack on the legislative assembly," he said. "We need ammunition to fight the government over the cuts."

Coun. Duncan Canvin said the village should consider reverting to hamlet status if the GNWT doesn't relent. Even though it's been shown that hamlet status would ultimately be more costly, the territorial government would then be responsible for most services and wouldn't dare to turn off the lights, heat or water, Canvin said.