"Council is not satisfied that these are the best sites available," said Sarah MacRury, executive assistant to Iqaluit's chief administrative officer.
A committee of elders, clergy members and city employees suggested two possible sites: Apex Road Hill and on West 40, southwest of the old airport runway.
Both meet the size requirement of 1.75 acres, sufficient for about 15 years, but both have problems.
West 40 was used as a metal dump and has poor drainage. The Apex Road Hill site may be too close to the actual road .
The area surrounding the Apex Road Hill site has also been marked in the city's general plan as a potential site for a new legislative assembly building and a cultural area.
"We need a place that's conducive to privacy and reflection," said councillor Keith Irving. Council approved further testing of soil depth at the Apex Road Hill site. Dillon Consulting, a firm with office in Iqaluit, will be contracted to do the testing. The cost will be $10,000.
In the meantime, MacRury said, "the planning department will be going back to the elders and church groups in order to get some advice on other possible sites."
The old cemetery overlooking Frobisher Bay is running out of space. It has more than 640 graves and just 24 plots remain.
"This is a pressing issue for council," MacRury said.