Inuvik (June 16/03) - "We're in a bad situation," Debbie DeLancey, deputy minister of municipal and community affairs told more than 50 delegates at the NWT Association of Communities annual general meeting in Inuvik last weekend.

"We're facing an infrastructure shortfall," said DeLancey, who works for the department of Municipal and Community Affairs. "The NWT is feeling the crunch more than many."

DeLancey said the NWT and municipalities are not meeting the standards for maintenance and repair of present infrastructure -- like sewage treatment plants, water treatment facilities and roads. And they have few resources to establish additional infrastructure.

"Together we're suffering the impact of resource activity," she said.

A recent report suggests three target improvement areas -- developing new infrastructure policy framework, distinguishing between public and territorial responsibilities and establishing separate investment targets for the public and territorial infrastructure projects.

Delancey said funding policies need to be more flexible for municipalities.

A change has been proposed in the Municipal Statutes Replacement Act -- to be presented for third reading at the October sitting -- which would allow municipalities to borrow money for capital projects. Under current legislation communities can only borrow money to purchase property.

Community politicians agree with the recommendations but want to know who is going to pay for the improvements.

"Where does all this money come from?" said Tom Wilson, Fort Simpson mayor.

"We can't come up with the money to generate those things now."

DeLancey said the government may introduce application based programs to help municipalities find funding. But the GNWT can't be counted on to fund everything.

"Our ability to support any community's infrastructure is eroding." -30-