Yellowknife (Nov 22/06) - The Department of Municipal and Community Affairs' new initiative, the New Deal, aims to take care of all communities.

Debbie DeLancey, deputy minister of Municipal and Community Affairs (MACA), explained the concept to councillors at City Hall on Monday.

"This plan is to provide capital funding on a formula basis," said DeLancey, who has been touring NWT towns and hamlets. "It's to ensure all communities have the funds for projects."

Funding for communities is currently allotted by per capita percentage, with the five tax-based communities splitting $2.5 million equally.

DeLancey said that many communities were not getting enough money due to the majority of funds going to bigger areas such as Yellowknife.

"These smaller communities do not have tax money coming in," she said. "If a small town needs a water treatment plant, they need it, but unfortunately many don't have the funds to build one."

Under the New Deal - which must get its funding from the next territorial budget due to be passed in February - MACA is requesting that funds for municipalities rise to $28 million from $17 million.

"Under this deal, Yellowknife would actually get more money," said DeLancey.

She said that all municipalities would split the $28 million, and with the extra $12 million being proposed, Yellowknife and the other municipalities would each get more than $550,000 a year in addition to what they get now.

She explained that there are two new concepts within the New Deal that will help hamlets, charter communities and Tlicho communities.

The first is an ability to raise own-source revenue through property taxes.

The second is full authority and responsibility for community infrastructure planning, development and project management.

Gord Van Tighem, mayor of Yellowknife, was one of four people on the working group for the New Deal.

"It's a fair deal," he said. "It's a way to insure all communities get funding."

DeLancey said she has been talking to NWT government officials and she said she's confident the extra $12 million will be approved in the next budget.