Fort Simpson (Jan 28/05) - A rousing discussion over Fort Simpson's future ensued during a Monday evening meeting regarding the first draft of the village versus hamlet study.

Coun. Kim Squires asked study consultant Andrew Gaule whether he thinks the village would benefit most from reverting to hamlet status.

Andrew Gaule, who has produced the first draft of a study on Fort Simpson's municipal status, was summoned to village council chambers on Monday evening to answer questions relating to the document. - Derek Neary/NNSL photo

Gaule said it depends on one's budgetary expectations. As a hamlet, Fort Simpson's funding for operations and maintenance - things like clearing roads and garbage pick up - would decrease, he noted. However, capital funding would likely increase.

Gaule added that capital money would be project specific and there would be no guarantee it could be accessed when council desired. Fort Simpson would be competing with other municipalities for a share of capital dollars from the GNWT, he explained.

Mayor Raymond Michaud noted that the territorial government is in a period of fiscal restraint and capital funding could dwindle as a result.

Gaule acknowledged the uncertainties. He said Fort Simpson could spend the next few years converting to hamlet status only to have the minister change the existing funding formula for villages and hamlets with the stroke of a pen.

He added that the details of the GNWT's "New Deal for Community Governments" are sketchy at present. It appears the legislation will make hamlets municipal taxing authorities, said Gaule.

Michaud said he thinks the territorial government's hidden agenda is to make hamlets the "bad boys" responsible for raising taxes.

He will meet with department of Municipal and Community Affairs officials over the village's funding situation while in Yellowknife on Friday.

Deputy Mayor Dennis Nelner argued that Fort Simpson must stop being dependent on government and take charge of its own destiny by promoting growth.

He suggested tapping into the private sector for funding to create jobs and build infrastructure. Projects such as a bridge across the Liard River, a refinery and airport expansion could be viable, he said.

Michaud cautioned that the village must be realistic about growth and shouldn't develop too much land prematurely before there's demand.

Despite the anticipation of a boom, there's been little change in the community's population of approximately 1,200 people since the mid-1980s, the mayor noted. He added that projects such as a sawmill and a diamond cutting plant have failed to materialize in Fort Simpson.

"Let's throw our hands up and give up then," Nelner replied.

Little optimism

He said there's too little optimism and insisted that oil and gas exploration and development will proceed after a Mackenzie Valley pipeline is built.

Coun. Tom Wilson sided with Nelner, contending that the village should be courting businesses and encouraging them to be based in Fort Simpson.

Coun. Bob Hanna added that companies willing to employ 10 or more people should be offered tax breaks or even be given the land to build their operation.

"Dennis is right, you've got to make it happen, you don't wait for it to happen," Hanna said.

Gaule interjected that a community plan is needed to identify how lands will be used. That will require consensus among all stakeholders, not just village council, he said.