Yellowknife (Apr 12/06) - City council wants to change the way it funds not-for-profit groups, but there's little agreement on how that change might happen.

Coun. Doug Witty, centre, makes a point during a meeting of the city's priorities, policies and budget committee Monday. City Council is mulling whether to change the way it funds community groups. - Chris Windeyer/NNSL photo

Some councillors want to cap the amount the city spends on non-profit groups with a view to weaning some organizations of municipal money altogether. Others say the money is worth it, though the city should change the way money is allocated.

Coun. Doug Witty said the city's budget for core funding, guaranteed cash for 13 arts, sports and community groups, has grown by 64 per cent in the last six years. The amount the city spends on core funding has grown from $182,000 in 2000 to $300,000 in 2006.

"It's outstripping our budget increases in a fairly significant way." The problem, he said, is "nobody, especially politicians, wants to say no to anybody."

Coun. Alan Woytuik said groups that can become self-sustaining should be phased out of the public purse. He said established festivals - he wouldn't name any this time - should be bumped off the public dole.

"If after 15 to 20 years they haven't developed a large enough account, we have to look at why."

Last December, Woytuik pointed to Caribou Carnival and Folk on the Rocks as groups the city should let "die" if they can't become self-sufficient.

But Coun. Kevin O'Reilly said core funding eats up less than 0.1 per cent of the city's budget.

"The money the city puts in leverages a lot of volunteer work that brings in a better quality of life," he said.

Lisa Tesar, executive director of the Solstice Festival, which received $5,000 special funding from the city this year, said community groups should apply for money out of the same pot, but get two years of funding when their applications are accepted.

Ben Nind, president of the Northern Arts and Cultural Centre, which received $75,000 this year, said core funding allows non-profit groups to provide services that would cost government much more to provide directly.

"Core funding recognizes that there are organizations and activities in the community that need enough money to be able to run without it costing the taxpayer a million dollars," he said.

There was wide support among councillors to move up core funding deliberations so they could be completed before budget deliberations start. Groups that receive core funding undergo an annual review at the same time councillors debate the annual budget.

Mayor Gord Van Tighem said a decision isn't expected for months.