Philippe Morin
Northern News Services
Monday, July 2, 2007

INUVIK - Beaufort Delta hamlets are borrowing money from private banks and increasingly exercising control over their own finances.

In Sachs Harbour, mayor Robert Eldridge said borrowing will allow construction to begin on the hamlet's multipurpose building, which has been brewing for 10 years.

"It's definitely the biggest factor," he said,

"We were never able to get the full funding for our youth and elders' centre, it's been quite difficult. Now that the rules and regulations have changed, we're allowed to borrow. Instead of MACA telling us what we want, we tell them what we want," he said.

In Fort McPherson, the hamlet also started work on its new multipurpose building, which required a $1.7 million loan from Yellowknife's Royal Bank.

Mayor Rebecca Blake said borrowing would not have been possible under the NWT's former rules, which limited hamlets' financial powers.

Sheila Bassi-Kellett, assistant deputy minister for MACA (Municipal And Community Affairs), said the change applies to the Hamlets Act and Charter Communities Act.

New rules also took effect last April under MACA's New Deal for Community Governments, expanding hamlets' financial freedom.

Formerly, the privilege to borrow had only belonged to communities which gathered taxes, such as Inuvik, Norman Wells, Hay River, Fort Smith and Yellowknife.

Under the New Deal, hamlets now assume full authority for decisions about community public infrastructure, including borrowing.

"It was something we'd heard consistently from communities," said Bassi-Kellett.

"They (hamlets) wanted more autonomy and independence for their finances, and the latitude to make decisions which reflect local priorities."

Bassi-Kellett added the new deal limits borrowing in proportion to the hamlet's budget.

"A lot of communities are developing their capital plans, and looking at what their priorities are. Sometimes it makes good sense to borrow to get the project completed quickly and then pay it off, because they do have a predictable long-term source of revenue coming in," said Bassi-Kellett.