SOMBA K'E/YELLOWKNIFE - David Wind was the lone councillor to oppose the second reading of the debt management bylaw Monday night, saying it encourages administration and council to borrow money rather than look at other options.

"The debt management bylaw seems to predispose administration and council to look toward borrowing as the solution to financing initiatives in the city," said Wind.

"I think the predisposition should be to find solutions that avoid the need to borrow if at all possible.

"We have a very low debt at present, I believe it's something in the order of $3 million, so let's do our utmost to keep our debt at those kinds of levels."

The rationale for the bylaw is to "streamline" the process the city uses to enter into debt, especially for infrastructure improvements, by circumventing the need for ministerial approval from Municipal and Community Affairs.

The city currently has about a $71 million infrastructure gap because investment hasn't kept up with the cost of replacing the city's ailing infrastructure, according to a city memo to council.

Wind also said streamlining the city's process of acquiring debt might not be the answer. Although the process may be cumbersome and sometimes expensive, it's better than making a poor decision, said Wind.

"Taking on debt is a very serious long-term decision and deserves a lot of attention from councillors and administration. I would trade a cumbersome and good decision for a streamlined poor decision any day."

A debt management plan would lay out projects the city intends to borrow money for and how it intends to pay it back. The city needs such a document in order to create a long-term asset management plan, which would identify the recommended investment in the city's infrastructure over a 15 to 20 year period, and identify debt requirements, sources of revenue for investment and for debt servicing and plans for major facilities.

There has been much confusion around the proposed debt management bylaw since it was first introduced to council last month. In the original recommendation, it stated that the bylaw would eliminate the need for voter approval on future borrowing.

The memo, which was presented to council March 21, came a week after a referendum where voters rejected a city plan to borrow up to $49 million to build a community energy system that would have heated 39 downtown buildings.

A senior city official later told Yellowknifer that administration misinterpreted the territorial government's Cities, Towns and Villages Act, which governs debt management plans, and voter approval will still be necessary for future borrowing if the bylaw is passed.

Coun. Bob Brooks acknowledged the error at the council meeting Monday night and applauded administration for correcting it.

"I appreciated the clarification that was given and I think ... after the clarifications were given, all the concerns that were being expressed city-wide basically stopped," he said.

Second reading was passed with Couns. Brooks, Amanda Mallon, Lydia Bardak, Cory Vanthuyne and Shelagh Montgomery in favour and Wind opposed. Couns. Mark Heyck and Paul Falvo were absent.

The bylaw will now go to MACA for ministerial approval before it returns to council for the final reading.

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