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SOMBA K'E/YELLOWKNIFE
City councillor David Wind criticized city administration earlier this week for placing a two-page advertisement, which he describes as politically biased, in the spring edition of Edge magazine.

The ad, entitled "When Financing Makes Sense," featured text organized in a question-and-answer format that lists some of the costs for the city's infrastructure needs.

Accusing administration of engaging in political "chicanery," Wind said the ad should not have gone to print before council reviewed the city's asset management plan, which is to be reviewed by council on Monday.

He said the ad only presented one point of view, and council hasn't decided yet whether to borrow money to put toward a deficit in infrastructure.

The ad makes the case for the city to borrow money in order to address costs related to deteriorating infrastructure, arguing that the city faces an $74.1-million deficit by 2016 if payments are not accelerated.

"I would have liked to have seen the (asset management) plan ahead of time and had a discussion of whether it was a good plan worthy of council's support or would have asked for more changes," he said.

"The way it was done put the position of administration out in the public before council has had a chance to do it. I don't think it is administration's place to be leading the political side of the discussion."

Wind took particular exception to the city's pitch to borrow money to build a water treatment plant.

"The most glaring thing and most offensive thing is they want to borrow $20 million with the justification being that they need the money for the water treatment plant," Wind said.

"Subsequently, they say they have savings already for the water treatment plant in cash reserves. So in actual fact, when we borrow this money to do the water treatment plant, we can use the money - or can transfer the savings - for roads and water and sewer or linear assets."

During the meeting, Carl Bird, director of corporate services, explained the city can use federal gas tax money for debt repayment on money borrowed for the plant.

Leftover money would then get used toward other needs, such as water and sewer and roads and sidewalks.

"We are taking cash reserves we have and using them to advance some of the critical infrastructure repairs under the ground while we would borrow money to take care of the critical infrastructure replacement we have with the water treatment plant," said Bird, adding it would allow the city to spend about $17 to $18 million over the next five years.

Mayor Gord Van Tighem added that, currently, the cost of borrowing money is at an almost all-time low. If borrowing was approved now, it would be cheaper over the long term, especially if interest rates were to rise at a future date.

City administrator Bob Long said the city has consulted with engineers to find out the cost of what has to be paid to keep up with the infrastructure deficit, most of which will pertain to underground water and sewer line replacements and roads re-surfacing.

"We have made some assumptions around the amount of money that is necessary to keep these assets in good working order," Long said.

"We will have to spend between two and four per cent of our total assets ($780 million) to be able to maintain those assets in good working order."

Van Tighem said the ad was largely intended to create discussion on the issue but council will ultimately have the chance next week to review the asset management plan to see what options they would like to approve.

Coun. Bob Brooks said much of the discussion was "premature" and that council must ultimately make a decision.

"The option to borrow is still up in the air and we are still waiting to see the recommendation," Brooks said.

"So all of this is premature and before I want to make a decision about borrowing, I want to see the recommendations from the committee."

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