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$20 million borrowing approved
Sole opposing councillor says not enough information provided

Simon Whitehouse
Northern News Services
Published Wednesday, April 25, 2012

SOMBA K'E/YELLOWKNIFE
City administration has been given the green light to borrow $20 million to get a jump on badly needed water, sewer and road replacements.

City council approved third reading of the borrowing bylaw at its regular public meeting Monday night by a vote of 5-1.

Councillor Cory Vanthuyne was the only councillor to oppose the motion, arguing council cannot make an informed decision because it hasn't been provided with a detailed list of infrastructure needs in an asset management plan.

"My concern with not seeing the asset management plan is that council has to be accountable," he said. "I almost certainly would have raised questions with it."

Coun. David Wind would have likely voted against the bylaw as well but he was dealing with the death of his mother Monday, and thus could not attend the meeting.

When reached for comment yesterday, he said residents should have been allowed to vote on the borrowing in a referendum much like they did on the $49 million borrowing proposal on district energy last year.

The $20 million is supposed to go toward the construction of a water treatment plant - deemed a necessary expense by the Department of Municipal and Community Affairs - but will likely be used to fund infrastructure replacements as well, which Wind argues have been neglected to date.

"I am severely disappointed that the minister of Municipal and Community Affairs didn't recognize the need for people to consider whether they would support borrowing and the opportunity to vote their approval, or lack thereof," said Wind on Tuesday.

Wind said he was worried about piling on so much debt at a time of economic uncertainty. The city estimates its infrastructure deficit will hit $74.1 million by 2016.

Coun. Mark Heyck said both the Yellowknife Chamber of Commerce and the NWT Construction Association support the borrowing proposal, and the city can't afford to wait while its roads, sidewalks, and water and sewer lines crumble.

"It isn't a matter of if we are going to spend this money on this infrastructure, but a matter of when," he said.

"By accelerating it and planning it carefully with the construction industry it will help us avoid construction-cost inflation over a much longer period of time. We can save money for our community by accelerating this work."

Sheila Montgomery also did not attend the meeting.

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