NORTHWEST TERRITORIES
Several community leaders across the territory are anticipating the day a new capital funding formula comes into effect, fixing what the Department of Municipal and Community Affairs has determined to be a $40-million annual infrastructure funding shortfall.
A review by the Department of Municipal and Community Affairs has determined Gameti and other communities across the territory have been under-funded by the GNWT to the tune of $40 million every year. - Walter Strong/NNSL photo |
The department, together with the NWT Association of Communities, reviewed the formula that in the 2014/2015 fiscal year provided $103.6 million to communities across the territory.
The review found the existing formula has underfunded communities 37 per cent, or $40 million, according to a letter from the association to the GNWT sent in December 2014.
That translates into some communities being unable to pay for the upkeep of their assets, including water and sewer lines or recreation buildings.
"We have identified that there are some significant gaps in our funding right now," said MACA deputy minister Eleanor Young in a recent interview.
A proposed new formula that came from the review is expected to be presented to the next government after the fall election for approval before any new money reaches the communities.
The new formula ties the amount of money to the needs of the specific community when determining the how much to transfer.
It would be a welcome change for the mayor of Fort Simpson.
"A lot of our buildings haven't been properly maintained for years and it's making them more expensive to operate and shortening their lifespan," said Sean Whelly in an interview April 3.
If it gets the green light, Whelly said the village could see an additional $2 million. It now gets about a $1 million per year.
"We would see quite a significant increase if it was fully implemented," Whelly said.
The funds would likely go toward improving maintenance and replacing water and sewer lines that are around 40 years old.
As those issues are addressed, money would be set aside in reserve for larger capital projects, such as landfill reclamation he said.
If the formula determines a community needs more money, it likely wouldn't immediately see the full amount, but a phased-in approach, said Young.
In Hay River, Mayor Andrew Cassidy has been pushing MACA for formula funding changes for years.
"We saw some pretty significant flaws in the formula," he said April 3.
The regional centre threatened in September 2013 to withdraw services such as water and sewage treatment, fire rescue, and ambulance service from surrounding communities.
"We took a pretty aggressive stance," he said.
Several months later, the funding review began with Cassidy serving on a group that included representatives from 15 communities and met four times last year.
While he couldn't immediately recall the amount the new formula would provide to the town, he said it would be useful for major projects the community is facing including a new arena and town hall.
"Capital is key for us for the next decade," Cassidy said.
Tsiigehtchic chief Phillip Blake said a new funding formula will benefit smaller communities like his.
Blake was part of a group of elected leaders and senior administrative officers that last year reviewed the existing formula and proposed changes.
He characterized the existing system as inflexible.
"You couldn't juggle the funds through to different pots as needed," he said April 2.
One project he thinks could be sped up should a funding increase be implemented is a new band office and community hall attached to it that is expected to cost $1 to 2 million.
MACA is presenting the results of the review to community councils across the territory in the coming months.
One of the first council presentations will take place Tuesday in Fort Simpson.
