LIIDLII KUE/FORT SIMPSON
Fort Simpson is in for a huge financial boost if a new funding formula for communities in the territory comes into effect.

Fort Simpson Mayor Sean Whelly led a council meeting Monday to give its votes to Yellowknife for the upcoming Northwest Territories Association of Communities conference. Fort Simpson has instructed Yellowknife to use its two votes to vote in favour of a new territorial funding formula that could see the village get as much as a $3-million boost. - Stewart Burnett/NNSL photo

The Department of Municipal and Community Affairs conducted a review of its funding policies in 2014 with a view to revamping how communities receive funding.

Under the new funding formula Fort Simpson could stand to see a $3 million boost from the GNWT, with two thirds of the money to be used for capital spending and the remaining third for operations.

"We're excited about the new funding formula," said Mayor Sean Whelly.

There is expected to be a vote on whether or not to support the formula at the Northwest Territories Association of Communities' annual general meeting in Hay River this weekend.

Village council called a special meeting on Monday to allocate the village's two votes to the City of Yellowknife in favour of a resolution to support the new fomula.

"We'd like to see it roll out as quickly as possible," said Whelly. "For Fort Simpson it would mean a considerable increase in our funding."

The village hasn't put any money in reserve for its infrastructure, with all the available funds spent on patching and repairing as time goes on.

"At some point we've got to make some pretty big investments back into our community and we're not going to have the money to do it," said Whelly.

New funds for communities would come from an increased territorial government allotment to MACA, meaning nothing is set in stone yet and all is dependent on what the new government decides to do after the fall election.

"At this time, we don't have any plans for moving forward," said Grace Lau-a, director of community operations with MACA. "We're currently in the planning stage for how to present our information to the next legislative assembly after the election. The GNWT's budget will determine if any new funds get distributed to communities."

If MACA's suggestion is fully implemented, it would mean a boost to most communities in the NWT.

"It would be like a double or more of what we're currently getting," said Whelly.

However, the new formula might not offer as big a boost to smaller communities that don't collect user fees for water and other services, Whelly said.

"Some of the smaller, unincorporated communities do not tax themselves and often do not have much if any user fees, so there is an expectation that going forward smaller communities will have a little more onus put on them to raise their own funds," said Whelly.

Whelly admits there could be some resistance to the new formula from these communities.

"Change like that might not always be accepted," said Whelly. "It comes with increased responsibility. MACA is willing to increase its funding, but it's looking for all communities to also step up making sure that they're collecting a fair share from their residents."

With the new plan, Fort Simpson would be able to budget for big capital expenditures such as a new or improved rec centre, which Whelly estimated could be a $40-million project.

"The money we get for capital goes mostly into repair, not really lengthening the life or anything, so we'd like to start putting money aside making a real capital plan that you could see 10 years out what new infrastructure you need to build and what major upgrades you need to undertake," said Whelly.

The village is asking Yellowknife to vote by proxy on its behalf because it does not want to antagonize its public sector union - with whom the village will be negotiating a new contract soon - by crossing the Hay River picket line.

"We consider it would be disrespectful to our own union to cross a picket line in Hay River to go to a meeting over there, but we still want to make sure we support that resolution," said Whelly.

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