Mayor seeks 'clear commitment' from GNWT on funding shortfall
Territorial government should 'step up' on underfunded communities issue, says Heyck
Shane Magee
Northern News Services
Wednesday, March 2, 2016
SOMBA K'E/YELLOWKNIFE
Mayor Mark Heyck isn't looking for anything fancy in advocating for the territorial government to fix its funding shortfall for municipalities - he just wants properly maintained sidewalks and other core infrastructure.
Mayor Mark Heyck says he had hoped to see a stronger commitment from the GNWT to address a community funding shortfall. - Shane Magee/NNSL photo |
Last year, a joint review of the money granted to community governments by the GNWT and Northwest Territories Association of Communities found local governments have been underfunded by about $40 million per year. Heyck said it's money that could be spent on infrastructure such as roads or recreation facilities.
The mandate for the 18th Legislative Assembly released last month says the government will "develop a strategy to close the gap in funding levels to meet municipal core needs."
That falls short for Heyck.
"What we need is a clear commitment that the territorial government intends to close that gap," he said Monday.
"I think the strategy is there, it's a matter of how long it's going to take."
The city could see an additional $7 million from the territory if the new formula was fully implemented, according to figures from the association of communities.
"It is ambiguous language," said Sara Brown, CEO of the Northwest Territories Association of Communities, a lobby group representing community governments.
She declined further comment on the issue until the association has been able to meet with GNWT officials to get a better indication of its intentions.
Brown said the deputy Municipal and Community Affairs minister is expected to attend a March board meeting where the topic will be discussed. They are hoping to meet with Minister Robert C. McLeod, she said.
In an interview yesterday, McLeod said closing the gap depends on the government having money to spend.
"In an ideal world, that's what you'd like to be able to do," McLeod said when asked if the assembly would begin boosting community funding.
"But recognizing that we have some financial challenges, we'll continue to work to see if we can start flowing the money to the communities where some of the funding requirements are needed.
"A lot of it depends on the fiscal environment that we're in," said McLeod, who is also finance minister.
The minister has previously said the GNWT will start running deficits by 2020-19 if it doesn't find $150 million in cuts and additional revenue.
For Yellowknife, the mayor said additional funding could be spent on things like sidewalk maintenance or the replacement of the pipeline under Great Slave Lake that carries the city's drinking water from the Yellowknife River, a project estimated to cost $20 million.
"It's a matter that's very, very important to us," Heyck said. "We have limited revenue-generation tools at our disposal and we need the territorial government to step up to make sure that local governments - and by extension local economies - are strongly supported by proper infrastructure."
The mayor said he doesn't expect the territorial government, facing tight finances already, to fully address the funding gap all at once but he hoped to see an indication it would begin tackling the shortfall.
"Certainly, we don't want to see that gap grow any further," he said.
Both Brown and Heyck said they plan to continue lobbying the government to close the funding gap.
Heyck said community leaders will have to work together to apply pressure.
He also pointed out that the association had surveyed candidates during the fall election about the issue and those now in office representing the city stated they would work to fix the issue.
"Now it's time for those candidates who committed to working with local governments to close that gap to keep their word," Heyck said.
He's hoping to see a clearer blueprint for how the funding will be implemented.
What positions did Yellowknife MLAs take about a new funding formula while campaigning for the election?
Frame Lake MLA Kevin O'Reilly: Supported making the issue a priority of the assembly and would seek a phased approach to ending the shortfall.
Kam Lake MLA Kieron Testart: Proposed having the GNWT spend an additional $25 million in municipal infrastructure.
Range Lake MLA Caroline Cochrane: Because of the budget situation she wouldn't make any promises to provide money.
Great Slave MLA Glen Abernethy: It should be a priority and said a phased approach, potentially taking money from other parts of the GNWT budget, would be the best method to close the gap.
Yellowknife South MLA Bob McLeod: Vital to review and modernize formula and it should be a priority.
Yellowknife Centre MLA Julie Green: The formula needs to be modernized and would support a phased change. She said existing infrastructure should be funded before committing to new projects.
Yellowknife North MLA Cory Vanthuyne: Hoped for a phased implementation and said he'd see to it the funding is included in the GNWT budget.
**Answers are condensed and paraphrased
Source: NWT Association of Communities candidate questionnaire
