Funding flub leaves Fort Simpson short
Council decides to re-apply instead of going forward with current funding granted under Small Communities Fund
April Hudson
Northern News Services
Thursday, April 14, 2016
LIIDLII KUE/FORT SIMPSON
Fort Simpson will be re-applying for $559,500 in funding for its proposed fitness centre in order to cover the project's full cost of $746,000.
A mistake on an original funding application led to Fort Simpson receiving reduced funding for its proposed fitness centre. - April Hudson/NNSL photo
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On March 16, the federal and territorial governments announced the village would be receiving $447,514 under the Small Communities Fund to offset the total amount of the project.
However, councillors threw their support behind a new funding application on April 4 after learning the amount granted was less than the $559,500 they had bargained for.
Small Communities funding is allocated on a 75-25 basis, meaning a community must cover 25 per cent of a project in order to receive federal funding for the remaining 75 per cent. Senior administrative officer Beth Jumbo said the funding mix-up likely occurred because the $559,500 the village had requested from the federal government had been mistaken about the full cost of the project.
Mike Drake, regional superintendent with the Department of Municipal and Community Affairs, confirmed in council chambers the funding discrepancy could only be corrected with a new application.
"You basically have to redo the application," he said.
Councillors were given the choice of supporting a new application for funding or commit to funding the outstanding amount out of next year's municipal budget.
The application is to be submitted to the Department of Municipal and Community Affairs. The next deadline for that is the end of June.
"We could re-apply, wait for the June deadline, or we could just go with the (amount given)," said Mayor Darlene Sibbeston.
Councillors chose the former.
Before calling the decision to a vote, Sibbeston said some of the plans for the fitness centre are still liable to change, such as a health bar that was originally included in the design but will likely not happen.
When contacted for comment, Infrastructure Canada said the GNWT is responsible for project identification and selection, and specific community allocations are established by the territory. Spokesperson Jen Powroz stated in an e-mail Infrastructure Canada agreed to provide a contribution to the Fort Simpson project at the level requested by the GNWT.
"According to our funding agreement with the GNWT, should a project be completed as planned, there will be no reason to alter the funding," Powroz stated when asked.
"However, if a project is formally withdrawn or cancelled, the funding would be returned to the territorial allocation and may be used for another eligible project of the territory's choosing."
Eleanor Young, assistant deputy minister with Municipal and Community Affairs, said the village will still have access to a pool of money set at a little less than $1.7 million.
"That money is available between now and 2022 for them to apply for projects on their capital plan as they see fit," Young said.
The new application would include all new information, including changes to the budget and scope of the project.
Fort Simpson's funding was one of 13 projects approved by the GNWT and federal government.
