N.W.T. gov't suggests need-based municipal funding model

A new model that will change how the territory's 33 municipalities receivegovernment funding is being proposed by the N.W.T.'sdeputy minister of Municipal and Community Affairs.

Tom Williamssaysit was time to take a 'hard look' at howthe department doles out funds. The current model is based on community size and population. Under the new model, proposed by MACA, funding will be distributed based on need.

"What we have doneis that we are looking at the infrastructure needs of each community, looking at the life span of those assets," says Williams.

The new funding model was created following consultations with a working group, who worked closely with the Northwest Territories Association of Communities. Seventeen communities were represented in stakeholder meetings, and government staff are currently visiting all communities in the territory gathering feedback.

Inuvik would benefit

If the new funding formula were applied today, it would recommend an extra $38 million total in funding to Northwest Territories communities.Inuvikwould be one of the beneficiaries of the increased funding, and mayor Floyd Roland welcomes the move, saying it could mean lower taxes for residents.

"With this adjustment, in total, we could see in the neighbourhood of two and a half million dollars on the plus side for our community," says Roland.

Under the new proposed model, smaller communities in the territory will be expected to generate revenue through taxes, user fees, and property rentals. Williams says that with the potential for increased funding from the government, "communities have to put some skin in the game themselves."

"You know, it'samazing how much money is generated in the community through hall rentals, equipment rentals, so there were other means for even our smallest communities to generate revenue." he says.

"So what we are saying under part of this new formula now, they would have to pony up some of that money as their ownsource revenue into the equation."

Mayors will discuss the plan next week at the Northwest Territories Association of Communities Annual General Meetingat theK'atl'odeecheFirst Nation reserve, near Hay River.

The proposed funding changes still needs to be voted on in the legislature, which Williams says won't happen until after the territorial election this fall.