Thank you, Mr. Chairman. The department has provided Municipal Capital and Operations and Maintenance Program to community governments for over 20 years. These programs have evolved, and have been generally successful in meeting the basic needs of municipal governments for infrastructure, administration and services, and program delivery.
For the 1992-93 fiscal year, estimates for operations and maintenance of $59.417 million are proposed. An increase of 1.3 percent over 1991-92. There are 148.8 person years proposed in 1992-93. An increase of four person years from 1991-92.
In May of this year, Cabinet approved the municipal operating and capital assistance policies. These policies are directed at providing programs of assistance to community governments, which promote greater autonomy and accountability.
The department recognizes the local way of getting things done, it encourages self-sufficiency, and the development of strong community governments.
To establish equity in allocation of funding, provisions are made in the policies, based upon criteria standardized for all municipal governments. Municipal governments should contribute to the capital costs of their municipal infrastructure, and should be involved in the planning, management, and implementation, of capital infrastructure projects depending on their willingness and ability.
Within this framework, financial assistance should be sensitive to the financial constraints on both the government of the Northwest Territories and municipal governments. Communities, to reduce costs and increase efficiency, must be sought by the department, and the municipal governments working together.
The municipal operating and capital assistance policies provide a framework for financing municipal governments. The policies provide the municipalities with the level of assurance that they will receive an equitable proportion of the overall funding available.
Consultations with the N.W.T. Association of Municipalities, as well as other local government forums, have indicated there is sufficient support at municipal levels for these policy initiatives.
In the coming year, the department proposed budgetary growth of approximately $3 million, is partially offset by program reduction of $2.2 million. Much of the reduction results from the department finding better, and more affordable ways to using the resources available.
Each program in the department has come under close scrutiny, to ensure value for money is obtained. We are seeking to do better, what we now do well.
For this year, the department budgetary goal is largely dictated towards assisting local governments to maintain municipal buildings, and infrastructure provided with the assistance with this government. As well increased assistance is being provided to municipalities for inflationary growth of six percent, due to the electrical rate increases announced by the Public Utilities Board, April 1, 1992.
Additional expenditures are proposed to quicken the ongoing political development of the settlements, and settlement corporations. In total, an additional $1.032 million is proposed for transfer payments to hamlets to assist in their operational costs. These additional resources will assist hamlets to maintain essential services. Despite these increases, the department continues to hear of the growing pressure on municipal coffers, resulting from new roads, new and expanded public buildings, and associated infrastructure growth in municipalities.
Mr. Chairman, the settlements also require additional financial resources as a result of taking on new responsibilities for construction of infrastructure, for further acquisition of needed equipment, and an additional $112,000 has been proposed in 1992, and 1993, to ensure basic levels of municipal services can be provided in settlements, and in incorporated settlements.
Mr. Chairman, in our budget, we continue to place emphasis on providing accessible recreation facilities for all community residents. Increased funds of $396,000 are proposed for the recreation facilities operating subsidy, to assist in the operation of newly constructed recreation facilities. The department, in anticipated settlement of the Gwich'in land claims, has proposed funding to compensate the town of Inuvik for the selection of municipal owned, and developed land within their municipal boundaries.
The department is proposing $152,000, in anticipated finalization of Gwich'in and T.F.N. claim agreements to administer the new Commissioner's lands, obtained through additional back land transfers from the Government of Canada.
The new resource requirement will be offset from new land revenue associated with the transfer of these Crown lands, estimated at $325,000.
Mr. Chairman, in response to the Expenditure Management Program introduced by the government, the department saved over $1 million dollars in 1991-92. The department has a proven track record of good fiscal management, as evidenced by the 1991-92 savings.
For 1992-93, further reduction measures are necessary. A program reduction of $800,000 is planned for the Water and Sewage Services Subsidy Program. The reduction will be implemented by the continuing effort to lower economic rates for water and sewage services in hamlets, and by reducing excess surpluses in hamlet water/sewer operating accounts.
These measures should realize the savings noted without affecting program delivery to community residents. The department is also proposing to reduce salaries and wages in 1992-93 by $500,000, and four person years. This reduction is being achieved without adversely affecting programs and services to the public, while minimizing the disruptions to staffing levels and moral.
A comprehensive human resources strategy was developed by the department, allowing for these reductions without significantly lowering service levels to our major client/community governments. There will be more sharing, and better integration, of work loads within the department.
Mr. Chairman, additional reductions of $446,000 in 1992-93 are proposed for other operational maintenance. This reduction will, no doubt, have some effect on the department's ability to carry out its responsibility, but we are committed to minimize the impact of this cut in funds by economizing, and good planning.
The Sport North Federation contribution has also been reduced by $250,000. Travel and operational areas in the federation will be affected. The department, and Sport North are consulting on a continuing basis to explore creative options for the Federation to continue to finance a high level of services to the northern sport community.
The Homeowner's Property Tax Rebate Program has been reduced by $245,000 in 1992-93. This program encourages home ownership in the N.W.T. This reduction has reduced the maximum allowable property tax rebate in the municipal taxation areas by 25 percent, from $400 to $300, and from $100 to $75 per homeowner in the general taxation areas.
Finally, the Recreation Salary Subsidy Program has not received additional funds to allow current subsidy levels be maintained for recreation leaders in 1992-93. This reduction was a choice to fund all current positions under the program, and has meant a lowering of salary subsidy to all 73 positions funded.
In a period of severe financial restraint, and within the resources available, I am providing funding which will allow for greater local priority setting. I recognize our partnership role, as the bulk of my department's funding is for direct community programs and services. Community governments know this, and I am confident they will ensure there is good value for the public's money.
Mr. Chairman, I will be happy to answer any questions, and I would like to request that I be allowed to bring in witnesses.