Thank you, Mr. Chairman. One of the main objectives of the department is the upgrading of community roads. I just have a few comments that I would like to make on it. The Department of Municipal and Community Affairs provides operation and maintenance funding to both tax-based and non tax-based communities. Each community receives a grant based on a formula which includes a factor for road maintenance and repair.
The allocation of the funding is at the discretion of each community, but the community is responsible for all road maintenance costs. However, for capital projects including road construction and major upgrading, M.A.C.A. provides 100 percent funding to non tax-based communities, and 50 percent funding to tax-based communities. Accordingly, to the department, occasionally a project will fall into a grey area between the two categories, and funding for road projects with the non tax-based community will be shared by the department and the community.
The Department of Municipal and Community Affairs is responsible for the development of local government with respect to the provisions of municipal programs and services. The department provides funding to both tax-based and non tax-based communities for their operation and maintenance costs. For non tax-based communities, the funding is provided to the department's operations and maintenance hamlet funding formula. The formula includes allocations for transportation, calculated according to the road use.
For roads with average use, $8.76 is allocated per metre of road, for equipment, wages and materials. For roads with heavy traffic, $9.62 is allocated per metre. The transportation allocation is also multiplied by the northern cost index, an indicator used to reflect the higher costs of doing business in some communities compared to Yellowknife.
In addition to the transportation funding, $135 is provided per culvert and $195 per street light multiplied by the northern cost index. The department provides this funding on an unconditional basis. Communities may use department calculations of average costs as a guide for their budget planning, but are not required to allot funding in accordance with that formula. However, the communities are responsible for all road maintenance and repair costs for this funding.
The Department of Municipal and Community Affairs provides additional funding to communities under the Capital Program. This program funds road construction and major upgrading for public safety and transportation, where the magnitude of the work exceeds normal maintenance and repairs. Fifty percent of the costs are provided to tax-based again, and 100 percent cost to non tax-based.
The department has a five year capital forecasting plan for funding expectant projects. According to the department, situations arise approximately once or twice a year which are not dealt with according to the above policy. There are no clear guidelines within the department to classify a project as major upgrading rather than as normal maintenance and repair.
Occasionally a project falls within a grey area and an agreement is reached whereby funding for a project is shared by the department, and the non-tax based community for its block funding. This apparently occurs primarily in situations where the department might otherwise not fund the project to this connection with the communities operation and maintenance responsibility, or might otherwise not fund it so quickly.
The proposed road upgrading in Fort Providence is such a project according to the department. The officials say that the department was approached, by the community, with a request for one half of the cost of the upgrading. The project was not budgeted for, this year, within the capital plan. The gravel application to the road, was proposed, which might be considered, and operations and maintenance is the responsibility of the community. However, as the project was needed, and was a major undertaking, the community has taken the initiative to propose cost shared work, the department agreed to contribute one half of the cost.
For another perspective, however, it might be argued that the road upgrading in Fort Providence meets the criteria of the department's Capital Program. In that, it is a major upgrading for the public safety and transportation, and the magnitude of the work exceeds normal maintenance and repairs. If so, the departments would normally fund 100 percent of the costs.
The department's five year capital plan, lists a total of 43 capital projects to its plans for non-tax based communities. One of the projects, within the Deh Cho constituency, the community road on the Hay River Reserve, is scheduled for upgrading during the 1994-95 fiscal year. There are no specific guidelines to determine whether a project will be considered, and the operations and maintenance responsibility of the community, or a capital project. The department has undertaken a policy review, of which one objective is, to develop such criteria. The policy itself is supposed to be completed by this fall, Mr. Chairman.
I would like to ask the Minister whether, or not, that policy has been developed?