My third return, Madam Speaker, if I may, is to a question asked by Mr. Ballantyne on February 24, 1994 regarding the block funding agreement involving the Yellowknife sewer system.
As of February 16, 1993, a block funding agreement between the city of Yellowknife and the Government of the Northwest Territories has been in effect. Under the terms of this agreement, the Government of the Northwest Territories has agreed to contribute $4.1 million to the city in each of the 1993-94, 1994-95 and 1995-96 fiscal years. This funding support is being provided in order to assist the city in its delivery of municipal programs and services that are normally eligible for funding under the capital and operations and maintenance programs of the department.
The agreement allows for the city to request extraordinary funding for projects which do not fall under the parameters of the department's municipal capital assistance program, or the municipal operating assistance program. An example of such a project has been the sewer and water upgrading work on the city's central business district. In 1993, the Financial Management Board approved $1.2 million for work to be undertaken during the 1993-94 construction season.
In November 1993, the city submitted a request for extraordinary funding support for water/sewer upgrading of the School Draw area, which has also been experiencing a severe degradation of the water/sewer lines.
Over the past several months, there have been ongoing discussions between the city and department staff on the long-term requirements and priorities for water/sewer replacement and upgrading for the entire city. As a result of these deliberations, the department is in the process of preparing a submission to the Financial Management Board. The submission will request extraordinary funding assistance for the city in support of its long-term water/sewer infrastructure replacement program. It is anticipated that this submission will be reviewed by the Financial Management Board in the near future. Thank you, Madam Speaker.