Thank you, Mr. Chairman. I am pleased to speak to this committee about the Municipal Statutes Amending Act 2. This Assembly passed the Municipal Statutes Amending Act 1 last March, which made a number of changes. Municipalities need it right away to be able to meet their current responsibilities. One of these changes was to allow hamlets and charter communities to borrow for land development purposes. The Municipal Statutes Amending Act 2 would make amendments to borrowing powers that would save municipalities money.
Mr. Chairman, right now municipalities can only borrow from banks or from government. The proposed amendment would give municipalities more choice about who they can borrow from. This flexibility would make it possible for municipalities to shop around and find the best deal on the market.
Long-term borrowing by non-tax based communities will still be limited to land development projects. The department will continue to monitor the financial status closely, and will be able to refuse permission for borrowing if necessary.
These amendments were developed by the Municipal Legislation Review Committee which is co-chaired by the President of the NWT Association of Municipalities and my Deputy Minister. The Department of Finance also assisted in preparing these amendments.
Mr. Chairman, later I will be making a motion to amend this bill. The intent of this motion is to permit an exemption from the rate payer approval required for long-term borrowing by law where the borrowing will result in a net savings to the municipality. This will allow municipal taxing authorities to take advantage of opportunities to save their rate payers money that they might otherwise miss because of the time it takes to hold a vote.
The motion would also make some of the wording in the rate payer approval exemption provision clearer. Mr. Chairman, I am confident that these amendments strike the right balance between giving municipalities the flexibility to meet local needs and making sure that they do not get in over their heads. Thank you, Mr. Chairman.