Thank you, Madam Chairperson. Bill 7, Municipal Statutes Amending Act, proposes to amend the Cities, Towns and Villages Act, the Hamlets Act, the Charter of Communities Act, the Settlements Act, the Local Authorities Election Act and the Property Assessment and Taxation Act.
The proposed amendments include: provisions which will allow councils to enter into lease agreements not exceeding 10 years, providing the authority to transfer GNWT programs and services to municipal corporations, allowing both tax and non-tax based municipal corporations to borrow for land development, reducing maximum period for giving notice to a municipal corporation from 60 to 30 days, and also for providing for the appointment of chief municipal electoral officer.
Madam Chairperson, while reviewing the bill, the Minister of Municipal and Community Affairs proposed amendments. The largest of these amendments removed the entire tax sales provision. Other amendments proposed by the Minister made minor changes regarding the chief municipal electoral officer, long-term leasing of personal property and refunds on the overpayment of taxes. Madam Chairperson, the Standing Committee on Infrastructure supported these amendments and moved motions to amend the bill in standing committee.
The Committee held public hearings on the bill on February 19th and 26th, 1997. During these meetings, committee members heard a presentation by the Northwest Territories Association of Municipalities. The Association identified its strong support for the proposed amendments and outlined its high level of involvement while developing the bill. The Committee also heard a presentation asking that the bill be amended to allow municipalities to borrow from a variety of sources when seeking short and long term funding. Committee recognizes such amendments are outside the scope of this bill, but remains interested in the proposal and looks forward to a more detailed review at the appropriate time.
The Committee members raised a concern with the long term borrowing provisions of this bill. Under the proposed legislation, communities would be able to borrow for the development of up to three years worth of lot demand and then pay back the loan with revenues from leasing the lots. Members noted that this could place communities at risk and questioned the reliability of leased revenue.
Keeping in mind these concerns, Madam Chairperson, the Standing Committee on Infrastructure passed a motion that Bill 7, the Municipal Statutes Amending Act, be reported to the Assembly as ready for consideration in the committee of the whole, as amended and reprinted. Following the clause by clause review of this bill, Members identified a subsequent concern regarding the maximum period for giving notice to a municipal corporation. The bill outlines that this maximum period would be decreased from 60 to 30 days. Members wanted to provide communities with the flexibility to establish a longer notice period by bylaw. Members felt that this flexibility would help meet the unique needs of remote northern communities. The committee will be introducing a motion to this effect during the clause by clause deliberations. Thank you, Madam Chairperson.