Thank you, Mr. Chairman. Could the deputy minister tell me exactly how many of these block funding arrangements we have in place and how many communities are we talking about?
Debates of Feb. 11th, 1998
Topics
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Ballantyne
Thank you, Mr. Chairman. Mr. Chairman, block funding arrangements are in place for all tax-based communities in the Northwest Territories with the exception of Norman Wells and Iqaluit. Thank you.
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James Rabesca North Slave
Thank you, Mr. Chairman. I would like to ask the Minister regarding the retrofit fire pumper in Snare Lakes on page 4-18. I was wondering what the fire pumper is really referring to? Is that something to do with a fire truck? What type of equipment is that?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Manitok Thompson Aivilik
Thank you. It is a fire truck and accessory package. Thank you.
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The Chair Vince Steen
Thank you, Madam Minister. Mr. Rabesca. Total region, page 4-19, $5.817 million. I recognize Mr. Roland.
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Floyd Roland Inuvik
Thank you, Mr. Chairman. On the block funding agreements, is there a formula for the capital amounts? You say this is a three year agreement and I see a number of other block funding communities and the figures vary. Your first response to one of the other Member's questions, you said there was no requirement for them to lay out what they were planning to spend the funds on. Is there a formula set up as to what communities receive in block funding capital or is it based on requirements they are asking for when they sign the agreement?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Manitok Thompson Aivilik
Thank you, Mr. Chairman. I will refer that again to the deputy minister.
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Ballantyne
Thank you, Mr. Chairman. Mr. Chairman, when the department is negotiating block funding agreements with tax-based municipalities there are a number of factors that are taken into consideration in agreeing on the amount of capital that will be block funded. One is prior years' capital projects and commitments that may flow out of those prior years. For example, design work may have been done the year before for a facility that is scheduled to be built the first year of the block funding agreement, so that commitment would be reflected in the block funded amount. The other would be the projects that have been identified in the capital plan for that community, which would have already been disclosed here when we are looking at prior years of funding. When we bring the budget into the Legislature, those projects would also be factored in. These block funded arrangements are in place for a maximum of three years. There is a review process as they come up for renewal. Thank you.
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Floyd Roland Inuvik
Thank you, Mr. Chairman. Is this just a one year figure? To understand this properly, on the block funding agreements here, we have for example right in a row we have Fort Simpson, Fort Smith and Hay River all different amounts. Is that for three years they will receive that amount, or is that fluctuating with the projects that are ongoing?
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Ballantyne
Thank you, Mr. Chairman. Mr. Chairman, I am advised that would be a consistent amount for each year. Thank you, Mr. Chairman.
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David Krutko Mackenzie Delta
Thank you, Mr. Chairman. Regarding this block funding for $1.525 million, if this is on an ongoing, year-to-year basis, I think it is the formula that we especially in the municipalities, would probably love to have, some sort of arrangement like this where they receive this amount of money in one year, especially when it comes to capital. I would like to ask the deputy minister, if this is only allowed to the tax-based communities, what alternatives do the municipalities have to come up with such an arrangement like this for themselves so it sounds like a better arrangement than the way they do it now where you have to prioritize your capital? At the end of the day you are told, that is all you are getting and this is all you have to work with. You have to cut a lot of items that you would not mind having in where you have to decide between equipment or infrastructure so that at the end of the day the community does not always get what it wants. What is the arrangement between this block funding arrangement and what is in place to help the municipalities?
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Manitok Thompson Aivilik
Thank you, Mr. Chairman. Those are exactly the same comments that we have been hearing from the mayors in the Keewatin region that these communities are too small to take on a block funding, they want to do it as a body. It is exactly the same comments that the Member is talking about. I will refer the question to the deputy minister, she can elaborate more on that topic. Thank you.
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Ballantyne
Thank you, Mr. Chairman. Mr. Chairman, I think one of the important differences between the tax-based and nontax-based communities when it comes to block funding is that the tax-based municipalities are raising a significant amount of revenue through taxation which the nontax-based communities are not. The mill rate for the municipal taxation area is significantly higher than the mill rate in the GTA, therefore, the tax-based municipalities are contributing a significant amount of their own revenues to capital projects. What you are seeing here in the book is only a percentage of the total revenue that would be spent. The municipality itself will raise the remainder through taxation. The other comment I would make is to agree that we are hearing these same concerns about the lack of ability to include community priorities in departments capital plans and that is what we are attempting to do through the Keewatin pilot, to see if we can find an alternative way of having these decisions made at the community level for small nontax-based communities so that they can enjoy a degree of flexibility that currently we can only provide through these block funding arrangements with tax-based municipalities. Thank you, Mr. Chairman.
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David Krutko Mackenzie Delta
Thank you, Mr. Chairman. You said that you have a report that identifies exactly the breakdown of that $1.525 million. Could we get a copy of that before we conclude this portion of the budget?