This is page numbers 1459 - 1499 of the Hansard for the 14th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was community.

Topics

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Community financial services, budget summary, operations expense, total operations expense, $1,648,000. Mr. Miltenberger.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. I wonder if the Minister could indicate just the general overall view of the financial health of the communities. There has been a lot of discussion in the House about boards and the problems they are having with deficits. One of the examples that has been held up is the communities that seem to be running quite well, especially some of the larger ones that I am aware of, in places like Fort Providence, which probably has one of the best SAOs in the Northwest Territories. I wonder if the Minister could give us a sense of are they operating in the red or the black in terms of the financial health of the communities? Thank you.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

Mr. Minister.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Roger Allen

Roger Allen Inuvik Twin Lakes

Thank you, Mr. Chairman. I will ask the deputy minister to give you an overall review of the positions of the municipalities across the Territories. Thank you.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair David Krutko

The deputy minister, Mr. Murray.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Murray

Thank you, Mr. Chairman. At the present time, we have four community governments that are reporting an accumulated overall deficit. We are working closely, almost on a one-on-one basis, with each one of those communities to assist them in developing the planning and the controls, including the training of SAOs and whatever that takes to work with those communities to get them out of their deficits.

In addition, there are six other communities that are potentially heading towards deficits in the future, if current trends continue. This past year we instituted a trends monitoring report that we can provide to the communities that will allow the councils and the SAOs to realize, before the auditors come in after the end of a year, that problems may be on the horizon.

For instance, the six that are heading towards difficulties, we might not have even known about their difficulties in some cases until three or four months from now when the audits came out. Now we are able to work with those communities today and try and help them come up with plans that will allow them to recover and get out of their potential deficit situations. Thank you.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Murray. Mr. Miltenberger.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. Could the Minister indicate for tax-based versus non-tax-based, how the financial health looks? I was not quite sure if he did that when he gave the numbers. I know there are audited statements done every year. How are the larger communities doing as well, or was that included in the numbers? Thank you.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Miltenberger. Mr. Murray.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Murray

Thank you, Mr. Chairman. Yes, that includes tax-based and non-tax-based in those totals. I believe there is one tax-based that is in that situation and none of the tax-based in the ones that may be heading for trouble.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Murray. Mr. McLeod.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael McLeod

Michael McLeod Deh Cho

Thank you, Mr. Chairman. I would like to ask the Minister a question regarding the formula financing. I wanted to know if he could tell me how many communities have responded to this formula, and if they have, how many of them have expressed concern over how it will affect them over the next while?

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. McLeod. Mr. Minister.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Roger Allen

Roger Allen Inuvik Twin Lakes

I would just like to make a general response back to the Member. We have been to approximately 28 of the 32 communities in the Territories. I am aware of two communities that objected to the proposal. Those were Enterprise and Aklavik, who had stated they were concerned about the reduction in their funding. The Member is asking for specific numbers, so I will now turn the microphone over to Mr. Murray, the deputy minister.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Murray.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Murray

Thank you, Mr. Chairman. We are in the process now of putting a report together for all of the communities on that consultation process that has been going on for basically the last six months. Again, because the funding levels have not changed in the current year from what they were getting in the previous year, we will be coming out within the next month or so with that consultation report. That will allow us to know which communities we need to make changes or address specific problems with. So today, I could not tell you ten for and 20 against.

Generally speaking, in total dollars, more communities were going up than down, but that does not mean there are not problems.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Murray. Mr. McLeod.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael McLeod

Michael McLeod Deh Cho

My main concern has been, and I have heard it from other communities such as Kakisa, but my main concern is because Enterprise is going to take such a huge cut in their budgets over the next three years, I think the estimation was over $200,000 will be reduced, when you start calculating the minor capital, recreation and all these other things along with what their budget is going to be reduced by. I agree, the funding in that area is going to be small, but you have to factor in other dollars that they were getting that they will no longer receive.

Would the Minister be able to assure me that he will be monitoring at least the community of Enterprise? I can see them come upon real hard times. I want to be assured that there will be some safeguards in there.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. McLeod. Mr. Minister.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Roger Allen

Roger Allen Inuvik Twin Lakes

Thank you, Mr. Chairman. I would just like to go back on the record, when we did meet with the community of Enterprise, we did say that we will assist in monitoring the situation. We understand their concern and it was well taken. I also reassured the settlement council as late as last Friday that we will consult through the NWTAM to keep them informed of all transactions occurring as we move forward in this proposal. Thank you.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Page 4-13, community financial services, budget summary, operations expense, total operations expense, $1,648,000.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

Taxation
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Page 4-15, community financial services, grants and contributions, contributions, total contributions, $500,000. Mr. Roland.

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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Just in the area of contributions and infrastructure contributions, to be specific, unallocated tax-based, cost-shared water sewer projects, $250,000. It is a new item. Can we get some information on that, please?