Thank you, Mr. Speaker. I am pleased to speak to you today about the 2001-2002 Main Estimates for Municipal and Community Affairs.
Community governments are important partners with the GNWT in providing effective governance. MACA supports the development and operation of strong and capable community governments. The work we will do in this area will help us to meet the goal of better governance through partnerships identified in Towards a Better Tomorrow.
MACA is requesting $60.8 million in operating expenses for the 2001-2002 fiscal year. We are also requesting $4.2 million for capital acquisitions.
Almost 70 percent of the operating expenses that MACA is requesting will go to communities. Just over $40 million will go directly to community governments in the form of operating grants and other contributions, including:
- • Community government funding under the new formula funding proposal;
- • Grants-in-lieu of taxes;
- • Senior citizens and disabled property tax relief;
- • Water and sewer services subsidy;
- • Mobile equipment operations; and
- • Infrastructure contributions.
An additional $800,000 will go to community governments and other local organizations to fund community development and capacity building through:
- • Fire training funding;
- • Recreation funding;
- • The community development fund; and
- • Regional leadership contributions.
The 2001-2002 Main Estimates reflect the new community government funding proposal. The proposal was developed as a way to distribute available community government funding as fairly and equitably as possible. I have consulted extensively with the NWT Association of Municipalities and community governments on this proposal.
Several community governments will see increases in their funding this year as a result of the funding proposal. No community government will face a reduction in funding this year because of the proposal.
MACA shares the concerns that Members have about community government capacity. During 2001-2002, MACA will continue to take steps to ensure that community governments have the support they need to manage effectively. For instance, we will make arrangements to provide improved engineering advice to community governments.
We are also taking steps to help communities better manage their finances. MACA has introduced a new quarterly financial report that will help community councils better understand their financial position. We have also made arrangements with private northern accounting firms to improve our ability to provide financial management support to community governments.
The School of Community Government continues to help community governments and related organizations access training programs in many areas.
MACA will also work to draft community government legislation during 2001-2002. Existing legislation is outdated and restricts the kinds of decisions that community governments can make. Updated legislation will provide greater flexibility and broader powers and responsibilities to those community governments that want them.
MACA will also need to develop new community government legislation as a result of self-government negotiations. Under the agreement-in-principle with the Dogrib, MACA is required to introduce Dogrib community government legislation. This legislation will include many of the amendments that we are proposing for our other community government legislation.
Thank you for this opportunity to present MACA's proposed main estimates. I will be pleased to answer any questions and respond to your comments now. Thank you, Mr. Chairman.