Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the Department of Municipal and Community Affairs' main estimates for the fiscal year 2006-2007.
The department is requesting $110 million in operating expenses and $2.6 million for capital acquisitions for the 2006-2007 fiscal year. This represents an increase of 14 percent. Beginning in 2006-2007, the department's budget includes a stable ongoing funding commitment of $28 million for community public infrastructure. This enhanced capital funding, which was first announced in the 2005-2006 budget address sets the stage for the move to capital formula funding on April 1, 2007, as part of the implementation of the New Deal for NWT community governments.
Eight percent of MACA's operating budget is in the form of grants and contributions, the bulk of which flows directly to our key stakeholders: community governments. This includes formula funding for community government operations and additional funding for sport and recreation programs, water and sewer services, municipal insurance, grants-in-lieu of property taxes, infrastructure projects and community development.
Communities continue to face increasing pressures including compliance with regulatory requirements, demand for services from residents, pipeline development, changes in governance arrangements, demand for land development and rising energy costs. Community governments are finding it difficult to recruit and retain capable staff in a competitive employment environment.
The new initiatives included in MACA's 2006-2007 main estimates are designed to help address these pressures.
Funding is requested to extend four term staff positions to assist community governments in undertaking preparations for the proposed Mackenzie gas project. MACA staff have been actively assisting community governments as they prepare for the upcoming panel hearings. In addition, significant effort is being undertaken to ensure that communities have up-to-date and relevant bylaws and user-fee agreements, affording them the opportunity to maximize the benefits of resource
development activities associated with the Mackenzie gas project.
Additional resources are also included in the 2006-2007 main estimates for term positions to address the increasing demand for land administrative services. These resources will assist community governments to address urgent pressures that are being experienced in all regions. Additional resources will result in improved land administrative service levels to the public across the Northwest Territories, and enhance the capacity of community governments to take on land administration activities.
A multi-departmental drinking water quality framework has been put in place to ensure all communities are provided with drinking water that meets federal guidelines. Recent developments in northern Ontario remind us of the importance of this issue. In addition to activities already underway, the department will use additional funding in 2006-2007 to assist communities with water licence applications and assist with training and certification of water treatment plant operators.
Communities need assistance to address rising energy costs. In 2006-2007, the department will continue to work with the Arctic Energy Alliance on its Community Energy Planning Program. In partnership with the NWT Association of Communities, the department will help communities to develop community energy plans as part of the broader requirements of the gas tax funding agreement.
The department continues to play an active role in delivering on the GNWT's strategic priority of healthy living.
Funding for the 2007 Canada Winter Games will enable NWT youth to become involved and will support the showcasing of traditional sports at the games. One-time funding for the Healthy Living Strategy will support the rollout of the second year of the Get Active physical activity challenge. Last year, more than 15 percent of territorial residents got involved in this challenge designed to promote physical activity.
Youth initiatives remain a priority for the department. One-time Northern Strategy funding will be used to build on existing programming and pilot some new approaches to support Northwest Territories youth to develop the skills they need to succeed and contribute to their communities.
During the 2005-2006 fiscal year, the government made $35 million available through the community capacity building fund to support communities in addressing local priorities. Any funds that are not expended by the end of this fiscal year will be carried over to 2006-2007, so that the communities still have the opportunity to make an application.
The New Deal for the Northwest Territories community governments remains a strategic priority of the department and the Government of the Northwest Territories. An initial round of community consultations was conducted over the spring and summer and the response from communities was positive. The department is committed to continue to work with the communities to ensure that their concerns, needs and unique pressures and challenges are addressed during and after implementation of the New Deal. I am pleased to report that good progress has been made on this initiative.
One highlight is that 2005-2006 was the first year in which the department distributed the property tax revenues collected within community boundaries in the general taxation area directly to community governments. This resulted in $250,000 in incremental funds going directly to the 18 non-tax-based communities.
Another highlight is that as a result of increased capital funding announced in last year's budget address, the department has been able to add several new community projects to our capital plan. I am particularly pleased to note the inclusion of several recreation infrastructure projects, including a gym for Nahanni Butte and an above-ground swimming pool for Tulita.
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One of the driving forces behind the government's New Deal was recognition of infrastructure pressures facing communities and the need to provide communities with the tools and the resources to deal with those pressures.
The 2006-2007 fiscal year is the last year where MACA will play the leading role in capital planning and development for most of the non-tax-based communities. Beginning April 1, 2007, MACA will provide capital funding to community governments through a formula. This new approach will not only give communities the authority to make decisions about community infrastructure, but the flexibility to lever funding from other sources, enter into partnerships and get more value for money.
In preparation for the transfer of full capital authority, the department is working with all 33 communities to undertake a baseline assessment of existing community infrastructure. The intent of the assessment is to tell us where immediate repairs or replacements are required. The results of the baseline assessment will also provide communities with a starting point for developing their own capital investment plans.
Over the next year, the department will consult with communities on a proposed formula funding approach and work with the small communities to develop transition plans so that all communities are positioned to assume new authorities for capital planning and development.
While the department is pleased to be able to provide enhanced funding, we recognize that government resources alone will never be sufficient to address all the infrastructure needs in communities. An exciting development over the past year has been the injection of $37.5 million in gas tax funding over five years beginning in 2005-2006, which will provide additional assistance to community governments. Community governments can use this funding for a variety of environmentally sustainable municipal infrastructure projects. Communities will be able to use this funding for dust control, among other things. Continued funding under the federal Municipal Rural Infrastructure Program has also supported the fast-tracking of infrastructure projects.
Over the past year, many of our achievements have been due to the support of our key partners. The Northwest Territories Association of Communities has provided excellent support during the negotiation of the gas tax
funding agreement and continues to work closely with the department on the implementation of the New Deal.
The local government administrators of the Northwest Territories have provided the expertise of community staff to support the department on several policy initiatives. The newly formed Sport and Recreation Partners Council is already bringing forward exciting ideas for collaboration with government departments. Sport North was fundamental to the success of the inaugural NWT Games over the past year, and the NWT Parks and Recreation Association has shown leadership in bringing together several funding sources to provide communities with access to recreation infrastructure funding. It is the department's intent to continue to work in partnership with these and other stakeholders in order to reach our common goals over the next year.
In closing, the department's draft budget provides additional funding for community governments, provides new resources to encourage healthy living, and responds to the needs of our communities. Thank you, Mr. Chairman. Mahsi.