Yes, thank you, Mr. Chair. I'd like to do the opening comments. Mr. Chairman, I am pleased to present the Department of Municipal and Community Affairs' main estimates for the fiscal year 2007-2008.
The department is requesting $114.6 million in operating expenses for the 2007-2008 fiscal year. This represents an increase of 8.7 percent from the department's 2006-2007 operating expenses budget. In 2007-2008, funding of $92.1 million, or 82 percent of the proposed operating budget, is in the form of grants and contributions, the bulk of which flows directly to our key stakeholders: community governments. This is an increase of $8.7 million, or 110 percent, from the 2006-2007 grants and contributions funding level. The department's grants and contributions include formula funding for community government operations, water and sewer services and capital, sport and recreation programs, municipal insurance, grants-in-lieu of property taxes, and community development.
The 2007-2008 budget reflects a stable ongoing funding commitment for community public infrastructure as part of the New Deal for NWT community governments, a key strategic priority of the Government of the Northwest Territories.
The proposed budget includes $32.1 million in capital funding, of which $22.6 million will be provided to community governments via a capital funding formula for communities to use to set their own infrastructure priorities. In addition, the budget includes an increase of $4 million for community government operations and an increase of $2.6 million for water and sewer services funding.
Although April 1, 2007, marks the date for the formal implementation of the New Deal, MACA and community governments have been working in partnership over the last two years on the development of the initiative. We have recently finalized changes to the New Deal policy framework that serves as the basis for allocating formula funding to communities for water and sewer, operations, and capital. The policy framework reflects the autonomy and authority of community governments and is consistent with recent legislative changes that put in place broad accountability and reporting requirements for community governments.
The 2006-2007 fiscal year is the last year that MACA will play a lead role in capital planning and development for most non-tax-based communities. The changed approach will provide communities with the authority to make decisions about community infrastructure, and the flexibility to lever funding from other sources, enter into partnerships and get more value for money.
To assist communities with the transition, the department has entered into agreements with five community governments to pilot the New Deal approach.
Under the pilots, communities have received funding from MACA to proceed with specific capital projects identified by their residents as a priority.
The purpose of these pilot projects is to identify best practices, gain insights into community project management needs, and determine areas where all community governments can benefit from additional support or resources during the implementation. In addition, the information gained from the pilot projects is helping MACA identify training needs and staff requirements to assist all communities in capital project implementation.
MACA has also put in place new training modules for community government staff through the School of Community Government, and is providing communities with access to resources, planning tools and other supports. The department recognizes that the implementation of the New Deal is a process that will evolve over time, and that communities require ongoing advice, support and assistance. To assist in this process, the department is working on individualized transition plans for all community governments that are taking on new authorities.
In addition to the New Deal, MACA has several other important initiatives that it will continue to advance over the 2007-2008 fiscal year.
In 2006-2007, a multi-departmental drinking water quality framework was put in place to ensure all communities are provided with drinking water that meets federal guidelines. The department's 2007-2008 budget includes resources to continue departmental work on this initiative, including assisting communities with water licence applications, and with training and certification of water treatment plant operators.
The proposed 2007-2008 budget also reflects the transfer of two positions from the water and sanitation unit of the Department of Public Works and Services. The transfer of this function to MACA will complement and strengthen the initiatives undertaken to date as part of the drinking water quality framework. The transfer will also assist in addressing the ongoing need to provide coordinated water and sanitation expertise to communities as they assume new responsibilities under the New Deal. It is critical that MACA work closely with communities to provide the necessary technical expertise that will ensure the integrity of community water and sewage treatment systems.
The department will continue to assist communities to implement the requirements of the Gas Tax Agreement. This agreement, signed in November 2005, results in $37.5 million in funding flowing to all communities in the Northwest Territories over a five-year period. As per the terms of the existing agreements, community governments will receive $6 million in funding in 2007-2008, an increase of $1.5 million from the funding provided in the current fiscal year.
The funding will be used by communities to address their infrastructure priorities related to water and wastewater treatment and distribution systems, active transportation infrastructure such as trails and sidewalks, and dust control. MACA is working with communities to determine how the gas tax funding can be combined with GNWT capital formula funding to provide for community public infrastructure. MACA also continues to work with other provinces and territories to encourage the federal government to make the gas tax funding a permanent program.
Communities continue to need assistance to address rising energy costs. The department is working with the Arctic Energy Alliance on its Community Energy Planning Program in the current fiscal year. The 2007-2008 budget includes funding for the department to continue this partnership, and to help communities develop integrated community sustainability plans, which include community energy plans. A planning conference to assist in this process was held in November 2006 and included representatives from 27 community governments.
Building on the momentum of the November conference, a second conference scheduled for April will provide a venue for the final discussion and approval of the NWT integrated community sustainability plan template. It will also assist communities to prepare for formal implementation of the New Deal through sessions on capital planning and project management, investment plans, land administration and capacity building.
The current fiscal year has seen the initiation and completion of several successful youth events, provided for on a one-time basis through funding made available under the Northern Strategy. This funding provided youth with the opportunity to participate in the Youth Trapper Training Program, the NWT Youth Leadership Program, a Youth Leaders Forum, and the National Aboriginal Achievement Awards. Funding was also used to establish a youth website to serve as a single window access point for youth on issues that may be of concern to them and to link all existing departmental youth related programs in one location. Since this funding was available in 2006-2007 only, it does not appear in the 2007-2008 budget. MACA will build on the success of these one-time initiatives and will continue to explore the potential for increased investment in youth programs through partnerships.
In the upcoming fiscal year, MACA will continue to advance GNWT priorities related to healthy living. The operational budget includes funding to continue the highly successful Get Active NWT initiative as well as funding to provide for continuation of a bilateral agreement with the federal government to support programming such as multi-sport youth camps and the NWT Games. These projects have been particularly effective in the more remote, primarily aboriginal communities, where the health and self-esteem benefits of sport are particularly critical.
Many of the initiatives we have implemented over the past year have been successful due to the support of our key partners.
The Northwest Territories Association of Communities and the Local Government Administrators of the Northwest Territories have provided invaluable insight and advice to the department throughout the New Deal initiative, and their recommendations were critical as we worked on developing options to flow capital formula funding to all communities. We look forward to their ongoing involvement as we begin the formal rollout of the New Deal in 2007-2008. The Sport and Recreation Partners Council has emerged as a significant source of input and advice as we continue our work on promoting the importance of active living, and Sport North was fundamental to the success of the NWT Games events over the past year.
It is the department's intent to continue to work in partnership with these and other stakeholders to reach our common goals over the next year. Thank you.