Thank you, Mr. Chairman. I am here today to discuss the Department of Municipal and Community Affairs’ 2010-2011 Main Estimates. The department’s main estimates indicate that $91.288 million is required for the 2010-2011 fiscal year. This is an increase of $5.2 million or 6 percent from last year’s main estimates. The funding change is related to increased funding for community governments to address forced growth, ongoing increasing strategic investments to focus on youth programming and services, and the establishment of stable, ongoing funding to support large multisport games events.

Of the $91.2 million in funding required for the 2010-2011 fiscal year, $71.1 million or 78 percent of the total budget is to be provided in the form of grants and contributions, primarily to our key stakeholders: community governments. The capital main estimates, approved in fall 2009, provided $28 million in infrastructure contribution funding for community governments in 2010-2011 to plan for and address their capital infrastructure priorities.

MACA’s main estimates include almost $3 million in increased funding for strategic initiatives that support the 16th Legislative Assembly’s goals of healthy, educated people. A large portion of this strategic initiative funding is allocated to youth, including an increase of $200,000 for youth programs, the establishment of $400,000 in new funding for regional youth sports events where the department will provide funding to support sports events for youth in each region, and increased funding of $450,000 to provide for the establishment of three new regional youth officer positions.

There are currently two existing youth officer positions located at the Inuvik and Deh Cho regions that provide youth programming to all community governments throughout the Northwest Territories. The increased funding will result in new regional youth officer positions in the North and South Slave regions to deliver enhanced youth programs and services in each region.

MACA is developing a territory-wide Youth Development Strategy to ensure the priorities identified by youth, community residents and Members of the Legislative Assembly are addressed. The Youth Development Strategy will improve our efforts to continue successful programming and develop new tools. The increased funding in 2010-2011 will support the delivery of the Youth Development Strategy and will provide a framework for our various youth programming and services. MACA is currently consulting on the development of the strategy and anticipates that it will be released publicly in the fall of 2010.

Funding of $500,000, unchanged from the 2009-2010 fiscal year, is also included in MACA’s budget for youth centres. MACA first established this program in 2008-2009 and there has been significant interest and uptake in the program since that time. In the current fiscal year, MACA has provided funding of approximately $17,000 each to 30 different youth centres. The centres use this funding to provide for core operational costs, allowing the centres to use funding obtained from fundraising and other external sources for youth programming.

MACA’s budget also includes an increase of $415,000 for enhanced implementation of departmental initiatives related to the Healthy Choices Framework. This framework is an interdepartmental initiative of MACA, Health and Social Services, and Education, Culture and Employment. In the current fiscal year, MACA has a budget of $200,000 and is using this funding to work with our partners to pilot an after school physical activity program. Eighteen pilot programs will be implemented throughout the Northwest Territories over the period of January to June 2010.

The pilot programs will promote physical activity by providing for the purchase of much needed sports equipment and the launch of new physical activity initiatives. Increased funding made available in the 2010-2011 budget will be used to expand this after school program.

During the current fiscal year, MACA was provided with funding to establish a permanent, stable budget for multisport games events and the 2010-2011 budget reflects funding of $650,000 for this purpose. This funding will be provided annually to the Sport and Recreation Council to support Team NWT participation at the Arctic Winter Games, the North American Indigenous Games, the Canada Games and the Western Canada Games.

MACA’s 2010-2011 budget reflects the deletion of one-time funding approved in 2009-2010 of just over $1 million related to the 2010 Olympics. The majority of this funding is being used to support targeted youth initiatives such as the Youth Ambassadors Program and the Inuit and Dene

Games Demonstrations Program. Other funding was also made available to support sport volunteers under the Skilled Sports Volunteers Program and for the Olympic Torch Relay. The participants involved in these programs are very excited about their role and involvement with the 2010 Olympics and I know we are all looking forward to following their progress at the upcoming games.

A one-time funding increase of $150,000 provided to the Arctic Energy Alliance in 2009-2010 has also been removed from MACA’s budget. Total funding of $300,000 is being provided to the alliance this fiscal year for additional resources to hire additional staff to assist community governments with the completion of their community energy plans by March 31, 2010. The Gas Tax Agreement requires that all community governments complete an integrated community sustainability plan by this date and a community energy plan is one component. All community governments are anticipated to have their integrated community sustainability plans complete by the deadline.

The role of the alliance in community energy planning will shift in 2010-2011 to continue to help community governments update and implement their plans and MACA will provide funding of $150,000 to the alliance to assist with this process.

The 2010-2011 budget includes funding for ongoing activities, including the multi-departmental Drinking Water Quality Framework and the Ground Ambulance and Highway Rescue Services Program. The Drinking Water Quality Framework is delivered in partnership with Public Works and Services, Environment and Natural Resources and Health and Social Services. MACA provides training to water treatment plant operators, helps communities obtain water licences, and provides technical support, advice and assistance. The Ground Ambulance and Highway Rescue Services Program is delivered in cooperation with the Department of Health and Social Services. This funding assists eligible community governments with training, minor capital upgrades and enhancements and equipment.

The Maximizing Opportunities Initiative provides funding for the regulatory oversight and coordination related to the Mackenzie Gas Project. MACA’s budget includes funding of $408,000, unchanged from the 2009-2010 budget, to provide for three term staff to undertake review of new land use permits, plan reviews and other regulatory applications. There is also an ongoing need for the continued coordination of pipeline readiness activities in the department and other departments and with community governments. In 2009-2010, MACA deleted funding for two of the three positions from its budget and MACA will not proceed with

hiring for all positions until there is greater certainty around the next steps with the project.

MACA’s budget includes forced growth funding of approximately $3.6 million or 7.3 percent for community governments to support their operations and maintenance activities, to deliver their water and sewer programs, to provide for grants-in-lieu of property taxes, and rebates to seniors and disabled persons for property taxation rebates.

There is also a funding increase for the Property Taxation Grant Program which provides a grant to most non-tax-based community governments equivalent to the actual amount of property taxes paid to the Government of the Northwest Territories by community residents.

In addition to reflecting forced growth requirements, the 2010-2011 funding increase for community government operations and maintenance funding also reflects additional funding for Fort Resolution as a result of its change in legislative status from a settlement to a hamlet. This change in status occurred in January 2010 and MACA continues to work with the hamlet on this transition. MACA’s budget also includes a funding increase for Colville Lake due to its previously projected change in legislative status. MACA will be returning early in the 2010-2011 fiscal year to remove this funding from the budget, to reflect a subsequent decision by the community government to change its status to a designated band authority rather than a charter community.

MACA’s budget reflects increased compensation and benefits, as a result of the recently settled Collective Agreement between the Government of the Northwest Territories and the Union of Northern Workers. There are also minor funding adjustments to reflect TSC chargeback costs and the consolidation of maintenance budgets in the Department of Public Works and Services.

The Building Canada Plan is providing for $45.5 million for community public infrastructure priorities and $140 million for transportation priorities. Originally envisioned as a seven-year program, the Government of Canada recently accelerated the program to two years for those communities who wanted and were able to deliver their projects earlier than planned. MACA administers the program on behalf of the Government of the Northwest Territories, and there is a funding increase of $238,000 in MACA’s budget for this purpose. This funding is fully offset by the receipt of revenue from the Government of Canada under the Building Canada Plan.

MACA continues to work on initiatives to respond to community government requests for greater control and autonomy. MACA undertakes initiatives to assist in this process through our partnerships with the NWT Association of Communities and the Local Government Administrators of the NWT. This

continued collaborative approach ensures programs and services are relevant, practical and useful to community governments.

While many community governments have embraced their new role, others are struggling with the transition related to greater authority. Community capacity remains an ongoing challenge for some community governments.

Funding of $1 million to improve community capacity was transferred to MACA from the Department of Human Resources earlier this fiscal year and this funding is reflected in MACA’s 2010-2011 budget. MACA, the Department of Human Resources, the NWT Association of Communities and the Local Government Administrators of the NWT are currently working on piloting or implementing a series of programs and services to address challenges in the area of governance, as well as with the recruitment and retention challenges faced by community governments regarding senior administrative staff.

As I previously stated, community capacity is an ongoing issue. Initiatives to build capacity need to be long-term in nature, with results not necessarily apparent for several months or years.

Programs that support community capacity need to be sustainable, long term and adequately resourced. Pilot projects to improve community capacity are being implemented and we will continue to seek the advice of community governments, Members of the Legislative Assembly and other relevant stakeholders as we proceed with the initiative. This concludes my opening remarks and I look forward to discussing MACA’s 2010-2011 budget with Members in further detail. Thank you.