Ms. Cleveland.

Yes, that's correct, Madam Chair.

Mr. Simpson.

Thank you. I look forward to seeing if that happens, but it's a little strange, I guess, that, after one Assembly, we give this increase. Usually, you know, if we're budgeting, you might have to have a few years' overages before you work that into the base, so I look forward to seeing the work that this committee does in this Assembly. Thank you.

Member Cleveland. All right, so we're going back to clause 6. Agreed?

Clause 7. Agreed?

We will now return to the bill number and title. Member's Bill 1, An Act to Amend the Legislative Assembly and Executive Council Act. Agreed?

Committee, to the bill of the whole, does committee agree that Bill 1, An Act to Amend the Legislative Assembly and Executive Council Act, is now ready for third reading?

Thank you, committee. Bill 1, An Act to Amend the Legislative Assembly and Executive Council Act, is now ready for third reading. Does committee agree that this concludes our consideration of Bill 1, An Act to Amend the Legislative Assembly and Executive Council Act?

Thank you, Ms. Cleveland, and our thanks to your witnesses. Sergeant-at-Arms, please escort the witnesses from the Chamber. Committee, we have agreed to consider Tabled Document 5-19(1), Supplementary Estimates (Operations Expenditures and Borrowing Authorization) No. 3, 2019-2020. Does the Minister of Finance have any opening remarks?

Yes, Madam Chair.

Does the Minister -- oh, sorry. Minister of Finance.

Thank you again, Madam Chair. I am here to present the Supplementary Estimates (Operations Expenditures and Borrowing Authorization) No. 3, 2019-2020. The supplementary estimates document consists of two items, as follows:

1. $4.5 million for the Department of Municipal and Community Affairs for increased grant-in-lieu of property tax payments to municipal taxation authorities under the Grants-in-Lieu of Property Taxes Policy. This increase is the result of increases to the assessment values for the City of Yellowknife. A significant portion of the increase is due to the new Stanton Territorial Hospital coming into service, which makes up $3.5 million of the amount being requested. The Grants-in-Lieu of Property Taxes Policy recognizes that, unless property is exempt from taxes, the government is expected to pay compensation for municipal services provided to the Government of the Northwest Territories by community governments, and that properties should be assessed by the same methods as those used for privately owned property.
2. $135 million to increase the government's short-term borrowing limit for 2019-2020 fiscal period from $390 million to $525 million. The proposed increase is required to ensure the government has the borrowing authority to meet its projected cash flow requirements to the end of the 2019-2020 fiscal period that, based on current cash flow projections, are at risk of exceeding the current approved limit.

The increased short-term borrowing limit set out in this supplementary estimates document will stay in effect until March 31, 2020. As part of the development of the 2020-2021 Main Estimates, an updated borrowing plan that reflects the borrowing requirements for the government for the 2020-2021 fiscal period will be provided for review and approval by the Legislative Assembly.

The Department of Finance recognizes that departments need to prepare their budget estimates knowing that there are items that are difficult to accurately estimate, and for which supplementary funding may be required. One example of this is forest fires, where the financial impacts of a fire season are not known up front.

That said, the Department of Finance is conscious of the need for us to work to close the gap between what is budgeted for a fiscal year and the total appropriations needed during the year. One measure that is being implemented for this reason going forward is the requirement that departments will prepare four-year business plans.

We will also re-profile a position within the Department of Finance to better support review of cash flow, and to follow up and monitor all invoices, including those outstanding from other departments. The Department of Finance will continue to work with all departments to support and improve fiscal responsibility.

That concludes my opening remarks, and I would be happy to answer any questions that Member may have. Thank you.

Thank you, Minister. Does the Minister of Finance wish to bring witnesses into the House?

I do, Mr. Sandy Kalgutkar and Mr. Jamie Koe.

Thank you. Sergeant-at-Arms, please escort the witnesses into the Chamber. Would the Minister please introduce the witnesses.

As mentioned, this is Mr. Sandy Kalgutkar, deputy minister of Finance, and Mr. Jamie Koe, whose title has just changed, deputy secretary (Board of Management.

I will now open the floor to general comments. The Member for Kam Lake. No? Sorry. Seeing no further general comments, we will review supplementary estimates by department. The committee has agreed to begin the review with the Department of Municipal and Community Affairs. I will now open the floor to general comments on the Department of Municipal and Community Affairs. Member O'Reilly.