Page 6-10, Municipal and Community Affairs, information item, active position summary.
Agreed.
Page 6-13, Municipal and Community Affairs, activity summary, directorate, operations expenditure summary, $4.395 million. Ms. Bisaro.
Thank you, Mr. Chairman. I wanted to ask some questions here with regard to funding formulas for communities that the department has. I can’t remember if it’s in the Minister’s opening remarks or whether it’s information that we got elsewhere, but my understanding is that I think in this current budget year there were funding formulas that were going to be reviewed. Particularly the operations and maintenance formula for communities, but I think also the water and sewer formula and the community public infrastructure formula. I think the capital funding formula was reviewed last year and it was recommended to be no change. Just in terms of all four of those funding formulas, if I could get an update from the Minister on whether they have been reviewed and, if they have not, when they will be. All that stuff.
Thank you, Ms. Bisaro. Mr. McLeod.
Thank you, Mr. Chairman. The Member is correct. We have looked at our O and M funding in the water and sewer and as a result of forced growth, and working with communities on some of the water and sewer, funding was increased. The O and M funding is one that we still need to work on a bit, because with all the capital money and capital projects that are going into communities, the concern we’re hearing from communities is that the O and M funding is not keeping up to the amount of capital that they’ve got. Considering our fiscal situation, I think there’s only so much we can put into increasing the O and M funding every year. It’s an ongoing review. We’re trying to get our communities up closer to keep up with the amount of infrastructure that’s getting on the ground. It’s a work in progress and I commit to keeping Members updated on the work we’re doing as we go along. We work closely with the NWT Association of Communities and the Local Government Administrators of the NWT. We rely quite heavily on their advice and input into how we design our programs.
As far as the capital goes, I think I said last year that one of the concerns we got from our partners is that the capital funding is okay the way it is, the O and M funding is the one that needs some more work to keep up with the capital. We’re continuing to do that again. I will provide Members with an update on these formulas as we’re going along.
Thanks to the Minister for the info. I think I heard the Minister say that the water and sewer funding formula has been changed to provide more money for communities. Is that every community that got an increase in water and sewer funding?
This year all of them have seen an increase.
So does that mean I can tell the mayor of the City of Yellowknife that he’s getting an increase in water and sewer funding?
…(inaudible)…a MACA update every year for community governments to plan their budgets for this upcoming year, so they’re all aware of any changes.
The Minister mentioned in his opening remarks that, I think in the 2013-2014 budget year, the government is going to implement an accountability framework. I think the Minister did a statement on this earlier in session. I’ve always had some difficulty in understanding just sort of what the makeup of the accountability framework is, what it is we are trying to measure, what we are holding municipalities accountable for. Can I get a bit of an explanation, I guess, of what the framework includes and what it is intended to do?
I’d like to have Ms. Young respond to that.
Thank you, Mr. McLeod. Ms. Young.
Thank you, Mr. Chairman. The accountability framework is intended to be a framework that provides both accountability for community governments to their residents as well as provide information for the department to provide accountability to the Assembly and all the residents of the Territories. What we have done is worked with our partners at the Association of Communities and the Local Government Administrators to identify key indicators of success or potential challenge that community governments may face. It’s framed around four key areas: governance, financial management, planning and safe communities. There are indicators within each of those four areas. In each indicator there is a checklist, and an internal process for the department to engage with communities to monitor progress in each of those indicator areas.
As an example, financial management there is quarterly reporting that is identified as one of the indicators and, through the checklist, the department will work with the community to ensure that quarterly reporting is submitted and monitor progress with communities in those areas to see if financial position is improving. If there are any areas where there may be challenges in submitting reporting where the department can engage with the community to improve reporting and ensure that funding continues to flow in accordance with their funding agreements in that area.
We are just finalizing the checklists and the internal processes for that framework right now and anticipate having a document out to communities within the next month so that communities will be able to work with us in implementing the checklists.
We are also looking at a communications framework and a large implementation workshop with our stakeholders in the fall so that we’re all on the same page with the framework and its implementation. We’ll be able to use this as an annual reporting tool on how communities are doing and how the department is engaging with communities, and whether we’re making appropriate measures in each of the areas of the accountability framework.
Thank you, Ms. Young. Mr. Bisaro.
That’s great. Thanks very much, Ms. Young. The next thing I wanted to talk about was legislation. I think it goes under this section. I mentioned in my general comments that I feel very strongly that it’s time that municipalities be included under the Access to Information and Protection of Privacy Act. I’ll mention two other things here as well. They’re sort of legislation but they’re policy oriented more so.
The municipal taxation authority been delayed, I think, for communities which are currently non-tax-based, and I wonder if we have a date when the department intends to download that taxation authority to the municipalities that don’t have it. The other one that I mentioned in my comments was the authorization from municipalities to implement a hotel levy if they wish to do so. Those three things, if I could get an update.
Thank you, Ms. Bisaro. For that we’ll go to Mr. Schauerte.
Thank you, Mr. Chairman. With respect to municipal ATIPP legislation, we have been working with the Department of Justice to continue to respond to the Privacy Commissioner on this. In our most recent commitment to the Privacy Commissioner, the department has engaged with the NWT Association of Communities and the Local Government Administrators of the NWT to proceed with formal consultation with community governments relative to the implementation of ATIPP legislation. The intent, really, is to hear from community governments about their ability to respond to legislation of this nature.
Anecdotally, we have indicated that community governments are capacity challenged under this, but we really need to hear from them as to what impact legislation of this nature would have on them.
We’re well aware of this type of legislation across the country so what we need to do is proceed from a very informed perspective, relative to community governments.
With respect to the municipal taxation authority, this shows up in our department as the Property Tax Revenue Grant Program. The department is under direction right now from the Financial Management Board to go out and conduct an analysis of which community governments may be able to take on this authority. At this point we do know that seven of the community governments that don’t have this authority may have sufficient municipal or the asset base within their community to make the program something that might be viable at the local level.
With respect to the other community governments, it’s unlikely that they’ll be able to attain this kind of taxation authority, or at least be able to successfully implement it. In most cases it wouldn’t be cost effective or viable for them to do that. We’re under direction to return to the Financial Management Board within a couple of months on this with our assessment, which will help inform the future direction in this area.
With respect to a hotel levy, again, we are aware that the NWT Association of Communities has passed a motion relative to the creation of a hotel levy and we have met with the Yellowknife Hotel Association in the past on this. It is the department’s intention to proceed with formal consultation through communication with community governments and hotel operators to hear from them about their perspective on this. It is our department’s sense, at this time, that the hotel operators in the city of Yellowknife are certainly interested in this option, and at this point, we just want to determine from other community governments and other hotel operators in other communities whether or not there’s more widespread support for something like this.
Thank you, Mr. Schauerte. Ms. Bisaro, your time is up but I have no one else on the list. Would you like to continue?
Thank you, Mr. Chairman. I just wanted to follow up. First of all, thank you to Mr. Schauerte for the info. I wanted to follow up on the hotel levy, and I’m struggling to understand why the department is moving towards consultation. If we have at least one community that has the capabilities, has the desire and wants to use that revenue for marketing and promotion, I’m not too sure why there needs to be broader support. Why can we not provide the authority in legislation and if a community chooses to take advantage of the option, then they can do so. If they don’t want to take advantage of that option, then they don’t do so. Most municipalities, if they look at it seriously, will realize that it’s going to benefit their municipality by having the excess revenue and putting it into marketing, tourism and promotion.
Thank you, Ms. Bisaro. Minister McLeod.
Thank you, Mr. Chair. I think the Member is wanting us to enable the communities, if they choose to do so, to put in a hotel levy. I’m correct, I think, in saying that. That would require changes to possibly four pieces of legislation. I think we’ve committed to doing some work on this and I will have discussions with staff and see what this would entail, and looking at costs and stuff like that. If there is an opportunity where we give them the choice, now they can’t do it because of the legislation. I will commit to the Member that I will work closely with the department and we’ll see how soon, if possible, we can roll this out, or at least start the work to get it going.
Thank to the Minister. I appreciate that commitment. From what I understand from the constituents in Yellowknife that talk to me, that’s the desire, I think of the Yellowknife hotel operators, is that a community can choose… We need to give the authority to the municipalities so they can choose to implement the levy or choose not to. I appreciate the difficulty with four pieces of legislation having to be amended. I mean, it takes a long time for us to get any legislation anywhere to be amended, so I appreciate the Minister’s commitment to try and bring it forward as soon as possible.
Okay. Thank you, Ms. Bisaro. I’ll take that as a comment. The Minister has already replied to that. Moving on with questions I have Mr. Hawkins.
Thank you, Mr. Chairman. I’m glad Ms. Bisaro brought this up. I, too, am a champion of enabling our communities on the hotel levy. I’m just trying to get a sense. I thought the NWTAC actually supported this and, if so, what was Municipal and Community Affairs’ position on NWTAC having a position saying they wanted this?
Thank you, Mr. Hawkins. Minister McLeod.
Thank you, Mr. Chairman. The Member is correct. The NWTAC did pass a motion on this and that came to us. We had some concerns expressed to us from the Hotel Association. We actually have just been notified. They have requested a meeting here within the next couple of weeks, so we’re committed to meeting with them and getting their views on this. I agree with the Member. The Members over there have said, you know, we talked about enabling the communities to have the authority and make the decisions, and I think that’s the direction that MACA has been going for a while, and this is just another one of those. After we have a meeting with the Hotel Association, I think we’ll be in a better position to update Members on what some of the options might be and what some of their recommendations might be, so I commit to doing that.
The Minister had mentioned, I think he had said it in his words were, the hotel association expressed concerns. Perhaps he could elaborate on that, or did he refer to some communities that were expressing concerns? He did say there was expression of concerns of some sort, so let’s narrow it down to who he was referring to and what were those concerns.
Thank you, Mr. Hawkins. Minister McLeod.
We’ve had some hotel operators from Fort Smith, and Inuvik did express some concerns. Exactly what those concerns are, word for word, I don’t really know, but they have expressed some concern with this.
How long has the department been dealing with this particular issue of a hotel levy?
Last spring.
I seem to recall that this issue is about three to four years old, and I’m just surprised that it’s only been brought to them since last spring.
My next question is under strategic planning. Can the Minister explain to me on what this section is working on right now?
Mr. Chair, I’ll have Mr. Schauerte respond to that.
Thank you, Minister McLeod. Mr. Schauerte.
Thank you, Mr. Chair. The department’s strategic plan currently in place is for the period 2010-2015, so we’re about halfway to two-thirds of the way through that strategic plan. It would be the department’s intention, going forward into the next business plan cycle, to undertake the work to begin the process of renewing that strategic plan, and it’s all published on our website.
Thank you, Mr. Schauerte. Mr. Hawkins.
What are the main objectives of this strategic plan, the 2010-2015 plan?
Thank you, Mr. Hawkins. Minister McLeod.
If Members are concerned about the details of our strategic plan, I mean, we’d be more than happy to offer a briefing up to the members of SCEDI on the strategic plan for MACA.
I’m here as a member of the committee and not necessarily the chair. It just happens to be that way. That said, what are the main objectives of the strategic plan?
That offer was meant to all members of committee and that offer stands. We’d be more than happy to provide committee with detail and seek some input from committee.
Under legislative initiatives, what is MACA presently working on?
Legislation.
What particular legislative initiatives can we talk about here today?
Thank you, Mr. Hawkins. We’ll go to Mr. Schauerte.
I’m sure the Members are well aware that the current legislative priority for the department was the Tlicho Community Government Act, which is undergoing amendments as we speak. The department has also indicated on our legislative priorities that we have the Fire Protection Act and the Civil Emergency Measures Act. There are also two smaller pieces of legislation that we’re repealing, or that we’re intending to repeal. One is a Pawnbroker’s Act. There’s a Curfew Act. Both of these pieces are redundant pieces of legislation. And there are others that we’ve expressed to the Legislative Assembly that are on our priority list.
I’m wondering if the Minister can provide an explanation to what this activity means. It says information systems support the department by providing expert advice, departmental specific applications and information systems. I seem to remember every school teacher telling me that when you explain a sentence, you don’t use the word you’re trying to explain it with, so perhaps we can get a layperson definition as to what that line actually means.
Thank you, Mr. Hawkins. Minister McLeod.
I’m not sure if the Member is referring to the same document that we have. Maybe he can explain himself.
