Thank you, Madam Chair. There is an appeal mechanism. To my limited knowledge, and I will just verify it, I don't know that the government has made use of that appeal mechanism. To the knowledge of the witnesses present, Madam Chair, that is not something that is generally done. This is a policy whereby the primary principal of the policy is to provide fair compensation for municipal services to the various community governments. I imagine there would be some hesitancy in general by most departments to challenge an assessment that we are part of creating.
Member for Hay River South.
Thank you, Madam Chair. I guess, if we are looking at a fair assessment, I am hoping that this government takes a look at the assessment and decides, outside of MACA, it would have to be outside MACA, whether it is a fair assessment or not. I am [microphone turned off] doesn't sound like that is done. We just accept, basically, what is put in front of us, and assume that it is fair unless there is something, a report or something, criteria that is met, to make sure it is fair. Thank you.
Minister of Finance.
Thank you, Madam Chair. Two parts: firstly, that the assessors are certified. These are external to the GNWT, and they are certified assessors, so that comes with it their own ethical obligations, obviously, to ensure that the information they are providing is fair and accurate. In addition to that, the Department of Finance is alive to the Member's concerns. I can assure the Member that there will be a process going forward, internally, to determine whether or not or under what circumstances an appeal would be appropriate, perhaps more formally than what has been done at least in the recent past.
Member for Hay River South.
No further questions at this time. Thank you.
Member for Yellowknife North.
Thank you, Madam Chair. My question is: the Stanton Territorial Hospital makes up $3.5 million of the amount being requested here; what is the value of that asset, then?
Minister of Finance.
Madam Chair, I am pleased to say that all three of us came to the same number. It is approximately $300 million.
Member for Yellowknife North.
Thank you, Madam Chair. With the hospital being valued at $300 million and MACA requiring an extra $4.5 million here to make up property tax assessments, can the Minister of Finance provide me: what percentage of total property tax assessments under the grant-in-lieu program does the hospital make up to the City of Yellowknife? I hope that question was clear. Thank you.
Minister of Finance.
Thank you, Madam Chair. I do think the question is clear. It is the percentage total that the Stanton Territorial Hospital is in the entirety of all grants-in-lieu paid by MACA to the City of Yellowknife. The Member is nodding his head, Madam Chair, so I am going to continue.
Member for Yellowknife North.
Thank you, Madam Chair. We have a $300 million new hospital. The City of Yellowknife assesses it. We agree with that assessment. We pay this $3.5 million. What I am looking for is can I get a sense of: is this now an ongoing $3.5 million? I don't have an understanding of a hospital's value. Is this a depreciating asset? Will we continue to have this $3.5 million? Thank you, Madam Chair.
Minister of Finance.
Thank you, Madam Chair. Similar to taxes, it is an ongoing obligation to pay. We would be certainly subject to changes in year-over-year mill rates as would any other property assessment. Essentially, it is a tax owing and will be due year over year, subject to a new assessment.
Member for Yellowknife North.
Thank you, Madam Chair. One final question: is this the largest asset presently owned by the GNWT?
Minister of Finance.
Yes, Madam Chair.
Member for Yellowknife North.
No further questions.
Mr. O'Reilly.
Thanks, Madam Chair. I'll try to be quicker this time. Can someone tell me: the $3.5-million amount, does that include school taxes?
Minister of Finance.
Yes, it does.
Member for Frame Lake.
Thanks, Madam Chair. Of the $3.5 million, how much is made up of school taxes? Thanks, Madam Chair.
Minister of Finance.
[Microphone turned off] turned out to in fact have somebody find it. I am delaying somewhat in trying to look quickly, but I don't remember [microphone turned off] in one of the charts provided at Tab 1 that we provided to the committee yesterday. I don't know if Members have this with them or not.
Member for Frame Lake.
Thanks, Madam Chair. I thought this was going to be a little easier than it is. I am looking at the information that was provided to us, and it doesn't jive with what the Minister has told us. The amount on the table that she is referring to is different than the number that she has given to us in her opening remarks. Is there some way where I can get it clarified what the actual amount is and how much was actually paid in school taxes? Thanks, Madam Chair.
Minister of Finance.
Thank you, Madam Chair. I am going to ask Mr. Koe to explain that, please.
Thank you, Madam Chair. In the information that we provided to Members, under the Stanton Regional Hospital, it says the 2019 total levy is around $4.5 million. That would be for a total year. Since the hospital came out in March, it is a partial year. When the partial year was estimated, it was around $3.5 million for this year. Thank you, Madam Chair.
Member for Frame Lake.
Great. Thanks. That is what I had suspected and appreciate the response from our witnesses. This will be an ongoing cost into the future. The total supplementary appropriation, I think, is for $4.5 million, essentially. The Minister said $3.5 million is for the City of Yellowknife. What is the other $1 million for [microphone turned off]?
Minister of Finance.
Thank you, Madam Chair. There is an increase in the Norman Wells mill rates. With respect to the opening of the Norman Wells Health Centre, that does include some of the additional increase, $52,000. As well, there are some other assets within the Yellowknife region where, again owing to the change in rate, the assessment values also rose. That accounts, I believe, for the remainder of the full amount being sought on the supplementary appropriation. Thank you, Madam Chair.
Member for Frame Lake.
Thanks, Madam Chair, and thanks to the Minister for that. I am trying to reconcile this against the information that was provided to us in the briefing and so on. Can the Minister commit to getting us an actual breakdown of what this MACA supplementary appropriation is actually for by property? I have now heard that it is Stanton Hospital, Norman Wells Hospital, as well as various other Yellowknife properties. That is what not what we heard before. Can I get a breakdown of the exact number associated with each property that makes up the $4.492 million that we are supposed to be approving today? Thanks, Madam Chair.
Minister of Finance.
Absolutely, Madam Chair. We can do that.
If there are no further comments, does committee agree to proceed to the detail contained in the tabled document? Committee, we will begin on page 4, 2019-2020 Supplementary Estimates, No. 3, Operations Expenditures, Department of Municipal and Community Affairs, operations expenditures, regional operations, not previously authorized, $4,492,000. Does committee agree?
Agreed.
Total department, not previously authorized, $4,492,000. Does committee agree?
Agreed.
