Mayor and Council have directed staff to provide documented information regarding capital expenditures as per our audited statements:
- The primary sources of revenue that community governments can access are property taxes and user fees such as access fees, services fees, licences, fine and penalties, facility, and equipment rentals federal funding, territorial funding.
- We understand that it can be difficult to understand the language we deal in as a government.
- Everything we do is overseen by specific regulatory bodies and oversight mechanisms, such as:
- Federal funding reports and regulations
- Gnwt oversees our submissions, annual financial reporting on capital projects, our capital 5-year budgets and annual budgets.
- Yearly audits track all organizational expenditures. (Operational and capital)
We have provided for you an overview of capital spending for the years 2016 through 2022.
Council: 2015-2017-Mayor Watson
Administration: October 18, 2017-Alan Stanzel
Council: 2018 – 2021-Mayor Pope
Council: 2021- present-Mayor Pope
Between 2016 and 2018, administration applied for grants from the Build Canada Plan and Clean Water and Wastewater Fund (neither of which presently exists) for betterment to roads and replacement of water and wastewater infrastructure to include 3 streets of sewer main replacement and the replacement of the Sewer Lift Station.
Federal Funding grants require that the municipality pay for the work done, provide proof of payment (cheques) with requisite invoices and only then is the municipality reimbursed for payments made. Between 2016-2018 in order for the community to cash flow these projects, operational spending was halted, cheques reported to the government as proof of payment for work were voided while vendors were made to wait for payment until the Town could be reimbursed for the spent funds. Payroll was jeopardized and reserves were raided to see these projects through and in many cases these projects had to be redone.
Our new auditors, MNP have ensured that the Town can no longer write cheques on non-existent funds and that we adhere to all our existing financial policies. Our internal processes are now such that:
- Our operational budget is funded. Payroll and projects not put at risk.
- Our 5-year capital budget is planned such that we have the funds to cover our responsibilities.
- Policies which provide strict cheque writing oversight are now in place.
- All attempts are being made to refund empty reserves.
For a full listing of approved and completed capital projects please contact the Town Office. All audited financial statements can be found on our website. Any restrictions on our grants can be viewed on either the Government of Canada or Government of the Northwest Territories websites.
Community Public Infrastructure Funding Policy:
- Reporting requirements: community governments must prepare and review annually a 5-year capital investment plan which must be approved by motion of council and submitted to MACA with the municipality’s operating budget.
- Municipalities must report on funds in accordance with their funding agreement.
- Municipalities allocated their percentage of total available funds according to the formula in the policy.
Process as of 2019:
- Priority use of these monies as cash flow of approved 5-year capital plan projects.
- Organizational priority to refund severely depleted reserve funds.
- Capital projects are prepaid from operations then once approved by MACA those same monies are transferred from CPI back into operations, this is done such that operations are not put into jeopardy.
Between 1995-2007 Council set up a total of 8 reserve funds for the purposes of ensuring stability for the future. Each of these reserve funds was restricted and directed by Bylaw. Total of $4 Million in all reserves.
Process as of 2019:
- Efforts each budget to replenish empty reserves.
- Understanding that we require council approval to utilize reserve funds.
- We now have a General Reserve and a Capital Reserve
- Solid preplanning on all levels so that project is comprehensively covered.
- Ensure that financials are in place such that capital and operational budgets stable.
- Funded operational and maintenance plans in place.
- Maintain no residential or commercial tax increase.
Gas Tax Fund, now known as Canada Community-Building Fund:
- “The Canada Community-Building Fund is annually allocated on a per-capita basis for provinces, territories, and First Nations, but provides a base funding amount of 0.75 per cent of total annual funding for Prince Edward Island and each territory. This funding will be administered through renewed bilateral agreements with territorial governments.”
Process as of 2019:
- Pre consultation with MACA to ensure our projects CCBF friendly in order to mitigate the possibility of costs being rejected upon invoice submission
- Ensure we’ve the requisite funds to cash flow each project pre-planned for funding from CCBF funds such that reserves and operational budget not needed to cash flow planned and Council approved capital projects
- Submission of proof of payment to MACA and approval of use of CCBF funds post project.
- “Infrastructure Canada flows funds to the Northwest Territories. Northwest Territories flows funds to local governments providing municipal services. The Northwest Territories reports financial activities to Canada annually. Outcomes reports are required every five years. Local governments identify and undertake projects. Financial reports are collected on the use of Canada Community-Building Fund funds.”