March 21, 2008
Around Nunavut
City, GN to ink new funding deal
Iqaluit city councillors reluctantly, but unanimously, agreed March 11 to enter into a new five-year capital funding deal with the Government of Nunavut.
The deal, worth about $2.4 million per year for five years, provides the capital with money for upgrades to sewers, roads and other infrastructure.
Crystal Jones, the city's engineering director, presented council with a request for decision that's a formality required before the money can flow.
Even though John Hussey, the city's finance director, told councillors in January that the money was in the offing, some still thought twice.
Coun. Simon Nattaq wanted to be sure the city retained the right to decide where to spend the money, while Coun. Glenn Williams suggested the city lobby the GN for more cash.
The city's last deal with the GN, signed in 2002, gave Iqaluit $31 million over five years, but the city had to pony up $19 million of its own money as part of a cost-sharing arrangement.
This time, Jones said, the funding comes as part of "an almost no-strings-attached" deal.
Jones reassured councillors the GN needed a numbered motion from council as part of the process and providing one didn't mean a final agreement.
And "it doesn't limit the city from receiving additional funding" from the GN or federal government, she said.
