Thank you very much.
Good morning, ladies and gentlemen. Thank you very much for the opportunity to address your committee.
The Association of Yukon Communities represents all incorporated municipalities and elected local advisory councils in Yukon. Over 80% of the population of Yukon reside in member communities of the association.
When we met with this committee in November 2004 we asked that existing levels of federal transfer payments to Yukon grow to meet the increasing population. We also asked that the current level of infrastructure funding be increased to support municipal infrastructure, railroads, and highways. Finally, we also asked that the distribution formula, such as the 1% baseline funding amount used for the municipal rural infrastructure fund, which mitigates the inequities of simple per capita funding for northern programs, be considered for inclusion.
I am pleased to report that our requests were heard and are reflected in federal funding programs such as the municipal rural infrastructure fund, the green municipal fund, the Canadian strategic infrastructure fund, the strategic investment northern economic development fund, and the Canada-Yukon gas tax sharing agreement.
The sustainability of Yukon communities is important to Canada. Yukon's mineral resources, its boreal forests, and pristine rivers are of significant Canadian economic value. Yukon communities are the protectors of the sovereignty of those resources and the gateways to them.
In the next couple of minutes I want to tell you about a very important need of Yukon municipalities. Healthy and sustainable communities cannot exist on user fees and property taxes in the territory alone. There is an infrastructure deficit in Yukon communities. This deficit has been reduced through federal programs such as the municipal rural infrastructure fund, the Canadian strategic infrastructure fund, and the Canada-Yukon gas tax sharing agreement, but the deficit still exists and is growing.
At the same time, older infrastructure is deteriorating and being added to the list for replacement. It would appear, for instance, that global warming might increase the permafrost melt in Dawson City, rapidly increasing the maintenance and replacement costs of sewer and water infrastructure in that town. Eliminating the infrastructure deficit will require long-term planning and sustained federal contributions.
The federal gas tax sharing model for infrastructure funding shows great promise for Yukon communities. In that model, funds are allocated directly to Yukon municipalities and first nations for the period of the agreement. Matching funds are not required. Long-term planning through the development of integrated community sustainability plans is required for all recipients under the gas tax agreement.
The gas tax sharing model has the following significant advantages: the process of developing long-term sustainability plans has brought communities together; first nations are working with municipal governments to share ideas and facilities; very small municipalities, with very small property tax bases and limited borrowing capacity, are freed from the requirement of producing matching funds and can fund their priorities, rather than being levered into sharing the burden of territorial priorities.
Our recommendations to the committee are that the federal gas tax sharing program be continued, with expanded project eligibility to include economic development, parks, recreation, culture, and other social infrastructure. Other programs applicable to Yukon communities should be designed, taking into consideration the unique needs and limited capacities of small rural and remote communities. Early collaboration with the territorial government and the association of communities should be required and is in fact essential if the long-term needs of Yukon communities are to be met.
Thank you very much for your interest in coming to the territory and hearing from all of us. We really do appreciate it.