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Funding model for core services undergoing three-year transition

Some communities over-funded under old model, says Municipal and Community Affairs spokesperson
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The Department of Municipal and Community Affairs is updating its funding model after it determined some communities were getting more than 100 per cent of their core service funding while others were not getting enough. Photo courtesy of Northwest Territories Tourism

Funding discrepancies for municipalities in the NWT are the result of different gaps in service needs and the model is being updated to better allocate funds to where they are needed most.

That's the response from the Department of Municipal and Community Affairs (MACA) after a former Fort Simpson mayor sounded off on social media.

"In late November 2024, MACA announced increased community funding for regional centres, including Fort Simpson," wrote Sean Whelly. "However, the amount allocated to Fort Simpson was minimal in comparison to both historical funding needs and the amounts received by other communities.

"A decade ago, Fort Simpson was identified as having the largest annual funding shortfall SA¹ú¼ÊÓ°ÊÓ´«Ã½” estimated at $3 million SA¹ú¼ÊÓ°ÊÓ´«Ã½” out of a total $40 million shortfall across all NWT communities. Despite this history and our status as a regional centre, Fort Simpson has received the smallest share of the new funding. Notably, even Tuktoyaktuk received nearly three times the increase that Fort Simpson did. This raises an important question: Why has Fort Simpson been allocated such a disproportionately low increase in funding?"

A spokesperson for MACA said the funding model, known as the Community Allocation Model, was being updated to reflect community's service requirements and policies were updated on April 1, 2025.

Jay Boast, senior communications advisor for MACA, told NNSL the model, when implemented, would allot each community the same percentage of its service needs.

He added the changes were being put forward in a three-year transition.

"MACASA¹ú¼ÊÓ°ÊÓ´«Ã½™s focus is on aligning funding with each communitySA¹ú¼ÊÓ°ÊÓ´«Ã½™s actual service delivery needs SA¹ú¼ÊÓ°ÊÓ´«Ã½“ and percentage of calculated costs is the most consistent way to reflect that across all communities," he said. "Because each community has different needs, infrastructure, and operating environments, their calculated costs SA¹ú¼ÊÓ°ÊÓ´«Ã½“ and therefore their funding SA¹ú¼ÊÓ°ÊÓ´«Ã½“ vary."

Boast said previously some municipalities were receiving more than 100 per cent of their service needs. The goal, he added, was to bring funding for those communities down to 100 per cent of services funded and re-allocate the remaining funding to underserved ones.

"As a result, some communities will see funding increases while others will see decreases until equitable distribution is achieved," he said. "It should be noted that MACASA¹ú¼ÊÓ°ÊÓ´«Ã½™s funding is intended to support community governments in the delivery of core programs and services, not to cover all of a community governmentSA¹ú¼ÊÓ°ÊÓ´«Ã½™s costs.

"Funding sustainable community government services is a shared responsibility across all levels of government. Community governments make their own decisions about what services to provide and how to fund additional costs beyond core services funding."

FACT FILE - Funding figures for Fort Simpson over the past 10 years.

Source: Department of Municipal and Community Affairs

 

 

Operations and

Maintenance Funding

Water and Sewer 

Funding

Community Public
Infrastructure Funding
Canada
Community
Building Fund
Total
Community
Government
Funding
2025-26

2,042,000

          1,316,000

          1,397,000

               712,000

          5,467,000

2024-25

2,032,000

          1,346,000

          1,333,000

               653,000

          5,364,000

2023-24

1,933,000

          1,270,000

          1,187,000

               653,000

          5,043,000

2022-23

1,858,000

          1,270,000

          1,187,000

               613,000

          4,928,000

2021-22

1,794,000

          1,227,000

          1,187,000

               613,000

          4,821,000

2020-21

1,794,000

          1,227,000

          1,187,000

          1,148,000*

          5,356,000

2019-20

1,794,000

          1,227,000

          1,040,000

               574,000

          4,635,000

2018-19

1,736,000

          1,205,000

          1,040,000

          1,148,000*

          5,129,000

2017-18

  1,658,000

          1,170,000

               943,000

               538,000

          4,309,000

2016-17

  1,606,000

          1,129,000

               943,000

               538,000

          4,216,000

        * includes top up funding  

 



About the Author: Eric Bowling, Local Journalism Initiative

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