Funding dries up for Whitehorse

Last week the territory announced Yukon municipalities will get an increase of $808,000 in grant funding this year. But the announcement does little for Whitehorse.

Last week the territory announced Yukon municipalities will get an increase of $808,000 in grant funding this year.

But the announcement does little for Whitehorse.

The city expected to receive an additional $406,000 through its comprehensive municipal grant in 2010.

But it is only getting an extra $284,000. And next year, the city could actually have money taken away from its coffers and given out to other Yukon municipalities in equalization payments.

The city is projected to dole out $46,000 in cash in 2011 and $209,000 in 2010 to other communities, according to administrative director Robert Fendrick.

The discrepancy is a result of the funding formula the territory relies on when it gives out its municipal grants.

In the last few years, the city has seen property assessments go up. The more the building assessments go up, the less money the city gets from the territory in grants.

The city won’t be short cash – since increased assessments equals more taxes for the city – but the extra money would have been welcome, said Fendrick.

In 2007 the city was told that it would be getting an increase of $2 million to its comprehensive municipal grant over a five year period.

But instead of $2 million, the city will only be getting about $750,000, said Fendrick.

“It would be nice to have that money but in the end we’re glad that the money is going to other communities.”

Last week’s territorial budget also earmarked $1 million to Whitehorse for the 2012 Arctic Winter Games.

And $10.3 million was announced for the Kwanlin Dun First Nation Cultural Centre, a venue that will greatly benefit nearby city waterfront property, said Mayor Bev Buckway. (Vivian Belik)

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