This news release has been updated with an anticipated conclusion date for the work of this task force.
As part of its commitment to fostering vibrant communities and ensuring effective delivery of essential services to residents, the Government of Yukon is collaborating with the Association of Yukon Communities to enhance the Comprehensive Municipal Grant.
Recognizing the pivotal role municipalities play in the wellbeing of Yukoners, the Government of Yukon provides direct funding to municipal governments through the Comprehensive Municipal Grant. In a proactive measure to adapt grant regulations to the evolving needs and priorities of municipalities, the Yukon’s Community Services Minister Richard Mostyn and Association of Yukon Communities President Ted Laking have launched the Comprehensive Municipal Grant Enhancement Task Force.
This task force will identify challenges, explore solutions and develop recommendations that reflect the needs and priorities of municipalities and the territorial government with the aim of renewing the Comprehensive Municipal Grant regulation in 2025. The task force will review the grant to ensure it provides the financial resources municipalities need for delivering services to their citizens and meeting their obligations under the Municipal Act.
The task force will comprise three Government of Yukon representatives and three representatives named by the Association of Yukon Communities. The Association of Yukon Communities 's representatives are from the Village of Teslin, the Town of Watson Lake and the City of Whitehorse. These communities represent the three sizes of municipalities in the Yukon, collectively ensuring fair representation for all eight municipalities in the territory.
The task force will be guided by the principles developed during the previous Comprehensive Municipal Grant reviews: adequacy, certainty, equity, minimal bias, transparency and accountability. Starting their work immediately and anticipated to conclude September 30, 2024, the task force's efforts will lead to the renewal of the Comprehensive Municipal Grant regulation in 2025, bolstering the Government of Yukon's commitment to supporting thriving, resilient communities across the territory.
The Comprehensive Municipal Grant stands as the cornerstone of the financial support our government provides Yukon municipalities. It represents a significant portion of municipal revenue and plays a vital role in keeping property taxes and municipal charges, such as recreation fees, low for residents. Ensuring the Comprehensive Municipal Grant meets its objectives is a shared priority and we are pleased to be doing this work alongside our municipal partners.
Minister of Community Services Richard Mostyn
Financial and long-term sustainability are the most pressing issues currently facing our communities. These issues are important because, if not addressed, they could result in municipal service reductions or property tax increases. Our membership has been clear that they would like to see the CMG improved. I am encouraged to see this important step made so that the collaborative work between the Government of Yukon and the Association of Yukon Communities moves forward for the benefit of our communities.
President of Association of Yukon Communities Ted Laking
This Comprehensive Municipal Grant annual funding was created in 1991 and remade in 2012 with a set of guiding principles – including fairness, transparency and predictability – and a prescribed formula to calculate the grants each year.
The grant was last jointly reviewed in 2017–18 and this work resulted in several changes to factors within the grant formula. These changes included the establishment of a funding floor, ensuring municipal grants would not fall below the 2017 levels. This review also made permanent the $50,000 contribution included in 2012 for supporting municipal fire department operations.
The current formula includes lagging indicators that will result in increases to catch up with inflation.
The grant grew from approximately $22 million in 2023 to approximately $25 million in 2024.
Laura Seeley
Cabinet Communications
867 - 332-7627
laura.seeley@yukon.ca
Taylor Harvey
Communications, Community Services
867-332-1237
taylor.harvey@yukon.ca
Ted Laking
President, AYC
867-334-2648
ted.laking@whitehorse.ca