Discussion on the city's rural well-drilling program has been postponed indefinitely, city council decided Monday night.

Coun. Doug Graham again asked his colleagues to delay a discussion on the proposed Yukon government-modeled program.

Council responded to a suggestion by the city's director of administrative services, Robert Fendrick, to delay discussion on the program until further notice.

Graham, who asked for a delay at the last council meeting, said he has yet to receive information promised to him by the YTG several weeks ago.

'I have to ask for another delay on this because YTG hasn't gotten back to us on this,' Graham said.

The information pertained to some change to the agreement city council proposed to the government but did not specifically mention what those changes were.

Graham could not be reached for comment on the changes this morning.

The well-drilling program would see the city offer loans to residents who aren't on the city's water system and who want to drill a well, with repayment on the loans made up in the form of property taxes.

Earlier this year, the government said it would lend funds to the city for the loans.

The aim of the system would be to permit those residents who wanted them, to dig water-access wells on their property and avoid having their water delivered.

Water delivery charges dramatically increased after a change in transportation regulations restricted the load that water trucks were permitted to carry.

Under the proposal, applicants would be eligible for loans of up to $50,000 or 25 per cent of the assessed property value, whichever is less.

The exact amount of the loan would be based on a design phase estimate.

Repayment would be required regardless of whether the ground is found to be suitable for a well.

Wells generally cost between $20,000 and $30,000 to drill.

When the matter was deferred two weeks ago, Graham said city council had some concerns over the program.

He said if country residential residents were to default on their loans, the city could be left holding the bag.

He also said the city stood to incur an increase in administrative costs as well as a loss of city revenue from its investments if the city uses its own cash to loan out money before receiving funds from the government.

During the spring, the city did a survey of the potential program with 53 of the 313 mail-outs being returned.

Of the 53 mail-outs returned, 38 said they would be interested in participating in the program.