Peter Jenkins will not be seeking a seat as mayor or councillor in the June 15 municipal election in Dawson City.

The deadline to file the papers to run passed early this afternoon. Jenkins told the Star this morning he wouldn't be throwing his name into the ring.

Jenkins said he examined the territorial government's financial plan for the town and decided it wasn't enough.

Last month, Premier Dennis Fentie announced the government would be writing off $3.43 million of the municipality's more-than $4.3 million-debt.

The remaining $1.5 million in debt will be turned into a 25-year loan with a four per cent fixed interest rate. The loan will be able to be paid back in single annual payments of approximately $94,470.

The government will also be providing Dawson with $1 million in capital funding to address the town's immediate needs.

The recreation centre and the sewage treatment system, however, will be excluded from the town's financial framework. The government will be taking on the two projects, but the solutions and the dollar figures attached to them have not yet been released.

Jenkins said the financial plan isn't much more than the government issuing some promises. After waiting for more than two years for the plan to be released, it isn't much more than what was initially recommended by former town financial supervisor Andre Carrel, he added.

Dawson has been without a mayor and council since April 2004, when mayor Glen Everitt and his council were removed by the territorial government.

In April 2005, a forensic audit of the town said its $4.3-million debt is the result of poorly-managed projects.

The operation and maintenance money and the entire budget current allocated to Dawson is 'basically understated,' said Jenkins, who has previously served as mayor of the town for approximately 14 years ending in the early 1990s.

Jenkins said he was also concerned the June court date regarding the town's secondary sewage system was pushed back because of the municipal election and the current state of the rec centre has yet to be resolved.

What will happen to the former mayor and council following the conclusion of the RCMP investigation hasn't been answered yet, added Jenkins.

Depending on the outcome of the investigation, the new council may be left deciding if it intends to proceed with civil action. In a small, close-knit community, it will be a hard decision, said Jenkins.

'I don't mind a challenge, but I like to have some hope,' said Jenkins of the financial plan.

He said he doesn't feel the current proposal is leaving potential candidates with much of a head above water.

Jenkins, who currently sits in the legislative assembly representing the Klondike, left the Yukon Party last November, saying his departure was related to the government's inaction in his riding.

Fentie said his movement was related to an 'or else' ultimatum regarding the MLA's more-than $308,000 in outstanding government loans related to his Eldorado Hotel. The issue has since been resolved in the courts and $281,000 of the debt has been paid off.

Jenkins said he hoped he would be able to better advance his riding's concerns in the opposition after being unsuccessful in government.

At the time of his departure, he said he was considering returning to municipal politics or continuing to sit as an independent in the legislature.

Today, Jenkins said he's undecided on if he plans to run again in the territorial election, which must be called by November.

'We'll have to wait and see,' he said.