DAWSON CITY – Association of Yukon Communities (AYC) president Bev Buckway is praising the territorial government's announcement Friday of an extensive municipal review to happen over the next year.

"This is a direct response (to the concerns of municipalities in the territory),” Buckway told reporters. "This is just positive.”

Community Services Minister Archie Lang made the announcement during a question and answer session before approximately 100 delegates at the AYC's annual conference held in Dawson.

"We are establishing a municipal fiscal framework review to get to the heart of long-term municipal sustainability in Yukon,” Lang said.

"I would consider this to be one of the most important initiatives in recent years for municipalities.”

A committee made up of three staff from Community Services and three AYC representatives will spend the next year touring the communities and reviewing funding, the delivery of programs and services, recruitment and retention and addressing other issues municipalities bring forward.

"The current model of municipal governance in Yukon has been in place since the 1980s, and we have learned lessons along the way,” Lang said.

"We need to find ways to recruit and retain chief administrative officers and skilled staff and look at key issues that will ensure long-term viability of our municipal

governments.”

As he spoke, he continually referred to the many concerns municipalities have expressed over the possibility of the annual grant each community gets from the government being doled out quarterly rather in one lump sum.

Although the government kept with its common practice of handing it out in one payment this year, Lang wouldn't commit to the same for future years, citing federal Auditor General Sheila Fraser's report which proposed the quarterly payments.

The government, Lang said, recognizes that municipal governments rely on the annual payment to come at once. That way, they can have it available as needed, and because it accrues interest for the community over the course of the year, that's factored into the budgets of local municipalities.

At the same time, he continued, the government has to look at ways of satisfying Fraser's concerns. A major part of the review will look at that along with many other matters, he said.

The committee will be formed over the next few months.

Buckway noted that given the discussions which will be happening over finances, municipal staff could be part of the committee, as could elected officials.

Lang said he expects the report will be on his desk within a year.

"Community Services is committed to working with AYC,” Lang said.

Buckway commented the move is another example of the improved relationship that has been growing between the territory and municipalities since the government and the AYC signed off on a memorandum of understanding to work more closely.

"It just speaks volumes,” she said, adding the government has kept to its commitment to put the "Services” back into Community Services.

Buckway – who retained the AYC presidency – was echoing the praise of other municipal leaders who applauded following Lang's announcement.

As for whether 12 months are enough time to get the committee together, tour communities and develop a review document, Buckway said she's confident it will be ready, though it's not a long time frame.

That's why it's so important to focus on getting committee members in place now, she added.

Liberal Leader Arthur Mitchell also offered his praise of the commitment by the government to form the committee. He also suggested opposition members will be watching to see what work gets done by the committee.

As Lang continued to take questions from municipal leaders, he encouraged them to bring their concerns ­– including the mounting costs of operating communities – to the committee in the coming year.

Community Services staff said the full costs of the review aren't yet known.