The Association of Yukon Communities (AYC) is not looking back on 2023 with a lot of fondness.

Ted Laking, the AYC’s president and a Whitehorse city councillor, told the Star this morning that “2023 was a challenging year for Yukon communities as the Government of Yukon has made decisions that have negative impacts on life for rural Yukoners.”

He expanded on those remarks.

“We saw the Government of Yukon increasingly roll back services in rural Yukon with their rolling closures of rural health centres, lapses in services in emergency medical services, and the relocation of key health care services to the city,” Laking said

“We also saw the government surprisingly cut the rural land development budget by 55 per cent this year, which harms the ability of municipalities to tackle things such as the housing crisis.”

Laking continued his harsh assessment of the relationship between the AYC and the territorial government.

“Yukon municipalities continue to tell the Yukon that if you truly believe in rural Yukon, then you need to support it, invest in it, and ensure that there are sustainable services in the communities so that people will not only move there but be able to stay there long-term with their families.”

The reality, he said, “is that Yukon municipalities are faced with significant financial challenges due to record growth, aging infrastructure, and changing climates.”

Laking challenged the government over what he said is its failure to properly fund municipalities, particularly the incorporated ones that comprise the membership of the association.

“When the government makes reductions to services in Yukon communities, this ends up putting further financial burden on already-strained resources in those communities,” the AYC president said.

“This is compounded by the fact that the Government of Yukon has been underfunding Yukon communities to a point where the long-term financial sustainability of our communities is threatened,” he said.

While Yukon municipalities have continued to stress the importance of addressing the sustainability question, Laking added, “the government has so far been unwilling to have serious discussions on this issue.

“To help address this issue, the Association of Yukon Communities took the initiative to put together an analysis of these financial challenges and provided it to the government in the summer – also naming our negotiating team to begin hammering through these issues.

“So far, the government has yet to name their own negotiating team.”

Laking’s criticisms became more pointed as he warmed to the subject.

“In effect, the Government of Yukon’s lack of commitment to the sustainability of municipalities is forcing Yukon communities between a rock and a hard place: either raise property taxes, cut services, or go into debt,” he said.

“We do not want any of those outcomes. With the significant growth and challenges facing municipalities, we do not believe that this is the right or responsible thing to do, but the government is forcing those considerations.

“Unfortunately, with these service reductions and cuts to rural Yukon and with the government unwilling to have serious discussions about our financial sustainability, we are not seeing the commitment necessary to ensure the long-term prosperity of Yukon communities,” Laking said.

Last Oct. 24, the government announced that its Comprehensive Municipal Grant funding would rise by 10.3 per cent this year. The payments will be made Apr. 1, the first day of the new fiscal year.

Whitehorse will receive $9.8 million, up from $8.5 million in 2023.

Dawson City is in for $2.9 million, an increase from $2.7 million last year.

Community Services Minister Richard Mostyn said at the time the grant “allows communities to fund local priorities.

“It is the cornerstone of our financial support for healthy, resilient and sustainable communities, and we are working with the Association of Yukon Communities to ensure it remains so for years to come.”

Today, the government announced the Community Development Fund has awarded $447,203 “to support 20 projects that help bring economic, cultural and social benefits to Yukon communities.” (See Friday’s Star for more detailed coverage.)