Are we victims of what appears to me to be disastrous financial management in North Hatley?

Slow play is an interesting strategy in the game of poker. When it pays off, it pays off big. And it pays off, because nobody sees you coming.

But let’s get back to the North Hatley finances shall we. Town hall just released their much-anticipated financial update this weekend. Exciting slide deck with lots of, slides. So I feel I owe you all an update. Afterall, I’ve been quite busy since that last late-night email I sent you all on August 10^th.

So let me explain what’s happened since.

August 10^th

Following the August 10^th email, which had overwhelmingly positive feedback I might add, I decide to take the plunge. You guessed it, I attended a North Hatley town hall meeting. And what an adventure it was. Big crowd, big egos and even bigger questions to be asked. Answers, however, were not on the menu. So old Tony was back at the drawing board the very next day.

August 18^th

After an unsuccessful effort to get information from the very nice clerk at the town hall, I realized nothing gets done without an email. This time, a formal request for access to information to the North Hatley information officer, Benoit Tremblay, who happens to be the town manager and also happens to be president of the upcoming election no less. Attached you will find that correspondence in full. I even received an email back the very next day saying he was working on it.

September 8^th

We have reached the 20-day deadline as established by the following law: Loi sur l’accès aux documents des organismes publics et sur la protection des renseignements personnels (RLRQ, c.A-2.1) for that email I sent on August 18^th. They would never want to break the law would they? So I ask Mr. Tremblay if the 10-day extension will be needed. He says yes. Crisis averted. I’m sure he’s putting the final touches on that email.

September 14^th

The figurative poker game begins. A small article I wrote is published in FANHCA. Pressure tactic? Maybe. But I’m not placing any big bets yet.

September 16^th

North Hatley presents their Financial Overview and Achievements. Looks good, but still so many questions. Residents are confused. And why is the presentation not available beforehand? Residents will wait 5 days to even get a copy. And weren’t the 2024 audited financial statements are supposed to be published 3 months ago? Why is the town hall breaking this law now? Loi sur la fiscalité municipale (CQLR c F-2.1.) The law states thatprior year financial statements, so 2024 year-end in this case, must be transmitted electronically to the MAMH via the PERFORM application by June 30 for local municipalities, regional county municipalities (MRCs), and metropolitan communities. They have missed the deadline by nearly 3 months now. This is starting to look like a trend.

September 18^th

I’ve been had. It happens to the best of us. Mr. Tremblay never intended to share any information with me. I kept hearing this happens to other residents and everyone felt powerless. I guess breaking this law Loi sur l’accès aux documents des organismes publics et sur la protection des renseignements personnels (RLRQ, c.A-2.1) is a small price to pay for keeping information quiet.

Today

Let me show you my cards, and special thanks for Philippe Marchessault, CEO of Plogg Media and North Hatley Info for helping with this research.

1. Mayor Marcella Davis-Gerrish has falsely claimed the North Hatley Municipal Debt to be $3,981,833 in her EntreNous newsletter of September 6^th, Financial Overview and Achievement presentation of September 16^th, and presentation released to the public on September 20^th. Total financial liabilities were $10,259,319 at the end of 2023. For you to judge if this is simply misleading, or something else.

See column Financial Liabilities, a summary of Audited Financial Statements from 2016 to 2023:

The Long-Term Debt is as follows (from 2023 Year end audited financials):

Here is the true historical perspective of the Long-Term debt. Short Term debt is harder to summarize:

2. North Hatley basically stopped paying down its debt in 2024, only reimbursing $61,337. The end of North Hatley’s financial crisis? Sure, if you stop paying the $10,000,000 debt.  

This was predictable since the town is losing control of its expenses. Funny how expenses were absent from the Financial Overview and Achievement presentation, I guess that wasn’t an achievement. And they can’t exactly increase taxes on the highest taxed municipality in Quebec. Which brings me to the real kicker, or Royal Flush if we’re sticking with the poker terminology.

This is from my very own North Hatley Property tax bill. Check yours!

In 2024, North Hatley charged a special assessment for debt servicing as it does every year: “Service de la dette 2024” that comes with a 0.21 rate per $100 of property value.

“Service de la dette 2024’’ collection = $362,786,600 in property values within the municipality * 0.21/100 = $761,852 for the debt fund

Collections for the debt fund = $761,852

Debt repayment for 2024 = $61,337

Difference = $700,515 ???

The evidence here seems to indicate the town diverted funds from the debt servicing fund to other areas in 2024. This would be illegal too.

According to Municipal Debts and Loans Act (R.S.Q., c. D-7) or in french Loi sur les dettes et les emprunts municipaux (L.R.Q., c.D-7)  : Funds allocated to debt servicing, often derived from property taxation or specific budget allocations, must be paid in full to the debt or directly to creditors. Section 26 of the Municipal Debts and Loans Act  or in french Loi sur les dettes et les emprunts municipaux (L.R.Q., c.D-7) requires the establishment of this fund for the gradual repayment of principal, without the possibility of diversion. Any reallocation would be considered a budgetary irregularity.

Control and sanctions

• Cancellation of the loan by-law by the Administrative Tribunal for Municipal Affairs
• Financial penalties or penalties (up to $5,000 per day of delay, according to section 145 of the Local Public Finance Act (R.S.Q., c. F-2.1)
• Government intervention to impose a recovery plan 

3. Since 2018, North Hatley Elected officials have voted themselves 400% increases in compensation.

I don’t know about you, but if an administration is breaking multiple laws, lying to its residents, and mismanaging the finances in a catastrophic way, a 400% raise over 7 years seems a tad excessive.

Why does North Hatley town hall make such an effort to keep information under wraps and willing to break disclosure laws in the process if they have nothing to hide? It stinks.

It sure would be nice to see those 2024 Audited Financial Statements before the election, wouldn’t it?

I really hope my work here is done.  

-Tony