Some citizens published that the debt was $10 million, while the mayor published that the debt was actually $4 million. This seems to have caused quite a stir, especially during election season! Finance is complex, especially municipal financial reports. You have to take into account boards of directors, subsidies, and certain amounts that do not have to be repaid. In short, almost no one understands all the financial gymnastics performed by auditors.
The amount of debt is troubling for the municipal administration and citizens. I understand that the amount of debt determines the number of years remaining to pay off the debt and possibly the day when we will see our taxes reduced. The amount of debt directly impacts property taxes through debt servicing and, therefore, the wallet of every taxpayer.
However, it is not the amount of the debt that troubles me. It is the fact that the official 2024 financial reports have not been filed with the department and that no update on the actual 2025 financial reports has been presented to the public. And please, don’t mention the PowerPoint presentation of the financial results on September 16. That is not a financial report! For the time being, the current administration is leaving room for doubt as to whether it intends to postpone the presentation of the 2024 and 2025 financial results until after the elections. Furthermore, remember that the reasons for the Township of Hatley’s refusal to renew the intermunicipal recreation agreement were also related to financial hygiene issues, such as invoices sent more than a year late by the North Hatley administration.
For now, here are the facts surrounding the financial situation of the village of North Hatley:
Municipal debt has been steadily repaid since 2016, with the exception of 2024, and we only have forecasts for 2025.
The amounts applied to the debt have remained constant since 2016 at approximately $600,000 each year, with the exception of 2024, for which a repayment of only $61,337 was applied. This is clearly stated in the figures sent out in the municipal newsletter “Entre nous” and reiterated in the PowerPoint presentation on finances given on September 16.
The municipality is required to use the money collected for debt servicing to pay off the debt.
According to my analysis, the law requires the municipality to use the money collected for debt servicing to repay the debt. That makes perfect sense! However, the municipality could defer repayment of the debt to the following year.
The official 2024 financial reports remain unavailable despite the requirement to file them by June 30, 2025.
The official 2024 financial reports are not available at the department. Normally, the municipality must have filed its reports by June 30, 2024, at the latest.
No formal financial reports were sent prior to the financial meeting on September 16.
To my knowledge, no formal financial reports were sent prior to the financial meeting on September 16. There is no point in attending a presentation of financial statements without having received the financial statements a few days beforehand.
Impossible to dig up non-existent financial reports
Citizens cannot get a true picture of North Hatley’s public finances, as the official 2024 financial reports do not exist. This makes it very difficult to assess the effectiveness of the current administration.
The official 2024 financial reports and 2025 financial reports must be provided
It is essential that these official 2024 financial reports be made available before the elections. This will enable citizens to get a true picture of the current administration’s results and guide their vote on November 2.
That said, I am trying not to doubt, but the municipal administration leaves me no other choice. It seems inconceivable to me to submit municipal financial reports late, especially after the elections. Not to mention that no update on the 2025 financial results is available. For now, all I see are forecasts. That’s fine, but it’s not worth much!
That said, let’s give the candidates a chance. However, the elections are less than six weeks away. Time is running out! Especially since the standard specifies that citizens should receive the financial statements at least seven to 14 days before a presentation meeting in order to ask relevant questions. That leaves four weeks to deliver!
On that note, happy voting on November 2!
