FINANCES

Financial Highlights

Reduction of tax increases every year.
96% of residents enjoyed an average 1% tax DECREASE in 2009.
Five–fold increase in surplus from the $300,000 that we inherited in 2006 to over $1,500,000 in 2009.
Only town to take interest–free loan — Savings to Hampstead of about $3,300,000.
Hampstead's debt on our latest financial statements is just under 13,000,000 which represents less than 1% of the Town's taxable evaluation.
The debt service of 8.8% (based on the latest figures from Quebec government website) is the fourth lowest of all the municipalities on the island of Montreal.
The Town of Hampstead's Response to the letter by Gina Caligiuri, tabled by Councillor David Sternthal at the Sep. 8 Council meeting.
Read the external auditor's report (December 31 2008). Hampstead's full financial statement is available in French only.

Financial Philosophies

Long Term Debt for Long Life Assets

We borrow to fix our infrastructure and for assets (vehicles, facilities, etc.) that will last a long time. Some critics say this is mortgaging our future and forcing our children to pay for our wasteful ways. This is totally false. Why should residents who may move out of town in a few years pay for a road that will last 25 years? If an asset will last 10, 15, 20 or more years, we take a loan that will be repaid over the life of the asset. This way the current residents pay for what they enjoy each year.
Investments that yield Annual Savings

As much as possible, we invest in things that yield annual savings. For example, new roads do not need pothole repairs. Water mains that have been replaced do not break, therefore, homes are not flooded and we do not pay expensive damage claims. New vehicles mean that we have fewer costly repairs.
No Over Taxing

We should have a combined surplus and contingency of $1,000,000 and no more. So when our surplus climbed above $1,000,000 I advocated using the excess to reduce taxes and to have a small contingency in the 2009 budget. As your Mayor, I promise that I will not over tax just for the sake of building a surplus.
Facilities that pay for themselves

My philosophy is to try to introduce excellent facilities that pay for themselves. We added one new facility, the dog run, and we made sure that it would be self-sustaining. Dog license fees were set at a reasonable level which, nevertheless, was enough to ensure that the annual debt repayment and maintenance costs would be covered.
Residents should have access to what they pay for

Our tennis courts and the improvements (new lights, patio area) that we have made to them, are subsidized by general tax revenues so I felt that even residents who wanted to play one or two times a season should be able to do so. Consequently, I introduced day passes for our residents who wanted to play without getting a season pass.
Residents should pay for what they use

Last year we were able to drop the local tax by 2% because we raised the consumption water tax tariff to a level that fully covers our costs. This action allowed all residents to lower their overall tax by conserving water and this is exactly what happened. It is fairer than having everyone pay for the wasteful ways of a minority.

Hampstead's Response to the letter by Gina Caligiuri, tabled by Councillor David Sternthal at the Sep. 8 Council Meeting

At the September 8, 2009 council meeting a letter by Gina Caligiuri was tabled by Councillor David Sternthal. The letter raised questions about Hampstead’s financial health. The Town’s response consists of three letters. One is from the Town’s Treasurer and Assistant Treasurer. The second is from Jocelyne Poirier, the senior partner in Goudreau Poirier, the external auditors who produce our audited financial statements. Mdme Poirier is the President of the municipal administration committee for the Quebec Order of Chartered Accountants and has audited municipalities for the past 27 years. The third is from Isabelle Clement, a Hampstead resident and a principal of Mercer. Mercer has served as the Hampstead Pension Plan consultant and actuary for more than 30 years.

Collectively these letters show that Hampstead is in excellent financial health. The Town had surplus of just under a million dollars in 2008 and had an accumulated total surplus of 2.1 million at the end of 2008. The Town has never had a deficit in the last 4 years.

The Town’s long term debt at the end of 2008 was just under 13 million. This is less than 1% of the Town’s taxable valuation. Debt service, which is the percentage of each tax dollar that is used to pay off debt and interest was 8.8% according to the most recent figures on the Quebec government web site which has financial snapshots of every Quebec municipality. This is the 4^th lowest on the island of Montreal.

The Town's Treasurer and Assistant Treasurer's response (requires Adobe Acrobat Reader)