It is easy to forget how small the village of North Hatley is: approximately 730 residents in 2025, some 320 homes, and only 4.6 km² in area. By comparison, the Township of Hatley covers 212.35 km² and has approximately 2,300 residents.
In the image below, we can clearly see that North Hatley (in blue) is completely enclosed within the much larger territory of the Township of Hatley.
Faced with this reality, one question arises:
Why maintain a complete municipal structure for such a small area, when the Township of Hatley could, in theory, provide all the services?
Of course, the citizens of the Township of Hatley have no desire to take on North Hatley’s debt. But if we put that aside for a moment, we quickly see that the potential savings would be significant—to the point of allowing for accelerated repayment of the village’s debt.
For example, in a merger scenario, the debt could be repaid in 3 years rather than 7 years.
Two small municipalities… for a single ad
In a merger scenario, is it really necessary to maintain two complete administrations? Probably not. According to the October 1, 2025 newsletter, the administrative salaries of North Hatley’s five employees total $495,806. Adding other administrative costs brings the total to $870,000 per year, not including road maintenance employees.
In addition, the village of North Hatley has just hired a new administrative assistant, according to the latest municipal council meeting, bringing administrative costs above the $900,000 per year mark.
Pooling many expenses to save money
- A single administrative team
- A single fleet of trucks and equipment (remember that we purchased two snow removal trucks for $665,000 in 2024).
- A single garage to maintain
- A single insurance policy
- A single city hall
- A single management system for water and infrastructure
- And much more!
The potential savings are considerable, without compromising the quality of services offered to the population.
Financial impact: repay the $3.9 million debt quickly
In the 2025 budget, North Hatley allocates approximately $870,000 per year (now likely more than $925,000) to its administrative costs:
- Salaries of administrative staff
- Remuneration of elected officials
- Office expenses, insurance, legal fees, etc.
In the context of a municipal debt of $3.9 million, this amount represents a net saving if it were absorbed into a larger structure such as the Township of Hatley.
Currently, the village spends approximately $730,000 per year on debt servicing through property tax collection. Adding at least $870,000 + $55,000 (recent new hire) in savings to this repayment brings the total to $1,655,000 per year.
The result: the debt could be eliminated in four years rather than seven, with nearly half a million dollars in interest savings.
Administrative fees payable to the Township of Hatley
Please note that administration fees payable to the Township of Hatley must also be taken into account in the equation. Even in the event of a merger, North Hatley will still have to pay administration fees. In the Township of Hatley, administration fees for 2024 amount to $1,095,792.
If we add 730 residents to the Township’s current population of 2,300, North Hatley would then represent 730 / (2,300 + 730) ≈ 24.09% of the total population. Therefore, North Hatley would have to pay its share of $264,000 in administrative costs instead of $925,000 (including new hires +- $55,000). Obviously, this is an illustrative scenario intended to stimulate reflection and not an exact projection.
We can therefore estimate that North Hatley would have to assume approximately $264,000 of the Hatley Township’s administrative costs, assuming that the rest of the costs would be absorbed by the savings generated by pooling and by the property tax revenues contributed by North Hatley.
Debt repayment scenario in the event of a merger
| Year | Opening balance | Interest (5,7%) | Debt service | Administration economy | Administration Canton | Payment applied | Capital repaid | Ending balance |
| 1 | 3 900 000 $ | 222 300 $ | 730 000 $ | 925 000 $ | 264 003 $ | 1 390 997 $ | 1 168 697 $ | 2 731 303 $ |
| 2 | 2 736 303 $ | 155 969 $ | 730 000 $ | 925 000 $ | 264 003 $ | 1 385 997 $ | 1 230 028 $ | 1 501 275 $ |
| 3 | 1 506 275 $ | 85 858 $ | 730 000 $ | 925 000 $ | 264 003 $ | 1 385 997 $ | 1 300 139 $ | 201 136 $ |
| 4 | 206 135 $ | 11 750 $ | 730 000 $ | 925 000 $ | 264 003 $ | 217 885 $ | 206 135 $ | 0 $ |
Obviously, a more detailed calculation is needed to determine the net financial impact of a merger between the two municipalities. However, it is likely that:
- The debt could disappear in four years.
- Interest rates would decrease by nearly 50%.
- The amounts thus freed up would become new liquidity for:
- infrastructure
- structural projects
- or a reduction in the tax burden
Once the finances are in place, North Hatley and Hatley Township could finally work together, rather than separately.
By the way, what is the status of the intermunicipal recreation agreement between Hatley Township and North Hatley? Has it been renewed?
Sharing infrastructure: fewer duplicates, more resources
A merger would also enable the pooling of several key infrastructures:
- The refrigerated ic
- The new Pleasant View Beach building
- The Hatley Township Town Hall
- And, potentially, the lease or sale of the North Hatley Town Hall
Fewer duplicate expenses means more resources to maintain and improve what
Being “master of our own house”… but at what cost and for whom?
The commitment to municipal autonomy is entirely understandable. But this autonomy comes at a very real cost. Currently, debt servicing represents approximately $0.21 per $100 of property assessment, and this is likely only the beginning.
The real risk of debt lies in:
- The worrying state of infrastructure (water supply, sewerage)
- The decommissioning of fixed assets (OMHS) that must appear in the next financial statements.
- Repeated water main breaks and boil water advisories.
- The general aging of the network, which heralds major—and therefore costly—work.
All of this could result in a new wave of debt for North Hatley.
What does a merger mean for the population?
Would North Hatley residents have fewer services?
I don’t think so. On the contrary, the Township of Hatley already has the organization in place to serve a municipality of 2,300 residents.
Should North Hatley change its name?
In my opinion, no. North Hatley would retain its name and identity, just as the Township of Hatley would retain its own. The name North Hatley already enjoys strong recognition.
Pooling resources encouraged by the MAMH
The MAMH encourages municipalities to work together and share costs. In my view, pooling resources has become essential: without it, many municipalities will no longer be able to afford their ambitions in the coming years.
Of course, this is all a hypothetical scenario, a different perspective on the financial issues facing the village of North Hatley and possible solutions.
Are there too many municipalities in Quebec?
It should be noted that Quebec has nearly 700 municipalities with fewer than 2,000 inhabitants. Quebec (population 9 million) has 1,091 municipalities, while Ontario (population 16 million) has only 444. Are there too many municipalities in Quebec?
These small municipalities have to deal with:
- a limited budget
- few resources and expertise
- a limited number of taxpayers
- ever-increasing costs and needs.
The quality of life in these communities is therefore directly threatened.
In conclusion
Ultimately, the key is for our decision-makers to be able to distinguish what truly serves the interests of the village and its residents. In short, it is essential that our elected officials choose “us” over “me.”
However, imagine the impact that a merger could have on our elected officials and municipal employees. It is therefore understandable that, from their perspective, this is not generally a scenario they would consider.
On the other hand, would North Hatley’s independence or a merger with the Township of Hatley best serve the collective interest?
On that note, happy thinking!
