Only four citizens attended the presentation of North Hatley’s 2026 budget, despite the importance of this exercise. The schedule, which was not very convenient for workers, raises questions about accessibility and citizen participation. Nevertheless, the session took place in an open and interactive atmosphere, allowing for many questions to be asked.
Key findings:
- Pleasant View Beach: $3 million grant, with no margin for cost overruns—a point that makes me skeptical.
- Ice rink: $2 million donation, cost overruns and operating costs covered by private funds, at no cost to the municipality. See the costs of a refrigerated ice rink: budgets of 14 cities and municipalities in Quebec.
- Administrative costs: approximately 20% of the budget (this amounts to ~26% if debt repayment is excluded from expenses).
- Property taxes: an increase of less than 3% has been announced. We need to keep an eye on the increase in property values—especially for single-family homes—which increases the actual tax bill for citizens.
- 2026 budget: based on a comparison of budgets, not on actual results for 2025. It seems that this is the norm.
- Infrastructure: aging, with significant investments to be made in the medium term. The debt required to restore infrastructure (waterworks) is currently being assessed.
- Municipal debt: repayment scheduled for 2031, with no guarantee of tax cuts thereafter. But it is possible!
The budget is generally clear, but several major issues remain regarding transparency, the real impact on citizens, and the municipality’s future financial capacity.
I remain concerned about the possible imbalance between the ambitions of elected officials and the municipality’s capacity.
Details of this 2026 budget meeting
Allow me to take a critical view—this time of the citizens of North Hatley. Only four citizens attended the budget presentation, even though, in my opinion, it is the most important municipal meeting of the year. However, the schedule chosen is not very compatible with the reality of workers and parents. That said, let’s remember that 33% of North Hatley’s population is aged 65 and over. I would have hoped to see more people questioning the finances… The turnout speaks for itself. Although this may also be linked to a lack of interest or knowledge about public finance.
This leads me to wonder: what is the professional reality of councilors who are available at 4 p.m. on a Wednesday? Retirement, flexible schedules, unemployment… conditions that few citizens have.
Presence and involvement of elected officials
All councilors were present and, in general, attentive. One small comment, however: councilors should be asked to avoid checking their phones during council meetings. One councilor was clearly busy on her cell phone during the session.
This is, of course, a personal impression, but the people who were truly engaged in the discussions and demonstrated a real mastery of the budgetary issues seemed to be Mr. Pelletier, Mr. Tremblay, Mr. Simoneau, and Ms. Gerrish. As for the other elected officials, their evasive glances gave the impression of limited involvement or understanding. No hard feelings, but considering the importance and complexity of the subject, I doubt that all of them have a thorough grasp of the budgets. They left it to the people in charge to do their job.
However, I would like to highlight Mr. Simoneau’s attitude, as he took the time to answer questions and did not hesitate to say when he did not have the information. This transparency is to be commended.
Presentation schedule
The budget presentation was brief but generally clear. It is highly likely that a summary of this meeting will be published shortly in the municipal newsletter, which would be welcome.
Thanks to the very low turnout, I was able to ask a lot of questions. I would like to thank the elected officials and employees for their flexibility: rather than limiting questions to the very end, they allowed for discussion throughout the presentation. The whole thing took place in an interactive and constructive atmosphere.
Here are my main observations regarding the 2026 budget, based on my understanding.
Findings on the 2026 budget
Pleasant View Beach Building
What happens if costs are exceeded? The subsidy granted for this project amounts to $3,000,000. According to Mr. Tremblay, cost overruns should simply not happen. The contract will be awarded to the lowest bidder, and the contractor will be contractually bound to stay within the established budget. However, I admit that I remain skeptical: it is difficult to believe that North Hatley will succeed where, in terms of construction, very few manage to stay within their initial budgets—at least since I was born. The devil is in the details of a turnkey contract.
Of course, one might wonder whether a renovation would not have been both less expensive and, above all, less polluting.
Ice rink
What happens if costs are exceeded? Ms. Gerrish specified that the planned donation for the skating rink is $2,000,000. If costs are exceeded, they will be covered in full by the Pollock family, regardless of the amount. I therefore conclude that, whatever happens, the municipality of North Hatley will not pay anything for the construction of the skating rink.
Furthermore, as I understand it, operating costs—maintenance, repairs, access management, accounting, etc.—will be covered in perpetuity by a dedicated fund. Even if the municipality were to contribute minimally, it would remain a source of collective pride. On this point, the outcome is clearly positive.
Fortunately, because I truly believe that construction costs will exceed estimates and operating costs will be quite significant for a small village like North Hatley, which, as they say, “doesn’t have a penny to its name.”
I am certainly looking forward to seeing an operating plan for this skating rink!
Administrative costs 2026
Administrative costs will amount to approximately 20% of the total budget, or nearly $936,000 ($870,423 in the 2025 budget) out of a total revenue budget of approximately $4,500,000. Please note that during the dispute with Mr. Reed, the ratio mentioned was closer to 26% of the expenditure budget, as it excluded debt repayment. Applying the same logic today, we will likely end up with a figure close to ~26%.
Increase in property taxes (less than 3%)
According to Mr. Pelletier, the announced tax increase is less than 3%. However, I asked whether this percentage took into account the increase in property values. The answer is no: these increases are beyond the municipality’s control, and it will have to adjust its tax rates accordingly. Property value increases occur in September of each year. Stay tuned for more information soon.
I invite you to review the evolution of property taxes from 2022 to 2025.
Average property values: a skewed picture
The average property values presented in the budget once again include all types of buildings, which artificially lowers the average value to approximately $515,000 for 2026. When recalculated for single-family homes only, the average value in 2024 exceeds $700,000.
Real impact for single-family homes
For Mr. and Mrs. Average, the tax rate matters less than the amount actually paid year after year. The average tax bill for 2026 is approximately $5,000. However, if your home is worth $700,000, your tax bill will be close to $8,500. Obviously, if your home is worth $2,300,000, your tax bill will be closer to $19,000 per year. And remember, it’s the same amount for everyone!
The increase in property value is just as important as the increase in the tax rate, not to mention fixed-cost services. I therefore criticize the presentation for not being adapted to single-family homes, which prevents citizens from visualizing the real financial impact. A 3% increase in the rate combined with a $100,000 increase in property value is not a 3% increase. What we want to know is how much it will actually cost, in net dollars, in our bank account after taxes.
Mr. Pelletier also points out that property values in North Hatley have doubled since 2021 and that this increase directly benefits homeowners…
2026 Budget Basis
Is the 2026 budget based on the 2025 results? I confirmed with Mr. Simoneau that the 2026 budget is not based on actual 2025 results, but solely on a comparison of previous budgets. According to him, this is the method used in budget presentations.
However, Mr. Pelletier states that 2025 is unfolding “very, very close” to forecasts. We will have to wait until July 2026, when the financial statements audited by RCGT are filed, to have this confirmed. According to Mr. Pelletier, “interim” financial statements are prepared every four months. The most recent ones are therefore dated October 1.
There is no risk that the actual figures will be far from the budget.
Work at City Hall
Beginning in October 2024 (soon to be ~14 months), bids must be submitted. According to Mr. Simoneau, work on the municipal employees’ offices should be completed by April 30, 2026, at the latest.
Fortunately, the temporary premises are appreciated by the employees and the mayor.
New municipal website
The municipality plans to launch a new website in 2026, at a cost of $27,000. However, in my opinion, a website without a real communication plan adds little value. And, here too, the devil is in the details of the contract. For the time being, the creation of a citizen portal is not being considered, no doubt due to a lack of financial resources. Let’s face it, with $27,000, you can’t do much except perhaps make the site more visually appealing (I have co-created more than 1,000 websites during my career). The key is to update the website to communicate with people. This requires rigor and organization.
Municipal garage: funding to be found
One major project remains under consideration: the construction of a new municipal garage. Funding could come from grants, donations, or the sale of the current site or the “green dome” near the street—an element sometimes presented as a “symbol of North Hatley,” but which, in my opinion, has no place in the landscape.
The estimated budget is approximately $800,000, mainly to properly store our machinery and two new snowplows ($665,000), which are currently exposed to the elements. Allow me to be critical. To use a simple analogy: when you don’t have a garage, you normally avoid buying ATVs.
Current state of infrastructure
Are our municipal infrastructures outdated? The answer is yes. According to Mr. Tremblay, a budget of $100,000 is planned for 2026 to assess their condition and prepare grant applications. In 2028, the municipality hopes to obtain at least $2,000,000 to begin work, mainly on the water system. It looks like major water system work is on the horizon… and the return of orange cones in 2028 for sure.
In my opinion, however, the true extent of the obsolescence is underestimated, probably to avoid worrying the population or due to a lack of information.
Contingency budget for breakages
Do we have a contingency budget for infrastructure? Yes, according to Mr. Tremblay, there is a contingency budget for water main breaks. That said, a single minor asphalt repair recently cost $50,000. An increase in the price of asphalt can therefore quickly blow our budgets. However, we do need to set a contingency. According to Mr. Tremblay, we base our estimates on our history of breaks in recent years. It’s just that, in my opinion, it’s going to be exponential. We’re only seeing the tip of the iceberg.
Budget surpluses
Will we have budget surpluses in 2025? Question from citizen Alain Beaulieu. Mr. Simoneau was hesitant to answer this question, while Mr. Tremblay was more clear: if so, very little.
Mr. Pelletier also mentioned that some municipalities generate surpluses by “overtaxing” their citizens. I took the liberty of criticizing this statement: North Hatley is already one of the most heavily taxed municipalities in Quebec. Obviously, in North Hatley, it is not a matter of overtaxing, but rather of forced catch-up: we are taxing because we are in debt. However, we cannot try to justify this.
We must simply bring the municipal tax back to a normal rate as soon as possible.
Municipal debt
When I asked when the municipal debt would be fully repaid, the answers were initially vague. After clarifying my question—barring any unforeseen circumstances, according to the bank schedule—Mr. Pelletier confirmed the year 2031. This excludes the MRC’s share of the debt. For me, 2031 is a figure that all elected officials and citizens should know.
According to Mr. Tremblay, we will see some financial relief in 2027. This does not change our debt. I will be able to comment once I have the budgets in hand.
End of our municipal debt
Once the debt is repaid, can we expect a tax cut? Ms. Gerrish was cautious. It will all depend on future investments, particularly in light of the new master plan and the vision that will emerge from it. A tax cut has been mentioned, but for now, it remains very theoretical.
Do people want to improve North Hatley or lower taxes?
In summary
In conclusion, Ms. Gerrish herself acknowledged that there is still a lot of planning to be done to fully understand where North Hatley is headed in the coming years in order to align its vision with its budgets.
I therefore understand that North Hatley’s current management remains largely reactive—putting out fires, acting on a case-by-case basis, and dealing with surprises, whether it’s a water main break in December or a spike in the price of asphalt. There is a willingness to plan better with limited funds. Sadly, trying to do more with less is the reality for most people.
Of course, a budget must allow for contingencies, and I agree that there are limits to what can be anticipated. However, given the general state of our infrastructure, these situations should not constantly take us by surprise. The primary role of a budget is precisely to anticipate, plan, and avoid financial shocks—so that we don’t find ourselves caught off guard once again.
Despite everything, I feel that we are making progress.
