Financials 2008 and Forecasted Budget 2009

Ministre Nathalie Normandeau
Affaires municipales et des Régions
10, rue Pierre-Olivier-Chauveau
Québec (Québec)
G1R 4J3


RE: Municipality of Lac Simon: financials 2008 and forecasted budget 2009

Ministre Nathalie Normandeau,

On December 22, 2008 the Municipality of Lac Simon had a special council meeting to present their “budget 2009” and their “financial review of 2008”. Here are the highlights:

Actual Budget 2008
The municipality of Lac Simon 2008 operating deficit was $175,500. The 2008 net deficit was reported as $75,500. The actual deficit for 2008 would have been $175,500, had it not been for the $100,0000 the municipality took from the previous years’ surplus.

Moreover the $175,000 operating deficit in 2008 was 7.3% of the 2008 budget ($2,388,520).

Budget Forecast 2009

• Gross revenues for 2009 are estimated at $2,583,539. Net revenues for 2009 $2,507,989 = ($2,583,539 - $75,500).
• Revenues have grown from $1,450,000 (2004), $1,585,651 (2005), $1,692,792 (6.8% increase in 2006), $2,009,820 (10% increase in 2007), $2,388,520 (18.8% increase in 2008).
  

Property taxes 2009

• Evaluations 2009 = $197,243,700 a 4.2% ($7,973,700) increase from $189,270,000 (2008).
• Mill rate 2009 = 0.90423 / $100.00 a 11.97% (0.09673) increase from 0.8075 / $100.00 (2008).
  

The spending is out of control. The forecasts are deficient. As a result, taxes are increasing 12% (in a recession), even though evaluations are up over 4%. Furthermore, unpaid taxes are approximately $180,000.

Moreover, the Municipality of Lac Simon is projecting future capital costs that include:

1. firehouse expansion, at a projected cost of $850,000; and a
   
2. new town hall, at a projected cost of approximately $2,000,000.
   

Please help us stop the over-spending and place some financial oversight on our municipal officials.

We would argue that the Affaires municipales et des Régions review the Municipality of Lac Simon:

1. 2008 financial statements;
2. 2009 forecasted budget;
3. projected future capital costs.
   

Looking forward to a sound financial future.

Thanking you in advance.

Paul Malouf