Financial Report for the year ended December 31, 2010


Presented by Mayor William Steinberg at the November 7, 2011 Council meeting.

With another fiscal year coming to a close, it is my pleasure to review the financial position of the Town of Hampstead in accordance with Article 474.1 of the Cities and Towns Act. Along with a presentation of the Town's principal expenditures for this last year, the following topics will be discussed:

2011 Financial Results

As you may recall from the deposit of the 2010 Financial Statements earlier in September of this year, the financial activities of the Town resulted in a net surplus of $531.7 thousand on December 31st.

This surplus was mainly a result of:

  • Funds remaining to invest in infrastructure projects per interest-free loans taken out in accordance with Quebec's Subvention program (Decree 1210-2005);
  • Higher revenues than expected from property transfer duties;
  • Lower water purchase costs from Montreal;
  • Expense savings from the financing of long-term debt;
  • Sound financial management of expenditures.

At year-end, the Town of Hampstead benefitted from an accumulated surplus of $ 1.5M from which was already deducted:

  • $292 000 appropriated for the Town's Working Fund;
  • $290,000 appropriated as a tax reduction measure in the 2011 budget.

A further $250,000 must also be set aside to complete infrastructure projects related to long-term (interest-free) borrowing already made under Quebec's Subvention program (Decree 1210-2005).

However, the total current accumulated surplus is $ 1.78M since the amount relevant to the Town's working fund is an integral part of our surplus even though it is appropriated into a separate fund.

As the restoration of our infrastructures remains one of the top priorities, capital expenditures in 2010 totalled $ 2.8 M and spanned a variety of different projects.

Water mains & sewers $ 2,243,000
Roads & sidewalks $ 43,000
Buildings & office $ 97,600
Parks & playgrounds $ 136,900
Vehicles $ 257,000
Machinery & equipment $ 37,100


Three-Year Capital Expenditures Program - Update

The principal investments planned in the current three-year capital expenditures program reflect our desire for a diverse and vibrant development of the Town. The projects for 2011 are nearing completion with some final work extending into the coming fiscal year. The orientations for the 2012 - 2014 capital expenditures program are being formulated.

The Town's water main and sewer network has done well in 2011 thanks to grants totalling $1.7 M from the 2010 - 2013 Federal excise tax (joint provincial & federal) program.

As in past years, we have continued to focus on water and sewer infrastructure rehabilitation as well roadwork and sidewalks including the revamping of Fleet road. Also, a constant rejuvenation of our vehicle fleet, heavy equipment and computer hardware / software offers an enhanced efficiency of operations. Along with this park safety upgrades continue to be prioritized and new garbage bins were distributed to all residents.

In summary, we will continue to focus on our longer-term plan to recover and build a renewed infrastructure system while ensuring that our Town is kept clean, attractive and safe.


Preliminary Forecast on the 2011 Financial Situation

The latest financial results indicate that the Town has fulfilled its commitments with respect to the budget adopted at the beginning of the year, and this, with the local tax increase held to only 1.9% for the average single-family home while the Agglomeration tax had a 4.6% increase.

We continue to keep close control over our expenses while maintaining the quality of services offered to, and expected by, Hampstead residents. Of equal importance, we continue to prioritize open and frequent communication to ensure that our residents are informed and involved in our many Town initiatives.

With respect to the 2011 year-end financial results, we are forecasting to end the year within budgeted parameters. Our only caution resides with unforeseen expenses materializing from legal claims.

General Orientation for the 2012 Budget

The Director General of the Town in cooperation with Council and upper management is actively preparing the 2012 budget based on identified needs while keeping under consideration our resident's capacity for tax payment fluctuations. The coming budget will concentrate on historically demonstrated requirements and the credit allocations will be in sync with objectives and key results expected from each department.

We will take advantage of this opportunity to review and assess requests addressed to the Town Council by residents in order to improve the quality of life in the community. As in the past, our objective is not only to maintain that which has been acquired but to go one better in response to current financial and environmental realities. The final results will subsequently be presented to you during a special meeting in December where the budget forecast for 2012 and the next three -year capital expenditures program will be discussed.

We will take into consideration all necessary priorities and needs not only to ensure a sustainable and beneficial development but to promote an enviable quality of life for our residents while controlling tax increases. Nonetheless, a challenge we are still faced with in the upcoming year is to manage price hikes occurring in several areas such as the employee pension plan deficit, dumpsite charges for Town materials, snow removal and of course our own fuel needs.


List of contracts for expenditures exceeding $25,000, and $2,000 for contractors whose total expenditures exceed $25,000

In accordance with the law, we have deposited with the Public Affairs and Registry Department the list of all contracts issued which include an expense of over $25,000 entered into since the last meeting of Council at which this report was presented. We have also deposited the list of all contracts involving an expenditure exceeding $2,000 entered into within that period with the same contracting party (which represented a total expenditure exceeding $25,000).

Remuneration of Elected Officers

As members of the Town Council, an annual remuneration plus an annual allowance for expenses related to these functions is received. This remuneration is in accordance with the provisions of the Act respecting the remuneration of elected municipal officers.

The following table indicates the remuneration and allowances received by Hampstead's Council members as elected officers.

Title Town
Expense Allowance
Public Security
Commission Remuneration
Mayor $ 30,634 $ 14,951 $ 10,334 $5,171
Councillors (6) $ 10,130 $ 5,065    


Final Words

Year after year the economic health of our Town remains strong. Nonetheless, vigilance and foresight are this Council's raison d'être. It will continue to be so, in order to secure the quality of services and the sound management of public funds expected by our residents.

In order to increase knowledge of and accessibility to municipal life, we are continuing to develop our communication tools and approaches. Please rest assured that we will spare no effort to ensure that Hampstead remains a peaceful, happy, healthy, and safe community. Let us continue to build a better tomorrow, together. Your councillors and I sincerely thank you for your support.

And last but not least, the success of this Town is built on the contributions and hard work of its employees. I take this opportunity to emphasize the work of all our Town employees, the able employees at Town Hall, the blue collars who maintain our streets, the Recreation staff for our programs, and our Public Security Agents who keep our Town safe. I thank them all for making Hampstead the wonderful community that we enjoy so much.


Dr. Bill Steinberg
Mayor, Town of Hampstead