As the mayor of your municipality and on behalf of the members of your council, I am pleased to inform you of the financial situation of the Municipality of Austin.

The current financial situation

Budget projections indicate that revenues for 2008 will be in line with the budget forecast (within 1.5 %). This is quite satisfactory. The postponement of the repair and rebuilding to be carried out on North Road in 2008 and 2009 shows a deferred amount corresponding to the government grant. There has been an increase in revenues from various sources, such as real estate transfer duties and fees charged for certain cadastral subdivisions.

The Outlook for 2009

In September, the evaluators presented the new assessment roll for properties in the municipality. This triennial event is intended to reflect, insofar as possible, the true market value of taxable properties. This is a requirement of the law. Unfortunately, should there be an extended downturn in the economy the law does not allow an adjustment before the next triennial cycle. In the economic context with which we have been living for the past several years, the new roll, a product and consequence of the real estate market, shows another major increase in values.

What we must understand is that overall, the tax rate decreases in proportion to the increase in taxable values. So, the consequences of the deposit of the new roll on our taxes should only reflect a redistribution of the charges attributable to the variations in the rate of growth of property values from one sector of the municipality to another. Concretely, it is the intention of the council to control expenditures and limit any growth to the inflation rate and new demands from the government.

Our operating expenses are being well managed. The staff of the municipality is efficient and well supported. The council is considering adding a person on the technical side, to act as an assistant to the municipal inspector. His or her primary responsibilities will be to offer support to the inspector and to direct the public education and awareness activities we believe are necessary to promote our involvement in environmental issues.

The transformation of our fire protection service is also moving ahead smoothly. The next purchase of equipment must be planned for 2010 when the new pumper truck will be added to the fire department.

Roads remain the major appropriations item. The work planned on North Road will be carried out in 2009. The repayment of the loan to cover the costs will be spread over 10 years, starting in 2010.

Discussions are continuing with certain property owners in the Four Seasons development concerning the takeover by the municipality of certain roads there. No matter what the outcome of these discussions, it is important to remember that there will be no impact on the municipal budget, since future work will remain the responsibility of the landowners concerned.

Austin, November 3, 2008.

Roger Nicolet, Mayor