What the MAMROT had to say
On October 18, 2010, the Ministry of Affaires municipales, régions et Occupation du territoire (MAMROT) has sent to Ms. Lise Bourgault a letter in response to the complaint she had made, letter she has given us in order for us to better understand the situation.
It appears that the Ministry recognizes the existence of a deficit in regard to the method of calculation chosen by the administration Dinel. But he also says that the administration Bourgault’s method, if it was unusual, was not bad and does not constitute a breach of good management. We conclude that Mr. Dinel had a choice. If he had continued using the « Bourgault method », we would not have had to endure a tax increase averaging more than 20%.
To see the full letter (in French), click the three pictures at the bottom of this article. We have extracted the following paragraphs of page 2, where the Ministry said:
« The administration then chose to keep the debtors of taxes * and continue to tax the land transferred to the Société de développement économique de Brownsburg-Chatham (SDEBC) to maintain its revenues. The loss corresponding to the value of accounts receivable outstanding at the date of transfer of land would not be found and, in addition, tax revenues would be recorded in the books of the City after the transfer date to the sale of land. This approach remains a local choice. »
« Generally, when a city becomes the owner of land for non-payment of taxes and retains them, receivables should be cancelled and costs be registered in the books. In addition, the acquisition of land or assets is recorded in the value of taxes and not the value of the role or any other value. The loss of tax debtors is to reduce the accumulated surplus (or increase the accumulated deficit). »
« The accounting treatment of the former administration was challenged by the current city council since the city would still impose lands belonging to it without settling the issue of tax collection and liquidity. (…) The orientation (…) has been endorsed by the external auditor of the city. That decision remains a local issue and the Ministry does not have to intervene. »
* Owners of land consolidation – German Sector
Following its own investigation request, Mr. Dinel has also received a response from MAMROT. We have asked to see that response and were told on last council’s meeting it would be posted on the city’s Web site of the. To date, we have yet to read it. The transparency promised by Mr. Mayor is at stake.