SPEECH ON GATINEAU'S FINANCIAL STITUATION: FOR HARMONIOUS AND SUSTAINABLE DEVELOPMENT

Gatineau, October 11, 2011. – Gatineau Mayor Marc Bureau today presented to the Municipal Council the report on the city's 2011 financial situation.

Mr. Bureau highlighted Gatineau's brisk growth from the demographic, economic, social, cultural and sports points of view over the last ten years. Despite the challenges raised by this kind of growth, Gatineau residents still appear to be satisfied with the municipal services provided to them: a recent Léger Marketing survey measured their level of satisfaction at 7.4 out of 10, and at 7.7 for client service.

"Thanks to this demographic growth, the construction industry remains strong in Gatineau. The value of permits issued for new residential construction was up slightly for the first nine months of the year, at $246 million in 2011, compared to $238 million in 2010," explained Mr. Bureau. "Gatineau residents live in a city that is firmly focused on the future, one that looks promising. In 2011, the Municipal Council and the municipal administration spared no effort in moving Gatineau along the path to prosperity and well-being."

As always, the Municipal Council based its choices on clear objectives. In 2011, the councillors focused on efficient services, sustainable development that protects the environment and maintaining infrastructure investments.

Of the $15 million budgeted for snow clearing, it should be possible to save $600,000 because of the relatively low snowfalls in 2011.

On the occasion of World Habitat Day, Gatineau reiterated its goal of 700 new social housing units by 2013; $3.2 million were set aside for this in 2011. And $1.2 million were allocated to the Rénovation Québec tripartite program for homes in the oldest neighbourhoods.

In regard to public safety, $2.4 million were allocated to hire additional resources with which to fight things like cybercrime and street gangs. A budget of $1.4 million was set aside to hire new firefighters, and $1.6 million were allocated to the purchase of vehicles and equipment. As well, the Cadieux-Laflamme fire station?an $8.5 million project? was completed in the city's east end.

Gatineau has adopted a policy on social development, along with its three-year action plan. Half a million dollars were invested in 2011 to help implement it. Finally, the tags and graffiti prevention program received $310,000.

In terms of sustainable development, the last few years have seen a real revolution in residual materials management. The Green Fund envelope for 2011 was established at $340,000. Gatineau's assessed contribution to the Société de transport de l'Outaouais increased $3.9 million, for a total of $41.3 million, $850,000 of which was allocated to the Rapibus.

Like its residents, Gatineau`s Municipal Council feels very strongly about the condition of its roads, to which it allocated close to $30 million. Road paving alone came to $14 million, while approximately $8 million were spent on revitalizing rue Montcalm. A significant investment of $8.7 million was made to connect boulevard des Grives and boulevard des Allumettières. At the same time, $1.8 million were spent on developing pathways and bike paths, and $5 million on landscaping and repairs in parks.

Gatineau made very good use of the infrastructure programs introduced by the higher levels of government. PRECO alone allocated $16 million in grants to Gatineau for a total investment of $52 million in the water supply and sewer systems.

Approximately $15 million from the federal gas tax fund will be used to finish upgrading water and wastewater treatment plants. Finally, $5.4 million were invested in municipal building maintenance.

In addition, on May 3, the Municipal Council approved the 2010 financial statements, audited and substantiated by Samson Bélair/Deloitte & Touche. Of the $43 million surplus reported at December 31, 2010, Gatineau has set aside the funds required to, among other things:
• pay for pending orders, honour contracts that have been signed and pay promised grants;
• implement deferred infrastructure work; and
• provide sufficient reserves to cover its obligations.

This responsibly managed fiscal year ended with a net surplus of $13.7 million. This remarkable result is due to a strong housing resale market and the surplus from the snow clearing budget.

The anticipated net surplus for 2011 is $11.4 million. As in the previous year, this anticipated surplus of revenues over expenses is in large part due to higher than expected land transfer taxes, a decrease in debt servicing charges and tight controls.