The City of Quebec is heading for a slight budget surplus of $2.4 million by the end of 2022, “very good news”, even a “victory” in the current inflationary context, rejoiced Mayor Bruno Marchand on Monday.
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While the preparation of the budget for the year 2023 is in full swing, the Marchand administration has also revised its projections for the current year.
By the end of December, the finance department expects to end the year in green ink with a surplus of $2.4 million, despite the upheavals in the economy and inflationary pressures.
On a budget which is now close to the sum of $1.7 billion, this tiny difference represents “around a tenth of one percent”, summed up the mayor at a press briefing, praising the “quality” of the managers of the Town.
“An interesting victory”
“In an inflationary context, in an economic context of uncertainty, this is an interesting victory so far. We will judge the tree by its final fruits in December, but in the light of the projections that are made, this is very good news”, he said, although the surplus is very small compared to that of $56.5 million realized the previous year.
Financial documents released Monday show a $50.5 million increase in spending.
Snow removal, road maintenance, fuel and the overtime of firefighters and police have notably contributed to inflating the bill for the City.
Revenues up too
On the other hand, the City earned additional revenue of more than $40 million thanks, in particular, to higher transfer duties (+$19.8 million), the hotel accommodation tax (+$6.7 million $) and higher-than-expected interest income (+$15.5 million).
Note, however, that the City uses unallocated surpluses of nearly $20 million to make up for certain shortfalls and replenish its “snow reserve”.
Tram fees
Mayor Bruno Marchand also reiterated his intention to go ahead with the principle of fees for future constructions along the tram route.
In search of new income, the mayor wishes to be able to implement this new regime from 2023 or 2024.
The City does not yet have this power and it will first have to obtain the consent of the Government of Quebec by means of a bill or a decree.