In 2021 (the most recent data), Quebec municipalities shared the plump total sum of $ 5.9 billion in revenue from “Government Transfers”, most of which was paid by the Legault government.
Compared to 2018 (the caquistes took power in October), government contributions increased by $1.7 billion, up 40% in 3 years. Over 5 years, that is to say compared to 2016, they have more than doubled.
According to the latest statement (January 2023) from the Ministry of Municipal Affairs and Housing (MAMH), Quebec municipalities collected in 2021 total revenues of $26.3 billion.
“Government transfers” thus represented 22.4% of all municipal revenues in 2021. In 2018, said transfers were equivalent to 17.9% of municipal revenues and in 2016 only 13.1%.
One thing is certain, as “government transfers” have continued to increase in 2022, obviously exceeding the $6 billion mark, these monopolize an even more important place in the revenues of municipalities.
PROPERTY TAXES
The main source of revenue for municipalities is obviously property taxes.
The amount collected in 2021 amounts to $12.63 billion, i.e. $1 billion more than in 2018, an increase of 8.9% over three years. Property taxes thus account for 48% of all municipal revenues.
Given the sharp increase in the property assessment that occurred following the 2022 review of the assessment roll, I remind you that a very large number of owners had the unpleasant surprise of seeing their municipal tax accounts explode. in 2023.
I look forward to seeing the real impact of the review of the assessment roll on all property taxes collected in 2023. Unfortunately, it is only in two years (January 2025) that the Ministry of Municipal Affairs will be able to reveal to us the total amount of property taxes we paid in 2023.
GOVERNMENT BUILDINGS
Are governments paying their fair share of municipal taxes on government buildings? Certainly not, according to the municipal world.
In 2021, municipalities received from governments the sum of $901 million as “compensation in lieu of taxes”. Barely $77.5 million more than in 2018. Of the $901 million, Quebec pays 660 million, Ottawa 201 million, other organizations 40 million.
Question: Are government buildings appraised at fair value? Impossible to know.
OTHER SOURCES OF INCOME
The sale of goods and services (public transit, public security, activities, municipal services), other revenues (fines, penalties, royalties, real estate developers, duties on real estate transfers, etc.) and the pricing of goods and services increased overall reported in 2021 revenues of $6.88 billion.
This is almost the same amount as in 2018.
DEBT
The long-term debt of municipalities reached $30 billion in 2021, according to the latest budget from the Quebec government.
This represented a municipal debt of approximately $3,500 per inhabitant.
THE PROBLEM OF MUNICIPALITIES
The Government of Quebec may inject more and more money into the municipalities, but it is never enough. That is why, year after year, through the Union of Municipalities and the Quebec Federation of Municipalities, they continue to complain that they are short of money.
The cost of construction contracts has risen sharply, even by 30% since 2020. Inflation alone has created a billion dollar hole in 2022.
That said, it must be said that the municipalities are not helping their cause when they present their financial requests during the pre-budget consultations.
In 2022, according to Statistics Quebec, municipalities with a population of 25,000 or more paid their employees total compensation (salary, benefits, retirement) that exceeded by 34.6% that which the Quebec government paid to its employees occupying jobs similar in the public service and the parapublic service.
Compared to private sector employees, the gap in favor of municipal employees in terms of total compensation was 25.3% with union members and 40.6% with non-union members.
CONSOLIDATED REVENUES
Source: Ministry of Municipal Affairs and Housing