Montreal ended 2022 with a surplus of $343.8 million attributable, in particular, to larger than anticipated government transfers and increased revenue related to real estate transactions that occurred on its territory, reveals the City’s financial report made public on Friday.
This surplus is even higher than that recorded in 2021 which reached 190 million. It breaks down as follows: 116.2 million for the central city, 49.1 million for the boroughs and 178.5 million for the Montreal agglomeration.
However, last November, the Plante administration announced an average increase in property taxes of 4.1%, the largest since 2011.
The president of the executive committee, Dominique Ollivier, however, says that this tax increase was necessary. “You have to put it into perspective,” she said on Friday. “The surplus is 165 million for the local jurisdiction of the City. And the city’s total budget exceeds six billion. So it’s really a very tiny portion and 49 million goes to the boroughs. »
According to her, the City has succeeded in a difficult “balancing exercise”. The surplus will be used in particular to replenish the reserve for snow removal and debt repayment, said Ms.me Olivier. “The rest will remain in free surplus to respond to emergencies. »
Increase in compensation
Part of the increase in city revenues is linked to a $170.6 million increase in government transfers for economic development in particular. And although the City recorded fewer real estate transactions in 2022 than in 2021 on its territory, it still collected 110.9 million more than anticipated in income from property transfer taxes (95.9 million) and in building permit fees ($15 million).
The balance sheet also shows a significant increase in compensation compared to forecasts. This gap reaches 126.2 million, including 94.8 for overtime mainly attributable to security services, whether police or firefighters. “The police have been on the front line, both in combating gun violence and in helping us during the pandemic,” Ms. Ollivier recalled. “We know that they were doing it with numbers that were not optimal. It’s a bit normal that we find extra time. »
The financial report also indicates that a sum of 22.9 million in overtime is linked to the holding of COP15 last December.
On this subject, Dominique Ollivier specified that this event, which Montreal had to organize at the last minute, cost 30.4 million to the City when it had planned an amount of 38.6 million. However, the federal government paid $27.9 million to reimburse the cost of security measures surrounding the holding of this event, the documents state. “So, that’s a net cost for the City of 2.5 million for an influence that is still considerable,” noted M.me Olivier.
In terms of housing, Montreal paid $26.6 million less than expected to organizations that carry out housing projects. However, the City invokes the postponement of construction projects under programs such as AccèsLogis Québec and Rénovation Québec Montréal. This sum will be set aside for the future realization of the projects, it was indicated.
In 2022, the City’s debt has decreased by $30 million to $6.5 billion. The City points out that the cash payment and the government subsidies enabled it to avoid additional borrowings of 1.2 billion.
The debt ratio therefore reached 106%, thus exceeding the set limit of 100%. On the other hand, argues the City, this ratio is 13% lower than that provided for in the 2022 budget.
Opposition to hotel slams Plante administration’s imposition of largest municipal tax hike in a decade as ‘hypocrisy’ despite showing surpluses of more than a quarter of a billion dollars for fiscal year 2022.
“In fact, the Plante administration falsifies its budgetary reality by taxing more and more, rather than soundly managing its budget,” denounced Alan DeSousa, mayor of Saint-Laurent and opposition finance critic.
Ensemble Montréal also criticizes the administration for constantly complaining that it does not receive enough money from the Quebec government. “It has become the administration’s easy way out of not assuming its responsibilities. In fact, Montreal received nearly $200 million more in government transfers last year,” Mr. DeSousa pointed out.