The average residential property tax bill will increase by 2% next year in Montreal and will notably finance a significant increase in the police budget.
The metropolis will also double its spending on roaming and will continue to invest in the network of cycle paths as well as in public transit.
This is what emerges from the presentation, Wednesday, of the first budget of the Plante administration since his re-election last month.
“This coherent and responsible budget is geared towards the future,” said Valérie Plante. It reflects our priorities, which are also those of the population of Montreal: housing, urban safety, the environment, quality of life in the neighborhoods and sound management of spending. “
In addition to the increase in the budget of the Service de police de la Ville de Montréal (SPVM) by more than 6% (and 120 additional positions), the interest payable on the City’s debt and transfers to the boroughs will weigh particularly heavily. on the city’s finances next year.
In total, the city’s budget will be close to 6.5 billion, up 1.3% compared to 2021. Including the (non-recurring) reimbursement of the urban agglomeration’s budget deficit, the increase is more like 4, 7%.
$ 83 more for the average single-family home
During the election campaign, the political formation of Valérie Plante had undertaken to limit the increase in property taxes to inflation or to 2%, whichever is lower. The budget presented on Wednesday keeps that promise.
“With high inflation expected for the next year, people are preparing to face increases in their daily expenses related to housing, food and transportation. We have taken this reality into consideration, ”said Mayor Plante. “To protect the purchasing power of Montrealers, the tax increase will be limited to 2%, as promised. “
This increase represents $ 83 more for the average single-family home (valued at $ 526,000), $ 97 for the average plex (valued at $ 606,000) and $ 7 for the average condo (valued at $ 361,000). Condos are currently benefiting from a fiscal rebalancing measure spanning several years.
The average increase of 2% actually hides a significant variation according to the boroughs. Residents of L’Île-Bizard — Sainte-Geneviève will see their tax bill increase by 5.1%. Those in Plateau-Mont-Royal and Verdun will have to spend on average 3% more. At the other end of the spectrum, the increase will only reach 0.1% in Rivière-des-Prairies — Pointe-aux-Trembles and 0.6% in Montreal-North.
For non-residential buildings, the increase is lower, with an average 1.5% increase.
Montrealers had taken advantage of a freeze on their property taxes in 2021 due to the pandemic. The provincial government had injected massive funds into the municipal budget, which allowed it not to post a deficit.
The pandemic is still being felt
The COVID-19 pandemic is still being felt in the city’s finances: revenue from traffic and parking fines was lower than expected in 2021, a consequence of the curfew at the start of the year and the measures free parking introduced by the administration in the city center.
For 2022, a slow return to normal is expected. However, the impacts of the Omicron variant are difficult to predict and the budget was finalized before it swept across Quebec.
Despite the pandemic, Montreal expects the “dynamism” of its real estate market to continue its momentum. The City hopes to collect 66 million more than in 2021 in welcome tax. This will also be increased for transactions of more than 2 million. This increase takes into account “a possible fluctuation in the number of large transactions”, indicates the budget document.