An average tax increase of $227

In the midst of an economic slowdown, the City of Montreal presented on Wednesday a budget of 7 billion, an increase of 3.5% for next year, financed by an average increase of $227 in residential tax bills.

The size of the municipal apparatus continues to grow and will include 400 additional positions, while Valérie Plante’s administration does not plan any significant reduction in expenses.

According to the mayor, balancing the City’s finances presented “challenges” in the current context. “The budget that we are presenting to you today is responsible. That’s the word that comes to mind,” said Valérie Plante on Wednesday. “It’s a budget that is stable, that is connected to the needs of Montrealers. »

“Everything costs more,” she added, confiding that the budget had been “difficult” to put together, but was “the minimum required to get the machine rolling.” “Montréal protects services to citizens and stays focused on investments that correspond to the population’s priorities: housing, public transportation and the fight against climate change. »

It was the outgoing president of the executive committee, Dominique Ollivier, who was supposed to present the Montreal budget, but she resigned on Monday, in the wake of Quebecor’s revelations about her expenses at the time when she was president of the Office of public consultation of Montreal (OCPM). It was the mayor of the South-West district and new head of finance, Benoit Dorais, who presented the budget on Wednesday with Mayor Plante.

“We had to make difficult choices,” said Mr. Dorais. We focus on the pressing needs of our world. »

4.9% increase in residential taxes

The budget includes average tax increases of 4.9% on residential properties and 4.6% on commercial properties. This represents an additional bill of $161 for an average single-family home, $133 for an average condo and $254 for an average plex. This is a high since the 2010 budget and the last economic crisis.

Due to variation in home values ​​and local taxes imposed by boroughs, the impact on tax bills is not uniform across the island. Owners in Pierrefonds-Roxboro will see their bill increase by 7.2% on average, compared to 2.6% in Ville-Marie.

“We want to avoid increasing the financial burden borne by taxpayers,” assured Mr.^me Plant. ” It is tough for Montrealers, we hear it. » She stressed that the increase in the budget is below the inflation rate forecast for 2023 by the Institute of Statistics (ISQ) for Montreal last August, i.e. 5.2%. The inflation rate forecast for the metropolitan region by the Conference Board for 2024 is instead 2.5%.

The slowdown in the real estate market and construction starts hurt the City’s finances in 2023. In particular, it collected 120 million less than the previous year in transfer taxes. Revenues from fines, particularly parking fines, are also substantially less than expected.

The administration does not foresee any significant improvement in this area for 2024.

However, it plans to invest more money in its priorities, for a total of 234.8 million in additional spending next year. “A modest and contained increase,” assured Valérie Plante.

Contempt for taxpayers, according to the opposition

The opposition has criticized the administration’s budget, speaking of an exercise that “contempts” taxpayers due to the increase in taxes.

“They don’t seem to understand the situation of Montrealers,” denounced the opposition finance spokesperson, Alan DeSousa, who is also the mayor of the borough of Saint-Laurent. “There is homelessness, there is a lack of affordable housing, cost overruns that we have been denouncing for a long time and they are insensitive to that. It would be time to tighten our belts. At the moment, Montrealers are having trouble making ends meet. How do you think they will feel when we ask them to pay more again? Do you think this administration will have any credibility? »

Mayor Plante defended herself from being too wasteful with taxpayers’ money. She affirmed that all municipal services were conducting a “program review” in order to find savings, including paramunicipal organizations like the OCPM, in turmoil due to excessive spending.

The budget notably provides for new investments in inspection by the Fire Safety Service (SIM), security around schools and ecological transition.

The administration highlights new measures to improve pedestrian safety near 33 schools, investments of 702 million for water infrastructure and 240 million for “sponge facilities” aimed at limiting the impact of heavy rains .

Police and public transport will be expensive

Like every year, it is public security that takes up the lion’s share of the municipal budget with 18% of expenses.

The Montreal City Police Service (SPVM) has again significantly exceeded its 2023 budget. The municipal council had granted it 788 million, while its expenses should ultimately amount to 830 million. We blame the overtime worked by police officers, in the midst of a staffing shortage, while ensuring that the hiring of new officers will make it possible to reduce this type of expenditure in 2024.

The public security budget for 2024 is up by $35.5 million compared to the 2023 budget.

Among the other budget items which are increasing expenditure for next year, we find the collection and processing of residual materials (up by 25.3 million), the financing of BIXI, particularly for winter cycling (12 .7 million), snow removal (11.4 million) and computer security (10.6 million).

The City also anticipates that its contribution to public transportation will be 715 million, an increase of 48.4 million.

As for the districts, expenditure is up by 37.6 million.

New employees will be hired in sectors deemed priority by the administration: police (107 positions), fire prevention (25), project office for the extension of the blue metro line (19), computer security (12), security pedestrians, particularly around schools (9), crossing guards (9), inventory of heritage buildings (8) and mobile social mediation and intervention team (6).

The City specifies that it receives funds from the Quebec government for the hiring of new police officers and that the blue line project office is financed by the Regional Transport Authority of the Metropolis (ARTM).

In the boroughs, 188 positions are being added to meet various needs.

In total, the City will have 491 more employees, but 91 positions will be eliminated in sectors deemed non-priority, for a total of 400 additional positions.