Single-family homeowners in Quebec will face a tax hike of about $75 in 2023, the steepest in 15 years. However, it could have been much worse, argues the City, which will also replenish its coffers by increasing all its rates, including parking lots.
If the City had followed its own rule, adjusting taxes for inflation, residential and non-residential taxes would have risen by far more than the 2.5% confirmed Monday, it was argued.
Courtesy Board, Quebec City
Other large cities will tax significantly more than that, insisted Mayor Bruno Marchand, “proud” of having succeeded in “capping” the increase at an acceptable level, according to him, for the citizens who must also face the rising cost of living in their daily lives.
“Under normal conditions, we would have indexed at 5.6%, which would have led to an increase of $167. The savings achieved are therefore $92 on average for residential tax bills,” said City Manager Luc Monty, referring to the current context of “turbulence.”
The 2.5% tax increase will generate $31 million in additional revenue. The addition of tax brackets for the welcome tax (transfer duties) on transactions over $500,000 will generate an additional $8 million.
Courtesy Board, Quebec City
Parking is also increasing
As for rate increases, the City will seek an additional $3.8 million from the pockets of citizens, including $2.1 million from parking lots alone (parking meters and vignettes).
From January 1, you will have to pay $3 per hour instead of $2.50 currently, or 20% more in the 1,801 parking terminals. This is the first increase since 2016.
Vignette holders will pay even more since they will have to pay $120 per year instead of $82 per year, an increase of 46%. Other goods and services, such as the rental of skating rinks, will be indexed by 5.6%.
Courtesy Board, Quebec City
Greater shock averted
The City ensures that it has made “significant efforts” by reducing its expenses here and there by $11 million and by dipping into its reserves up to $13 million to limit the shock. “The 2023 budget that we are presenting on Tuesday will allow us to get through it,” said Mr. Monty.
Photo Stevens LeBlanc
Mayor Bruno Marchand and the Director General of the City of Quebec, Luc Monty
In the end, the Marchand administration says it has made “responsible” choices by tabling a balanced budget of nearly $1.8 billion for 2023, up 7% from the previous year.
The mayor and his team explain this significant variation by various factors, but inflation – which represents approximately $31 million of the increase – does not explain everything.
The city will also inject $46 million into additional services for citizens ($18.2 million for waste management, $10 million more for snow removal, $4.4 million more for road maintenance , $2.5 million more for urban safety and $800,000 to improve the leisure offer).
“Ambitious” despite everything
Undoubtedly, Bruno Marchand’s first “real” budget since his election is marked with a hot iron by inflation. This does not prevent him from being “ambitious” and from being focused more than ever, he boasts, on sustainable development.
The city’s net debt will also continue to decline for an eighth consecutive year, to $1,539 million (-$4.7 million).
The opposition parties promise to study the budget documents and have not yet decided whether they will support it or not.
Planning investments over 10 years (instead of 5 years) worries Opposition Leader Claude Villeneuve, who fears that certain projects will be pushed back by “shoveling” them forward.
— With the collaboration of Taïeb Moalla
What attracts attention
- Balanced budget of $1,772.2 million (an increase of $116.4 million or 7%)
- For an average $293,000 home, the 2.5% tax increase equals an increase of $75 for the year ($60 for Loretteville and $73 for the former Ville de Québec before the municipal amalgamations)
- Commercial and industrial taxes are also 2.5% increase
- The new 10-year investment plan provides for a sum of $10.1 billion
- Net debt will stand at $1,539.1 million (-$4.7M)