After years of surfing on a strong economy or pandemic transfers, the game is getting more complicated for the Plante administration as its budget approaches on Tuesday.
Montreal, hit hard by galloping inflation and the slowdown in the real estate market, has already warned that its property taxes will increase by 3% to 6% for the year 2023.
“We are hit hard by the rise in construction costs, by the rise in the cost of gasoline for snow removal. It is sure that it poses problems for us ”, had affirmed the president of the executive committee, Dominique Ollivier, at the beginning of November.
Budget adjustments
A few days earlier, in an interview with The Press, the mayor herself issued a warning. She said she wanted to “find a way to respect Montrealers’ ability to pay — with inflation and the new property roll — but also to ensure that the City is able to provide services to citizens”. “I don’t want to increase citizens’ taxes, that’s not my goal in life,” she added.
Since then, the indices have converged. The Service de police de la Ville de Montréal (SPVM) needed an additional check for $2.6 million to be able to complete the year (it would otherwise have run out of money for office equipment for investigators). The elected officials gave the green light to it last week.
The Société de transport de Montréal (STM), for its part, is considering a drop in service. The “highlights” of an official document obtained by Radio-Canada include a “reduction in the service offer of 3.7% [pour les] buses and 4.8% [pour le] metro” compared to 2022. The company also mentions the need to prepare “a responsible budget in a difficult economic context”. The STM – whose attendance is still at half mast – presents its budget forecasts on Monday.
Inflation and labor shortage
Above all, accounting data recently made public by the Plante administration show that the financial situation is already complicated for the current year.
At last week’s city council meeting, Saint-Laurent mayor (and accountant) Alan DeSousa noted that a projected surplus of more than $100 million for agglomeration spending had suddenly turned into a $80 million deficit. million. Blame it on spending on public safety and emergency measures.
“There is real inflationary pressure on operating costs. The labor shortage is attacking us and it is attacking both the agglomeration and [les dépenses] of the municipal council”, defended Dominique Ollivier in municipal council. “We’re keeping our eyes on where we’re going and you’ll see next week [au budget] where are we? »
PHOTO DENIS GERMIN, LA PRESSE ARCHIVES
Dominique Ollivier, President of the Executive Committee of the City of Montreal
Mr. DeSousa said he “expected better” from Mr.me Olivier. “Why didn’t the administration have the transparency to say that clearly and clearly? “, he lamented.
“For me, it’s quite major,” he added in a telephone interview. We have a major gap. […] This illustrates the magnitude of the challenge. »