In 2024, Quebec City recorded surplus of $ 98.3 million, a record sum from the pandemic. This will allow him to invest more money in social housing, in the sustainability of infrastructure and in the accelerated reimbursement of debt.
This is what the merchant administration said on Tuesday morning in a press briefing, by revealing its financial results dated December 31, 2024.
“Quebec City is in good financial position despite the economic uncertainty that prevails nationally and international […] This is good news that secures us for the year 2025 and the following, ”said Luc Monty, Managing Director of Quebec City.
The surplus is explained, in large part, by the vigor of the real estate market in Quebec which was stimulated by the drop in interest rates. The municipality affected $ 41.6 million more than expected in real estate changes in 2024 compared to 2023. In one year, there were 1000 more sales acts. Recall, moreover, that the levels of the welcome tax were increased at the same time.
Also, the sale of real estate assets, especially in the sorting center, brought in $ 18.3 million more than scheduled in the built -up chests.
The merchant administration insisted that “the level of taxation is good” by proving as proof that it touched $ 10 million less than expected in tax income in 2024. The mayor merchant also said that a possible use of the surpluses to lower municipal taxes would have “put electoralism”.
Cheaper than expected
On the spending side, the snow removal operations finally cost $ 9.9 million less than expected, while the employer’s expenses cost $ 20.4 million less. The rate of contribution to the CNESST for example is lower because there are fewer work accidents. This automatically improves the insurance rating, said Monty.
The money released will allow the city to invest more in social housing ($ 25 million), in the sustainability of infrastructure ($ 10 million) and in debt reduction ($ 5 million).
-“Obsession” of debt
As The newspaper It was revealed on Monday, the city will put $ 5 million more than expected to repay its debt faster. Bruno Marchand, mayor of Quebec, admitted that he is stake in debt a real “obsession” to limit the costs of interest and to show taxpayers “that we manage their money as the apple of our eyes”.
According to him, “it would be easier to take this money and announce it on a project”. But he said he made the choice to lower the debt and maintain a “rigorous” financial framework.
In the documents unveiled on Tuesday, we discover that spending on the tramway in 2024 were $ 58.7 million, much less than the $ 310 million initially planned. The momentary break on the Megaprojet by the Legault government, in late 2023, is responsible for this situation, it was explained.
On the other hand, Mr. Monty was confident about the capacity of Quebec City not to see his credit rating drop, even if it is impossible at this stage to have such a guarantee. The municipality’s credit rating is partially backed by that of the Quebec government which recently saw its rating dropped by the Standard & Poor’s agency.
Oppositions speak of “luck”
Called to react, Claude Villeneuve, head of Quebec first, said on Tuesday noon “that we were very lucky” to have these surplus. In his eyes, the surpluses are explained by the reduction in energy costs, by the Clément winter which made it possible to better control the snow removal budget and by the sale of the capital galleries which provided $ 11.2 million to the city in transfer rights. “Why do citizen services are not improving?” He wondered while recognizing that the city’s finances “continue to go well”.
For his part, Stevens Mélançon, interim chief of team priority Quebec, spoke of “luck” which made it possible to obtain these surpluses. “Money returns to full doors to Quebec City,” he noted. The mayor has an exceptional situation, but it is not reflected in the taxes of citizens. ”
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