Montrealers can expect lower tax increases next year than those of almost 5% this year, the Plante administration assured Friday. It recorded a surplus of $187.6 million in 2023, according to its latest financial report.
million, it may seem like a large amount, but on a budget of almost 7billion, it’s the equivalent of arriving kif-kif”,”text”:”187.6 million, it may seem like a large amount, but on a budget of almost 7 billion, it’s ‘equivalent to arriving kif-kif”}}”>187.6 million, it may seem like a large amount, but on a budget of almost 7 billion, it’s the equivalent of arriving kif-kif
argued the president of the executive committee of the City of Montreal, Luc Rabouin, when presenting the document to journalists.
Of the surplus of $187.6 million, part will be injected into the City’s current operations, particularly in the snow reserve which must compensate for the vagaries of Mother Nature. Another part will be returned to the boroughs and will be used to repay the debt, among other things.
The man who is also mayor of Plateau-Mont-Royal defended the property tax increases for the residential sector, averaging 4.9% in effect this year, recalling that Projet Montréal had committed during the campaign not to increase them. beyond inflation. % [l’an prochain]”,”text”:”Inflation is decreasing at the moment, so it is certain that we will not be at 4.9% [l’an prochain]”}}”>Inflation is decreasing at the moment, so it is certain that we will not be at 4.9% [l’an prochain]
he indicated.
Despite a recovery in the real estate market, the Plante administration expects a drop in revenues in 2024, due in particular to the slowdown in inflation. It’s going to be a challenge to complete the 2025 budget
, affirmed Mr. Rabouin. The City also wants more real estate transactions to increase its revenues.
For 2023, Montreal received revenues higher than the budget forecast of $59 million. She was also pleased to have limited the increase in operating expenses to 63.8 million thanks to her budgetary tightening plan put in place in the fall.
As a reminder, the Plante administration announced in October 2023 that it would end the year with a surplus of $40.8 million, a sum considered too meager to face the challenges of 2024. The City then put the brakes on on hiring in addition to putting on hold expenses that were not yet incurred, such as the awarding of contracts or the carrying out of new studies.
Kim Vermette’s report
In details
Concretely, what does this financial report say for the year 2023 (New window)?
First, certain expenditure items cost the City more than expected. Snow removal, for example, caused a negative variance of $46.2 million. The cost of overtime paid in public security services exceeded budget forecasts by 12.6 million.
The City also recorded a drop of $14.7 million in its tax revenues in 2023. It affected 7.6 million less than anticipated due to slower than expected real estate growth. Several construction projects have in fact been delayed until 2023.
Furthermore, the fines brought in less money than expected for the City, causing a hole in municipal finances of $24.7 million. Income from transfer taxes, also known as welcome tax
were also lower than expected (43.9 million less).
That said, the Plante administration was able to get its hands on an additional $7.2 million thanks to licenses and construction or modification permits.
The City also received additional revenue, among other things, from higher than expected interest rates on investments and government transfers for, in particular, the rehabilitation of contaminated land. The repayment of loans from the Emergency Assistance Program for Small and Medium Businesses during the pandemic also gave it an $18.9 million boost.
For its part, the municipal debt increased by 2% in 2023, which represents an increase of $131 million. As of December 31, 2023, it reached a total of 6.7 billion.
For the opposition party Ensemble Montréal, the Plante administration is too spendthrift.
new people have been added in the last seven years of this administration, it is difficult to see how they will manage this addiction to spending”,”text”:”When we see that the City has a certain addiction to spending, when we see that 3000 new people have been added in the last seven years of this administration, it is difficult to see how they will manage this addiction to spending”}}”>When we see that the City has a certain addiction to spending, when we see that 3,000 new people have been added in the last seven years of this administration, it is difficult to see how they are going to manage this addiction to spending.
commented the mayor of the borough of Saint-Laurent, Alan DeSousa.
They had seven years to do it and they were never able to do it.
