Coderre breaks budget promise: Montrealers to face an average tax hike of $100

Calling it a ‘transition budget.’ Mayor Denis Coderre has tabled his first budget for the city of Montreal, and it comes with property tax increases.

“It is a bridge from the old to the new city,” he said, calling the budget responsible and pragmatic.

On average, city property taxes will rise 1.9 per cent for the central city's budget. With borough increases, however, the average increase city-wide is 2.8 per cent.

The boroughs increases vary from 1.1 per cent to 5.3 per cent, so on average homeowners will pay an additional $100 this year.

The $4.9 billion budget is described by Coderre as transitional and sound.

"It is only a first step toward what we intend to achieve," said Coderre.

To restrict the tax increases many departments will be faced with budget cuts, but there are some areas that will see extra spending, namely the newly-created Inspector General's office, which will have $5 million to investigate any and all contracts

The city's fire services are getting a $12 million budgetary boost, as is the city's police force.

Critics say Coderre was being dishonest, when he promised he wouldn’t exceed the inflation rate, which the Conference Board of Canada pegs at 1.7 per cent for 2014, because he’s forcing the boroughs to shoulder the burden, asking them to collectively reduce costs.

“He has cut $20 million to the boroughs to have his own pocket money,” said Projet Montreal leader Richard Bergeron.

"He knew very well that in the boroughs they are having difficulty delivering services and so they had to raise taxes more," said former mayoral candidate Melanie Joly.

The highest increases are in RDP-PAT, where bills will rise by 5.3 per cent, followed by Anjou at 4.9 per cent and the Plateau-Mont Royal at 4.6 per cent.

“He knew there would be local taxes, borough taxes, which ultimately is an increase of taxes for Montrealers over inflation of 2.8 per cent,” said Joly.

Budget breakdown

The city gets most of its money, $3.3 billion, from property taxes.

Fees for services generate an additional $828 million, while transfer payments from other municipalities and other levels of government contribute $666 million.

The largest portion of money spent is on public security (police, fire, civil) at 21.5 per cent, with an equal amount spent on pension plans and general administration.

Debt payments constitute 16.1 per cent of each dollar of revenue, while skating rinks, parks, pools and libraries consume 10 per cent of funds.
 

Mayors’ table

The Coderre administration is calling for a so-called 'Mayors’ table' to hammer out the borough/city issues.

“It shows we need to reform how the boroughs are financed,” said Pierre Desrochers, president of the city’s executive committee.

The administration said it will address a $100 million shortfall it said it inherited by, for example, reducing the payroll in certain city departments by $22 million.

“Basically by not replacing people that leave, positions now that are not filled and that were planned to be filled. We won't fill them,” said Coderre.