Hot Real Estate market leads to Montreal post budgetary surplus
Published Wednesday, April 24, 2019 2:03PM EDT
Last Updated Wednesday, April 24, 2019 8:34PM EDT
As it normally does, the city of Montreal has posted a surplus for the fiscal year.
The city of Montreal wrapped up 2018 with a $213 million surplus -- in the previous three years the surplus has been around $140 million each year.
For fiscal 2018 the surplus arose mostly from the central city, which earned $154 million more than anticipated, while boroughs saved another $74 million. Meanwhile the Agglomeration reduced its deficit which now stands at $15.6 million, down $70.5 million from last year.
Benoit Dorais, the president of the Executive Committee, said the turnover in the real estate market proved to be a revenue generator.
"More than half of the surplus is due to more welcome taxes than expected because right now we have a situation that real estate is very good for Montreal and Montrealers," said Dorais.
Dorais said that more than $1.7 billion in real estate investments were made throughout Montreal in the past year.
However, there was one area where revenue dropped - the city received $18 million less than anticipated due to fewer tickets handed out by police officers, something Dorais attributed to the elimination of quotas.
Spent more on snow removal
The city of Montreal did spend more than anticipated on snow removal.
The city budgets snow removal for the calendar year -- not by season -- and with more snow removal operations taking place in the first few months of 2019 than anticipated, the city is expected to blow its budget for the fiscal year if there are two snow removal operations later this year.