MONTREAL—Montrealers should prepare for a higher bill from the city as the Tremblay administration is eyeing a 3.4 per cent hike in property taxes.

According to Michael Applebaum, the head of the powerful executive committee, 1.2 per cent of the increase will be earmarked for repairs to the city’s aging water infrastructure. Applebaum labelled the tax hike “an investment.”

The money designated for the water tax will go into the special fund created in 2003 to upgrade and repair Montreal's leaky water system. For the average homeowner the increase will total about $185.

While the opposition Vision Montreal agrees with the water tax, party official are unsure that higher property taxes are the way to go.

“I'm concerned because we don't have any guarantee right now, at this moment, that the message won't be, ‘If you need more services, or if you need more money, well increase the taxes,’” said Veronique Fournier, speaking for Vision Montreal.

According to Project Montreal's Peter McQueen, the problem is that taxes have gone up every year since 2009.

“What's really terrible is what is happening to people, like the people of the Mile End, whose values have gone up more than other properties in Montreal,” said McQueen. “This is happening at the same time that taxes went up 16 per cent in four years. It's a double whammy and I can understand they're getting angry.”

According to Westmount Mayor Peter Trent, tackling bloated pensions would be a better way for the city to find more funds.

“We can't have people retiring at the age of 52 on full pension,” said Trent. “We actually have more firemen on pension who are putting out fires as active firemen. This can't go on.”

Currently, Montreal’s contribution equals 70 per cent of the total value of a pension. Civil servants only cover 30 per cent of the fund’s value with contributions from their salaries.

According to Applebaum, the city is looking for savings elsewhere.

“Our objective has been to cut 1,000 people from our payroll—we're talking over three years,” said Applebaum, the mayor’s chief lieutenant.

The tax hike could also have an impact on demerged cities as Montreal projects a 3.4 per cent increase in the cost of shared services like the police and fire departments, public transit, and major road repairs.

Cavendish extension on ice

The municipality of Cote-St-Luc responded with anger on Friday after Mayor Anthony Housefather learned that the City of Montreal cancelled plans to extend Cavendish Blvd. towards the 40 highway.

“[This] is a complete reversal of commitments made only months ago and is completely unacceptable to those living and working in the west end and West Island,” said Housefather in a statement.

Under an agreement signed with the province in March, Montreal promised to build the extension with money from the development of a subdivision on the grounds of the shuttered Blue Bonnets race track.

Money earmarked for the extension now has been dropped from the city’s next budget.

“This omission is in total violation of the Blue Bonnets agreement and the unanimous vote of Montreal City Council,” said borough councillor Dida Berku in a statement.