Opposition at Montreal City Hall has accused the Plante government of “hypocrisy” for charging citizens a 4.1% tax hike in 2023 despite having a surplus of $343.8 million for 2022, sources say it in its financial report published on Friday.
Posted at 4:49 p.m.
“The Plante administration’s hypocrisy is that it has imposed the largest local tax hike on Montrealers in a decade while posting fiscal 2022 surpluses of more than a quarter billion dollars. In fact, the Plante government is falsifying its “fiscal reality by levying ever-increasing taxes instead of properly managing the budget,” denounces Alan DeSousa, opposition finance spokesman.
However, according to Executive Committee President Dominique Ollivier, these surpluses are far from staggering.
PHOTO ROBERT SKINNER, THE PRESS
The President of the City of Montreal Executive Committee and in charge of Finance, Dominique Ollivier
“One should keep in mind that the city budget is 6.8 billion, so the surplus is only a tiny part,” she told a news conference. It’s a delicate balancing act that we’ve managed this year to offset the impact of inflation, which hit 6.7%. »
We’re reaching our limits. Once we have replenished our reserves for snow, money to pay off debt and amounts set aside for inflation, the rest is used for emergencies. We won’t have too many, believe me.
Dominique Oliver
The opposition also criticized the city’s dependence on financial aid from other levels of government.
“For five years, Valérie Plante has been yelling at the Quebec government saying Montreal isn’t getting enough money,” said Mr. DeSousa. For the administration, it is an easy way out not to fulfill its responsibilities. In fact, Montreal received nearly $200 million more in government transfers last year. »
priorities
Dominique Ollivier explained that the administration spent Montrealers’ money considering four priorities: ecological transition, urban safety, mobility and housing.
Not only did the city end the fiscal year with a surplus of 5.3% of revenue, but it also reduced its debt ratio in 2022.
“The debt ratio reached 106%, 6% above the set limit of 100%. However, it is 13% below the forecast projected in the 2022 budget. This alignment is intended to allow for a significant offsetting of the maintenance deficit of municipal assets while exercising strict control over the city’s financial balance,” the annual report reads.
172.3 million in overtime
Overtime for municipal employees, mainly police and firefighters, continues to cost taxpayers dearly, reaching 172.3 million, 94.8 million more than expected.
Dominique Ollivier explained that these costs are due to the increase in armed violence in the metropolis and the many vacancies in the ranks of the Montreal City Police Department, which force the police to work overtime.
In addition, 22.9 million overtime hours result from safety measures that had to be implemented for the COP 15 in December 2022, but which are partly reimbursed by the federal government.
Overall, COP 15 Montreal cost $30.4 million, with the company receiving $27.9 million in compensation from Ottawa. “The net cost was 2.5 million for the city, which thanks to this event was able to benefit from great influence,” noted the number two of the Plante administration.
Other revenue changes include $95.9 million more in the city coffers due to higher-than-expected property transfer taxes: fewer real estate transactions, but higher prices have been good for the city.
On the other hand, the fines and penalties were 49 million lower than expected.