CITY OF MONTREAL - OFFICE OF THE MAYOR/EXECUTIVE COMMITTEE

CITY OF MONTREAL - OFFICE OF THE MAYOR/EXECUTIVE COMMITTEE

November 29, 2006 10:00 ET

Ville de Montreal 2007 Budget: The Tremblay-Zampino Administration Tables the Budget with the Smallest Increase Since the New City was Established

MONTREAL, QUEBEC--(CCNMatthews - Nov. 29, 2006) - Gerald Tremblay, Mayor of Montreal and Frank Zampino, Chair of the Executive Committee and Member responsible for Finance, this morning presented Montreal's 2007 Budget.

"Our administration is tabling a responsible budget that does not raise general taxes for Montrealers as a whole and that will enable us to better target our priorities and assist in refocusing the city on its essential missions," the mayor declared on this occasion.

"Despite the city's structural financial problems, we have achieved a balanced budget by calling upon the city's boroughs and central departments to succeed in the collective effort of maintaining tight control over expenditures. We continue to act in the best interests of residents and are committed to respecting their ability to pay. Our administration stands out for its sound and rigorous approach to the administration of public moneys, as confirmed by Moody's, the well-known New York-based rating agency, which just boosted the city's credit rating from A1 to AA2. This is the second time in two and one half years that Moody's has increased Montreal's credit rating," said the chair of the Executive Committee.

A budget below inflation levels

Montreal's global budget for 2007 stands at $3.927 billion, compared with $3.855 billion in 2006, representing a $71.6 million (1.86%) rise in spending. "The increase in expenditures is lower than the 2% rate of inflation forecast for 2007. This is the smallest budget increase since the new city was established in 2002," Mr. Zampino noted.

The $71.6 million spending hike is due to the $20 million annual contribution to the Water Fund, to additional credits to the boroughs for extending library hours, to extending selective collections to residential properties of nine units or more, as well as to traffic control and road marking measures, to additional funding for hiring new police officers who will be primarily assigned to the monitoring of reserved lanes and to additional borough budget allowances mainly due to the levying of local taxes in four boroughs.

The portion of the 2007 Budget that falls under the responsibility of the Urban Agglomeration Council is $2.005 billion (50.6% of the city's overall budget), while the portion that falls under the responsibility of the Montreal City Council is $1,959 billion ($49.4% of the city's global budget).

The latter amount includes the budgets of Montreal's 19 boroughs, totalling $870 million for 2007. This represents a $26.9 million (3.2%) rise. As was previously noted, this increase is partly due to the fact that the four boroughs opted to use a portion of their surpluses (representing $11.7 million) and that four others decided to impose new local taxes (representing $14.1 million) to boost their budget allowances. If the costs associated with the new borough taxes were excluded, the borough budget increase would only have been 1.5%.

Budgets for the city's central departments will total $1.857 billion in 2007. This is a rise of $26.7 million (1.5%), and is primarily due to the fresh injection of $20 million into the Water Fund. Established in 2003, this fund should grow by an annual $20 million to $200 million in 2013 and should serve in developing and in producing an ambitious program aimed at restoring and restructuring the Island of Montreal's water supply services.

"The significant increase in the water service improvement budget demonstrates our administration's desire to provide all Montrealers, throughout the island, with a high quality of water, with adequate water supply facilities, while ensuring appropriate and effective water management services and a sustainable water supply and sewage system. We said in 2003 that we would upgrade our water supply system and we are keeping that promise," said the mayor of Montreal.

A budget oriented around resident concerns

The budget being tabled by the Tremblay-Zampino administration for 2007 also sets aside funding to ensure the continued provision of a high quality of municipal services and a pleasant, cleaner and safer quality of life for Montrealers. The administration accordingly intends to set aside the following credits:

- $10 million to pursuing activities pertaining to the cleanliness campaign.

- $9 million to ongoing implementation of the first responders service.

- $8 million to installing police security services in the subway system.

- $1.7 million to expanding collective selection to residences of nine units or more.

- $1.5 million to extending library hours.

The city is also maintaining its contribution to the Societe de transport de Montreal (STM) of $278 million and is providing a contribution to the Agence metropolitaine de Montreal of $33.8 million.

The city's contribution to the Communaute metropolitaine de Montreal (CMM) is maintained at $28.3 million, while that to the Conseil des arts de Montreal is $10 million.

Budget commission study and adoption of budget

The 2007 Budget will be tabled at the Municipal Council meeting today, Wednesday, November 29 at 2:00 p.m. and at the Urban Agglomeration Council meeting on Thursday, November 30, at 9:30 a.m.

These budget forecasts will be studied from December 1 to 14 by a special City Council committee, by an Agglomeration Council committee and by the Commission de la securite publique.

The City Council will be asked to adopt this budget at a special meeting to be held at Friday, December 15 beginning at 9:30 a.m. The Urban Agglomeration Council will adopt its budget at a special meeting to be held Monday, December 18, beginning at 9:30 a.m.

The 2007 Budget may be downloaded from the city's Web site at: ville.montreal.qc.ca.

Contact Information

  • Source:
    Cabinet du maire et du comite executif
    or
    Information:
    Richard Caron
    514-872-9859 or 514-702-3538