Taxes are about to jump. What's in Montreal's $7B budget and how it will affect you
Tax increase for homeowners kept under inflation rate, but hike will still be felt
Montrealers, your tax bill is once again going up — an even bigger hike than last year's. That's one of the main takeaways in the city's newest budget that clocks in at just a shade under $7 billion.
On Wednesday, Mayor Valérie Plante unveiled the 2024 budget, describing the spending increase as a "modest" 3.5 per cent over last year's.
Here's a breakdown of the $6.99-billion budget, including the hit you can expect on your wallet and the city's plan to increase spending on public transit and policing.
Tax hike to hit many boroughs hard
Last year's average tax increase for homeowners was 4.1 per cent, and it was the highest single-year jump since 2011. The latest increase is even bigger — 4.9 per cent.
The city had promised to keep the average tax hike below the current inflation rate and it did. The current inflation rate is 5.2 per cent. Homeowners in several boroughs will be hit harder, though.
The highest bump in the upcoming year will be felt in Pierrefonds-Roxboro (7.2 per cent) and Anjou (6.3 per cent).
Other boroughs getting significant increases include Mercier–Hochelaga-Maisonneuve (5.8 per cent), Côte-des-Neiges–Notre-Dame-de-Grâce (5.5 per cent), Lachine (5.3 per cent) and Villeray–Saint-Michel–Parc-Extension (5.2 per cent).
Downtown residents in Ville-Marie saw the smallest increase of 2.6 per cent, followed by Saint-Léonard and Outremont, which will get a bump of 3.9 per cent and 4.2 per cent, respectively.
In real dollars, on average across the city, the increase is $227 per residential household, but the exact amount also depends on the type of housing.
"I'm not minimizing that this is a raise for taxes, but in order to protect the services that Montrealers deserve to have, I think this is a sober [budget]," Plante said during a news conference on Wednesday.
Ensemble Montréal, the Official Opposition at city hall, criticized the Plante administration, saying its latest budget is "imposing a historic tax increase" and ignoring the needs of the middle class.
"This 2024 budget is the image of an administration cloistered in its ivory tower while Montrealers are no longer able to find housing, get around and pay for their groceries," Alan DeSousa, Ensemble Montréal's finance critic said in a statement.
Taxes for commercial buildings in the city will also rise by an average of 4.6 per cent this year — a significant hike from last year's increase of 2.9 per cent.
1st full year of free OPUS cards for seniors
The city's public transit budget for the upcoming year is $715 million. That's $48 million higher than last year.
The city says a big chunk of that increase — $34 million to be exact — is to pay for the free OPUS cards for seniors.
That program came into effect in July. That means next year's budget will be the first that has to account for a full year of free OPUS cards for people who are 65 and older.
The budget comes during a period of uncertainty regarding the immediate future of public transit, with Plante and other Quebec mayors engaging in a public spat with the province's transport minister over funding for bus and Metro service.
On Wednesday, Montreal's transit authority, the Société de transport de Montréal (STM), released its own budget, showing a deficit of $35 million.
Éric Alan Caldwell, chair of the board of directors of the STM, said the city will do its best to manage that deficit, as it has in the past.
"We will, as in previous years, find some solutions," Caldwell said. "The last thing we want to cut is the level of service. We know that we cannot afford a cut in the level of service."
Long-term plans for housing, climate change
In addition to releasing its budget, Montreal also provided an update to its 10-year-spending plan.
That long-term plan gives Montrealers a sense of what the Plante administration is working on when it comes to issues like housing and climate change.
The city has earmarked $582 million over the next 10 years for the development of affordable, social and community housing. Most of that money, $555 million, will go toward acquiring land and properties, while the other $27 million will be used to finance the projects.
The total price tag for the city's 10-year-plan is $23.9 billion. In last year's budget, that number was $22 billion.
The city says it's committed to setting aside 10 to 15 per cent of its 10-year spending plan on projects that will help it adapt to climate change.
Some of the long-term projects outlined include disinfecting wastewater, which comes with a price tag of $563 million and creating "natural and hybrid infrastructures," which the city expects will cost $240 million.
In the short term, the city wants to better absorb rainwater by creating 400 more "sponge" sidewalks and about 30 more "sponge" parks within two years.
More money for police
The money set aside for Montreal police is also going up significantly. The money forecast for the Service de police de la Ville de Montréal (SPVM) is about $821 million for 2024. That's a $35-million increase from the previous year.
That increase is due to a commitment from the Quebec government to give the city $225 million over five years to hire 450 additional officers, as well as pay bumps for SPVM officers from their most recent collective agreement.
When taking into account the 2024 budget, the annual budget for policing has gone up by about $158 million since 2020.
The SPVM regularly goes over budget due in large part to overtime pay. The city wants to have hired 225 new officers by the end of next year and hopes that will significantly reduce the need for overtime.
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