Photo: Jacques Nadeau Le Devoir
During the election campaign, Valérie Plante had promised that the tax increases would be no more than the inflation rate, 2.1 %.
The budget of the year 1 of the administration of Valérie Plant provides for increases of the property tax in excess of the inflation rate anticipated to be in 2018. Thus, when one takes account of taxes of borough and water tax, these increases will average 3.3% for the residential sector and 3 % for buildings in the non-residential sector.
During the election campaign, Valérie Plante had promised that the increases would be no more than the rate of inflation, at 2.1 % according to the forecasts made by the Conference Board of Canada to 2018.
At a press conference Wednesday, the mayor denied that he had broken one of its main election promises. According to her, the Montrealers have understood that she spoke only the property tax, without taking into account of taxes of borough and water tax. “We have always been clear, during the election campaign, [on the fact] that we were not going to increase property taxes beyond the rate of inflation for general corporate purposes. This commitment has been respected, ” said the mayor Plant.
In particular it is the increase of the water tax which will increase the property tax in Montreal in 2018. Over the past four years, this tax dedicated to the infrastructure of the water remained at the same level, but it will increase 1.1% next year. The City justifies this decision by referring to the accelerated pace of investments in water infrastructure. 150 million per year, these expenses are passed 340 million in 2017 and increase to 500 million in 2018.
“We want to be responsible and we decided to invest heavily in the infrastructure of the water and do not wait until there’s leaks, that it does cost more and still pass the bill on to future generations “, explained the mayor.
The extract of the electoral platform of projet Montréal on the subject of tax increases reads however as follows : “projet Montréal is committed to implement its program without raising taxes beyond the rate of inflation. “
Remember that the budget of the administration Coderre for 2017 included average increases in fees of 1.7% for the residential sector and 0.9% for the non-residential sector.
The size of the budget is also on the rise, with a jump of 5.2% compared to 2017, making it so that it will reach 5.47 billion in 2018.
For a residence of 427 524 $, the average increase of the property tax will be $ 118, said the City on Wednesday, during the presentation of the budget of 2018.
The contribution of the City to the transit, paid to the regional Authority of metropolitan transport (ARTM) and the Société de transport de Montréal (STM), will reach next year 574,3 million, compared to 546,6 million in 2017, an increase of 27.7 million.
According to the mayor Plant, it is a transition budget for the new administration, which intends to put the focus on mobility, economic development and housing during his term of office that begins.
The office of the pink line of the subway promised by the mayor Plant has not yet been established, but it will be in the next few months, and the City has the financial margin to carry it out, said the administration.
Other details will follow.