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OPERATING BUDGET
2014
I
AT A GLANCE
OPERATING BUDGET
2014
I
AT A GLANCE
Contents
Message from the Mayor and the Chairman of the Executive Committee
This document is the tabled version of Montrals 2014 Operating Budget At a Glance.
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2014 Operating Budget Highlights Montral: A City of Integrity Montral: An Efcient, Consistent and Productive City Montral, Serving its Residents Montral Is an Absolute Must The Source of City Revenues Your Taxes Are Important 2014 Tax Highlights The Island of Montral and its Population
BUDGET 2014
Message from the Mayor and the Chairman of the Executive Committee
Ladies and Gentlemen: The Ville de Montral 2014 budget is the rst to be tabled since the change of administration at City Hall, following a general election and the creation of the new city in 2001. This is a new chapter and a transition budget that indicates the direction we wish to take following the mandate that was given to us by Montrealers. During the recent election campaign, we made a commitment to manage public funds responsibly to ensure that Montrealers receive their moneys worth for their tax dollars. With this in mind, our administration acted responsibly by taking the time to examine the way in which the city was managed. As a result, we have decided on a hiring freeze in the various departments, because we felt that it was unwise to ll positions before having examined overall city operations. It is also this concern for prudence in managing public nances that has guided us in tabling this rst budget in January. We needed to take the time to become familiar with the consequences and repercussions of the data, parameters and other characteristics of the budget. For our administration, this budget is much more than revenue and expenditures, more than adding and subtracting. It is rather a document that outlines a direction. In fact, this budget and the rst actions taken by our administration clearly express the vision that we have for our city and the metropolitan community. This vision includes values of integrity, openness and solidarity. This vision is supported by the aspirations of Montrealers, who want to see a welcoming, efcient, competitive city, a city that is open to the world.
BUDGET 2014
This budget announces the creation of the Inspector General position and sets the basis for an intelligent city. Because we believe we have the right to live in dignity, this budget shows our commitment to ghting against homelessness, and continues to work toward improving housing issues and access to property. It also highlights our interest in the environment and sustainable development, in promoting city greening projects, combating the Emerald Ash Borer and supporting public transit. A number of Montrealers have expressed their expectations in terms of controlling expenditures and tax levels that meet their ability to pay. We have heard their concerns. We are proud to table this budget which provides for a 2% increase in tax charges that are under the responsibility of the City Council, as per our commitment. We believe that a public administration must make the appropriate decisions and live according to its means as taxpayers must manage their own personal nances. The choice is obvious: to impose a reduction in central department expenditures and ask for the support of boroughs, without reducing services to the community. Central departments have been asked to reduce costs by $60 million. We have decided not to index the budgets in the boroughs and asked them to support us in reducing costs, leading to an overall effort of $20.1 million in their case. We are fully aware that in many instances this is a difcult pill to swallow. We know that elected ofcials will have to make hard choices to meet Montrealers expectations. But we are certain that they will nd the proper solutions to help them meet this challenge. We are at a crossroad. As we said in the election campaign, this disparity between the central departments and the boroughs, and among the boroughs themselves, cannot go on. We must nd balance. We must make sure that all residents, regardless of which borough they live in, enjoy the same quality of services in a safe, welcoming environment.
This revolution also sets paramount objectives for an efcient city in terms of administrative management which calls for strategies to create collective wealth. It must also display the assets of a competitive city at the international level, especially by limiting the tax burden imposed on residents and non-residents. This responsible and balanced budget lays the groundwork for the administrative reform we have chosen to make the city more efcient. For this reform to work in the long term, a few weeks ago, we announced the creation of the organizational performance department. This department will use funds from existing budgets. The new unit will be responsible for examining the main processes and activities of municipal management and suggest new ways of doing things in an effort to maximize use of public funds. The 2014 Montral budget stands at $4,895.4 million, with 0.3% growth of expenditures. The main expenditure items include $1,050.7 million for public safety, of which an amount of $677.3 million is allocated to the Service de la police; while a total of $357.1 million is earmarked for the Service de scurit incendie. The general condition of city infrastructures continues to be a concern for Montrealers, and that is why we are allocating more than $373 million to water management and $364.1 million to the road network. The city contribution to public transit amounts to $456 million, including a $12.5-million increase in the contribution to the Socit de transport de Montral (STM) and an increase of $1.3 million to the Agence mtropolitaine de Montral (AMT). The portion of the budget allocated to the STM amounts to $400.8 million and that of the AMT to $55.1 million. The citys recreational and cultural departments are allocated $487.4 million in total, to ensure that they can continue to offer a quality of life that is envied by all.
BUDGET 2014
Our citys prosperity includes economic development. That is why our administration has made it a priority and recently announced that it was creating a genuine economic development department. Like the organizational performance department, this new unit will use existing budget allocations. The departments mission will be to develop a strategic vision of economic development in Montral, coordinate the presence and actions of the city with various stakeholders involved with it, manage municipal activities in the eld of economic development and support major public and private projects by ensuring coordination by the various departments. In the last election, Montrealers clearly indicated that they were ready for change and that they wanted Montral to regain its pride. Montral is a true metropolis and it must act like one. This is an ambitious challenge that our administration will take up with pride and conviction. The budget reects this process and we are convinced that it is a rst step towards making Montral a world-class metropolis that will make Montrealers proud. We have set ourselves on a path leading to 2017, a year that will mark the 375th anniversary of Montral, the 150th anniversary of Canadian Confederation and the 50th anniversary of Expo 67, when Montral entered the select club of international cities.
BUDGET 2014
Conrm Montrals role as metropolis and prepare the legacy of the 375th
More than $280.5 million in investments are planned, between now and 2017, for legacy projects of the 375th anniversary of Montrals founding. A contribution of $1 million, up by $400,000, will be made to the 375th celebrations corporation. $11 million are earmarked for the Russir@ montreal (PR@M-Industrie) program to boost economic development.
BUDGET 2014
BUDGET 2014
BUDGET 2014
BUDGET 2014
We expect to receive the portion of the AccsLogis program budget earmarked for Montral, or at least 45% of the budget allocated by the Socit dhabitation du Qubec for all of Qubec. This fund allocation will help us meet the needs of Montral households by: Building social and community housing, especially for families, senior citizens and homeless or vulnerable persons. Including affordable condominiums and housing in large residential projects with an eye to social diversity. We expect to receive at least $12 million annually as part of the Rnovation Qubec program, that will be added to our own equivalent contribution, to: Encourage renovation and housing adaptation, as well as maintain properties in good condition. Keep families in Montral by supporting homeownership programs and encouraging the development of residential products designed for families. Revitalize distressed neighbourhoods. We hope to count on additional nancial support from the Ministre de la Sant et des Services Sociaux to strengthen community support at existing non-prot organizations to benet vulnerable clientele. We would need an additional $1.5 million, annually, to build the 750 new dwellings and rooms for the homeless and vulnerable persons that we plan to deliver by 2015-2016.
As do all large cities, Montral must deal with complex social problems. Although it is the governments responsibility to deal rst with these issues, our administration hopes to act as a catalyst to enable society to rise to the challenge. That is why we are increasing investments to combat homelessness by $1 million, for a total of more than $2 million. We will also create a social agency for the most vulnerable members of society that will bring together, in a one-stop shop, all the services the city provides for them, to ensure improved, efcient and coordinated action in this eld. The transport of goods and public transportation is vital for our citys development. That is why, in addition to our efforts to improve infrastructure, the city contribution to public transit amounts to $456 million, including a $12.5-million increase in the contribution to the Socit de transport de Montral (STM) operations and a $1.3-million increase for the Agence mtropolitaine de transport (AMT). The budget devoted to the STM amounts to $400.8 million and that of the AMT, to $55.1 million. As per our commitment, we plan to extend the bicycle path network in 2014. The reputation of Montral relies on its cultural vitality. We are sticking to the budget targets in 2014 by allocating $199.2 million to the eld of culture. More specically, we are increasing our share of the budget allocated to the Conseil des Arts and the Pointe--Callire, Montral Museum of Archaeology and History by $500,000 and $250,000, respectively.
BUDGET 2014
On the eve of the 375th anniversary of Montral, we hope to take on a leadership role to bring together artists, institutions, philanthropists and all levels of government at this great rendezvous. We hope to encourage Montrealers to visit our modern libraries, city institutions, Maisons de la culture and artist workshops. We will prioritize an approach aimed at promoting the cultural economy through the citys economic development strategy, in close partnership with the economic community, artists, organizations, institutions and businesses. Finally to promote Montrals reputation as a cultural centre, we plan to develop a collaborative strategy on the international scene.
Montral is truly a sports-oriented city. Sports and recreation are an integral part of community life. For this reason, we are supporting efforts and allocating a budget of $288.2 million to sports and recreation. By continuing renovations of 40 ice surfaces and swimming pools in Montral, the city helps the community to stay physically active, encourages young people to develop healthy lifestyle habits and athletes to train at high-level facilities. A summit on sports and physical activity will be held in Montral with Montral, physiquement active as a theme. This summit will examine how Montral must develop to keep the community healthy. The long-awaited opening, at the end of 2014, of the Centre de soccer at the Complexe environnemental de Saint-Michel will be a highlight in terms of sport venues. Montral will continue to host major international events over the year and will continue to shine as a world-class sports city.
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BUDGET 2014
BUDGET 2014
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Transfers
5.5%
Services Rendered d and Other Revenues es
17.3% %
Quota Shares from the Reconstituted Municipalities Taxes
68.8%
8.4%
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BUDGET 2014
Public security
21.5
Police 13.8 Fire safety Civil security and others 7.3 0.4
10.0
3.7
Community centres 1.6 Libraries 1.7 Heritage, museums and exhibition centres 1.4 Skating rinks 0.7
Law enforcement 1.2 City clerk and property assessment 0.7 Human resource management 1.2
Others 0.9
BUDGET 2014
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Borough taxes
The boroughs are responsible for indexing their service tax, to ensure total indexing of their budget since the transfer, in 2013, of tax room. In 2014, the borough councils have increased revenues from the service tax by 13%. These decisions taken by each individual borough council, result in an increase of 0.9% of total tax charges for residential properties and 0.1% for non-residential properties.
Infrastructure rehabilitation
Two new nancial reserves will be created in 2014 for infrastructure rehabilitation. These new reserves will be funded by allocations from the general fund, which amount to $23 million for the municipal reserve and $4.7 million for the urban agglomeration reserve. Montral taxpayers contribute $26.8 million in total to the funding of these two reserve funds. Overall contributions to the reserve funds, to nance infrastructure rehabilitation remain at the same level as in 2013, and taxpayers will see no impact on their tax charges.
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BUDGET 2014
Individual tax bills may increase or decrease to different extents, depending on changes in the value of one property compared to those of others.
Non-residential properties
General tax charges
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Ahuntsic-Cartierville Anjou Cte-des-NeigesNotre-Dame-de-Grce Lachine LaSalle L'le-BizardSainte-Genevive MercierHochelaga-Maisonneuve Montral-Nord Outremont Pierrefonds-Roxboro Plateau-Mont-Royal Rivire-des-PrairiesPointe-aux-Trembles RosemontLa Petite-Patrie Saint-Laurent Saint-Lonard Sud-Ouest Verdun Ville-Marie VilleraySaint-MichelParc-Extension VILLE DE MONTRAL
Minimal data
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1,2% 0,6% 2,0% 2,8% 1,1% 1,4% 0,9% 0,5% 3,8% 1,5% 4,1% -0,2% 2,5% 3,1% 0,4% 3,2% 1,8% 1,5% 2,7% 1,9%
0,1% 4,3% 0,4% 0,3% 0,7% 0,3% 1,4% 0,6% 0,1% 0,2% 0,5% 5,5% 0,1% 0,4% 2,2% 0,5% 0,2% 0,1% 0,4%
1,3% 4,9% 2,4% 3,1% 1,8% 1,7% 2,3% 1,1% 3,9% 1,7% 4,6% 5,3% 2,6% 3,5% 2,6% 3,7% 2,0% 1,6% 3,1%
0,8% 1,5% 1,7% -0,3% 0,6% 0,2% 0,6% 0,9% 2,6% 2,6% 4,3% -0,5% 3,1% 0,3% 1,4% 1,6% 3,2% 3,0% 2,2% 2,0%
1,1% 0,1% 0,1% 0,2% 0,1% 0,3% 0,1% 0,1% 1,2% 0,1% 0,5% 0,1% 0,1%
0,8% 2,6% 1,8% -0,2% 0,8% 0,3% 0,9% 1,0% 2,6% 2,6% 4,4% 0,7% 3,1% 0,4% 1,9% 1,7% 3,2% 3,0% 2,3%
General tax charges include general property taxes, the wayer and road taxes, fiscal user fees and borough investment taxes. They exclude changes relating to borough service taxes. Source: Compilation updated September 11, 2013 and based on 2013 and 2014 tax parameters.
BUDGET 2014
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Evolution of total tax charge1 and consumer price indexes2, between 2001 and 2014
Index (2001 = 100)
130,0 125,0 120,0 115,0 110,0 105,0 100,0 95,0
98,9 102,0 106,5 101,4 102,0 103,4 110,8 117,2 122,9 118,0 126,2 122,9
115,0
109,9
2002
2004
Total tax charge
2006
2008
CPI
2010
2012
Forecast 2014 CPI
2014
Evolution of total tax charge1 and consumer price indexes2, by property category, between 2001 and 2014
Index (2001 = 100)
130,0 125,0 120,0 115,0 110,0 105,0 100,0 95,0
98,8 102,0 106,5 103,1 110,8 105,0 106,3 105,7 115,0 117,2 113,4 113,3 122,9 121,8 117,9 126,2 126,9
99,0
99,3
98,3
99,7
2002
2004
Residential
2006
Non-Residential
2008
2010
CPI
2012
2014
Forecast 2014 CPI
1 2
The total tax charge index measures the changes in the general property tax, fiscal user fees, borough service taxes and water and road taxes. Source: Institut de la statistique du Qubec and Statistics Canada.
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BUDGET 2014
Budget 2013 17
Published by the Ville de Montral Service des nances 155, rue Notre-Dame Est Montral (Qubec) H2Y 1B5 Canada ville.montreal.qc.ca/nances Graphic design and printing Communications Ville de Montral 4396 (01-14) Printed in Canada Legal deposit - Bibliothque et Archives nationales du Qubec, 2014 Legal deposit - Library and Archives Canada, 2014 978-2-7647-1250-4 Budget de fonctionnement Printed document, french 978-2-7647-1251-1 Budget en bref Printed document, french 978-2-7647-1252-8 Operating Budget / At a Glace Printed document, English 978-2-7647-1253-5 Budget de fonctionnement, PDF, french 978-2-7647-1254-2 Budget En bref, PDF, french 978-2-7647-1255-9 Budget des arrondissements et services centraux, Printed document, french 978-2-7647-1256-6 Budget des arrondissements et services centraux, PDF, french This document is printed on 100% recycled paper
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BUDGET 2014
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