Montreal posts $139M surplus ahead of municipal election

The City of Montreal has announced a surplus of $139.1 million in its $5-billion budget for2016 making this the third year in a row that the Coderre administration has posteda surplus.

The city is attributing the surplusto a $40-millionincrease in revenues and a better control of expenses which resulted in $69-millionin savings.

More than $58 million of the total surplus came from the city's 19 boroughs and another $106 million from the city's centralized services.

The agglomeration council posted a deficit of $26.3 million, which the city said came as a result of renegotiatinga long-term contract to extract gas from the former landfill site that is now the Saint-Michel environmental complex.

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Pierre Desrochers, who chairs Montreal's executive council and is responsible for finance, boasted about the city's financial health.

"We're satisfied," Desrocherssaid of the financial report."I think we can all say that these results are positive."

3rd year ofsurpluses

This marks the third consecutive year thatMayor DenisCoderre'sadministration has posted a modest surplus.

Last year, Montreal posteda consolidated surplus of $145.8 millionfor 2015.

The news comes as municipal parties start to plan their campaigns for November's election.

With many home and business owners facing property tax increases in 2017, ProjetMontralleaderValriePlantesaid Wednesday the stress on taxpayersis mounting.

She saidMontreal's so-called"welcome tax" the land-transfer taxon all property purchases maybe discouragingpeople from buying in the city.

"It puts pressure on buyers, including young families,"Plantesaid.

'Welcome tax' among growing revenue sources

The city offered thisbreakdown of $104.3 million in revenues:

• $13.6 million from growth in non-residential property assessment and the value for certain new properties.
• $43.6 million from rights on real estate transfersand the active real estate market, including"welcome taxes."
• $9.2 million from an increase of licensing revenues and permits (building permits and modifications, in particular).
• $29.3 million from the use of accumulated surpluses for certain projects.
• $22.5 million from debt financing ofcertain contributions:
• $8.5 million from increased interest income.
• $18.8 million decrease in tickets for infractions,due tofewer tickets being issued by police officers and parking agents.
• $10.5 million decrease inrevenues related to judicial proceedings

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