Montreal posted a total surplus of 293 million for 2021, but its debt is still increasing by nearly 300 million and is now 6.6 billion, a discrepancy of nearly 5% compared to 2020. However, Plante’s management advocates that it retains as much “tight management as possible in the Under these conditions.
Posted at 11:14 a.m.
Updated at 12:07 PM.
“We generated approximately 638 million in savings thanks to cash investment payments. It is a very tight management of funds that contributes to limiting the increase in indebtedness”, as justified on Wednesday by the Chairman of the Executive Committee and responsible for financial affairs, Dominique Olivier.
The authorities indicated in their report that the debt ratio is now “114%, 6% lower than what was expected in the 2021 budget.” This result is consistent with the strategy of the municipal administration, which exceptionally raised the debt ratio limit to a maximum of 120% for the years 2019 to 2026 and indicates that this limit will be respected in the coming years. This will allow significant compensation for the shortfall in the maintenance of municipal assets.”
Realizing that the challenge was huge, Valérie Plante’s No. 2, however, issued several warnings. “We also have to look at the same time at the increase in our assets, which total about a billion dollars in net. In cash, like the people of Montreal in the end, we will all get richer,” she said in response to questions from Journalism.
Montreal plans to allocate just over a third of its surplus, or more than $100 million, to “responsible debt management.” Mrs. said.me Oliver.
For his part, the city’s director of accounting and financial information, Raul Serer, noted that if the debt reaches 6.6 billion, “there are fixed assets of about 13.7 billion.” If we do the ratio, we owe 50%. I think this is a reasonable rate. Of course, we always aim to repay 100%, but we have to see that these fixed assets are also used by future generations. He also explained: “If we pay everything in cash now, the citizens of the future will have fixed assets that cost them nothing, and the citizens of today will be the ones who paid for it.”
Surplus 293 million
In addition, Montreal’s total surplus in 2021 amounted to 293.1 million, more than 250 million of which will go directly to downtown coffers and 108 million to neighborhoods.
The city reported a revenue increase of 146 million last year. More than $80 million of that amount comes from provincial and federal government transfers, and $134 million comes from property transfer taxes. In a sign that the pandemic has been hit hard, the administration got 59 million fewer tickets, and 14 million less in taxes.
In addition, the “general decrease” in operating expenses is also estimated at 94 million. An increase in internal provisions by 52 million – from surpluses accumulated in the past – allowed a total surplus of 359 million to be realized.
The bloc’s board, however, posted a deficit of about 66 million. Of that number, about 39 million come in losses from the COVID-19 pandemic. So we are talking about a structural deficit of 27 million. Of the total budget of three billion dollars, this is 0.9%, the city’s general manager, Serge Lamontani, noted, swearing “to have solutions that take a few years to implement” to rebalance that budget.
“We must remember that in the previous year, we had a deficit of about 200 million in the conglomerate, including 80 million directly related to the epidemic. This year we decreased to 66 million,” he also rejoiced.
- 52.6 million
- This is how much the City of Montreal pays for its employees to work overtime in terms of security. Employee compensation jumped by 102.3 million in 2021.