City of Montreal 2014 budget hikes property taxes

Mayor Denis Coderre's administration has unveiled its $4.9 billion budget for 2014.

The operating budget is a slight0.3 per cent increase from last year's budget.

• Click here to read the full budget (French)

Coderrehad campaigned on a promise to limittax increases totheinflation rate, which he referred to as twoper cent, even though the annualized rate of inflation is currently0.9 per cent in Montreal and 1.2 per cent across Canada.

Coderre said he kept his promise by ensuring that the city would hike taxes by 1.9 per cent for the average residential homeowner.

However, boroughs are also increasing tax rates, meaningthat the average Montrealer will actually see a 2.8 per cent increase.

Coderre said his administration is proud of the budget, and he called it a "bridge" from old to new.

"We are taking action. While the budget responds to most of the concerns expressed during the election campaign, it is only the first step towards what we intend to achieve," Coderre said.

City services get financial boost

The city is adding an extra $12.5 million to the Montreal police budget,and nearly as much to the budget of the fire department.

The Montreal public transit corporation (STM)will receive a $12.5 million budget increase, but STM officials say it's not enough to maintain the corporation'scurrent level of services, and will have to cut bus service by 3 per cent.

• STM to cut service by 3 per cent

The AMT will receive a $1.3million increase.

The budget also allocates an extra $2 millionfor theroad network.

Coderre's administration has also promised tocut back on the nearly $600 millionpension fund for city employees,but there are no specifics as to how that will bedone.

Last budget sparkedanger with 3.3%hikes

Compared to the lastcity budget, which sparked fury with its proposed 3.3. per cent average propertytax hikes,today's budget is likely to meet with less controversy.

The 2013 budgetwastabled by former mayorGraldTremblayin October 2012, around thesame time that allegations of corruption at City Hall emerged.

Tremblay stepped down a few days later,after his administration back-peddled on thosehikes.

When former Mayor MichaelApplebaum took over the city's leadership, he lowered the tax increase to2.2 per cent.