Valrie Plante holds property tax rates to inflation, aims to help small businesses in new budget

Montreal MayorValriePlantehas kept residential property tax increases at the level of inflation in a citybudget that puts more money into affordable housing, bike paths and relief for small businesses.

After breaking an election promise and hiking residential property tax rates by an average of 3.3 per cent in her first budget, the average residential property tax rate will go up by 1.7 per cent in 2019.

Residents in the borough ofCte-des-NeigesNotre-Dame-de-Grcewill be the hardest hit, with an average property tax rateincrease of 2.75 per cent.

Thebudget, unveiled Thursday morning, "places the economy and the environment at the very heart of its considerations,"Plantesaid, adding that the budget was her first chance toput her own stamp on Montreal.

Last year, she said, much of the spending was already planned out by her predecessor, Denis Coderre.

Total spendingfor 2019is projected at $5.7 billion, up by more than four per centfrom 2018.

Lionel Perez, leader of opposition party Ensemble Montral, was critical of Plante forwhat he called her free-spending ways.

"They have no fear to spend and haveno fear to [leave the debt] tothe future population," Perez said.

He said new spending should have beenkept to a minimum and that moremoney should have been devoted to paying down the debt.

Help for local businesses

Plantesaid the city was able to use additional revenue from the city's booming real estate market to fund its spending.

"Our budget will make a difference for our business owners and the vitality of our commercial arteries," Plantesaid.

Non-residential properties will see their tax rates go up by an average of1.3 per cent. Butthey will also get a 10 per cent property taxreduction on the first $500,000 of their assessment.

This new measure will provide reliefto merchants who own their property. Others who have leaseswill also benefit, based in part on the property tax rate.

There is also $5.2 million set aside to help businesses hurt by construction projects.

In practical terms, Plantesaid, the changeswillhelp"corner stores" and"mom and pop shops."

The moves were welcomed by the Canadian Federation of Independent Business. A spokesperson said the city is"moving in the right direction," but there is more work to be done.

Bike paths, parks andpolice

Here are some furtherhighlights from the 2019 budget:

• More than $1billion is set aside for public security (the largest section of the budgetary pie), with $662.2 million of that total going to police.
• Paying down the debt makes up the second-largest slice: $950 million next year.
• $89 million for bike-related infrastructure, including new bike paths and improvements to the Bixi network.
• $56.8 million for improvements in the city's largest parks, such as La FontainePark, which iscurrently undergoing major overhauls.
• 3 per cent of the budget will go to snow removal, totalling$166.4 million. That's an increase of $3.1 million over last year.
• $6.5 million will go toward preparation and planning of the extension of the Metro's Blue line.
• $1 million will fund research on the Pink line.

Montreal's public transit agency, the STM, also released its annual budget on Thursday, totalling $1.5 billion, up from $1.4 billion a year earlier.

The STMis promising to provide service every five minutes on the Green and Orange lines during off-peak hours on weekdays, and increase the frequency of trains during the morning rush hour as well.