2007 Budget - Urban Agglomeration Council Budget - … · Financial activity surplus before...

2007Urban

AgglomerationCounc i l Budget

URBAN AGGLOMERATION COUNCIL

BUDGET BY ACTIVITY

Budget by Activity – Agglomeration

255

STATEMENT OF FINANCIAL ACTIVITIES

The Statement of Financial Activities presents a synopsis of the city operating budget for all agglomeration services falling under the responsibility of the Urban Agglomeration Council that are offered to island-wide residents with respect to revenues, expenditures and allocations. Revenues are presented by function, while expenditures are presented by municipal function. Allocations represent the use of surpluses, reserves or earmarked funds for the fiscal year’s financial activities.

The presentation of certain budget items has been modified for 2007, particularly with respect to future fringe benefits relating to retirement, amortization of which appears under the Allocations heading.

Furthermore, modifications to the distribution of expenditures and revenues between the City Council and the Urban Agglomeration Council budgets serve to modify expenditure levels for different budgetary activities. Consequently, in view of the recommendation of the representative of the Minister of Municipal Affairs and Regions (MAMR) based on the interpretation that must be given to certain articles of the Order concerning the Montréal Urban Agglomeration (No. 1229-2005, December 8, 2005), an amount of $44,288.1 in expenditures and another of $2,984.3 in revenues that appeared in the 2006 Urban Agglomeration Council Budget, now appear in the City Council Budget. To reflect this change for 2006, the impact of this recommendation is listed under the Adjustment in Distribution of Tax Burden for 2006 heading in the Revenues item.

The method of distributing mixed general administrative expenditures between the City Council and Urban Agglomeration Council budgets was also reviewed in preparing the 2007 Budget. This change, which has no impact on overall levels of the City Council or Urban Agglomeration Council budget, does however, serve to modify the levels of certain expenditures items with respect to the 2006 Budget.

Since these changes cannot be reconstructed for the previous fiscal year, the original 2006 Budget has not been restated.

Finally, revenues and expenditures pertaining to improvement of the water supply service have been presented separately.

2007 Budget – Agglomeration Council

Table 69 Statement of Financial Activities Urban Agglomeration Council Budget (In thousands of dollars)

2006Budget

207Budget

Change2007-2006

%RevenuesTaxes 1,549,661.2 1,484,194.3 (4.2) Payments in lieu of taxes 142,655.2 141,175.9 (1.0) Adjustment – distribution of 2006 tax burden 0.0 41,303.8 - Other revenues from local sources 183,211.4 204,258.9 11.5 Transfers 90,572.2 68,924.6 (23.9) Specific revenues transferred to investment activities (26,230.0) (8,074.0) (69.2) Total revenues 1,939,870.0 1,931,783.5 (0.4)

Operating expendituresGeneral administration 267,909.1 230,618.1 (13.9) Public security 763,340.2 799,830.4 4.8 Transportation 420,491.1 421,437.4 0.2 Environmental hygiene 193,213.7 184,569.8 (4.5) Health and welfare 41,291.2 37,574.1 (9.0) Urban planning and development 55,685.5 52,445.0 (5.8) Recreation and culture 79,570.5 71,069.6 (10.7) Financing expenses 74,590.9 78,775.0 5.6 Total operating expenditures 1,896,092.2 1,876,319.4 (1.0)

Other financial activitiesRepayment of long-term debt 68,903.1 79,809.7 15.8 Other transfers to investment activities 18,272.0 9,000.0 (50.7) Total other financial activities 87,175.1 88,809.7 1.9

Total expenditures 1,983,267.3 1,965,129.1 (0.9)

Financial activity surplus before appropriations (43,397.3) (33,345.6)

Appropriations Unappropriated accumulated surplus 0.0 0.0 Appropriated accumulated surplus 52,223.6 31,936.3 Financial reserves and reserved funds- transfer from 0.0 0.0 - (transfer to) (8,826.3) 0.0 Provisional amount for future employee benefits 0.0 1,409.3

43,397.3 33,345.6

Net surplus - -

Specific revenues and expenditures to improve water service

2006Budget

207Budget

RevenuesContribution to improve water service 0.0 40,000.0 Portion of property taxes allocated to improve water service 7,926.3 0.0

Total revenues 7,926.3 40,000.0

ExpendituresExpenditures financed by the contribution 7,926.3 30,000.0 Transfer to investment activities 0.0 10,000.0 Total expenditures 7,926.3 40,000.0

Net surplus - -

Total budget 1,991,193.6 2,005,129.1 0.70

256


257

ANALYSIS OF FINANCIAL ACTIVITIES—REVENUES

To provide a better representation of city revenues, the budget has been divided into five main categories consistent with the guidelines provided in MAMR’s Manuel de la présentation de l’information financière:

Taxes.

Payments in Lieu of Taxes.

Adjustment in Distribution of Tax Burden for 2006.

Other Revenues from Local Sources.

Transfers.

These five revenue categories and their component units are discussed on the next few pages.


Taxes

Taxes include all revenues generated by property taxes and property-related fees.

Table 70 Taxes (In thousands of dollars)

2006 2007 %Budget Budget Change

On property valueGeneral tax 1,309,819.1 1,359,119.9 3.8 Sector taxes 0.0 0.0 - Road tax 19,558.5 19,442.5 (0.6) Other 859.4 694.9 (19.1)

1,330,237.0 1,379,257.3 3.7

On another basisTax on rental value 189,940.4 94,943.3 (50.0)

User fees for municipal services- water 3,183.8 3,693.7 16.0 - wastewater treatment 6,300.0 6,300.0 - - waste removal and recycling 0.0 0.0 - - debt service 0.0 0.0 -

9,483.8 9,993.7 5.4

Other 20,000.0 0.0 (100.0) 219,424.2 104,937.0 (52.2)

Total 1,549,661.2 1,484,194.3 (4.2)

Specific revenues and expenditures to improve water service 2006 2007

Budget Budget

Contribution to improve water service 0.0 38,656.4

Portion of property taxes allocated to improve water service 7,664.7 0.0

Total 7,664.7 38,656.4

258


259

Tax revenues and fiscal user fees total $1,484,194.3 in the 2007 Budget, a 4.2% decline from 2006.

The decline in revenues is due to:

Growth of $2.3 billion in the urban agglomeration’s tax base, generating additional revenues of $28.7 million.

Failure to materialize $20 million in revenues that had been anticipated for 2006.

An adjustment of $41.3 million in the amount of taxes collected under the 2006 Urban Agglomeration Budget.

The overall distribution of expenditures between the Urban Agglomeration Council Budget and that of the City Council Budget, which will also result in an adjustment of the revenues raised under these budgets.

Furthermore, special revenues earmarked for improving the water supply service stand at $38,656.4. The city administration will, accordingly, continue to collect an additional tax of $19.6 million in 2007, pursuant to the water management plan that it launched in 2005. In addition, and in view of priorities for action in 2007, revenues earmarked for improving the water supply service have been reshuffled between the Urban Agglomeration Council and the City Council budgets.


Payments in Lieu of Taxes

This category includes revenues collected from owners of tax-exempt properties subject to payments in lieu of taxes. An Act respecting municipal taxation lists these properties and identifies the various payments applicable to each.

Table 71 Payments in Lieu of Taxes (In thousands of dollars)


Québec governmentGovernment buildings and establishments- property taxes 12,513.8 14,509.1 15.9 - road tax 309.2 302.1 (2.3) - other taxes, compensations and fees 9,894.8 3,416.9 (65.5)

22,717.8 18,228.1 (19.8)

Network establishments- health and social services 24,830.4 25,820.9 4.0 - cegeps and universities 31,751.1 33,446.6 5.3 - primary and secondary schools 23,415.3 26,625.8 13.7

79,996.8 85,893.3 7.4

Foreign governments and international organizations 726.0 815.4 12.3

Classified cultural properties 98.2 122.1 24.3 103,538.8 105,058.9 1.5

Government of Canada and its enterprises- property taxes 27,683.9 28,626.8 3.4 - road tax 542.4 520.3 (4.1) - other taxes, compensations and fees 7,120.3 3,194.6 (55.1)

35,346.6 32,341.7 (8.5)

Municipal organizations 2,803.9 3,053.3 8.9

Other compensated organizations 965.9 722.0 (25.3)

Total 142,655.2 141,175.9 (1.0)

Specific revenues and expenditures to improve water service 2006 2007

Budget BudgetContribution to improve water service 0.0 1,343.6

Portion of property taxes allocated to improve water service 261.6 0.0

Total 261.6 1,343.6

260


261

Revenues from Payments in Lieu of Taxes stand at $141,175.9.

The decline in revenues is due to:

Growth of $100 million in the urban agglomeration’s payment in lieu of tax base, generating additional revenues of $1.4 million.

Additional revenues of $2.8 million set out in the Agreement on the New Fiscal and Financial Partnership with the Municipalities.

The overall distribution of expenditures between the Urban Agglomeration Council Budget and that of the City Council Budget, that will also result in an adjustment of the revenues raised under these budgets,

Furthermore, special revenues earmarked for improving the water supply service stand at $1,343.6. The city administration will, accordingly, continue to collect additional payments of $0.4 million in 2007, pursuant to the water management plan that it launched in 2005. In addition, in view of priorities for action in 2007, revenues earmarked for improving the water supply service have been reshuffled between the Urban Agglomeration Council and the City Council budgets.

Adjustment in Distribution of Tax Burden for 2006

The Adjustment in Distribution of Tax Burden for 2006 is based on recommendations of the representative of the Minister of Municipal Affairs and Regions, in accordance with the interpretation that must be given to certain articles of the Order concerning the Montréal Urban Agglomeration (No. 1229-2005, December 8, 2005). This budget item thus stands at $41,303.8, which serves to increase by an identical amount taxes to be collected from urban agglomeration taxpayers in 2007.

Table 72 Adjustment in Distribution of Tax Burden for 2006 (In thousands of dollars)


Adjustment – distribution of 2006 tax burden 0.0 41,303.8 -

Total - 41,303.8 -


Other Revenues from Local Sources

This category includes all revenues other than those generated by taxation, payments in lieu of taxes and transfers. It includes amounts derived from management activities and service delivery within the framework of authority conferred by the Urban Agglomeration Council in 2007. This category thus comprises revenues generated from Services Provided to Municipal Organizations and from services rendered to taxpayers or to private businesses. The “Other Revenues” heading includes such fees as those pertaining to licenses, permits and real estate transfers and revenues generated by fines and penalties. Interest, proceeds from the disposal of long-term assets, taxes paid by developers, contributions from municipal bodies and various other types of revenues also fall into this category.

Table 73 Other Revenues from Local Sources (In thousands of dollars)

Budget Budget Change

Services provided to municipal organizations 177.5 181.0 2.0

Other services provided 60,406.0 66,896.4 10.7

Other revenuesFees collection- licenses and permits 1,899.0 1,853.0 (2.4) - real estate transfer fees 0.0 0.0 -

1,899.0 1,853.0 (2.4)

Fines and penalties- tickets – traffic and parking 67,555.2 80,573.0 19.3 - other – fines and penalties 5,523.8 6,469.5 17.1

73,079.0 87,042.5 19.1

Interest- tax arrears 4,160.4 5,233.3 25.8 - amortization fund 1 0.0 0.0 - - cash and other interest 15,037.9 18,213.2 21.1

19,198.3 23,446.5 22.1

Long-term transfer of assets 360.0 360.0 - Developers' contributions 86.0 375.0 336.0 Contribution by municipal organizations 27,709.4 23,723.1 (14.4) Other 296.2 381.4 28.8

122,627.9 137,181.5 11.9

Total 183,211.4 204,258.9 11.5

1 That portion of the debt service to be paid by the urban agglomeration has been calculated based on the net debt for which the latter is responsible. Consequently, all interest revenues on sinking funds appear in the City Council Budget.

262


263

Services Provided to Municipal Organizations

This item totals $181.5 in the 2007 Budget and represents the value of water sold to the municipality of Charlemagne.

Other Services Provided

This item totals $67,896.4 in the 2007 Budget and consists primarily of:

Revenues of $30,858.5 generated by the billing of miscellaneous activities of the police, the 9-1-1 emergency centre, loans of services, the Taxi Bureau, etc.

Revenues of $16,808.0 generated by the collection of user fees at the Complexe

environnemental de Saint-Michel. Revenues of $1,243.8 generated by user fees on equipment and activities pertaining to the

city’s nature parks. A total amount of $2,987.9 collected for the use of such facilities falling under the authority of

the Urban Agglomeration Council as Mount Royal Park and the Complexe sportif Claude-Robillard.

Billings of $1,371.5 for miscellaneous services pertaining to employee loans and releases for

union activities.

The 2007 Budget anticipates a $4,365.8 increase in revenues, generated by billings for various police department activities (the 9-1-1 emergency centre, loans of services, the Taxi Bureau, etc.).

Other Revenues

This item totals $137,181.5 in the 2006 Budget and is primarily generated by:

The collection of a total $87,042.5 in fines and penalties. An estimated $80,573.0 will be obtained from fines and penalties resulting from traffic and parking offences. This amount is generally equivalent to the administrative cost of ticket issuance by police and parking officers. Revenues from fines themselves are set out in the City Council Budget. Another amount of $6,469.5 is earmarked for the collection of other fines and penalties, such as those imposed for failure to comply with certain municipal and governmental by-laws, including setting off a false alarm, failure to meet food sanitation requirements, failure to observe air and water quality standards and failure to pay tax bills.

A total contribution of $23,723.1 from the Montréal Metropolitan Community with respect to the AccèsLogis and Logement abordable Québec (social component) programs.

Interest revenues of $23,446.5, including interest of $5,233.3 on back taxes, plus $18,213.2 from interest on cash in hand (cash flow management) and other interest.


Transfers

This category includes all grants from the higher levels of government (departments or agencies) and from private enterprise. Such transfers pertain to the funding of operating, debt service and capital asset expenditures. They are known as “conditional transfers” when subject to special usage requirements and “unconditional transfers” when no such requirements apply.

Transfer revenues total $68,924.6 in the 2007 Budget.

Table 74 Transfers (In thousands of dollars)


Unconditional transfersQuébec government subsidies- compensation for TGE-FFLA 0.0 0.0 - - urban centres 0.0 0.0 - - neutrality 7,187.9 5,387.9 (25.0) - compensation from the Québec sales tax 0.0 3,900.0 - - other 0.0 0.0 -

7,187.9 9,287.9 29.2

Conditional transfersGovernment subsidies- related to capital spending

- cash payment 26,144.0 7,699.0 (70.6) - repayment of long-term debt1 0.0 0.0 -

- related to operating budget 57,210.3 51,574.7 (9.9) 83,354.3 59,273.7 (28.9)

Other conditional transfers related to theoperating budget 30.0 363.0 -

83,384.3 59,636.7 (28.5)

Total 90,572.2 68,924.6 (23.9)

1 That portion of the debt service to be paid by the urban agglomeration has been calculated based on the net debt for which the latter is responsible. As a result, all grants pertaining to debt repayment are presented in the City Council Budget.

Unconditional Transfers

A total of $9,287.9 in unconditional transfers appears in the 2007 Budget. This amount primarily represents:

Compensation of $5,387.9 drawn from the neutrality program.

Compensation of $3,900.00 drawn from Québec Sales Tax (QST) revenues of the Government of Québec.

264


265

Conditional Transfers

Two types of conditional transfers exist: those involving cash repayment for a capital works project and transfers pertaining to the repayment of operating expenditures.

Such transfers total $59,636.7 in the 2007 Budget and primarily consist of:

Government grants of $7,699.0 for “paid in cash” capital expenditures pertaining to projects included in the Three-Year Capital Works Program. The decline is due to a reduction in work eligible for the Société de financement des infrastructures locales du Québec (SOFIL) program and to the conclusion of the Canada-Québec Infrastructure Works Program (CQIWP).

Government grants of $51,574.7 pertaining to the operating budget. The figure of $6,300.0 has been deducted from the 2007 Budget following resolution of an intermunicipal issue.

Government Grants for Capital Expenditures—Paid in Cash

This category includes grants that the city receives from the federal and provincial governments when they fund capital works projects.

Such grants total $7,690.0 in the 2007 Budget, as appears in the following table:

Table 75 Government Grants for Capital Expenditures—Paid in Cash (In thousands of dollars)


Recreation and culture 3,266.0 5,477.0 67.7 Local sanitation 11,912.0 1,223.0 (89.7) Roads 10,960.0 999.0 (90.9) Other 6.0 0.0 (100.0)

Total 26,144.0 7,699.0 (70.6) Grants to Reimburse Operating Expenditures

This category includes grants pertaining to programs that the city establishes and administers on behalf of or in conjunction with the higher levels of government.

A total of $51,574.7 in grants to reimburse operating expenditures is included in the 2007 Budget. This amount primarily consists of:

A figure of $12,676.4 pertaining to the city’s local development centres (CLDs).

A figure of $5,137.7, earmarked for air cleanup efforts and food inspection.


A figure of $7,207.5 to be received by the city’s Service de la sécurité incendie (fire department) for setting up the first responder service.

A figure of $5,733.7 for administering certain grant programs pertaining to renovation (Programme de subventions résidentielles, agreement between the ministère de la Culture et des Communications du Québec and the Ville de Montréal, Programme de mise en valeur du Mont Royal).

A figure of $1,100.0 for setting up a plan of action for the water supply system.

Compensation of $5,000.0 under the anti-poverty program.

A grant of $14,000.0 pertaining to waste management efforts.

Table 76 Government Grants to Reimburse Operating Expenditures (In thousands of dollars)


Waste management plan 0.0 14,000.0 - Local ecenomic development 12,676.4 12,676.4 - First Responder project 5,610.0 7,207.5 28.5 Urban renewal 5,622.0 5,733.7 2.0 Fight against poverty 5,000.0 5,000.0 - Food inspectation 3,878.0 3,978.3 2.6 Air purification 5,061.7 1,159.4 (77.1) Aqueduct intervention plan 1,100.0 1,100.0 - Recreation and culture 380.8 330.8 (13.1) Settlement of the inter-municipal issue 6,300.0 0.0 (100.0) Other 11,581.4 388.6 (96.6)

Total 57,210.3 51,574.7 (9.9)

266


267

Specific Revenues Transferred to Investment Activities

Under MAMR’s standards for the presentation of financial information, revenues derived from taxes paid by developers and revenues derived from cash government grants for capital assets must now appear under the “Specific Revenues Transferred to Investment Activities” item in the statement of financial activities and applied against total city revenues.

Table 77 Specific Revenues Transferred to Investment Activities (In thousands of dollars)


Developers' contribution (86.0) (375.0) 336.0 Government subsidies related to capital spending - cash payment (26,144.0) (7,699.0) (70.6)

Total (26,230.0) (8,074.0) (69.2)


269

ANALYSIS OF FINANCIAL ACTIVITIES—OPERATING EXPENDITURES AND OTHER FINANCIAL ACTIVITIES

Operating Expenditures and Other Financial Activities are broken down by function pursuant to the guidelines set forth in MAMR’s Manuel de la présentation de l’information financière. A detailed presentation is provided for each:

The General Administration function, which comprises a set of activities pertaining to municipal management and administration. Expenditures falling within this category mainly concern operations of the City Council and law enforcement, as well as finance, administration and human resources management.

The Public Security function, which includes activities pertaining to the protection of people and property. Expenditures falling under this heading relate to surveillance, prevention and emergency preparedness measures.

The Transportation function, which comprises all expenditures pertaining to the planning, organization and maintenance of the city’s road network, as well as to the transportation of people and of merchandise.

The Environmental Hygiene function, which includes expenditures pertaining to water and sewers, waste management and environmental protection.

The Health and Welfare function, which includes all expenditures pertaining to public hygiene and welfare services.

The Urban Planning and Development function, which includes all activities involved in the formulation and the maintenance of the development plan and the urban plan, along with expenditures involved in formulating the city’s economic development programs.

The Recreation and Culture function, which includes all planning, organizational and management activities for programs relating to recreational and cultural activities.

The Financing Expenses function, which comprises interest and other expenses involved in the financing of municipal activities.

The Other Financial Activities function, which comprises the repayment of long-term debt and transfers to investment activities.

Each function is analyzed, starting with a description of the activities pertaining to it. This analysis is accompanied by a table itemizing the expenditures corresponding with each heading. The table presents the 2007 Budget and highlights the main budget items associated with these activities.


270

General Administration

This function comprises a set of activities pertaining to municipal management and administration. Expenditures falling within this category mainly concern operations of the City Council, law enforcement, financial and administrative management, the city clerk’s office, the assessment process and human resources management.

Certain one-time expenditures that do not fall within any of the various municipal activities may also appear under the Other heading of the General Administration function.

In 2007, the General Administration budget will be allocated in accordance with the new by-law concerning the sharing of mixed expenditures betweens the budgets of the Urban Agglomeration Council and the City Council. Consequently, as at January 1, 2007, the mixed general administrative expenditures of the city’s support departments (Direction générale, Finances, Capital humain, etc.—general administration, finance, human resources, etc.) will no longer be distributed among the budgets of those two councils.

Pursuant to the new by-law, the budgets of support services pertaining to mixed general administrative expenditures are entirely “local” in nature. By contrast, an administration fee, calculated according to a rate set in the new by-law, is charged to the Urban Agglomeration Council Budget for general administrative expenditures (see Appendix 5 for full details on the new by-law concerning the sharing of mixed general administrative expenditures).

A new activity has thus been added in 2007 to demonstrate how mixed general administrative expenditures are charged to the Urban Agglomeration Council Budget. This activity is entitled Mixed General Administrative Expenditures.

Furthermore, based on recommendations of the representative of the Minister of Municipal Affairs and Regions, activities pertaining to the downtown area, as defined in the Order concerning the Montréal Urban Agglomeration (No. 1229-2005, December 8, 2005), have been transferred to the Urban Agglomeration function under the Municipal heading. This transfer pertains to all General Administration activities, except those pertaining to assessment and other administrative expenditures.

An amount of $230,618.1 (-13.9% from 2006) was allocated to the General Administration function in the 2007 Urban Agglomeration Budget.


271

Table 78 General Administration (In thousands of dollars)


City Council 19,282.5 0.0 (100.0) Law enforcement 46,470.8 43,509.8 (6.4) Finance and administration management 59,077.6 0.0 (100.0) City clerk 3,435.6 0.0 (100.0) Valuation 22,114.1 21,436.9 (3.1) Human resources management 10,921.6 0.0 (100.0) Mixed expenditure for general administration 0.0 107,334.0 - Other 106,606.9 58,337.4 (45.3)

Total 267,909.1 230,618.1 (13.9)

City Council

This activity, which is now considered to be “municipal” in nature, primarily encompasses expenditures that pertain to the Urban Agglomeration Council, as well as to support that council and its various committees. The entire allocation has been transferred to the City Council Budget in a two-part process:

Through the correction based on the representative’s recommendations (-$526.3 ).

Through the new by-law concerning the sharing of mixed administrative expenditures (-$18,756.2).

Law Enforcement

Law enforcement expenditures comprise appropriations pertaining to Municipal Court and to judiciary activities, which fall under the authority of the Urban Agglomeration Council. The 2007 Budget has set aside $43,509.8 for these expenditures, up 6.4% from 2006. The correction based on the representative’s recommendations has resulted in a $71.3 reduction.

Financial and Administrative Management

The Financial and Administrative Management heading primarily comprises appropriations allocated to the management of financial, material and information technology resources. This activity is now considered to be “municipal” in nature. The entire allocation has been transferred to the City Council Budget in a two-part process:

Through the correction based on the representative’s recommendations (-$3,146.6).



272

City Clerk

This activity includes expenditures pertaining to the office of the city clerk, including:

The cost of enforcing by-laws.

Conducting censuses, referendums and elections.

Drafting minutes of meetings and all other official documents.

Publication and maintenance of archives and official documents.

This activity is now considered to be “municipal” in nature. The entire allocation has been transferred to the City Council Budget in a two-part process:

Through the correction based on the representative’s recommendations (-$32.9).


Assessment

This activity comprises expenditures relating to the production of the property assessment rolls, an area that falls under the Urban Agglomeration Council’s exclusive authority. Appropriations of $21,436.9 (-3.1% decline from 2006) are earmarked for this activity in the 2007 Budget.

Human Resources Management

This activity includes expenditures relating to the management of human resources, including those pertaining to recruitment, hiring of employees, labour relations, etc. This activity is now considered to be “municipal” in nature. The entire allocation has been transferred to the City Council Budget in a two-part process:

Through the correction based on the representative’s recommendations (-$575.6).


Mixed General Administrative Expenditures

The Mixed General Administrative Expenditures item results from the new method for distributing mixed general administrative expenditures (see note at the beginning of this section). An appropriation of $107,334.0 has been earmarked for this activity in the 2007 Budget.

Other

Different kinds of budget items fall under this activity, including amounts that may not be associated with a specific activity at the time the budget is being prepared. These items include expenditures for city department communications, contingencies, possible collection losses, and certain provisions for remuneration expenditures.


273

Furthermore, pursuant to section 57 of the Order concerning the Montréal Urban Agglomeration (1229-2005, December 8, 2005), as amended by section 86 of the Order concerning the amendment of certain orders pertaining to the municipal reorganization (no. 1003-2006, November 2, 2006), this heading includes any expenditure pertaining to costs resulting from all disputes relating to an event subsequent to the creation of the city on January 1, 2002 and prior to January 1, 2006.

The Urban Agglomeration Council has set aside a total appropriation of $58,337.4 for this activity, representing a decrease of more than 45% from the 2006 Budget. This decrease was primarily due to:

A $1 million reduction in allocations for contingencies and general administrative expenses.

A $20.5 million reduction in compensation associated with the occupancy of Ville de Montréal property for urban agglomeration functions.

New by-law concerning the sharing of mixed general administrative expenditures, resulting in a $9.9 million decrease.

The correction based on the representative’s recommendations, for a $1.1 million decrease.

Adjustment in the possible level of loss in collecting property taxes for a $2.2 million decrease.

Modification in the method of accounting for cash withdrawals, which now appear in the allocations, for a $15.4 million decrease.

Creation of an energy expenditure reserve, for a $2 million increase.


274

Public Security

The Public Security function includes all activities pertaining to the protection of people and property. It comprises all expenditures relating to surveillance, prevention and emergency preparedness measures. With the establishment of the Montréal Urban Agglomeration, most public safety activities now fall under the latter’s responsibility and thus appear in the Urban Agglomeration Council Budget section.

An appropriation of $799,830.4 has been earmarked for public security in the 2007 Budget, a 4.8% rise from 2006.

Public security commands a significant share of budgetary resources. Funds set aside for this purpose account for nearly 39.5% of the Urban Agglomeration Council budget. Some 63% of this appropriation is, accordingly, allocated to police activities and more than one third of that to fire safety.

Nearly $8.3 million more will be set aside for the Service de la sécurité incendie (fire department) in 2007. This amount will be primarily assigned to the payment of fringe benefits such as retirement plans and group insurance.

The almost $28 million increase in police expenditures results from the pay raise to police officers and police staff. This increase is due to the change in pay to police executives, to the rise in salary scales of police officers and the change in amounts of fringe benefits, primarily due to the adjustment in retirement plans.

The Other category includes appropriations for school crossing guards.

Table 79 Public Security (In thousands of dollars)


Police 478,043.0 506,053.6 5.9 Fire protection 277,376.1 285,713.1 3.0 Emergency preparedness 1,542.1 1,590.2 3.1 Other 6,379.0 6,473.5 1.5

Total 763,340.2 799,830.4 4.8

Public Safety is essentially administered by two central departments: the Service de police (police department) and the Service de la sécurité incendie (fire department).


275

Transportation

This function includes all expenditures relating to the planning, organization and maintenance of the road network, as well as those pertaining to public transit. Transportation expenditures, including those for arterial road network maintenance that are presented in this section, fall under the responsibility of the Urban Agglomeration Council.

Table 80 Transportation (In thousands of dollars)


Road network- city road network 43,240.0 43,404.4 0.4 - snow removal 35,730.7 31,565.0 (11.7) - street lighting 13,161.8 16,554.1 25.8 - traffic and parking 11,456.1 8,055.9 (29.7)

103,588.6 99,579.4 (3.9)

Public transit 308,500.0 319,800.0 3.7 Other 8,402.5 2,058.0 (75.5)

Total 420,491.1 421,437.4 0.2 Road Network

This activity comprises expenditures falling under the agglomeration’s responsibility and pertaining to the city road network, to snow removal, to street lighting, to traffic control and to parking along the local road network.

The road maintenance appropriation stands at $99,579.4, down 3.9% from 2006. This decline is due to the revision of so-called agglomeration activities, based on recommendations of the representative to the Minister of Municipal Affairs and Regions pertaining to the interpretation that must be given to certain sections of the Order concerning the Montréal Urban Agglomeration (1229-2005, December 8, 2005). This revision resulted in a transfer of appropriations for maintenance of the road network from the Urban Agglomeration Budget to the local budget, for the purpose of financing activities. Consequently, the transfer of appropriations for maintaining the downtown road network ($9.7 million in 2006), underground conduits ($1.9 million), parking attendants ($3.1 million) and high-priority cleanup efforts ($2.5 million) contributes to the apparent reduction in agglomeration expenditures.


276

Appropriations were, on the other hand, injected into transportation activities on different levels. Funds for maintaining the arterial road network were indexed by 2% ($1.3 million). Moreover, the appropriation appearing under the Other heading in 2006 was primarily transferred to the Road Network and Street Lighting headings, thereby offsetting the apparent decline associated with the revision of agglomeration activities.

These transfers were responsible for modifications in appropriations for various Road Network activity headings.

Public Transit

Public transit appropriations cover contributions that the city pays to the Société de transport de Montréal (STM) and to the Agence métropolitaine de transport (AMT). These expenditures stand at $319.8 million in the 2007 Budget.

The STM is an independent entity under the Ville de Montréal’s authority. It ensures island-wide public transit services by subway and bus, as well as by custom transport vehicles. The city’s contribution to the STM stands at $278 million in 2007, the same amount as the previous year.

The AMT is the agency that administers and finances the metropolitan commuter train network, along with various other amenities including park-and-ride centres, reserved lanes and bus terminals. The AMT coordinates custom transportation services and plans public transit services for Greater Montréal. The AMT also provides financial support to local transportation organizations operating within the metropolitan transportation network.

The AMT receives funding from multiple stakeholders. To begin with, the Government of Québec pays rebates to the agency out of the motor vehicle registration fees and gasoline taxes used primarily to finance its various assistance programs. Greater Montréal’s municipalities pay the AMT a contribution equivalent to 1% of their harmonized property tax base, thereby furnishing 25% of the cost of metropolitan transportation capital works projects. The municipalities also defray the equivalent of 40% of commuter train line operating costs and 50% of the operating deficit for the Réseau express métropolitan bus service. The AMT furthermore receives additional financial support from the Ministère des Transports du Québec and other partners.

The Ville de Montréal’s contribution to the AMT stands at $33.800.0, a 10.8% rise over 2006. This increase is primarily due to a 20.8% hike in its contribution to the capital works fund, an amount totalling $14,222.0 in 2007. This steep growth is due to the augmentation of the Ville de Montréal’s harmonized property tax base. The city’s contribution to the commuter train system stands at $19,275.0, a 4.2% increase that is primarily due to the rise in service on the Blainville–Saint-Jérôme line.


277

Funding of $8 million was also included in the budget for projects to be carried out in the course of 2007.

Other

This heading covers transportation-related expenditures that find no classification elsewhere, such as the Bureau de taxi (taxi office) and police department towing activities. Towing, it may be noted, is self-financing.

The substantial decrease in appropriations for this heading is essentially due to their transfer to the Road Network item, as noted above.


278

Environmental Hygiene

This function covers all activities pertaining to water and sewers, solid waste removal and recycling, streams and rivers and environmental protection. These activities fall under the authority of the Urban Agglomeration Council, with total appropriations of $214,569.8.

Table 81 Environmental Hygiene1

(In thousands of dollars)


Water and sewers

- supply and treatment of drinking water 48,018.6 46,938.7 (2.2) - drinking water distribution system 13,437.3 20,984.9 56.2 - waste water treatment 54,280.2 60,000.2 10.5 - sewer system 8,750.4 10,329.3 18.0

124,486.5 138,253.1 11.1

Solid waste removal and recycling- household waste 31,993.6 29,813.2 (6.8) - recyclable materials 12,653.6 10,169.3 (19.6) - disposal of dry materials 23,551.7 22,567.8 (4.2)

68,198.9 62,550.3 (8.3)

Environmental protection 8,295.8 13,766.4 65.9 Other 158.8 0.0 (100.0)

Total 201,140.0 214,569.8 6.7 1 This table includes special expenditures intended for improvement of the water supply system. Water and Sewers

Expenditures that fall under the Waters and Sewers heading pertain to the production of drinking water, the interception and treatment of waste water and the maintenance and installation of principal water mains and sewer lines. This activity falls under the authority of the Urban Agglomeration Council.

These expenditures stand at $138,253.1 in the 2007 Budget. Of that amount, $46,938.7 is devoted to the production of drinking water and $60,000.2 to wastewater treatment. The increase in funding from 2006 to 2007 is largely derived from the special Water Service Improvement Tax.


279

Solid Waste

The Urban Agglomeration Council is also in charge of dealing with solid waste. Expenditures in this area apply to the recycling of solid waste and to the management of hazardous materials.

Expenditures of $62,550.3 appear for this activity in the 2007 Budget. Of that amount, $29,813.2 is dedicated to the disposal of solid waste and $22,567.8 to the disposal of dry waste.

Reduction in the appropriation from 2006 is explained by such factors as a transfer of solid waste management appropriations to environmental protection. Furthermore, based on the recommendations of the representative to the Minister of Municipal Affairs and Regions, activities pertaining to the management of solid waste from downtown Montréal, as defined in the Order concerning the Montréal Urban Agglomeration (1229-2005, December 8, 2005), have been transferred from the Urban Agglomeration Council Budget to that of the City Council.

Environmental Protection and Other Activities Pertaining to Environmental Hygiene

These expenditures pertain to such environmental protection efforts as air, water and noise pollution control measures and other environmental hygiene activities that find no classification elsewhere. These expenditures stand at $13,766.4 in the 2007 Budget.

The increase in funding from 2006 is explained by such factors as a transfer of appropriations from other environmental hygiene activities to those pertaining to environmental protection.


280

Health and Welfare

This function includes those activities associated with income security and public employment services situated within the former city. The Health and Welfare function also includes all public health and welfare services, including food inspection and social housing. The total budget for this function is $37,574.1.

Table 82 Health and Welfare (In thousands of dollars)


Food inspection 4,091.6 3,935.2 (3.8) Social housing 30,903.2 27,339.3 (11.5) Income security 0.0 0.0 - Other 6,296.4 6,299.6 0.1

Total 41,291.2 37,574.1 (9.0)

Food Inspection

This activity includes all food inspection-related expenditures, including the cost of enforcing laws and by-laws and Municipal Court proceedings. The Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec (MAPAQ) finances all expenditures relating to the various food inspection programs.

Social Housing

This activity includes expenditures pertaining to social housing. An appropriation of $27,339.3 has been earmarked for this activity, representing a decline of $3.6 million (-11.5%) from 2006. This difference is due to a $5.6 million reduction in grants to the Logement abordable Québec (social component) program and to a $1.7 million increase in funding for the AccèsLogis program.

The city will set aside an amount of some $23.7 million to this activity, which will be fully reimbursed by the Montréal Metropolitan Community (MCC).

Income Security

This activity comprises expenditures applied to the management of income security programs within the former city. Since such programs are run locally, no expenditures falling under this heading appear on the Urban Agglomeration Council Budget.


281

Other

This activity comprises all other expenditures associated with the Health and Welfare category. It includes an amount of $5 million (the same as in the 2006 Budget) earmarked for the war on poverty. This money is provided through an agreement with the Government of Quebec as part of its war on poverty and social exclusion.


282

Urban Planning and Development

This category comprises all activities pertaining to the formulation and maintenance of the urban development plan and of economic development. An appropriation of $52,445.0 has been earmarked for this function.

Table 83 Urban Planning and Development (In thousands of dollars)


Urban planning and zoning 2,904.3 4,337.7 49.4

Promotion and economic development- industry and commerce 37,419.4 32,015.5 (14.4) - tourism 1,460.0 1,460.0 - - other 0.0 0.0 -

38,879.4 33,475.5 (13.9)

Urban renewal 13,901.8 13,667.2 (1.7) Other 0.0 964.6 -

Total 55,685.5 52,445.0 (5.8)

Urban Planning and Zoning

This heading includes those expenditures pertaining to development, urban planning and zoning. Most of the funding for this activity is derived from the Service de mise en valeur du territoire et du patrimoine (SMVTP) (economic and heritage development) and stands at $4,337.7.

The main differences in the 2007 Budget are due to organizational restructuring of the SMVTP.

Promotion and Economic Development

This activity comprises expenditures pertaining to the promotion of tourism and to economic development. It includes promotional campaigns, contributions to a local development centre (CLD), the promotion of tourist activities, delivery of convention services and all assistance specifically provided to a business.

The appropriation earmarked for this activity is primarily administered by the SMVTP and stands at $33,475.5.


283

The main reasons for budgetary changes relate to modifications in updates to appropriations for the following grant programs (industry and commerce component):

Programme de coopération industrielle (PROCIM V—industrial cooperation program) (-$2.4 million).

Programme de crédits de taxes pour le secteur industriel (tax credit program for the industrial sector) (-$1.1 million).

Programme de revitalisation des terrains vagues du centre-ville (downtown vacant lot renewal program (-$2.5 million).

Urban Renewal

This activity comprises expenditures for the urban renewal of classified and other assets, including their restoration, studies, research and grants awarded by the city to owners of such properties. This appropriation stands at $13,667.2.

Most of the funding for this activity is derived from the Service de mise en valeur du territoire et du patrimoine (SMVTP) (economic and heritage development).

The main difference between 2006 and 2007 budgetary allocations are due to the $1.4 million cutback in the downtown vacant lot renewal program and the structural reorganization of the Service de mise en valeur du territoire et du patrimoine.

Other

This heading includes other expenditures falling under the economic development and promotion category. The amount of $964.6 represents the cost incurred by the geomatics division of the Service des infrastructures, transport et environnement (infrastructure, transportation and the environment) for land surveys pertaining to property sales.


284

Recreation and Culture

This function includes all local activities pertaining to the planning, the organization and the management of recreational and cultural programs, including grants and donations awarded to organizations working in areas of endeavour that fall under the jurisdiction of the Urban Agglomeration Council. It also includes expenditures relating to the management of amenities and to heritage activities. Outside of the nature park system, which falls under the jurisdiction of the Urban Agglomeration Council, this function includes amenities, infrastructure and activities of collective interest listed in appendix to the order concerning the urban agglomeration and that fall under the jurisdiction of the Urban Agglomeration Council.

An appropriation of $71,069.6 has been earmarked for this function in the 2007 Budget. This amount represents a 10.7% decline from the 2006 Budget amount of $79,570.5. This decrease is primarily due to recommendations of the representative to the Minister of Municipal Affairs and Regions. Furthermore, recreational and cultural activities in downtown Montréal, as defined in the Order concerning the Montréal Urban Agglomeration (1229-2005, December 8, 2005), have been transferred from the Urban Agglomeration Council Budget to that of the City Council. The impact of this change appears primarily under the Parks and Playgrounds heading, which is down $7,985.3 and represents 93.9% of the total reduction.

Table 84 Recreation and Culture (In thousands of dollars)


Recreational activities- community centres 9,697.4 9,764.6 0.7 - indoor and outdoor skating rinks 2,225.3 2,215.8 (0.4) - swimming pools, beaches and marinas 2,814.3 2,723.2 (3.2) - parks and playing fields 30,194.2 22,208.9 (26.4) - regional parks 5,509.3 6,084.0 10.4 - exhibitions and fairs 0.0 0.0 - - other 2,687.7 1,604.5 (40.3)

53,128.2 44,601.0 (16.1)

Cultural activities- community centres 1.4 1.4 - - libraries 7,958.6 7,741.6 (2.7) - museums and exhibition centres 5,079.1 4,993.8 (1.7) - other 13,403.2 13,731.8 2.5

26,442.3 26,468.6 0.1

Total 79,570.5 71,069.6 (10.7)


285

Recreational Activities

Recreational activities generally fall into two groups: the management of recreational activities and of recreational and sports facilities and the design and maintenance of parks and green spaces. The recreational activity budget stands at $44,601.0. Appendix 5 lists the joint services that are provided by the Ville de Montréal to island residents.

Cultural Activities

The appropriation earmarked for the set of cultural activities has remained stable in 2007 at $26,468.6, serving to ensure a continued range of services, while exploring possible strategies for enhancing and improving cultural activities offered to agglomeration residents (see Appendix 5).

Budget and Investment

The Ville de Montréal is continuing its programs aimed at protecting and developing recreational and cultural facilities for all island residents in its 2007-2009 Three-Year Capital Works Program.

The Service du développement culturel, de la qualité du milieu de vie et de la diversité ethno-culturelle (cultural development, quality of the living environment and ethnic and cultural diversity) has included in its planning:

Acquisition of large natural spaces.

Stabilization of the river banks at the Île-de-la-Visitation nature park.

Repair work at Mount Royal’s Beaver Lake pavilion.


286

Financing Expenses

This function comprises interest and other costs pertaining to the financing of capital expenditures that fall under the jurisdiction of the Urban Agglomeration Council. These interest charges comprise those of the former debt of the Montréal Urban Community and financing of urban agglomeration expenditures since the municipal merger. Repayment of long-term debt is presented separately, under Other Financial Activities.

Table 85 Financing Expenses (In thousands of dollars)


Long-term debt- interest 74,590.9 78,775.0 5.6 - other costs 0.0 0.0 -

74,590.9 78,775.0 5.6

Other financing costs 0.0 0.0 -

Total 74,590.9 78,775.0 5.6

Expenditures for financing costs stand at $78,775.0 in the 2007 Budget. This amount represents a $4,184.1 (5.6%) decline from the amount appearing in the 2006 Budget.

Variations in financing costs are primarily due to the fact that the new urban agglomeration expenditures being financed are greater than the net maturing debts of the former Montréal Urban Community for which the urban agglomeration is now responsible. New legislative provisions have, in fact, transferred additional responsibilities to the Urban Agglomeration Council. Consequently, certain capital expenditures for which the municipalities were previously responsible are now financed by the agglomeration. Furthermore, these new expenditures are not as well subsidized as the debt of the former Montréal Urban Community.


287

Other Financial Activities

Other Financial Activities expenditures primarily concern funds assigned to repayment of long-term debt (payment of capital on loans and contributions to the sinking fund). This expenditure item comprises the Transfer to Investment Activities item, which includes investment activities paid out of the operating budget (cash payment of capital expenditures).

Table 86 Other Financial Activities1

(In thousands of dollars)


Repayment of the long-term debt 68,903.1 79,809.7 15.8

Other transfers to investment activities1

- cash payments for capital works expenses 18,272.0 19,000.0 4.0

Total 87,175.1 98,809.7 13.3 1 This table include special expenditures earmarked for improving the water supply service. 2 Other than the specific revenue transferred to investment activities consisting of taxes paid by real-estate developers and cash government

grants.

Repayment of Long-Term Debt

This activity consists of the portion of the debt that is reimbursed (repayment of capital), plus contributions to the sinking fund.

Expenditures applied to the repayment of long-term debt rose from $68,903.1 in 2006 to $79,809.7 in 2007, for an increase of $10,906.6 (15.8%). This growth is primarily due to the fact that the new urban agglomeration expenditures being financed are much greater than the net maturing debts of the former Montréal Urban Community. New legislative provisions have, in fact, transferred new responsibilities to the Urban Agglomeration Council. Consequently, certain capital expenditures for which the municipalities were previously responsible are now financed by the agglomeration. Furthermore, these new expenditures are not as well subsidized as the debt of the former Montréal Urban Community.

Transfer to Investment Activities

This amount represents the cash payment of capital expenditures. The expenditure appearing under the Transfer to Investment Activities heading in the 2007 Budget is $19 million, a $728.0 million hike over 2006. This appropriation is earmarked for projects pertaining to improvement of the water supply service and of the road system


288

ANALYSIS OF ALLOCATIONS

This item represents the use of accumulated assigned or unassigned surpluses (or deficits) that remain under Urban Agglomeration Council authority.

The city plans to allocate an amount of $31,936.3, drawn on prior year surpluses, to balancing of the 2007 Budget.

Table 87 Allocations (In thousands of dollars)


Unappropriated accumulated surplus 0.0 0.0 - Appropriated accumulated surplus 52,223.6 31,936.3 (38.8) Financial reserves and reserved funds- transfer from 0.0 0.0 - - (transfer to) (8,826.3) 0,0 (100.0) provisional amount for future employee benefits 0.0 1,409.3 -

Total 43,397.3 33,345.6 (23.2)

The figure of $1,409.3, entered as Provision for Future Fringe Benefits, represents the amortization on expenditures pertaining to the retirement plans and to future benefits granted to employees. This allocation became necessary due to accounting modifications requested by the Ministère des Affaires municipales et des Régions. For further information on this topic, please refer to the chapter on harmonization of accounting rules (Harmonisation des règles comptables) in the Supplementary Information Book at ville.montreal.qc.ca/finances.

2007 Budget - Urban Agglomeration Council Budget - … · Financial activity surplus before...

Documents

Transcript of 2007 Budget - Urban Agglomeration Council Budget - … · Financial activity surplus before...