No borough tax: Verdun lucks out

Skyrocketing property values, particularly for residential buildings of five units and more, created fear in some homeowners. Valuations, unveiled this past September, forced municipal council to find ways to reduce the impact of an --on average- 49% increase in residential values. During the press conference, Verdun mayor, Claude Trudel announced that he was very pleased with the 2007 budget, which reflected his commitment not to raise taxes.

For Verdun taxpayers, this budget translates into a decrease in taxes for 61.9% of residential taxpayers and 90% of non-residential taxpayers, and this, for a sixth consecutive year. At the same time, 16.6% of residential taxpayers and 3.6% of non-residential taxpayers will experience a slight increase of no more than 2% in their taxes. In the past, luxury condos on Nuns’ Island suffered substantial tax increases, this year tax increases are affecting Verdun’s mainland and a number of duplexes and triplexes. The non-residential sector is benefiting from substantial decreases in property taxes.

The borough will not be imposing any local or borough tax, in 2007. In order to bridge the gap between the slight increase in expenses and the freeze in money allocated by the City of Montreal, Verdun has decided to dip into its substantial surplus. The borough expects to appropriate approximately $2M in 2007, but mayor Trudel confirms that using the surplus will remain an exceptional measure.

Claude Trudel reiterated his request to Quebec to provide Montreal with the means to become a successful metropolis. The mayor cited the example of Toronto, which obtained taxation powers, other than property taxes, through the Ontario government, in order to meet its obligations as a metropolis. On October 24, mayor Trudel officially requested from Verdun MNA, Henri-Francois Gautrin, to personally intervene with his government, so that the City of Montreal and its boroughs aren’t seriously affected by a financial crisis.

The Quebec government approved the request to stagger 2007-2010 valuation roles over a period of four years, as opposed to the three years that was written in the law. It also agreed to harmonize property tax rates for the total of the Montreal region, which should converge, the latest by 2011, on a unique fiscal system for its entire territory.

The 2007 budget for the City of Montreal will be adopted by municipal council on December 15. The agglomeration budget will be adopted by the agglomeration council on December 18.