Montreal Mayor Soraya Martinez Ferrada’s administration is taking steps to support the city’s boroughs by increasing central transfers to mitigate municipal tax hikes and uphold essential services.
The city has decided to boost the indexation rate on transfers to three per cent, surpassing the initial 1.9 per cent projection. Alongside adjustments for special initiatives, the total increase now stands at 3.6 per cent.
Mayor Martinez Ferrada expressed enthusiasm for this move, stating, “This proactive measure will swiftly enhance service delivery to our residents, a vital focus for us. By empowering boroughs to cater to the specific needs of their communities, we are bolstering their autonomy significantly, marking a significant milestone.”
The adjustment entails an additional $8.3 million in expenditure, resulting in total transfers exceeding $775 million. This shift aligns with the administration’s commitment to prioritize investments in local-level services.
Claude Pinard, the president of the executive committee overseeing finance, human resources, and homelessness, emphasized the significance of this change. “This marks a pivotal shift for underfunded boroughs, particularly considering the 3.3 per cent inflation in the Montreal Census Metropolitan Area (CMA) in October 2024-2025,” Pinard noted.
In exchange for this support, city officials are urging boroughs to exercise restraint in tax increases, reflecting the financial capacities of residents. This reciprocal arrangement aims to strike a balance between enhancing services and alleviating the tax burden on Montrealers.
