The administration of the city of Montreal expects to achieve a budget surplus of more than $45 million at the end of the current fiscal year, according to documents released in advance during the council meeting.
This amount is the result of a surplus of $56.6 million for the local component and a deficit of $11.2 million for the agglomeration component, assessed as part of a projection of revenues and expenses for the 12 months of the year.
The districts expect to end the fiscal year with a surplus of $13 million.
Among the elements that allow Montreal to expect a $45 million surplus, there are the more active real estate markets than expected, allowing it to anticipate a $25 million increase in real estate transfer taxes and a $22.2 million increase in building permit revenues.
The Montreal’s financial statements also include additional revenue of $18.7 million from the expropriation of the city’s lands for the construction of the new Turcot Interchange.
The city of Montreal to record another profitable fiscal year with a surplus of $45 million
An actuarial review and better than expected market performance are expected to result in a $25.8 million saving in pension plan expenses. However, a lower than expected number of retirements and the more frequent use of overtime now occur in the projection of compensation expenditures exceeding the budget forecast by $16.8 million.
Snow removal operations and snow-related expenses also resulted in a deficit of $45 million, which is however offset by the allocation of an equivalent amount of 2017 surplus.
Finally, the city of Montreal noted that a decrease in the price of recyclable materials due to economic conditions should result in a difference of $12.5 million. Montreal ended fiscal 2017 with a surplus of $139.5 million. In 2016, it was $139 million, in 2015, it was $146 million, while in 2014, $214 million.
Montreal registered its last deficit in 2013, minus $48 million.
In short, Montreal is set to record another profitable fiscal year with a surplus of $45 million.