Average Residential tax increase below projected inflation rate of 1.8%
Published December 16 , 2009
By Savas Fortis • TLN
Monday December 14th Mayor Vaillancourt unveiled the 2010 budget. The budget is the first of a renewed four year mandate and according to Mayor Vaillancourt it reflects and respects the expectations and aspirations of thousands of Laval residents visited during this year’s election campaign. “Laval residents wish to continue enjoying a healthy, safe community. They expect their municipal administration to provide effective services that meet their needs and contribute to their quality of life,” said the mayor. According to Vaillancourt it is important for his administration to resume this mandate without losing sight of the fiscal responsibility to maintain a level of taxation that respects the taxpayer’s ability to pay.
In that context mayor Vaillancourt announced an average residential property tax increase of 1.5%. On average an owner of a single-family home can expect to pay $43 extra in property taxes in 2010 an increase of 1.7% compared to 2009. According to the figures provided by the administration more than 53% of Laval’s’ single family homes owners will see their property tax bill vary by a percentage that is equal to or lower than the projected inflation rate of 1.8%. To achieve this, the basic property tax rate will drop 4.0 cents from its 2009 value of 95.5 cents to 91.5 cents per $100 valuation in 2010. For the non-residential sector the average tax bill will increase by 1.75%.
Since 1989 the hallmark of the Vaillancourt administration has been the claim that residential taxes have either been frozen or increased below the annual inflation rate. Since 1994, the average residential property tax bill in Laval has increased by 13% which compares favorably with the inflation rate which increased 33% during this same time period. For owners of single family homes this translates into an average savings greater than $400.
Mayor Vaillancourt also disclosed that his administration will continue to freeze the water tax rate, water treatment fee and regional public transit tariff. In order to maintain the upgrading of existing infrastructures the basic rate for the special water infrastructure renewal tax will remain at 3.8 cents for $100 of assessed property value. The proceeds from this tax are earmarked exclusively for refitting Laval’s waterworks infrastructures.
The water tax refund of $100 for people aged 65 and over is maintained with residents receiving the guaranteed income supplement eligible for a refund of $200.
Unfortunately not all municipal service fees will remain the same. Citing the need to ensure fiscal balance the snow transport tariff on homeowners’ tax bill which had remained unchanged since 2006 will increase from $150 to $200 a household. Other fees for diverse services such as rental of sport facilities and other community based services will also be raised to better reflect the actual cost of these supplementary services.`
``These adjustments are necessary to ensure that they (the services) are sustainable yet still affordable, `` emphasized Vaillancourt as he reiterated that some of these fees have not been changed in ten years.
Eleventh consecutive decrease in public debt
During his budget presentation the Mayor reviewed the seven major commitments which will guide the actions of his team over the next four years asserting that his government will remain attentive to citizen’s concerns and will adapt municipal services to meet their evolving needs. Besides respecting taxpayers ability to pay taxes city council will carry on efforts to reduce the municipal debt.
According to the 2010 budget Laval’s public debt will decrease for the eleventh consecutive year as the per capita debt is lowered to $1,178, an amount that is 35.6% lower than it was in 1999. “The total debt of the city will have decreased by nearly $160 million in the last ten years even as the value of assets owned by the municipality has grown by more than thirty percent,” claimed Gilles Vaillancourt.
Of the $350 million worth of capital investments to be made in 2010 almost $80 million will be paid in cash from the municipality’s financial reserves. Another $67 million will come from the other two levels of government and $30 million will be covered by private developers and partners. That leaves only 20% of the total planned investment for 2010 an amount of $68 million dollars that will have to be publicly financed. “We are maintaining tight controls over the debt, as we pledged we would,” asserted mayor Vaillancourt. Statistics from Quebec’s Ministry of Municiapl Affairs and Regional Development places Laval’s per capita debt 33% below the average of all Quebec cities with a population greater than one hundred thousand residents.
2010 Operating budget increases by 3.3% to $662 million
Efforts to promote investments and create jobs will be intensified. The administration will propose new projects to support the economic, social and cultural development of Laval while renewing efforts to upgrade existing infrastructures. Presenting measures to safeguard and enhance the environment remains a priority. Lastly the mayor offered assurances that local community organizations that contribute significantly to the well being of Laval’s residents by providing social assistance, recreation or cultural services will continue to receive municipal support.
To underscore these commitments the budget includes plans to renew the subsidy programs for planting trees and installing low-flush toilets. The tree pruning program will also be upgraded by increasing the grant from $250 to $300 per eligible household and it will now be possible to reapply for this subsidy once every seven years. The city will also maintain the residential renovation assistance program in eligible neighborhoods as homeowners can obtain partial property tax exemptions over a five year period for renovations done to improve their homes. Home ownership programs will also be supported in specific areas with property tax refunds of up to $1000 while new construction home purchases may be eligible for partial property tax credits the first five years of ownership. To date more than eleven thousand families have taken advantage of this program which has helped them to realize the dream of home ownership.
The budget increase from the $641.2 million spent in 2009 is primarily attributed to an increase of $13.8 million in the price of goods and services and the indexation of remunerations which accounts for almost 70% of the operational budget increase. Urban expansion cost the city another $1.3 million while implementation of certain government measures and reforms will cost another $1.5 million. Some of these increases were offset by lower interest rates and stringent management of loans. These efforts resulted in a $1.9 million savings in servicing the debt while improving business processes and efficiency generated a savings of $1.4 million.
Another $3.6 million will pay for infrastructures in cash while the municipality’s contribution for regional public transport (STL) will also increase by $2.5 million with $1.2 million scheduled for service improvements.
Public transit front and centre in the budget
The STL will provide additional off-peak hour bus services and introduce innovative customer service initiatives like real time bus route information electronic displays at the city’s 80 busiest bus stops.
“We will withhold the payment to the STM for our share of the metro’s annual operating deficit as long as the unfair treatment of Laval metro users is not rectified. Laval residents who do not have monthly passes for the metropolitan transit system are force to pay more than the Longueuil metro users, and this is utterly unacceptable,” asserted Vaillancourt as he announced his administration will contribute $53.6 million to public transport in 2010, a 4.9% increase from 2009.
Some of the other monies are earmarked for improving diverse municipal services such as adding additional snow clearing equipment, developing a subsidy program for the purchase of domestic composters and rainwater recovery barrels while users of the public libraries can look forward to finding new books on the shelves.
Almost $350 million in capital investments for 2010
The city has budgeted $347.6 million for capital investment in 2010. An amount of $145.9 million has been set aside to upgrade existing infrastructures and another $105.4 million for economic and urban development. Eco-friendly strategies including the acquisition of green and natural spaces and the creation of new parks will cost another $19.3 million. Another $14.6 million targets the improvement and extension of the city road, bike and pedestrian walkway networks while $11.0 million is scheduled for sport and cultural development projects.
“Measures aimed to protect and improve the environment are still very much a part of this program,” said mayor Vaillancourt. “This includes the planting of trees and vegetation to offset hot spots, improving the conditions of the shoreline, wetlands and woodlands to better protect biodiversity as well as landscaping projects. Together these measures represent an investment of $10 million.”
Laval will invest $54.5 million to modernize its three water treatment plants, $48.2 million to renew road network infrastructures and an initial investment of $7 million to be used to renovate the indoor arenas.
The budget also includes provisions to invest $6.9 million to build artificial turf soccer-football fields. A sum of $6.2 million will go to purchase wooded natural spaces in the Equerre, Source, Papineau, Auteuil and St. Dorothée woodlands.
To continue its commitment to expand Laval’s repertoire of social housing the budget has provision for the creation of 200 units for 2010 while plans are being developed to add another 120 units in 2011.