Montreal ends 2024 with slight budget surplus

As it grappled with inflation and an unstable global economy, Montreal ended 2024 with a slight budget surplus.

It posted a $176.8 million surplus last year, according to its annual financial report made public Friday, representing 2.5 per cent of its total budget.

In 2023, the city had a $187.6 million surplus.

The city said there was an increase in government transfers for housing and real estate growth was higher than expected, which brought in more tax revenue.

The Projet Montréal administration reported it invested $1.9 billion on capital expenditures, namely to maintain its infrastructure, and spent another $1.7 billion on services.

The city says its investments between 2023 and 2024 are similar to pre-pandemic times.

Most investments were made in environmental and underground infrastructure assets ($642.0 million), road infrastructure ($459.6 million), buildings ($330 million), and parks, green spaces and playgrounds ($261.2 million).

The city admits it had to borrow money for some of these investments but says its financial strategy takes the debt into account. As of December, Montreal’s debt stood at $6.8 billion.

According to the city, it has an AA credit rating from Standard & Poor’s and Aa2 from Moody’s, which “reflects the sound management of municipal debt” and its ability to meet its financial commitments.

But opposition officials say Montreal would be in the red if it wasn’t for financial support from the provincial government.

“We have not seen this administration being strong on economic development over the last eight years,” said Ensemble Montreal’s finance critic, Alan DeSousa. “The revenues don’t come in to support the amount this administration likes to spend … [it] opens the tap and hopes what comes out is not water, but money.”

Benoit Dorais, vice-chair of the executive committee, says that money is spent in ways that address “the needs of Montrealers.”

“We did a lot of action in terms of housing. It’s one of our priorities, and … the environment,” he said.

With files from CTV News Montreal’s Olivia O’Malley