New fiscal pact signed between Quebec government and cities

The Quebec government has signed a new fiscal deal with municipalities that will provide access to hundreds of millions of dollars to help pay for local services.

The money will go toward infrastructure upgrades including road work, water and sewage lines.

The funds will also be available to help mitigate against the devastating impacts of climate change, such as improving drainage systems following flash floods or removing branches near power lines to reduce power outages following ice storms.

“It’s a deal that confirms that we are partners and we work together and we will bring more efficient services to residents,” Premier François Legault said in Quebec City.

While many applaud the new efforts, the mayors of some suburban cities and towns on the island of Montreal complain the fiscal pact does little to address their longstanding concerns.

The municipalities are seeking a new financial deal of their own with the city of Montreal, which would change how they’re billed to pay for commonly shared services like public transit.

The suburbs are being billed six per cent more next year to cover the costs of mass transit, fire and police protection.

Montreal Mayor Valérie Plante told reporters she understands the bills to the island’s 15 suburban municipalities can wildly fluctuate and she’s open to negotiating a new arrangement.

”There’s a lot of disparities between all of them. Some of them will pay more taxes but some others benefit from how it is. So it’s not all equal. So the same way, we are always open to discussion,” Plante said.

The new fiscal pact begins at the end of 2024.