Montreal’s 2025 Budget Sparks Debate Over Tax Hikes And Spending Plans

Mayor Valérie Plante Unveils $7.28 Billion Budget Prioritizing Housing and Homelessness, Amid Rising Property Taxes

Montreal’s 2025 budget, presented by Mayor Valérie Plante, focuses on housing and homelessness relief, accompanied by tax increases. Titled “A Metropolis on a Human Scale,” the $7.28 billion budget addresses urgent city priorities while reflecting the financial pressures of the current economic climate.

Property Tax Adjustments

The budget introduces a 2.2% property tax increase for residential properties, a reduction from last year’s 4.9% hike but still significant for homeowners. For non-residential properties, average tax increases of 1.9% are proposed, with sharper hikes in boroughs like Lachine and Saint-Laurent, where rates could rise as high as 9.6% and 7.7%, respectively. These adjustments are expected to impact both residents and businesses, particularly in affected areas.

Mayor Plante highlighted the necessity of the budget, stating, “It is a budget responding to the urgent priorities the city must face and positions Montreal as a metropolis of the future, anchored in its time.”

Focus on Housing and Development

The administration plans to increase the housing department’s budget by $100 million over the next three years, aiming to construct thousands of off-market housing and subsidized units. Efforts will also include streamlining construction permits to reduce delays and attract new development projects.

Homelessness Relief

The city is committing an additional $10 million toward combating homelessness, marking a $3 million increase from the previous year. These funds will support organizations working to assist those affected by homelessness.

Criticism and Concerns

Opposition party Ensemble Montréal has raised concerns about the financial strain on residents. Spokesperson Alain DeSousa criticized the administration for escalating taxes, stating, “The city is increasing its borrowing. It’s going to have huge impacts for future generations.”

According to critics, taxes under Mayor Plante’s tenure have risen by 38% over the past eight years, surpassing inflation rates, which stood at 25% during the same period. Concerns were also voiced over the city’s workforce expansion, with over 3,500 municipal employees added, including a disproportionate increase in managerial roles.

Mixed Community Reactions

While some residents and organizations have welcomed the focus on housing and homelessness, others view the tax increases as burdensome, especially for lower- and middle-income families. The plan to waive taxes for non-profit organizations, amounting to $10.5 million annually, has drawn mixed responses, with critics arguing it shifts financial pressures elsewhere.

Looking Ahead

Montreal’s approach reflects broader challenges faced by urban centers in addressing affordable housing and social issues. As residents prepare for 2025, questions remain about the long-term implications of the budget. Will these initiatives ease the city’s housing and homelessness crises, or will tax hikes strain residents further?

With Mayor Plante’s term coming to an end, her administration’s commitment to these priorities will shape her legacy as Montreal moves forward into an uncertain financial future.