CSL expects small surplus at close of 2009

But glomer contribution expected to shoot up

By Joel Goldenberg

Côte St. Luc can expect a small surplus by the time the city delivers its budget for 2010, Mayor Anthony Housefather said in his annual report on the state of his city’s finances.

“We will continue to keep close control over our expenses until the end of the year while maintaining a high quality of service to city residents,” his report said.

Housefather, who read his report in English and French, said Côte St. Luc’s operating revenues are within budget, and that this year’s included a one-time $200,000 tariff to residents so that the city could provide 4,100 new recycling bins.,

“As well, the city received its share of a special fund created by the Quebec government to promote projects that reduce the amount of household waste sent to landfill,” he added. “The city uses part of this distribution for the collection of organic waste. The balance of this redistribution will be used to help finance other innovative projects in the future to meet our waste reduction targets over the next few years.”
Housefather reported that the city’s operating expenses are also “well within budget” at this point. He added that Côte St. Luc recently reached an agreement with its white collar employees recently and with its blue collars last February.

“I am proud to say these new collective agreements have been negotiated taking into account the real needs of the city and its employees.”
In terms of expenses, the mayor said the city experienced cost increases in areas such as waste management. “However, due to better overall efficiency and cash-flow management, the city has also experienced some savings in various areas.”

However, Housefather said that the city’s contribution to the island-wide agglomeration, $22.2 million in 2009, is expected to increase “significantly” in 2010.

“The reliance on Montreal island cities alone to continue to pay for these central services (public transit, fire, police, water treatment and others) will not be sufficient to cover these exploding costs in the future. We will seek a correction from the Quebec government to ensure that certain agglomeration services are paid for by the entire metropolitan region of the Montreal Metropolitan Community and to ensure there is sustainable financing for these services going forward without having to continuously overtax Montreal island residents.”
Other facts from the mayor’s report.

• The city had a net cumulative operating surplus of more than $1 million and a cumulative pension plan surplus of $3,995,000 at the end of 2008. The operating surplus was used to reduce refinancing of a water infrastructure long-term debt to Montreal and cover the cost of the Nov. 1 election. The latter was budgeted for $250,000, but less was spent because most council members were acclaimed.

• Côte St. Luc resolved several longstanding issues with Montreal during 2008, including lawsuits relating to the Mackle and St. Pierre collectors, agglomeration allocations, the 2005 year-end deficit just before demerger took effect and Montreal’s claims of alleged deficits resulting from harmonization of salaries and operating costs during the 2002-2005 merger era.

• In 2007, 7.96 percent of Côte St. Luc’s operating budget “was used to pay interest and capital payments on long-term debt, far less than the provincial average of 15.41 percent.”

• Projects planned as part of the city’s 2009-2011 capital expenditure program have been or are nearly completed. However, $7.5 million planned for a new intergenerational/aquatic centre has been deferred to next year, when the Quebec government decides whether to provide the city with a grant for the project. Council has reapplied for the grant through a different Quebec ministry.

• Capital investment priorities in 2009 were water and road infrastructure improvements and park facility upgrades. The water infrastructure improvements on 31 streets were aided by a total $4.92 million Gas Tax program grant from the federal and provincial governments. Côte St. Luc contributed $4.99 million this year.

• Capital budget priorities for 2010 include “investment in our parks, aqueduct infrastructure and maintenance of roads and sidewalks.

• There will be a public information held by Côte St. Luc in early December to review the 2010 budget “and provide the opportunity to the public to give input into the budget building process.”