Montreal suburbs to get cash back from city

The Quebec government has ordered Montreal to hand over $8 million to municipalities that separated from the mega-city earlier this year.

The province says Montreal charged $41.4 million in city expenses to municipalities across the whole island when it drew up the agglomeration budget for 2006.

Municipal Affairs Minister Nathalie Normandeau said Wednesday the money has to be given back. The 15 municipalities that demerged from the mega-city on Jan. 1 are to get $8 million, while the rest is to be returned to taxpayers across the island in tax credits next year.

The mayors of 15 suburbs say the decision vindicates their claims that the new agglomeration council which is responsible for services like police and fire departments, water treatment and public transit, does not work properly.

The suburbs first started to complain when the island council's $1.99-billion budget was presented.

A 32-page provincial report endorsed Wednesday by Normandeau says Montreal overcharged the island council for some costs associated with maintaining the downtown core, and for buildings shared by the suburbs and Montreal.

The city of Montreal says it's unfair that the province is forcing it to pay.

The head of Montreal executive committee, Frank Zampino, says the province appears to be trying to make everyone happy, and it did not work.

"We were looking for equity and we find out to our great surprise the they basically left this gift for the demerged suburbs," Zampino said.

However, the suburbs are not claiming victory they wanted $20 million.

Still, Westmount Mayor Karen Marks says the decision is important.

"I think it's a vindication of what we said in the beginning: The rules are not clear. It's not been done in a way that's fair," Marks said Wednesday.

Roger Noel, the expert who prepared the report, says he has made suggestions about how to improve the budget process. But the minister has chosen not to release those suggestions.

She says she wants the demerged cities and Montreal to come to a consensus on how to make things better.

Normandeau also says demerged cities can continue to appeal Montreal's budget decisions to her, but that she hopes the appeals will decrease.