pio-rapport couverture/anglais 03/09/03 9:48 Page 1
Ville de Montréal
ANNUAL FINANCIAL REPORT Year ended December 31, 2002
2002 Ville de Montréal ANNUAL FINANCIAL REPORT 2002 Year ended December 31, 2002
Deposited at the City Clerk’s Office of the Ville de Montréal, June 16, 2003
Prepared by the Service des finances Direction de la comptabilité et du contrôle financier
Ville de Montréal Nota bene
The Ville de Montréal will enter this document for the Canadian award of excellence for financial reports submitted by municipal- ities given annually by the Government Finance Officers Association (GFOA) of the United States and Canada. The Canadian award of excel- lence recognizes municipal administrations whose annual reports are deemed to fulfil, in substance, the evaluation criteria set by the organization. The Ville de Montréal feels that this document meets all GFOA criteria and consequently, intends to submit it for the Canadian award of excellence for finan- cial reports. Ville de Montréal Table of Contents
Page A • Introduction Members of the City Council and of the borough councils …………………………………………………………………………………….. III The Executive Committee ………………………..……………………………………………………………………………………………………………………………….V Standing committees of Council and Commission de la sécurité publique …………..………………………………………………………………………………………VI Message from the Mayor and the Chairman of the Executive Committee ……………………………………………………………………………………………………………..VII The territory of Montréal and its 27 boroughs - Map …………………………………………………………………………………………………………IX A profile of Montréal …………………………………………………………………………………………………………………………………….XI Ville de Montréal - Organizational Chart………………………………………………………………………..…………………………………………..…...XV Overview of Financial Activities and Year 2002 Review…………………………………………………………………………………………………………………………XVII
B • Financial Reporting – Financial statements The Municipal Administration's Responsibility for Financial Reporting ………………………..…….…………………………………………..……………1 Report of the General Auditor of Montréal ……………………………..………...………………...……………………………………………………………………..2 External Auditors' Report ……………………………………………………………………………………………………………………………………3 Financial Statements Balance Sheet ……………………………………...……………………………………………………………………………………………………………………4 Statement of Financial Activities ……………………………………………………………………………………………………………………………………………………..5 Statement of Investment Activities………………………………………………………………………………………………………………………………6 Statements of Surplus and Reserved funds ……………………………………………………………………………………………………………………………7 Statement of Cost of Municipal Services …………………………………………………………………………………………………………………………………..8 Statement of Net Investment in Long-Term Assets………………………………………………………………………………………………………..10 Statement of Changes in Financial Position ………………………………………………………………………………………………………………………………….11 Notes and Schedules to the Financial Statements ………………………………………………………………………………………………………………………………12 Schedule 1 – Operating Expenditures by Item ………………………………………………………………………………………………………28 Schedule 2 – Long-term Debt …………………………………………………………………………………………………………………………………………….29 Schedule 3 – Long-term Unfunded Investment Expenditures ………………………………………………………………………………………………………….41 Schedule 4 – Direct and Indirect Debt and Long-Term Unfunded Expenditures…………………………………………………………………….42
C • Financial Reporting – Supplementary information Analysis of Revenues……………………………………………………………………………………………………………………………………………….43 Analysis of Operating Expenditures ……………………………………………………………………………………………………………………………………49 Analysis of Cost of Municipal Services…………………………………………………………………………………………………………………………….52 Analysis of Investment Expenditures by Type………………………………………………………………………………………………………………..54 Changes in Sinking Fund Investments…………………………………………………………………………………………………………… 55 Long-Term Debt Maturity………………………………………………………………………………………………………………………………………56 Changes in Long-Term Debt………………………………………………………………………………………………………………………… 58
D • Complementary and Statistical Information Equivalent Taxable Valuation, Taxation and Collection…………………………………………………………………………………………………….59 2002 and 2003 Tax Rates Residential Immovables…………………………………………………………………………………………………………………………………60 Non-Residential Immovables……………………………………………………………………………………………………………………………..61 Property Values in the Boroughs………………………………………………………………………………………………………………………..62 Direct and Indirect Debt and Long-Term Unfunded Expenditures…………………...…………….…………………………………………………63 General Statistics………………………………………………………………………………………………………………………………………….65
I A INTRODUCTION Members of the City Council and of the borough councils1
Gérald Tremblay BOROUGHS Mayor
AHUNTSIC-CARTIERVILLE CÔTE-SAINT-LUC/ LASALLE HAMPSTEAD/MONTRÉAL-OUEST Beauchamp, Maurice Barbe, Manon District of Saint-Sulpice Berku, Dida Deschamps, Richard Belleli, Hasmig Libman, Robert District of Acadie Farinacci, Alvaro Housefather, Anthony Eloyan, Noushig Kaluzny, Oksana District of Cartierville District of Sault-Saint-Louis Lapointe, Pierre Vadacchino, Michael District of Ahuntsic DOLLARD-DES ORMEAUX/ District of Cécil P. Newman ROXBORO Polcaro, Achille District of Sault-au-Récollet Janiszewski, Edward Zingboim, Howard L’ÎLE-BIZARD/ SAINTE-GENEVIÈVE/ Bayouk, Zoe SAINTE-ANNE-DE-BELLEVUE ANJOU Cardinal, Jacques Beaupré, Carol Bélanger, Richard Miranda, Luis DORVAL/L’ÎLE-DORVAL District of Jacques-Bizard Hénault, Andrée Yeomans, Peter B. Tierney, Bill Bourbeau, Robert M. District of l’Anse-à-l’Orme District of Strathmore
BEACONSFIELD/BAIE-D’URFÉ Rouleau, Edgar A. District of Désiré-Girouard MERCIER/ Kemp, Roy A. HOCHELAGA-MAISONNEUVE (Vacant) Dompierre, Richer District of Beaurepaire District of Maisonneuve KIRKLAND Parent, Anne-Marie Faust, Lyn District of James Morgan Meaney, John W. District of Louis-Riel Gibson, Michel Larivée, Luc District of Côte-Sainte-Marie District of Hochelaga CÔTE-DES-NEIGES/ MacDonald, Brian B. Le Duc, Ivon NOTRE-DAME-DE-GRÂCE District of Brunswick District of Tétreaultville Applebaum, Michael Saint-Arnaud, Claire District of Notre-Dame-de-Grâce District of Longue-Pointe Rotrand, Marvin LACHINE District of Snowdon Cowell-Poitras, Jane Searle, Jeremy MONTRÉAL-NORD District of Loyola Dauphin, Claude Blanchet, Bernard Gibeau, Jean-Marc 1 Senécal, Francine In conformity with the act on District of Côte-des-Neiges Infantino, James V. municipal mergers, certain boroughs are divided into electoral districts. Tremblay, Marcel Parent, Marcel In these cases, the district name District of Décarie is indicated below that of Fortin, Normand the councillor. Zajdel, Saulie District of Ovide-Clermont District of Darlington Morin, Georgette L. Member of the City Council and District of Marie-Clarac of the borough council Borough councillor
III MONT-ROYAL RIVIÈRE-DES-PRAIRIES/ SUD-OUEST POINTE-AUX-TREMBLES/ Caron, Suzanne MONTRÉAL-EST Bousquet, Robert District of Émard Carrie, Cliff Maciocia, Cosmo District of Frederick G. Todd District of Marc-Aurèle-Fortin Hamel, Line District of Louis-Cyr Stephens, Nicholas Minier, Marius District of Rockland District of Pointe-aux-Trembles Montpetit, Jacqueline District of Pointe-Saint-Charles Paul, Colette District of Bout-de-l’Île OUTREMONT Plante, Michel VERDUN Harbour, Stéphane District of Rivière-des-Prairies Bossé, Georges Cinq-Mars, Marie District of Joseph-Beaubien Dugas, Laurent Piquette, Claude B. ROSEMONT/LA PETITE-PATRIE Trudel, Claude District of Jeanne-Sauvé Bourque, Pierre Gallagher, John District of Marie-Victorin District of Desmarchais-Crawford Larouche, Denise District of Vieux-Rosemont Marotte, Ginette PIERREFONDS-SENNEVILLE District of Champlain Plante, Jean-François Ward, Bertrand A. District of Louis-Hébert Worth, Monique Purcell, François VILLE-MARIE Leblanc, René E. District of Saint-Édouard Thibault, Nicole Laramée, Robert District of Étienne-Desmarteau District of Saint-Jacques Lemay, Martin PLATEAU-MONT-ROYAL District of Sainte-Marie Fotopulos, Helen O’Sullivan-Boyne, Louise District of Mile End SAINT-LAURENT District of Peter McGill Poulin, Christine DeSousa, Alan District of Laurier Dussault, René Prescott, Michel Grundman, Irving VILLERAY/ District of Jeanne-Mance SAINT-MICHEL/ Biron, Michèle D. PARC-EXTENSION Tétrault, Nicolas District of Norman McLaren District of Plateau-Mont-Royal Deros, Mary Cohen, Maurice District of Parc-Extension District of Côte-de-Liesse Lachance, Sylvain District of Villeray POINTE-CLAIRE McMurchie, Bill Samson, Anie SAINT-LÉONARD District of Jarry Iermieri, Aldo District of Donegani Bissonnet, Yvette Tamburello, Paolo District of Saint-Michel Trudeau, Morris Perri, Dominic District of Valois Venneri, Frank Zampino, Frank District of Jean-Rivard Battista, Mario District of Port-Maurice
Zambito, Robert L. WESTMOUNT District of Grande-Prairie Marks, Karin De Castell, John District of Côte-Saint-Antoine Lulham, Cynthia District of W. D. Lighthall
IV The Executive Committee
Gérald Tremblay Frank Zampino Francine Senécal Michel Prescott Mayor Chairman of the Vice-chairwoman of the Vice-chairman of the Executive Committee Executive Committee Executive Committee
Georges Bossé Claude Dauphin Alan DeSousa Helen Fotopulos Member of the Member of the Member of the Member of the Executive Committee Executive Committee Executive Committee Executive Committee
Robert Libman Cosmo Maciocia Louise O’Sullivan-Boyne Peter B. Yeomans Member of the Member of the Member of the Member of the Executive Committee Executive Committee Executive Committee Executive Committee ASSOCIATE COUNCILLORS
Michael Applebaum Manon Barbe Suzanne Caron Stéphane Harbour Luis Miranda Marvin Rotrand Marcel Tremblay Claude Trudel
V Standing committees of Council and Commission de la sécurité publique
Commission sur les Commission sur les Commission sur Commission sur transports arts, la culture et les relations la présidence Chairman le patrimoine interculturelles, President Jeremy Searle Chairman l’habitation et le Marcel Parent Claude Trudel développement social Vice-chairman et communautaire Vice-chairwoman Maurice Beauchamp Vice-chairwoman Claire Saint-Arnaud Chairwoman Members Hasmig Belleli Members Jane Cowell-Poitras Michael Applebaum Members Dida Berku Pierre Lapointe Manon Barbe Vice-chairwoman Luc Larivée Marius Minier Marie Cinq-Mars Mary Deros Cosmo Maciocia Anne-Marie Parent Karin Marks Members Marvin Rotrand Bill Tierney Ginette Marotte Richard Bélanger Anie Samson Jean-François Plante Maurice Cohen Commission sur les Oksana Kaluzny Commission de la Commission sur finances, le capital Sylvain Lachance sécurité publique le développement humain et les services John W. Meaney économique et le Chairman aux citoyens Centre des affaires Commission sur Peter B. Yeomans Chairman Chairman l’urbanisme, Vice-chairman Edward Janiszewski Richard Deschamps l’aménagement Marcel Tremblay Vice-chairman du territoire, Vice-chairman Members Bertrand A. Ward l’environnement et le Carol Beaupré Jean-Marc Gibeau Members développement durable Roy A. Kemp Members Anthony Housefather Chairwoman Claire Saint-Arnaud Michèle D. Biron Claude B. Piquette Suzanne Caron Monique Worth Robert Bousquet Michel Plante Cliff Carrie Vice-chairman Edgar A. Rouleau Richer Dompierre Stéphane Harbour Frank Venneri Howard Zingboim Members Robert Bourbeau Jacques Cardinal Dominic Perri François Purcell Anie Samson
VI Message from the Mayor and the Chairman of the Executive Committee
The publication of the financial report for 2002 represents the first true financial portrait of the new Ville de Montréal, which was born on January 1, 2002 as a regrouping of the former Montréal Urban Community and all of the former municipalities on its territory. As you will note, these financial statements bear witness to a healthy and rigorous management.
The city of Montréal concluded the 2002 fiscal year with a surplus of $114.5 million. This surplus is mainly attributable to tight control over expenses and a vigorous Montréal economy.
On the one hand, our budget vision was respected, as real expenditures during the year were very close to the budget forecasts.
On the other hand, thanks to the vitality of Montréal’s economy, growth in revenues was superior to the budget forecast. In particular, tax revenues surpassed forecasts by $44.5 million, and revenues from permits and duties on transfers of immovables were $43.4 million higher.
These financial statements also reflect a $1.5 billion growth in the tax base of the new city of Montréal in 2002, which is $600 million more than forecast. This is a very tangible sign of the vigour of Montréal’s economy, and points to confidence on the part of investors. These positive effects and the good management of our administration were also recog- nized at the beginning of this year by Moody’s investors’ service, which raised the city’s credit rating outlook from A2 stable to A2 positive.
Beyond the numbers, the 2002 fiscal year was a year of constant work to establish the organization of the new city. A city which we want to be strong, with its own culture, decentralized and respectful of the distinct character of the 27 boroughs. A city whose prime mission is to provide quality municipal services to all of its citizens, while respecting their ability to pay.
VII The Sommet de Montréal, which took place in June 2002 and brought together the key players in the economic, political, social, community and cultural development of the metropolis, was clearly a turning point in the building of the new city.
In this major democratic exercise with our partners, we were able to identify concrete actions to consolidate and reinforce Montréal’s place as a metropolis of creation and inno- vation, open to the world, a metropolis of knowledge and culture, a metropolis of sustain- able development, a metropolis of social solidarity, inclusive and agreeable to live in, a democratic metropolis, fair and transparent, and a metropolis with an efficient adminis- tration at the service of the population.
It is also in 2002 that we undertook the process leading to the first city contract, a historic document which lays out the initial guidelines for a new partnership between the city of Montréal and the government of Québec to reinforce the finances and the development of the metropolis.
In summary, over the first year, while administering this new city with care and wisdom, we accomplished much work to not only build Montréal, but make it a success. For us and most of our partners, Montréal’s success comes from being resolutely committed to building a city of the future, acting for the generations to come and making it a stimulating and innovative place to live, a prosperous and competitive city, and one of the great metropo- lises of the world. This is the fascinating collective challenge that we chose to meet in 2002, and to which we continue to dedicate ourselves completely.
Gérald Tremblay Frank Zampino, CA Mayor Chairman of the Executive Committee
VIII s e Îl le il es M Rivière d
Laval
Rivière-des-Prairies/ Lac des Pointe-aux-Trembles/ Deux Montagnes L’Île-Bizard/ Montréal-Est Montréal-Nord Sainte-Geneviève/ Pierrefonds- Sainte-Anne-de-Bellevue Senneville Anjou
s airie t Pr en es Saint-Léonard ur Pierrefonds- Rivière d -La int Senneville Sa Pierrefonds-Senneville e uv Dollard-Des Ormeaux/Roxboro Ahuntsic-Cartierville le L’Île-Bizard/ F Sainte-Geneviève/ Villeray/ Sainte-Anne-de-Bellevue Kirkland Saint-Michel/ Parc-Extension Mercier/ Hochelaga- Saint-Laurent Rosemont/ Maisonneuve Beaconsfield/Baie-D’Urfé Pointe-Claire La Petite-Patrie Mont-Royal
Plateau-Mont-Royal Outremont Dorval/L’Île-Dorval Côte-des-Neiges/ Notre-Dame-de-Grâce Côte-Saint-Luc/ Hampstead/ Ville-Marie Montréal-Ouest Lac Westmount Saint-Louis Lachine Longueuil e Lachine Sud-Ouest Canal d
LaSalle c Île edu Verdun Aqu des Soeurs de l’ Canal
t en The territory of Montréal aur int-L Fleuve Sa and its 27 boroughs
0 36 km A profile of Montréal
A city of contrasts
Montréal is a unique city that takes its And although several boroughs may resem- differences and contrasts in stride. ble a country village, Montréal is definitely a city of business and action. In addition With a wealth of experience acquired over to the lively downtown area with its 360 years of history, Montréal, one of the skyscrapers and commercial buildings, the oldest cities in North America, remains city has many industrial parks, where a remarkably young and vibrant. This second great variety of high-tech products are largest francophone city in the world is also developed and manufactured. Montréal's home to dozens of different communities, economy is carving out a leading place speaking many languages. But there is even for itself in the knowledge industries, such more to Montréal's uniqueness. as biopharmaceuticals, aerospace and Montréal is an ode to diversity. Its residents telecommunications. are living proof of the possibility of a global Montréal is a well-situated island. At the village. Montrealers by birth or by adoption entrance to the Great Lakes, it opens onto and those who are only passing through the heart of North America, and also provides live together side by side in harmony. The quick access to the New England states. This resulting cultural mix fosters exceptional strategic location has been and continues artistic activity. Many Montréal artists have to be a significant advantage. Many multi- made their mark on the international nationals choose Montréal as their gateway scene: Céline Dion, the Cirque du Soleil, to the eastern U.S. market. And this doesn't Michel Tremblay, Betty Goodwin and take into account the financial institutions, Leonard Cohen, to name a few. international organizations and consulates This plurality is also evident in everyday life. that have settled in the city... Commercial streets and public markets are Montréal offers a world of possibilities. cosmopolitan meeting places. We have a A unique, contrasting world that is in Chinatown, a Little Italy and a Little constant evolution. The world of Montréal! Portugal, but no ghettos. Montréal's diver- sity also extends to its climate, where the changing seasons redecorate the city at very little cost! Another Montréal paradox is that while it offers comfortable living, it is also known for its nightlife. Openness to the world makes Montréal a joyous, gastronomic city, qualities that are reflected not only in its many restaurants and cafes, but also in its international festivals and events. At cultural or sporting activities, Montrealers celebrate life to the full, and always peaceably. How can we explain the unique atmosphere, at once quiet and passionate, that charac- terizes the metropolis? Perhaps the answer lies in the fact that Montréal is also an island, and that its shores, mountain, canal and vast parks have managed to preserve a rural, peaceful quality.
XI A profile of Montréal
104 1,838,474 772,340 4,800 Borough councillors, of Residents making up the Housing units in Montréal, Manufacturing companies whom 73 are also members population of Montréal. ranking the city first in providing 150,000 jobs and of the city council, in addi- They account for over half North America and fifth in making Montréal the third tion to the mayor. the population living in the the world in terms of city in North America in price-space ratio: 66% of terms of total number of 27 census metropolitan area (CMA), and more than a residents are tenants, and jobs in the manufacturing Boroughs making up the quarter of the population 34% own their homes. sector. territory of the new city: of Québec. A cultural mosaic, nine from the former cities US$91.2 billion 260 Montréal's population of Montréal and Montréal- Gross domestic product, or Companies operating in comprises members of some Est, and 18 constituted from the “value of all goods and the aerospace industry, 100 different communities. the 27 former suburban services produced” in the concentrating in the municipalities. 482.84 Montréal metropolitan area Montréal area 55% of in 2000, ranking it 19th activities in this sector of $3,657,967,200 Square kilometres of Montréal territory, which among North American the Canadian economy, 2002 budget of the Ville includes 11 islands. The urban agglomerations. and employing some de Montréal. 42,000 people. largest, the island of 450 23,114 Montréal, is 50 kilometres University and private City employees, in person- long and 16 kilometres 1,017,000 research centres that make years. The Société de trans- across at its widest point. Jobs within the Montréal Montréal an important port de Montréal represents territory, representing 69.7% $104 billion centre for innovation. another 7,181 person-years. of jobs in the metropolitan Total property values on area. Montréal territory (405,838
valuation units).
XII 20,700,000 9,700,000 33 30 Metric tonnes of merchan- Tourists who visited the Hospitals that are at the Kilometres of corridors, dise passing through the metropolitan area in 2001. heart of the healthcare net- indoor malls and tunnels, port of Montréal in 2000, work that also includes 29 making Montréal the leader 40 Centres locaux de services the second largest port on in terms of underground International festivals and communautaires (CLSC). the eastern coast of North events presented every networks of this type. Every America. year. They contribute to 426,910,240 day, 500,000 people are able Rides taken annually by to go about their business 309,088 Montréal's cultural wealth, and place it on a par with users of the public transpor- protected from the elements. Conventioneers in Montréal other leading cultural cities, tation network, composed in 2001; the city ranks third 140 such as London, Paris and of a Métro with 66 km of in North America in annual Kilometres of bicycle paths New York. underground tunnels and number of international 65 stations, 173 bus routes that contribute to making conventions. 4 and 5 commuter trains. Montréal the top cycling Universities, two French- city in North America, $450,000,000 and two English-language, 5,617 among cities with a popu- with which are associated Spent annually in the metro- Kilometres of roads and 883 renowned schools, such as lation of over one million. politan area by business the École des hautes études kilometres of railway track. travellers and conventioneers. commerciales, École poly- Montréal is also home to technique, École nationale 88 major corporate head- $632,000,000 d'administration publique, quarters, as well as 70 In investment in the film École de technologie supérieure, and Institut international organizations, and television industries for national de la recherche 46 consulates general, and the 584 productions shot in scientifique. 87 international financial Montréal in 2001. These institutions. investments generated eco-
nomic spinoffs of approxi- mately $521,500,000.
XIII CITY COUNCIL MAYOR Ville de Montréal
Public security commission Ombudsman Standing committees of Council and Organizational Chart commissions Public consultation office Arts council Jean-François Viau March 31, 2003 Auditor’s office Intercultural council Chairman Source : Direction du développement de l'organisation Heritage council Michel Doyon Service des ressources humaines Director
Public service commission
Jacques-Errol Guérin Chairman Executive Committee Société de transport de Montréal
Electrical services commission Borough councils Presidents Berthier Landry Chairman DIRECTION GÉNÉRALE Urban-planning consulting committees Robert Abdallah Direction des communications Director-general Direction de l'évaluation et des relations avec les foncière citoyens Jean-Robert Choquet Jean Bélanger Director Director Direction des institutions Borough co-ordination scientifiques East Stella Guy, assistant director-general Michel Lamontagne Central Gaétan Laberge, assistant director-general Director Planning office West Duncan E. Campbell, assistant director-general
Service des ressources Service des ressources Service du secrétariat général Service des finances humaines matérielles et informatiques Vacant Michel Ste-Marie André Delisle Roger Galipeau Assistant director-general Assistant director-general Assistant director-general Assistant director-general
Service du développement Service des parcs, des espaces Service du développement Service de l'environnement, de Service du développement écono- Service de la sécurité publique culturel verts, des sports et des loisirs social et communautaire la voirie et des réseaux mique et du développement urbain Rachel Laperrière Vacant Guy Hébert Yves Provost Cameron Charlebois Vacant Assistant director-general Assistant director-general Assistant director-general Assistant director-general Assistant director-general Assistant director-general
Service de sécurité incendie Service de police de Montréal Michel Sarrazin Alain Michaud Director Director
East boroughs
Mercier/Hochelaga- Rosemont/ Villeray/Saint- Montréal-Nord Rivière-des-Prairies/ Saint-Léonard Anjou Borough Maisonneuve Pointe-aux-Trembles/ La Petite-Patrie Michel/Parc- Borough Borough Borough Montréal-Est Borough Borough Extension Borough Jacques Rioux Michel Archambault Daniel L'Écuyer Pierre Santamaria Paul Bourret Gérard Soulard Erick Santana Director Director Director Director Director Director Director
Central boroughs
Côte-des-Neiges/ Plateau- Notre-Dame-de- LaSalle Borough Mont-Royal Borough Outremont Borough Sud-Ouest Borough Ville-Marie Borough Verdun Borough Westmount Borough Mont-Royal Borough Grâce Borough Gaétan Rainville Gervais Lemay Ava L. Couch Pierre A. Chapuis Johanne Falcon Gilles Rainville Jean Mercier Gilles Baril Bruce Saint-Louis Interim director Director Director Director Director Director Director Director Director
West boroughs
L'Île-Bizard/Sainte- Côte-Saint-Luc/ Dollard-Des Ahuntsic-Cartierville Beaconsfield/ Dorval/ Geneviève/Sainte- Pierrefonds/ Pointe-Claire Saint-Laurent Hampstead/ Montréal- Ormeaux/ Kirkland Borough Lachine Borough Anne-de-Bellevue Borough Baie-D'Urfé Borough Ouest Borough L'Île-Dorval Borough Senneville Borough Borough Borough Roxboro Borough Borough Louis B. Provencher Patrice Boileau David Johnstone Jack Benzaquen Pierre Larivée Jean-Paul Collinge Barry Weldon Pierre Bernardin Jacques Chan Richard White Robert Fortin Director Director Director Director Director Director Director Director Director Director Director
Political bodies Organizations Municipal departments Boroughs OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
THE MUNICIPAL REORGANIZATION: POOLING OUR STRENGTHS TO BENEFIT CITIZENS THROUGH THE FULLEST EXPRESSION OF COMMUNITY POTENTIAL
This is the first report to present a financial profile of the new Ville de Montréal. On January 1, 2002, Montréal became a new entity with the amalgamation of the CUM and the 28 municipalities which made up the former Communauté urbaine de Montréal.
The amalgamation gave effect to the Act to reform the municipal territorial organization of the metropolitan regions of Montréal, Québec and the Outaouais, passed by the Québec National Assembly on December 20, 2000.
A Transition Committee, created under the same Act, worked throughout 2001 to implement the new Ville de Montréal, notably by setting up an operational administrative structure, preparing a 2002 budget and facilitating the harmonization of labour relations.
The Act creating the Ville de Montréal introduced a new governance model whereby the power to administer and manage the City is divided between the City Council and the Borough Councils. For Montréal, this distribution of powers means that 28 jurisdictions, excluding the Executive Committee, act on the City’s territory in areas under central authority, represented by the City Council, or local authority, represented by the 27 Borough Councils.
This structure is designed to give citizens an effective role in defining their needs so that borough-based proximity services meet their requirements and concerns. This structure also provides the City with the tools it needs to boost its development and influence.
On November 4, 2001, Montréal voters had a rendezvous with history when they were asked to appoint the people who, for a four-year term starting on January 1, 2002, would represent them on the 27 Borough Councils and the City Council. In addition to the Mayor, elected by voters from all the boroughs, 104 Montréalers were elected to sit on their respective Borough Councils. Of this number, 73 are also members of the City Council.
The Charter of the Ville de Montréal provides for the creation of an Executive Committee made up of the Mayor and 11 Council members appointed by him. Subject to the Council’s rights concerning matters under its jurisdiction, the Executive Committee is charged with administering the City’s business and sees to it that the Act, regulations and contracts are observed and enforced.
Reporting to the Executive Committee, the Director-General is in charge of municipal administration and, accordingly, organizes and oversees the City’s activities.
XVII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
THE MONTRÉAL SUMMIT: STEPS TOWARDS A STRONG AND UNIFIED CITY
On January 1, 2002, Montréal took a groundbreaking step. It was a huge challenge and the stakes were high. It meant working non-stop to build a dynamic and decentralized city, while providing citizens with similar- or better-quality service.
Implementing new structures in the 27 boroughs, giving new impetus to the democratic life of Montréalers, integrating staff, initiating talks to conclude a fair city contract with the Government of Québec. The task was daunting.
A powerful catalyst was needed to achieve so many objectives all at once. The Montréal Summit was, unquestionably, the event that rallied the population and translated ideas into action.
In June 2002, Montréal held a landmark Summit bringing together key players involved in the City’s social, community, political, economic and cultural development. The Montréal Summit took place in two phases: the first within each of the 27 boroughs and the second focussing on the Ville de Montréal’s 14 key development sectors.
More than 4,000 citizens made their voices heard and a consensus was reached on some 200 projects. The Summit laid the groundwork for a large democratic metropolis on a human scale that was at once strong and unified. In substance, it was the new City’s founding act in that a collective will was clearly expressed on priority projects and sites.
When the Summit ended in June, 19 projects were already under way. Many others—about 60 in all— will be completed in 2003, enhancing Montréalers’ quality of life, especially in the areas of transportation, social housing and economic and cultural development.
The Summit’s main achievement was to identify practical actions to enable Montréal to realize its full potential by generating wealth and sharing it to better the quality of life of all citizens.
Under the direction of the Mayor, a Forum uniting the representatives of the Summit of Montréal partners met every three months to track work in progress and set proper guidelines for upcoming projects. The municipal administration has a clear and firm commitment: to complete all the projects on which a consensus had been reached at the Montréal Summit within five years.
XVIII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
THE CITY CONTRACT: TANGIBLE RECOGNITION OF THE CITY’S STRATEGIC ROLE
Out of the Summit emerged a vision of Montréal for the 21st century. All the partners agreed to build a creative and innovative metropolis that was prosperous, open to the world and part of the international network of major cities—in other words, a democratic, unified city that would use its resources wisely to prepare for the future.
On the last day of the Summit, aware of the issues confronting the new City and its strategic role in spearheading and driving Québec’s economic growth, the Government of Québec unequivocally stated that it shared the ambitions of Montréalers.
By signing a joint statement laying the foundations of a new style of municipal governance—the city contract—the Government of Québec effectively pledged to take practical steps over the long term to foster Montréal’s sustainable development in the economic, social, cultural and community spheres.
The city contract is a veritable urban action plan that binds the City and the Government of Québec for five years through the joint action of ten government departments and agencies. It provides for new financial commitments by the City and the Government of Québec in the amount of $1.2 billion.
In short, the city contract is an innovative structuring tool that redefines, broadens and modernizes the City-Government partnership, shifting it towards decisional autonomy, flexibility, transparency of actions and, of course, accountability for results.
THE MUNICIPAL REORGANIZATION: A TWO-PRONG SHIFT TOWARDS INTEGRATION AND DECENTRALIZATION
On January 1, 2002, the new City, consisting of the 28 former municipalities of the island of Montréal, was born. A two-prong shift began. On the one hand, the boroughs were created on the territory of the former municipalities and some former suburban cities were merged into a single borough. On the other, the nine boroughs that had previously formed the Ville de Montréal had the challenge of successfully transferring a number of central functions to proximity services. Concurrently, municipal services previously under the jurisdiction of the former City or the former Communauté urbaine de Montréal were deployed and integrated.
This extensive structural operation was an unmitigated success—mainly because 85% of each borough’s projected workforce was already in place—and generated numerous democratic gains for Montréalers, who inherited a metropolis that at last had the tools to ensure its harmonious development while remaining close to its citizens.
XIX OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
In addition to the City Council and the 27 Borough Councils, a number of other bodies ensure that there is a sound and constructive dialogue between the City and its citizens. Because the City is regularly involved in a host of areas, the City Council created seven standing commissions that sit at least four times a year, usually at City Hall.
Made up of elected officers, these commissions are charged with holding public consultations on any subject related to their programs before making recommendations they deem appropriate to the Council. The commissions are as follows: the Commission permanente sur les finances, le capital humain et les services aux citoyens; the Commission permanente sur l’urbanisme, l’aménagement du territoire, l’environnement et le développement durable; the Commission permanente sur les relations interculturelles, l’habitation et le développement social et communautaire; the Commission permanente sur les arts, la culture et le patrimoine; the Commission permanente sur le développement économique et le Centre des affaires; the Commission sur les transports and, lastly, the Commission permanente de la présidence. Another commission, the Commission de la sécurité publique, was created under the Charter.
In addition, three new independent bodies were added to the existing democratic bodies. Montréal is a historically rich city and its cultural heritage, archives, traditions and landscape are treasures to be carefully preserved. Accordingly, the Conseil du patrimoine de Montréal, in place since August 2002, has been charged with developing a heritage policy. The Conseil is responsible for hearing any person or organization wishing to express an opinion on a heritage issue.
Since September 2002, the Office de consultation publique de Montréal, meanwhile, has actively examined citizens’ urban planning concerns. Its members are not elected officers or city councillors. The Office provides citizens with the opportunity to comment on projects and briefs concerning the City’s first planning program.
Lastly, because the City wishes to foster its longstanding cosmopolitan spirit, the Conseil interculturel de Montréal examines relations between the diverse communities that form Montréal society and represent a multitude of windows onto the world.
COMMUNITY SERVICES OF EQUAL OR BETTER QUALITY
The second largest French-speaking city in the world, the new Ville de Montréal has a population of more than 1,800,000. In 2002, one of Montréal’s greatest accomplishments was to deliver municipal services to its citizens of an equal or better quality than the previous year, while completing the many reorganization activities described above.
XX OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
For the new City, a successful transition above all meant guaranteeing vital services such as waste water treatment and the supply of drinking water. Across the territory, operations related to the road network, waste removal and recycling, maintenance of parks and green spaces, security, the law and recreation and culture continued unhindered. It is telling that the level and volume of citizen complaints in 2002 were comparable to the previous year.
Some services benefitted immediately from the reorganization and experienced a marked improvement. As of midnight on January 1, 2002, for instance, the Ville de Montréal’s new fire prevention department was equipped to respond anywhere on the island’s territory—in some places, with more human and physical resources.
Strides were also made in municipal justice, again from the perspective of both integration and decentralization. Since January 1, 2002, Montréal has had only one municipal court, although several former municipal courts have become service sites.
In 2002, Montréal managed to maintain or improve service quality by relying on competent and devoted staff.
INTEGRATING STAFF AND HARMONIZING WORKING CONDITIONS
First and foremost, the City is its people. In January 2002, virtually all 29,000 employees found a place within the new municipal structure. Unionized employees, covered by 95 collective agreements, were integrated and deployed in accordance with agreements and arbitration decisions concerning mechanisms to integrate employees from the various spheres. The number of certification units was reduced to nine.
An integration plan for managers from the 28 former municipalities of the Communauté urbaine de Montréal was successfully implemented.
The year 2002 also saw the initiation of discussions to harmonize the collective agreements.
DEVELOPMENT OF AN EQUALIZATION FUND AND A DEVELOPMENT INCENTIVE FUND
With an eye to promoting harmonious and equitable development across the island, the Act creating the new Ville de Montréal specifies that the borough budget allocation must incorporate equalization components. In 2002, two new funds were developed for inclusion in the following year’s budget.
XXI OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Through the Equalization Fund, credits will be permanently granted to boroughs that are either underbudgeted or economically or socially at a significant disadvantage. Based on strict, recognized eligibility criteria, the equitable allocation of budget resources to the boroughs will bring together conditions conducive to the generation of wealth throughout the territory, guided by the principles of solidarity and a harmonious vision of development.
The Development Incentive Fund has two components. The first, development budgeting, will permanently adjust the boroughs’ budget base by granting additional credits to boroughs that experience significant growth in their housing stock. These boroughs will thus have the means to provide comparable services to newcomers without deterioration in the quality of services available to current residents. The second component comprises a series of incentives to temporarily or sporadically compensate for inconveniences caused by such development.
A SURPRISINGLY STRONG ECONOMY
Montréal, like the rest of Canada, emerged unscathed from the shake-up of the American economy in 2001. Thanks mainly to growing domestic demand, the Montréal economy was surprisingly strong in 2002.
Employment grew by an average of 3.6% over the year. The rise in employment encouraged many Montréalers to enter the job market. The healthy job market had a greater effect on the labour force participation rate than on the unemployment rate. The participation rate rose from 65.7% in 2001 to 67.4% in 2002. The unemployment rate, as a yearly average, increased from 8.2% to 8.4%.
With rising employment, low interest rates and tax cuts, consumers were the mainspring of economic activity. Retail sales continued to grow. The vigour of the Montréal economy was also reflected in improved performance in all real estate sectors compared to the North American average. Higher employment and lower mortgage rates drove up housing demand for all types of housing and among all categories of purchasers: rental property, owner-occupied residences, first buyers and second buyers. The strong demand eroded the surplus that had prevailed on the market since the 1990s. Housing resales hit a record high at the beginning of the year and prices soared, ending the year with an annual increase of 13%. The strong housing demand fuelled growth in residential construction. The number of housing starts increased by 54% in the metropolitan region and 40% on the City’s territory.
XXII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Rising youth employment over the last three years stimulated demand on the rental housing market. In 1999, the vacancy rate fell below 3%—the threshold indicating a balance between supply and demand— and has remained below 1% ever since.
The strength of the Montréal economy was also reflected in the office building market. The rise in the vacancy rates was minor. Many information technology businesses vacated their office spaces, but demand increased among pharmaceutical firms and call centres. Absorption, which was positive during the first half of the year, returned to the negative side thereafter, leaving a downtown vacancy rate of 11.7% at year-end.
After demand declined in the industrial real estate sector, the vacancy rate rose from 3.7% in 2001 to 4.4% in 2002. However, the experts consider the market to be balanced when this rate is lower than 6%.
Over the last ten years, the average inflation rate has been 1.4% per year in Montréal. Pressure on prices remained weak and the consumer price index rose by 2% in 2002 in the Montréal region.
XXIII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
FINANCIAL RESULTS REFLECTING SOUND MANAGEMENT AND A STRONG ECONOMY
The Ville de Montréal’s revenues for the year 2002 were $3,591.5 million. Operating expenses, including those of other financial activities, reached $3,587.9 million. Net revenues from financial activities for the year therefore totalled $3.6 million. Appropriations from prior-year surpluses and reserved funds, totalling $80.9 million, and long-term financing of financial activity expenditures of $30 million yielded a $114.5 million surplus at the end of fiscal 2002, or approximately 3% of the budget.
Of this surplus, $45 million was used in advance to balance the 2003 budget, while $26.4 million was appropriated for projected expenditures in the same period. The free surplus balance stands at $43 million. A substantial portion of this amount will be used by the boroughs to create stabilization reserves for the cost of snow removal activities and provisions for contingencies—maximum of 1.5% of the budget allocation.
Summary of 2002 Financial Activities (in millions of dollars) Budget Actual Variance Revenues 3,569.4 3,591.5 22.1 Operating expenditures 3,154.1 3,155.4 (1.3) Other financial activities 503.8 432.5 71.3 Surplus (deficiency) before appropriations (88.5) 3.6 92.1 Appropriations 75.3 80.9 5.6 Long-term financing of financial activity 13.2 30.0 16.8 expenditures
Surplus - 114.5 114.5
Source of surplus for the year 2002
In order to balance the 2002 budget, the City planned to use $75.3 million from surpluses and reserved funds and finance transition expenditures resulting from the municipal reorganization on the island of Montréal, which were estimated at $13.2 million, through loan by-laws.
The 2002 results show that a balance was achieved between revenues and operating expenditures, as the financial activity surplus, before appropriations, totalled $3.6 million, for a positive variance of $92.1 million compared to the budget.
XXIV OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Summary of 2002 Revenues (in millions of dollars) Budget Actual Variance Taxes 2,378.2 2,422.7 44.5 Payments in lieu of taxes 198.3 198.4 0.1 Other revenues from local sources 533.1 566.5 33.4 Transfers 459.8 403.9 (55.9)
Total 3,569.4 3,591.5 22.1
Montréal’s strong economic performance enabled the City to generate higher-than-anticipated revenues. Actual growth in the value of the tax roll was $600 million higher than expected. Due to this growth and a significant improvement in the commercial building occupancy rate, tax revenues exceeded budget estimates by $44.5 million.
The economic climate also had a significant impact on other revenues from local sources. Revenues in this category exceeded budget estimates by $33.4 million. This difference is mainly attributable to real estate transfer, licence and permit fees, which provided $43.4 million more revenues than budgeted, while lower-than-anticipated interest rates reduced revenues from this source by $15.3 million.
Transfer revenues related to various government subsidy programs, which affect both operating and capital expenditures, constitute a major revenue source. These revenues declined by $55.9 million. The decrease is due mainly to a reduction in subsidies related to capital projects. This reduction was accompanied by an equivalent decrease in the item “Transfer to the Statement of Investment Activities,” presented in the following table.
Summary of 2002 Expenditures (in millions of dollars) Budgeted Actual Variance Operating expenditures 3,154.1 3,155.4 (1.3) Repayment of long-term debt 410.3 386.5 23.8 Transfer to the Statement of Investment Activities 93.6 46.0 47.6
Total 3,658.0 3,587.9 70.1
Actual operating expenditures for all City activities exceeded budget estimates by a mere $1.3 million. A closer look reveals the existence of several positive and negative variances. However, the comparison of actual figures with original budget estimates does not take into account credit adjustments authorized by the administration during the year.
XXV OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Expenditures related to the management of long-term debt are recorded under two distinct headings: financing costs and repayment of long-term debt. These headings show positive variances of $16 million and $23.7 million, respectively, for a combined total of $39.7 million. Given its strong cash position, the City reduced its use of loans, resulting in savings of $8.7 million. In addition, lower-than-anticipated interest rates, in conjunction with more favourable exchange rates, reduced expenditures by a further $6.8 million. Finally, lower-than-expected transition expenditures generated savings of $16.2 million. The $7 million balance is comprised of various items.
The item “Transfer to the Statement of Investment Activities” is closely tied to revenues from government transfers related to capital expenditures. As previously stated, these revenues show a negative variance of close to $55.9 million compared to original estimates, which largely explains the positive variance of $47.6 million recorded in “Transfer to the Statement of Investment Activities.” This drop in revenues from government transfers also helps explain the $65.7 million difference between budgeted investment expenditures of $446.5 million and the actual figure of $380.8 million for the year, as shown in the Statement of Investment Activities.
Restricted Surplus and Reserved Funds (in millions of dollars) Budget Actual Variance Restricted surplus 65.0 84.8 19.8 Reserved funds 10.3 (3.9) (14.2)
75.3 80.9 5.6
The municipalities balance their budgets by drawing on surpluses from previous years. The 2002 budget forecasts showed a $65 million appropriation from surpluses.
In addition to this amount, $19.8 million was appropriated for financial activities—primarily expenditures made during the year but which initially were planned for 2001.
Under the City’s Charter and other legislation and regulations, certain amounts that are collected must be allocated to the reserved funds and used for specific purposes. The total amount of $4 million collected during the year for the development and maintenance of parks, playing fields and parking areas was allocated to the reserved funds
XXVI OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Long-Term Financing of Financial Activity Expenditures (in millions of dollars) Budget Actual Variance Expenditures 13.2 30.0 16.8
The creation of the new City gave rise to certain expenditures which are amortized over more than one year. The assisted departures program, instituted by the Montréal Transition Committee, was included in these expenditures. The financing expenses associated with this manpower reduction program are reimbursed by the Government of Québec. In order to benefit from this reimbursement, the City obtained a loan. The amount related to this program, shown as long-term financing of financial activities, totalled $6.2 million.
Under the Act creating the new Ville de Montréal, the expenditures attributable to the municipalities amalgamated on January 1, 2002 and recorded after that date, remain chargeable to the taxpayers of the former municipalities. In order to spread the impact of these expenditures on the tax accounts of the taxpayers concerned over more than one year, the City requested and obtained authorization from the ministère des Affaires municipales, du Sport et du Loisir to pass two loan by-laws totalling $23.8 million.
Balance sheet as at December 31, 2002
The balance sheet as at January 1, 2002, which has been prepared on a comparative basis, reflects the combined balance sheets as at December 31, 2001 of the amalgamated municipalities, the former Communauté urbaine de Montréal and the Montréal Transition Committee. The balance sheets are from the audited financial statements of these municipalities and organizations. Certain figures have been adjusted to eliminate interorganization balances or to conform to the new legal requirements in effect and to the presentation adopted for the year ended December 31, 2002.
Assets a) Cash and investments ($465.4 million)
These investments, comprised of $11.4 million in cash and $454 million of investments in the form of term deposits, are used to manage cash pending the collection of 2003 taxes.
More information is provided in Note 4, page 16, of the financial statements.
XXVII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
b) Accounts receivable ($375 million)
This amount covers $115 million in taxes receivable, $76 million due from the Government of Québec, $59 million receivable from the Government of Canada and, lastly, $124 million collectable for services rendered and other items. A provision for doubtful accounts of $96 million was deducted from accounts receivable. More information is provided in Note 5, page 17, of the financial statements.
c) Investments – Sinking Fund ($1,252 million)
Investments of $1,252 million will be used to pay off long-term debt. A significant portion, $1,125 million, is in the form of bonds.
More information is provided in Note 4, page 16, of the financial statements.
d) Deferred charges and other assets ($63.6 million)
This asset item primarily consists of amounts identified as unrealized net foreign exchange losses ($28 million), the assisted departures program ($19 million), the elected officials’ compensation program ($2.5 million), security issue expenses ($1 million) and other assets ($13.1 million).
e) Long-term receivables ($1,338.9 million)
These accounts represent funds receivable from the Government of Québec for the repayment of long-term debt ($1,246 million), advances to the Société de gestion Marie-Victorin ($71 million), loans to the Office municipal d’habitation ($8 million), a loan to the Société de gestion Nauberge de Lachine ($1.5 million) and other receivables ($12.4 million).
f) Capital assets ($5,664 million)
This item shows the unamortized balance of capital assets, that is, historical cost ($9,920 million) less accumulated amortization ($4,256 million).
An additional $361 million in capital assets was acquired in 2002, and amortization amounted to $327 million. Capital assets are amortized on a straight-line basis over their useful lives.
More information is provided in Note 8, page 18, of the financial statements.
XXVIII OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Short-term liabilities and deferred subsidies g) Accounts payable, provisions and accrued liabilities ($995.8 million)
This item covers various types of sums owed: suppliers ($207 million), salaries, deductions at source and employee benefits ($342 million), accrued interest payable on long-term debt ($126 million), the governments of Québec and Canada ($46 million), deposits and holdbacks ($44 million), various provisions ($181 million) and current liabilities ($49.8 million).
More information is provided in Note 10, page 18, of the financial statements.
h) Deferred subsidies ($1,100.9 million)
This amount comprises subsidies related to the acquisition of capital assets. These subsidies are deferred and amortized on the same basis as the capital asset to which they relate.
A DEBT LOAD UNDER CONTROL
Net direct debt as at December 31, 2002 varied by $17.5 million from the previous year. Net indirect debt, which comprises the debts of related corporations and organizations, increased by $73 million in 2002.
Direct and Indirect Debt and Long-Term Unfunded Expenditures (in millions of dollars) 2002-12-31 2002-01-01 Variance Long-term debt 5,503.5 5,902.2 (398.7) Long-term unfounded expenditures 314.7 47.1 267.6 Deduct: Available funds 1,287.9 1,390.2 (102.3) Amounts recoverable from the Government of 1,246.3 1,284.3 (38.0) Quebec and third parties Other recoverable amounts 198.0 206.3 (8.3)
Sub-total 3,086.0 3,068.5 17.5
Indirect debt and unfounded expenditures 498.1 442.6 55.5
Total 3,584.1 3,511.1 73.0
As at December 31, 2002, the portion of net direct long-term debt and long-term unfunded expenditures chargeable to the taxpayers totalled $3,086 million ($1,679 million per capita), or 3.1% of the standardized equivalent taxable valuation. Service of the net debt represented 16.5% of the City’s adjusted revenue.
XXIX OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
During the 2002 fiscal year, the Ville de Montréal contracted long-term debt in the form of bonds totalling $493.8 million.
The bond proceeds were used to refinance $394.8 million of existing debt, fund capital expenditures of $73.6 million and finance $25.4 million in transition expenditures.
This debt is as follows:
- C$100 million issued May 17, 2002,
- US$67.6 million (C$106.8 million) issued October 29, 2002,
- C$125 million issued November 8, 2002,
- C$162 million issued December 13, 2002.
The City’s long-term debt was $5,503.5 million, of which $501.3 million was repayable in foreign currencies. The average rate was 7.9% on debt in Canadian dollars and 5.3% on debt in US dollars.
As at December 31, 2002, the net reduction in debt was $399 million. This figure includes $510 million of reimbursed principal, new bonds totalling $494 million, refinancings in the amount of $395 million and a $12 million increase in the provision for unrealized foreign exchange losses. Long-term unfunded capital expenditures, meanwhile, amounted to $289 million and financial activity expenditures totalled $25 million.
Provisions for redemption of principal varying from 2.5% (40 years) to 33.3% (3 years), depending on the terms of the various loan by-laws, are included in annual expenditures. The City also provisions for foreign exchange losses that may result at the time of repayment of debt denominated in foreign currencies. As at December 31, 2002, these provisions amounted to $1,288 million.
PENSION PLANS AND OTHER EMPLOYEE FUTURE BENEFITS
The City provides its employees with various pension plans and other employee future benefits. Some plans have actuarial surpluses, others actuarial deficits. Combined, the accrued benefits under the pension plans have an actuarial value of $8,379.1 million and the plan assets have an actuarial value of 7,237.6 million (market value of $6,303.7 million). As at December 31, the value of the assets of some plans exceeded their liabilities by $813.8 million. Pursuant to agreements reached to date between the municipal administration and the pension plan members in respect of surplus sharing, the employer’s portion has been set at $72.8 million. A valuation allowance of $741 million has therefore been recorded to reflect the existence of projected surpluses, to be shared according to terms and conditions that have yet to be negotiated. The net obligation is thus $1,882.5 million.
XXX OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Net Obligation – Pension Plans and Other Employee Future Benefits (in millions of dollars) 2002-12-31 2002-01-01 Difference Actuarial value of accrued benefits 8,379.1 8,150.9 228.2 Actuarial value of assets less valuation allowance 6,496.6 6,523.8 27.2 Net obligation – pension plans 1,882.5 1,627.1 255.4 Other employee future benefits 96.4 92.4 4.0 Total 1,978.9 1,719.5 259.4
The $255.4 million increase in the net obligation in 2002 is due to growth of $228.2 million in the value of benefits earned and a $27.2 million decrease in assets. The poor performance by the financial markets in 2002 prevented assets from growing at the same pace as benefits, given contributions and benefit payments over the same period.
The City also grants other employee future benefits. The obligations related to these benefits totalled $96.4 million.
SURPLUSES AND RESERVED FUNDS ON THE RISE
As at December 31, 2002, surpluses and reserved funds were up $34.8 million over the preceding year.
Surpluses and Reserved Funds (en millions de dollars) 2002-12-31 2002-01-01 Variance Unrestricted surplus 43.0 - 43.0 Restricted surplus 211.9 239.2 (27.3) Total 254.9 239.2 15.7 Reserved funds 40.1 21.0 19.1
Total 295.0 260.2 34.8
Restricted surpluses totalled $211.9 million. An amount of $131.5 million earmarked for various projects largely reflected the appropriation of surpluses accumulated as at December 31, 2001; an amount of $30 million appropriated to reduce the initial actuarial deficit of the pension plans of the employees of the former Ville de Montréal stemmed from the former City’s surplus balance; an amount of $5.4 million was appropriated for the stabilization of user fee rates; and, lastly, $45 million was allocated to the 2003 budget.
XXXI OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW
Reserved funds amount to $40.1 million. The increase observed in 2002 resulted primarily from the assisted departures program, implemented as part of the municipal reorganization. An amount of $19.1 million is earmarked for this program. A disbursement of $6.2 million under this program was recorded in expenditures for the year. The other reserved funds mainly relate to park and playing fields ($10.5 million) and closed loan by-laws ($7.1 million).
XXXII FINANCIAL REPORTING B Financial statements The Municipal Administration's Responsibility for Financial Reporting
The tinancial statements in this report have been prepared taking into consideration the Charter of the Ville de Montréal and œrtain specitic points related to Québec municipal accounting. as described in Note 3 herein.
The financial statements and ail the information included in the present annual financial report are the responsibility of the Municipal Administration. The Municipal Administration has also ensured consistency between the financial statements and ail other information disclosed in the annual financial report.
To assess certain facts and operations. the Municipal Administration has made estimates based on its best appreciation of the situation and taking into account the materiality.
The Municipal Administration is responsible for maintaining appropriate internai contrai and accounting systems which provide reasonable assurance that the policies of the City are followed, that its operations are carried out with the appropriate authorizations, that its assets are adequately safeguarded and that its financial statements are based on reliable accounting records. ln accordance with the allocation of powers and jurisdiction provided by the Act to refonn the municipal tem"torialorganization of the metropolitan regions of Montrea/, Québec and the Outaouais, the powers of the City are exercised by the City Council or by each borough council.
The City Council exercises its responsibility with respect to the financial statements through the Executive Committee. The Chairman of the Executive Committee, the Director-General and the Deputy Director-General, Finanœ, and Treasurer, are responsible for examining the financial statements and the annual financial report and for meeting with the auditor general and the external auditors to discuss internai contrais.
The financial statements were audited by the auditor general of the City and by two extemal audit firms whose services were retained by the City Council, namely Samson Bélair/Deloitte & Touche, SEN.C. and KPMG LLP.
The balancesheet as at January1, 2002 has been compiled from the December 31, 2001 financial statements of the organizations amalgamated by the Act. Those December 31, 2001 financial statements were audited, in part, by the auditor of the former Ville de Montréal and by several other auditors, who issued, in 2002, a report on each of the amalgamated organizations.
~-tAÀ,-t:.< l C\ , " André Delisle Robert Abdallah Deputy Director-General, Finance Director-General and Treasurer
Montréal, June 11, 2003
of VILLE DE MONTRÉAL
Bureau du vérificateur général 333. rue Saint-Antoine Est Bureau 510 Montréal (Québec) H2X 1R9 www.ville.montreal.qc.ca/verificateur
REPORT OF THE GENERAL AUDITOR OF MONTRÉAL
To the Mayor, the Chairman and the Members of the Executive Committee, the Members of the Council of the Ville de Montréal
1 have audited the balance sheet of the Ville de Montréal (the City) as at December 31,2002 and the statements of financial activities, investment activities, surplus and reserved funds, cost of municipal services, net investment in long-term assets and changes in financial position for the year then ended. These financial statements are the responsibility of the Municipal Administration. My responsibility is to express an opinion on these financial statements based on my audit.
1 conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that 1plan and perform an audit to obtain reasonable assurance whetherthe financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit al 50 includes assessing the accounting principles used and significant estimates made by the Municipal Administration, as weil as evaluating the ove rail financial statement presentation.
ln my opinion, these financial statements present fairly, in ail material respects, the financial position of the City as at December 31, 2002 and the results of its operations and the changes in its financial position for the year then ended in accordance with the accounting princip les described in Note 3 to the financial statements.
The balance sheet as at January 1, 2002, on which 1express no opinion, has been compiled from the financial statements as at December 31, 2001 of the amalgamated entities described in Note 1. The financial statements as at December 31,2001 were audited by other auditors who, in 2002, expressed an opinion without reservation on those financial statements in their reports.
Montréal, June 11,2003
2 Samson Délair Deloitte BrTouche
Samson Bélair/Deloitte & Touche. SENC KPMG LLP Assurance and Advisory Services Chartered Accountants 1 l'Iuc" Ville-Muri" 2000 McGi11 Collcgc A,cnue Suilc ,CHIO Suite 19()() M'!I1lr.:ul Q<: 1131!4T9 Montré/Il (Québec) Il:lA :11-18 Icleph(!I1e (514)393-7.115 ,el"'Ph(lI1c: (514)840-2100 l''ux :\514)390-1111 l"ax: (514)840-2187 \\'\\'\v.deloiUeClI http://,,,,,,kpmg,ca
EXTERNAL AUDITORS' REPORT
To the Mayor, the Chairman and the Members of the Executive Committee, the Members of the Council of the Ville de Montréal
We have audited the balanœ sheet of the Ville de Montréal (the City) as at December 31, 2002 and the statements of financial activities, investment activities, surplus and reserved funds, cost of municipal services, net investment in long-term as sets and changes in financial position for the year then ended. These financial statements are the responsibility of the Municipal Administration. Our responsibility is to express an opinion on these financial statements based on our audit
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assuranœ whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Municipal Administration, as weil as evaluating the overall financial statement presentation.
ln our opinion, the se financial statements present fairly, in ail material respects, the financial position of the City as at December 31, 2002 and the results of its operations and the changes in its financial position for the year then ended in accordance with the accounting principles described in Note 3 to the financial statements
The balance sheet as at January 1, 2002, on which we express no opinion, has been compiled from the financial statements as at December 31, 2001 of the amalgamated entities described in Note 1. The financial statements as at December 31, 2001 were, in most cases, audited by other auditors who, in 2002, expressed an opinion without reservation on those financial statements in their reports
;?/ 4-.'\"" .&.,;::{?.~ -~&i ~ '~~:.e~ ~ Chartered Accountants Chartered Accountants
Montréal, Canada June 11, 2003
Oeloitte KPMG LLP. . Canodion owned limitcd li.bliity _enhip ..tabl,shed wœ Touche thel... of 0.11.;0. i. . member flrm of KPMG In..mational. . SWISS Tohmatsu 3 Ville de Montréal Balance Sheet As at December 31, 2002
(in thousands of dollars) December 31, January 1, Notes 2002 2002 ASSETS Current Cash and investments 4 465,392 522,785 Investments - Sinking Fund 4 473,916 446,555 Accounts receivable 5 374,829 407,468 Inventories 28,670 29,528 Current portion of long-term receivables 7 149,246 77,013 1,492,053 1,483,349 Investments 4 31,550 37,638 Investments - Sinking Fund 4 778,490 911,096 Real estate assets intended for sale 165,791 166,602 Deferred charges and other assets 6 63,606 71,120 Long-term receivables 7 1,189,617 1,298,496 Capital assets 8 5,663,955 5,635,170 9,385,062 9,603,471
LIABILITIES Current Accounts payable, provisions and accrued liabilities 10 995,842 897,255 Deferred revenues 110,002 113,670 Current portion of long-term debt 11 521,880 471,521 1,627,724 1,482,446 Long-term debt 11 4,981,668 5,430,649 Net obligation - Pension plans and other employee future benefits 12 1,978,882 1,719,480 Deferred subsidies 8 1,100,894 1,111,736 9,689,168 9,744,311
TAXPAYERS' EQUITY Unrestricted surplus 42,963 Restricted surplus 13 211,886 239,190 Reserved funds 40,191 21,003 Net investment in long-term assets 14 1,527,191 1,505,723 Amount to be provided - Pension plans and other employee future benefits 12 (1,978,882) (1,719,480) Amount to be provided - Other 15 (147,455) (187,276) (304,106) (140,840) Commitments and contingent liabilities 18 Subsequent event 22 9,385,062 9,603,471
The notes and schedules are an integral part of the financial statements.
4 Ville de Montréal Statement of Financial Activities Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Revenues Taxes 2,378,165 2,422,750 Payments in lieu of taxes 198,318 198,430 Other revenues from local sources 533,095 566,476 Transfers 459,820 403,889 3,569,398 3,591,545
Operating expenditures General administration 457,781 438,476 Public safety 689,207 706,253 Transportation 595,132 560,486 Environmental health 259,531 289,567 Health and welfare 106,170 102,692 Urban planning and development 130,746 139,174 Recreation and culture 423,214 441,935 Electricity 19,029 19,451 Financing expenses 473,330 457,337 3,154,140 3,155,371
Other financial activities Repayment of long-term debt 410,243 386,498 Transfer to Statement of Investment Activities 93,584 46,039 503,827 432,537
Total operating expenditures and other financial activities 3,657,967 3,587,908
Financial activity surplus (deficiency) before appropriations (88,569) 3,637
Appropriations Restricted surplus 65,040 84,833 Reserved funds 10,290 (3,997) 75,330 80,836
Surplus (deficiency) before long-term financing of financial activity expenditures (13,239) 84,473
Long-term financing of financial activity expenditures 13,239 30,027 Surplus for the year 114,500
The notes and schedules are an integral part of the financial statements.
5 Ville de Montréal Statement of Investment Activities Year ended December 31, 2002
(in thousands of dollars) Note 2002 Budget Actual
Sources of financing
Transfer from Statement of Financial Activities Developers' contributions 15,410 5,974 Conditional transfers 71,647 19,828 Other 6,527 20,237 93,584 46,039 Other sources Restricted surplus 1,201 14,843 Reserved funds 3,462
Issue of long-term loans 351,750 73,630 446,535 137,974
Investment expenditures General administration 58,472 27,649 Public safety 37,704 27,325 Transportation 195,580 144,217 Environmental health 73,376 86,793 Health and welfare 3 Urban planning and development 17,747 28,790 Recreation and culture 62,441 65,673 Electricity 1,215 395 16 446,535 380,845
Investment activity deficiency for the year (242,871)
The notes and schedules are an integral part of the financial statements.
6 Ville de Montréal Statements of Surplus and Reserved funds Year ended December 31, 2002
SURPLUS (in thousands of dollars)
Note Transfer from Transfer to Balance
UNRESTRICTED – As at January 1, 2002 Appropriation – Restricted surplus 71,537 (71,537) Surplus for the year 114,500 114,500 UNRESTRICTED – As at December 31, 2002 114,500 71,537 42,963
RESTRICTED – As at January 1, 2002 239,190 Appropriation – Financial activities 84,833 (84,833) Appropriation – Investment activities 14,843 (14,843) Appropriation – Unrestricted surplus 71,537 71,537 Appropriation – Net investment 835 835 RESTRICTED – As at December 31, 2002 13 72,372 99,676 211,886
SURPLUS – As at December 31, 2002 186,872 171,213 254,849
RESERVED FUNDS (in thousands of dollars) Balance as at Financial activities Investment activities Balance as at 01/01/2002 Transfer from Transfer to Transfer from Transfer to 31/12/2002
Assisted departure program 19,158 19,158 Parks and playing fields 9,659 3,728 2,838 10,549 Parking areas 1,083 272 1,355 Balance of closed loan by-laws 7,676 4 5 608 (1) 7,069 Land reserve funds 1,719 1,719 Other 866 1 98 624 341 21,003 23,159 4 103 4,070 40,191
(1) This amount was transferred to the Sinking Fund
The notes and schedules are an integral part of the financial statements.
7 Ville de Montréal Statement of Cost of Municipal Services Year ended December 31, 2002
(in thousands of dollars)
Operating Financing expenditures expenses
Expenditures General administration 438,476 10,416 Public safety 706,253 9,464 Transportation 560,486 172,183 Environmental health 289,567 137,998 Health and welfare 102,692 577 Urban planning and development 139,174 69,253 Recreation and culture 441,935 57,359 Electricity 19,451 87 Financing expenses 457,337 (457,337)
3,155,371
The notes and schedules are an integral part of the financial statements.
8 Ville de Montréal Statement of Cost of Municipal Services (continued) Year ended December 31, 2002
Amortization Deferred Operating subsidies subsidies (Gain) loss Cost of Capital (governments and (governments and Services on municipal assets their enterprises) their enterprises) provided disposals services
14,314 (735) (13,858) (8,924) (525) 439,164 17,916 (251) (10,710) (19,851) 702,821 117,967 (8,726) (53,994) (18,747) 46 769,215 91,012 (30,088) (71,067) (13,199) 404,223 383 (30) (74,397) (2,773) 26,452 24,791 (1,211) (15,574) (57,539) 53 158,947 60,058 (6,451) (12,796) (65,533) 474,572 660 (46) (21,814) (1,662)
327,101 (47,538) (252,396) (208,380) (426) 2,973,732
9 Ville de Montréal Statement of Net Investment in Long-Term Assets Year ended December 31, 2002
(in thousands of dollars) 2002
Balance, beginning of year 1,505,723
Add Acquisition of capital assets 360,920 Acquisition of real estate assets intended for sale 9,302 Acquisition of investments 282,281 Amortization of deferred subsidies 47,538 Issue of long-term receivables 32,458 Repayment of long-term debt net of refinancings 509,543 Other Accounts payable 81 1,242,123
Deduct Disposal and write-off of capital assets 5,002 Disposal of real estate assets intended for sale 10,145 Disposal of investments 387,397 Amortization of capital assets 327,101 Receipt of long-term receivables 71,723 Subsidies for capital assets acquisition 36,696 Issue of long-term debt 99,008 Other Closed loan by-laws and projects 900 Change in amount to be provided – Unrealized net foreign exchange losses 6,581 Foreign exchange loss 9,423 Long-term financing of financial activity expenditures 23,808 Investment activity deficiency for the year 242,871 1,220,655
Balance, end of year 1,527,191
The notes and schedules are an integral part of the financial statements.
10 Ville de Montréal Statement of Changes in Financial Position Year ended December 31, 2002
(in thousands of dollars) Notes 2002
Operating activities Surplus for the year 114,500 Financing and investment items charged to financial activities Contributions to Sinking Fund 281,673 Transfer to Statement of Investment Activities 46,039 Repayment of long-term debt 122,146 Receipt of long-term receivables (71,723) Subsidies for acquisition of capital assets and real estate assets intended for sale (19,828) Disposal of capital assets and real estate assets intended for sale (11,665) Long-term financing of financial activity expenditures (30,027) 431,115 Items not affecting cash Appropriations (80,836) Amortization of transitional measures 15 13,941 Amortization of deferred charges 8,087 Amortization of deferred revenues (3,668) Balance of purchase price receivable 4,422 Other (49) 373,012 Net change in other current items 17 157,964 530,976
Investment activities Disposal of investments 396,382 Receipt of long-term receivables 71,723 Disposal of capital assets and real estate assets intended for sale 11,665 Acquisition of investments (282,281) Acquisition of capital assets (360,920) Issue of long-term receivables (32,458) Acquisition of real estate assets intended for sale (9,302) Deferred charges (7,154) (212,345)
Financial activities Proceeds from long-term debt issue 493,819 Subsidies for acquisition of capital assets 36,696 Subsidies for acquisition of real estate assets intended for sale 712 Repayment of long-term debt net of refinancings (509,543) Bond redemption by refinancing (394,811) (373,127)
Net decrease in cash and cash equivalents (54,496)
Cash and cash equivalents, beginning of year 513,871 Cash and cash equivalents, end of year 459,375
The notes and schedules are an integral part of the financial statements.
Cash and cash equivalents are made up of cash and short-term investments (maturity of less than 3 months as of date of acquisition) of Funds other than the Sinking Fund.
11 Ville de Montréal Notes and Schedules to the Financial Statements December 31, 2002
1- GOVERNING STATUTE
The Ville de Montréal (the City) is a municipal corporation which was created on January 1, 2002 under the Act to reform the municipal territorial organization of the metropolitan regions of Montréal, Québec and the Outaouais (the Act), assented to December 20, 2000 by the Government of Québec. The City brings together the Communauté urbaine de Montréal, the 28 municipalities of the island of Montréal and the related intermunicipal boards, and succeeds to the rights , obligations and expenditures of all of its components.
2- BALANCE SHEET AS AT JANUARY 1, 2002
The balance sheet as at January 1, 2002, which has been prepared on a comparative basis, reflects the combined balance sheets as at December 31, 2001 of the amalgamated municipal organizations described in Note 1 and the Montréal Transition Committee. The balance sheets are from the financial statements of these organizations, which have, in most cases, been audited by other auditors. Certain figures have been adjusted to eliminate interorganization balances or to conform to the new legal requirements in effect and the presentation adopted for the year ended December 31, 2002.
3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES
The financial statements of the City have been prepared in accordance with generally accepted municipal accounting principles in Québec and with the specific principles described below.
The financial statements of the municipal organizations included in the financial reporting entity of the City are not combined or consolidated with those of the City. Additional information concerning these municipal organizations is provided in Note 20.
The significant accounting policies and practices are the following: a) Accounting method
Transactions are recorded in the City’s books using the accrual basis of accounting. Under this method, revenues and expenditures are recognized in the year in which the events and transactions occur.
Transactions involving the following items existing prior to January 1, 2001 are recorded in the Statement of Financial Activities using the cash basis of accounting: interest income from Sinking Fund investments, including their reinvestment, and from long-term receivables, and interest expense on long-term debt, including any refinancing until the debt is extinguished. The counterpart entry to accrued interest receivable and payable related to these items existing prior to January 1, 2001 is presented under “Amount to be provided – Other.”
The expenses and net obligation of the pension plans and other employee future benefits are accounted for using the methods described in Note 3 o). b) Use of estimates
The preparation of the financial statements, in accordance with generally accepted municipal accounting principles in Québec , requires municipal management to make assumptions and estimates that affect reported amounts of revenues, expenses, assets, liabilities, commitments and contingencies. Actual results could differ from those estimates. c) Investments, advance and loans
Temporary investments, represented by term deposits and other securities, are recorded at the lower of cost and fair value.
Sinking Fund investments are recorded at cost and are written down when there is a permanent decline in their value. The discount or premium on investments is amortized on a straight-line basis to maturity. The amounts accumulated in “Investments – Sinking Fund” are restricted to the repayment of long-term loans that do not require annual repayment.
The advance and loans are recorded at the lower of cost and net recoverable value.
12 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (continued) d) Inventories
Inventories are valued at cost, determined under the average cost method. Obsolete inventory is written off. e) Real estate assets intended for sale
Real estate assets intended for sale are recorded at cost. f) Deferred charges
Foreign exchange losses are amortized under the method described in Note 3 r). Other deferred charges are amortized on a straight-line basis for a maximum period of 5 years. g) Capital assets
Capital assets, recorded at cost, are amortized over their estimated useful lives as of the year following their respective commissioning dates. Capital assets are amortized on a straight-line basis over the following periods:
Infrastructures 15 to 40 years Power grid 20 to 40 years Buildings 25 to 40 years Leasehold improvements 10 to 15 years Vehicles 5 to 20 years Office furniture and equipment 5 to 10 years Machinery, tools and equipment 5 to 25 years Other capital assets 20 to 25 years
Amortization is recorded in the Statement of Cost of Municipal Services. h) Provision for contested valuations
The provision for contested valuations is an estimate of blended repayments which may result from court decisions related to contested real estate valuations or rental values and to contested classifications under the Act respecting Municipal Taxation. i) Deferred revenues
Proceeds on disposal of capital assets and real estate assets intended for sale are shown as deferred revenues up to a maximum of the balance of the debt related to the loan by-law ; proceeds of disposal exceeding the balance of debt are recorded in the Statement of Financial Activities. These deferred revenues are amortized on a straight-line basis over the remaining term of the loan by-law. Deferred revenues from the sale of a franchise are amortized on a straight-line basis over the term of the agreement. j) Deferred subsidies
Subsidies related to the acquisition of capital assets are shown in the balance sheet as deferred subsidies and are amortized on the same basis as the capital assets to which they relate. The amortization is recorded in the Statement of Cost of Municipal Services. k) Restricted surplus
The restricted surplus corresponds to the portion of the surplus whose use is reserved by the Act or by resolutions adopted by the City Council.
13 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (continued) l) Reserved funds
In accordance with the City’s charter, certain amounts received must be appropriated to special accounts and used for specific purposes , particularly the assisted departures program and the development and maintenance of parks and playing fields and parking areas. m) Amount to be provided - Other
The employee benefits of certain employees as at January 1, 2000, are amortized over a period that does not exceed the employees’ estimated remaining service life. The amortization is recorded in the Statement of Financial Activities. n) Subsidies
Revenues from subsidies which have been received in cash are recorded in the Statement of Financial Activities. Subsidies to cover financing expenses are shown under revenues when the corresponding financial expenditures are recorded. o) Costs and obligations resulting from pension plans and other employee future benefits
The City provides its employees with various pension plans and other employee future benefits. Under these plans, pension benefits and certain other retirement benefits, related to life insurance and insurance covering the reimbursement of medical and dental expenses , are paid to the employees. Certain post-employment benefits are also provided to employees. These benefits include, in particular, income replacement benefits, supplemental unemployment benefits, maintenance of coverage during periods of temporary absence and certain termination allowances.
- Defined benefit pension plans and other employee future benefits
The obligation related to the defined benefit pension plans and other employee future benefits, net of assets , is presented in the balance sheet. The obligation is determined through actuarial valuations based on actuarial assumptions and according to the municipal administration’s best estimate assumptions. The plans’ assets are valued using a market-related value, determined over a period not exceeding five years. The counterpart entry to the net obligation is included in the balance sheet in “Amount to be provided.” The actuarial valuations of the pension obligations are determined at least once every three years using the projected benefit method prorated on service, taking into account projected salaries. The pension plan expense comprises the current service contribution and the special payment contribution and the other recorded deficits . The expense for other employee future benefits , namely other retirement benefits, post- employment benefits, paid leave and termination benefits, is recorded using the cash accounting method.
- Defined contribution pension plans
Some employees are members of defined contribution plans, under which the City’s contribution represents a percentage of pay . The expense for the year comprises the current service contribution and the contribution related to the amortization of plan amendments.
- Elected officials ’ pension plan
Elected officials participate in a defined benefit pension plan administered by the Commission administrative des régimes de retraite et d’assurances du Québec . The expense for the year corresponds to the current service contribution.
14 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (continued)
p) Closure and post-closure costs
For an estimated period of 20 years, the City will assume closure and post-closure costs for sanitary landfills that it has operated. These provisioned costs equal the present value of the recovery, control and maintenance expenses of biogas systems and leachates. These estimated costs are recognized based on the landfill capacity already used.
Assumptions regarding the calculation of these costs are periodically reviewed to take into account the progress made in the management of sanitary landfills. q) Repayment of long-term debt
This item represents the repayment of loans and payments to the Sinking Fund related to contracted loans. r) Foreign currency translation
Revenues and expenditures resulting from transactions in foreign currencies are translated into Canadian dollars using the rates prevailing on the transaction date.
Investments and loans denominated in foreign currencies are translated using the exchange rates prevailing on the balance sheet date. Debt subject to a currency hedge (swap) is translated using the exchange rates set under the terms and conditions of the hedging instrument.
The repayment of loans and payments to the Sinking Fund relating to loans denominated in foreign currencies are translated using the exchange rates prevailing at the transaction dates. Gains and losses resulting from the difference between the historical foreign exchange rate and the foreign exchange rate in effect at the date of repayment or payment are charged to revenues and expenditures in the Statement of Financial Activities.
The difference between gains and losses resulting from the translation of monetary items at the rate prevailing on the balance sheet date and exchange gains and losses already accounted for in the Statement of Financial Activities is included in the balance sheet as deferred items .
Foreign exchange gains and losses are amortized on a straight-line basis over the following periods: loans contracted as of December 31, 1992 are amortized over the remaining term of the loans and loans contracted prior to this date are amortized over the remaining life of the loan by-laws. s) Presentation of operating expenditures
General administration comprises all activities related to municipal administration and management. Expenditures are primarily related to the operations of the City Council, the application of the law and financial, administrative and human resources management.
Public safety comprises activities related to the protection of people and property. It includes all expenditures related to surveillance, prevention and emergency measures as regards civil security.
Transportation comprises all activities related to the planning, organization and maintenance of road systems and to the transport of people and goods.
Environmental health encompasses expenditures related to aqueduct and sewer systems , waste management and protection of the environment.
Health and welfare comprises all public health and welfare services.
Urban planning and development comprises all activities related to urban development or the planning program and expenditures to develop the City’s economic development programs.
Recreation and culture encompasses all activities connected with planning, organizing and managing recreational and cultural programs.
Electricity comprises expenditures for the operation of a power grid.
Financing expenses encompass interest and other financing costs for municipal activities. Loan repayments and Sinking Fund payments are shown in the section “Other Financial Activities.”
15 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (continued) t) Budget data
Budget data related to financial activities include the forecasts adopted by the City Council in February 2002. Budget data related to investment activities are taken from the three-year capital expenditure program adopted by the City Council in February 2002 and amended by the Executive Committee in June 2002.
4- CASH AND INVESTMENTS (in thousands of dollars) December 31, 2002 January 1, 2002 Sinking Fund Other Total Total
Cash 11,364 11,364 130,401 Investments Term deposits and other securities 127,054 448,011 575,065 635,587 Bonds 1,125,352 17,567 1,142,919 1,119,086 Debentures 20,000 20,000 33,000 1,252,406 496,942 1,749,348 1,918,074 Less: current portion 473,916 465,392 939,308 969,340 778,490 31,550 810,040 948,734
The fair value of investments amounts to $1,804.1 million ($1,847 million as at January 1, 2002). The City holds shares of the Société de gestion Marie-Victorin acquired at a cost of $1.
The cost of City bonds held as investments by the Sinking Fund amounts to $133.3 million ($135.2 million as at January 1, 2002).
Investments in foreign currencies, translated at the exchange rate prevailing on the balance sheet date, amount to $13.1 million ($9.1 million as at January 1, 2002). The unrealized foreign exchange gain on these investments is $0.4 million ($0.6 million as at January 1, 2002).
The investments held by the City mature as follows:
Over 2003 2004 2005 2006 2007 5 years Total
Term deposits and other securities 545,065 30,000 575,065 Bonds 382,879 160,767 85,240 105,167 65,371 343,495 1,142,919 Debentures 20,000 20,000 927,944 160,767 85,240 135,167 65,371 363,495 1,737,984
Weighted nominal interest rate 4.44% 6.97% 8.65% 5.36% 7.67%
16 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
5- ACCOUNTS RECEIVABLE (in thousands of dollars)
December 31, 2002 January 1, 2002
Taxes 114,857 100,219 Government of Canada and its enterprises 58,796 36,073 Government of Québec and its enterprises 75,517 72,399 Municipal organizations 1,759 Services provided and other 123,900 198,777 374,829 407,468
An allowance for doubtful accounts of $96.2 million ($84.5 million as at January 1, 2002) has been deducted from accounts receivable.
6- DEFERRED CHARGES AND OTHER ASSETS (in thousands of dollars)
December 31, 2002 January 1, 2002
Unrealized net foreign exchange losses 27,835 34,416 Assisted departure program 18,658 25,377 Elected officials' compensation program 2,467 3,278 Issue costs 975 1,135 Other assets 13,671 6,914 63,606 71,120
7- LONG-TERM RECEIVABLES (in thousands of dollars)
December 31, 2002 January 1, 2002
Long-term debt amounts recoverable from third parties Government of Québec and its entreprises (1) 1,246,237 1,284,233 Other third parties 74 75 Advance – Société de gestion Marie-Victorin (2) 70,869 69,940 Loans – Office municipal d'habitation de Montréal (3) 7,770 7,770 Loan – Société de gestion Nauberge de Lachine 1,544 1,609 Other receivables 12,369 11,882 1,338,863 1,375,509 Less: current portion 149,246 77,013 1,189,617 1,298,496
1) Receivables, bearing interest at rates varying from 2.8% to 13.25%, maturing from 2003 to 2040. 2) Advance, non-interest bearing, due in 2003. 3) Loans, non-interest bearing, maturing from 2006 to 2033.
17 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
8- CAPITAL ASSETS (in thousands of dollars)
December 31, 2002 January 1, 2002 Classes Accumulated Net book Net book Cost Amortization value value
Infrastructures 7,675,222 3,039,761 4,635,461 4,581,321 Power grid 24,286 10,071 14,215 14,794 Buildings 1,389,887 645,467 744,420 715,587 Leasehold improvements 40,769 12,396 28,373 29,377 Vehicles 328,409 220,560 107,849 124,573 Office furniture and equipment 255,183 174,521 80,662 57,110 Machinery, tools and equipment 102,002 83,565 18,437 37,413 Other 99,308 69,723 29,585 63,331 9,915,066 4,256,064 5,659,002 5,623,506 Buildings in progress 4,953 4,953 11,664 9,920,019 4,256,064 5,663,955 5,635,170
Deferred subsidies 1,651,703 550,809 1,100,894 1,111,736
As at January 1, 2002, the cost of capital assets and accumulated amortization amount to $9,655.3 million and $4,020.1 million, respectively, while deferred subsidies and the related accumulated amortization total $1,624.6 million and $512.9 million.
9- LINES OF CREDIT
The City has lines of credit with various banking institutions totalling up to $135 million. Under these facilities, the amounts can be drawn in Canadian or US dollars at floating rates based on the Canadian prime rate, the US prime rate, LIBOR or bankers’ acceptance rate. As at December 31, 2002, the lines of credit are undrawn.
10- ACCOUNTS PAYABLE, PROVISIONS AND ACCRUED LIABILITIES (in thousands of dollars)
December 31, 2002 January 1, 2002
Suppliers 207,277 208,442 Accrued interest payable on long-term debt 125,512 150,519 Provision – Contested valuations 74,746 51,843 Provision – Closure and post-closure costs 30,893 26,307 Provision – Organizations included in the financial reporting entity 16,713 6,125 Provision – Other 58,078 56,017 Salaries, deductions at source and employee benefits 342,318 302,747 Deposits and holdbacks 43,727 51,208 Government of Québec and its enterprises 41,992 22,118 Government of Canada and its enterprises 4,269 3,213 Other 50,317 18,716 995,842 897,255
18 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
11- LONG-TERM DEBT (in thousands of dollars)
December 31, 2002 January 1, 2002
Bonds and notes In Canadian currency 4,994,308 5,338,960 In foreign currencies 501,372 552,676 Other long-term debt Obligations under capital leases 4,611 5,019 Government of Québec and its enterprises 1,466 2,233 Other 1,791 1,848 Debt in refinancing 1,434 5,503,548 5,902,170 Current portion of long-term debt 521,880 471,521 4,981,668 5,430,649
Recovery of long-term debt for purposes of repayment is as follows:
December 31, 2002 January 1, 2002 Chargeable to taxpayers A portion of taxpayers 2,165,206 2,480,238 All taxpayers 606,119 541,184 Amounts accumulated for repayment 1,287,944 1,390,176 Recoverable from third parties - Government of Québec and its enterprises 1,246,237 1,284,233 Recoverable from other third parties 74 75 Recoverable through user fees 197,968 206,264 5,503,548 5,902,170
The City uses derivative financial instruments to manage the foreign exchange and interest rate risks related to its long-term debt. These instruments consist primarily of currency and interest-rate swap agreements that mitigate the exchange risks associated with the repayment of debt principal and interest. These swaps, which are more fully described in Schedule 2, are used for loans totalling $1,451.5 million ($1,815.2 million as at January 1, 2002). The City is exposed to credit losses in the event of non-payment by third parties with respect to the use of financial instruments. When the City uses derivative financial instruments, it only deals with recognized institutions with a higher credit rating than that of the City.
Considering the existence of these swaps, with the exception of two loans totalling $153 million ($154.3 million as at January 1, 2002), all the loans contracted by the City bear interest at a fixed rate. As at December 31, 2002, unhedged foreign exchange loans amounted to $501.4 million ($552.7 million as at January 1, 2002) and the foreign exchange loss on these loans amounted to $187.2 million ($194 million as at January 1, 2002). In this regard, a provision of $93.2 million ($95.4 million as at January 1, 2002) is recorded in the Sinking Fund.
During the year, the City paid $264.4 million to the Sinking Fund and $122.1 million to pay down the debt.
19 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
11- LONG-TERM DEBT (continued) (in thousands of dollars)
Estimated payments on long-term debt are as follows:
Maturity Maturity Refinancing net
2003 1,042,885 521,005 521,880 2004 848,549 434,596 413,953 2005 662,242 344,557 317,685 2006 413,292 261,603 151,689 2007 380,285 114,943 265,342 2008 and thereafter 2,156,295 698,074 1,458,221 5,503,548 2,374,778 3,128,770
12- PENSION PLANS AND OTHER EMPLOYEE FUTURE BENEFITS
Net obligation
The following table shows the net obligation for the defined benefit pension plans and other employee future benefits provided to City employees:
(in thousands of dollars) December 31 January 1 2002 2002 Pension plans Actuarial value of accrued benefits 8,379,125 8,150,878 Actuarial value of assets 7,237,602 7,315,064 Obligation 1,141,523 835,814 Valuation allowance 740,978 791,237 Net obligation – Pension plans 1,882,501 1,627,051
Other employee future benefits Actuarial value of accrued benefits and net obligation – Other employee future benefits 96,381 92,429
Net obligation – Pension plans and employee future benefits 1,978,882 1,719,480
The actuarial value of accrued benefits for some pension plans exceeds the actuarial value of the plan assets. As at December 31, the total obligation for these plans totals $1,955.3 million ($1,772.6 million as at January 1). The fair value of the plan assets is $2,089.8 million ($2,393.4 million as at January 1).
Similarly, the actuarial value of the assets of other pension plans exceeds the actuarial value of accrued pension benefits by a total of $813.8 million ($936.8 million as at January 1). Pursuant to agreements reached to date between the municipal administration and the pension plan members in respect of surplus sharing, the employer’s portion has been set at $72.8 million ($145.6 million as at January 1). A valuation allowance of $741 million ($791.2 million as at January 1) has been recorded to reflect the existence of projected surpluses, to be shared accordingly to terms and conditions that have yet to be negotiated. The fair value of the assets of these plans totals $4,213.9 million ($4,618.7 million as at January 1).
20 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
12- PENSION PLANS AND OTHER EMPLOYEE FUTURE BENEFITS (continued)
Actuarial assumptions
The main assumptions used to calculate the net obligation and in the actuarial valuations completed over the period from December 31, 1999, to December 31, 2001, are shown in the following table:
Pension plans Other employee future benefits
December 31, 2002 January 1, 2002 December 31, 2002 January 1, 2002
Discount rate from 5.50% to 8.00% from 5.50% to 8.00% 6.50% 6.50% Expected rate of return on assets from 5.50% to 8.00% from 5.50% to 8.00% Salary escalation rate from 2.00% to 5.50% from 2.00% to 5.50% 3.25% 3.25%
The health-care plan growth rates vary according to the type of care. In the case of dental care, hospitalization fees and other medical costs , the annual growth rate is 3.25%. For drugs, the annual growth rate is originally set at 11.225% as at December 31, 2002 and is gradually decreased to 4.25% after nine years.
Expense for the year
The total expense for the year amounts to $150.4 million, allocated to the different types of plans as follows:
(in thousands of dollars) December 31, 2002
Defined benefit pension plans 148,867 Defined contribution pension plans 231 Elected officials' pension plans 1,346 150,444
In order to honour its pension plan obligations, the City committed to make special payments, due through to December 31, 2045. The present value of these payments is $1,804.7 million as at December 31, 2002. The annual payments for the next five years are as follows: $64.8 million in 2003, $92.8 million in 2004, $97 million in 2005, $101.6 million in 2006 and $106.9 million in 2007.
During the year, the contributions paid by the members and the benef its paid by the pension plans totalled $59.7 million and $501.5 million, respectively .
13- RESTRICTED SURPLUS (in thousands of dollars)
December 31, 2002 January 1, 2002
Next year's budget 45,000 65,040 Actuarial deficit 30,000 30,000 Stabilization of user fee rates 5,439 4,353 Other projects 131,447 139,797 211,886 239,190
Under the Act to reform the municipal territorial organization of the metropolitan regions of Montréal, Québec and the Outaouais, the accumulated surplus as at December 31, 2001 of the amalgamated municipalities is credited to taxpayers of those municipalities.
21 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
14- NET INVESTMENT IN LONG-TERM ASSETS (in thousands of dollars) December 31, 2002 January 1, 2002 ASSETS Investments – Sinking Fund 1,252,406 1,357,651 Real estate assets intended for sale 165,791 166,602 Deferred charges – Unrealized net foreign exchange losses 27,835 34,416 Long-term receivables 1,338,863 1,375,509 Capital assets 5,663,955 5,635,170 8,448,850 8,569,348 LIABILITIES AND TAXPAYERS' EQUITY Accounts payable (2,538) (2,619) Deferred subsidies (1,100,894) (1,111,736) Long-term debt (5,503,548) (5,902,170) Investment activity deficiency (289,966) (46,195) Long-term financing of financial activity expenditures (24,713) (905) (6,921,659) (7,063,625)
1,527,191 1,505,723
15- AMOUNT TO BE PROVIDED - OTHER (in thousands of dollars)
Balance as at Balance as at January 1, Financial December 31, 2002 activities Changes 2002 Revenues Interest Investments - Sinking Fund 12,020 3,724 15,744 Long-term receivables 35,046 (2,317) 32,729 47,066 1,407 48,473
Expenditures Employee benefits (87,240) 13,941 (73,299) Interest - Long-term debt (147,102) 24,473 (122,629) (234,342) 13,941 24,473 (195,928)
(187,276) 13,941 25,880 (147,455)
22 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
16- INVESTMENT EXPENDITURES (in thousands of dollars)
2002 Real estate assets intended Long-term Capital assets for sale receivables Total
General administration 27,649 27,649 Public safety 27,325 27,325 Transportation 144,217 144,217 Environmental health 80,705 6,088 86,793 Health and welfare 3 3 Urban planning and development 15,883 9,302 3,605 28,790 Recreation and culture 64,743 930 65,673 Electricity 395 395 360,920 9,302 10,623 380,845
17- NET CHANGE IN OTHER CURRENT ITEMS (in thousands of dollars) December 31, 2002
Accounts receivable (1) 34,046 Inventories 858 Accounts payable, provisions and accrued liabilities (1) 123,060 157,964
(1) These amounts exclude changes in accrued interest receivable on Sinking Fund investments and long-term receivables, as well as changes in accrued interest payable on long-term debt reflected in “Amount to be provided – Other.”
18- COMMITMENTS AND CONTINGENT LIABILITIES a) Lease commitments
The commitments of the City under property leases amount to $159.2 million. The instalments for the coming years are as follows:
2003 2004 2005 2006 2007 2008-2067 Total $30.1 million $27.3 million $15.7 million $13.2 million $11.5 million $61.4 million $159.2 million
23 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
18- COMMITMENTS AND CONTINGENT LIABILITIES (continued) b) Metered parking
In 1995, the City awarded the exclusivity of its activities related to metered parking in lots and on the streets for a portion of its territory to a private organization under an agreement ending on December 31, 2024, and renewable for a minimum additional period of ten years. Upon the expiry of the agreement, the City is required to repurchase from the organization the capital assets used for metered parking. As at December 31, 2002, the net book value of these assets was estimated to be $9.6 million. In addition, the City has endorsed a loan with a balance of $29.3 million. c) Claims and insurance
Claims pending against the City amount to $2,256.7 million. These include, in particular, an action which could amount to $1,600 million regarding the existence of flowering ragweed on City land. In the opinion of the City’s legal counsel, the settlement of these claims will not materially impact the City’s financial situation.
The City has not contracted any risk insurance. However, according to its Charter, the City must forecast, in its budget, an amount of 1% of its probable expenditures to provide for contingencies. d) Environment
In keeping with environmental legislation, it is possible that the contamination of certain land owned by the City exceeds acceptable levels. The City is not currently able to assess future requirements in this area, and therefore, is unable to determine the cost or method of financing of any corrective measures. e) Indirect debt
In addition to the direct debt incurred in its own name, the City is responsible for the debt of the Société de transport de Montréal which will not be reimbursed by the Government of Québec or by the Agence métropolitaine de transport. The indirect debt comprises the City’s share of the debt of the following organizations as at December 31, 2002:
(in thousands of dollars) Anjou 80 4,546 Société de développement de Montréal 128,134 Société d'habitation et de développement de Montréal 158,347 Société de transport de Montréal 207,132 498,159 (1)
(1) Of this debt, the City has unconditionally guaranteed the repayment of loans contracted by corporations, for which the outstanding balance is $134.4 million as at December 31, 2002. The City is also responsible for temporary loans of these corporations which, as at December 31, 2002, totalled $44.6 million. The City will also defend the Société du parc des Îles against any legal action resulting from the performance of its mandate.
24 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
19- PARTICIPATION IN THE COMMUNAUTÉ MÉTROPOLITAINE DE MONTRÉAL (CMM)
The City is part of the CMM, a regional agency incorporated under legislation assented to on June 16, 2000 by the Québec National Assembly. The CMM ensures consistency of municipal actions as concerns the provision of drinking water and water purification across the entire territory of the Montréal region. The CMM also has jurisdiction over several other areas, including land-use management, economic development, public housing, metropolitan-area infrastructures, public transit and residual materials management.
During the year, the City made a financial contribution of $28.4 million to the CMM. The CMM, for its part, paid the City $26.3 million with respect to the operating expenses for certain metropolitan infrastructures borne by the City and for the public housing program.
20- INFORMATION ON CORPORATIONS INCLUDED IN THE FINANCIAL REPORTING ENTITY
The activities of each of the corporations included in the financial reporting entity are as follows:
Anjou 80
To acquire, restore, build, demolish, rent and manage buildings for housing, leisure and recreational purposes and other ancillary uses.
Société de développement de Montréal (SDM)
To acquire, renovate, restore, build, demolish, sell, rent or manage residential, commercial or cultural buildings in the territory of the City and, at the City’s request, administer subsidy programs related to these buildings. The corporations may also save, restore, renovate or rehabilitate buildings of historical or architectural interest and implement any agreements between the Government of Québec and the City regarding the development of the historical district of Old Montréal.
Société de gestion Marie-Victorin (SGMV)
Created under the Act respecting certain facilities of the City of Montréal (Bill 447), this subsidiary uses certain scientific equipment acquired from the City. Under an agreement, the City manages this equipment as an agent for a period ending in 2003.
Société de gestion Nauberges de Lachine
Develop the recreational potential on the shores of Lac Saint-Louis.
Société d’habitation et de développement de Montréal (SHDM)
To acquire, renovate, restore, build, demolish, sell, rent or manage buildings in the territory of the City.
Société de transport de Montréal (STM)
Promote and organize the public transport of people travelling within the City’s territory.
Société du parc des Îles (SPI)
To operate recreational, cultural and tourist activities on Île Sainte-Hélène and Île Notre-Dame in Montréal.
25 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
20- INFORMATION ON CORPORATIONS INCLUDED IN THE FINANCIAL REPORTING ENTITY (continued)
a) Equity and results (in thousands of dollars) Total Total December 31 January 1 SDM SHDM STM Other 2002 2002
Total assets 165,100 174,244 1,378,187 100,860 1,818,391 1,733,272 Total liabilities 165,110 168,392 906,118 98,507 1,338,127 1,250,523 Net assets (10) 5,852 472,069 2,353 480,264 482,749
Revenues 32,793 40,204 719,663 31,934 824,594 Expenditures (32,793) (26,208) (650,656) (17,913) (727,570) Other financial activities (34,014) (34,014) Appropriations (22,178) (22,178)
Surplus 13,996 12,815 14,021 40,832
This financial data is not combined or consolidated in the City’s financial statements.
The cost of the STM bonds held by the City as investments totals $25 million. b) Contributions and subsidies (in thousands of dollars)
2002
Anjou 80 17,213 SDM 4,982 SGMV 20 SHDM 4,721 STM 244,100 SPI 8,236 279,272
21- COMPARATIVE FIGURES FOR 2001
As the figures for 2001 have not been combined, no comparative figures are presented.
26 Ville de Montréal Notes and Schedules to the Financial Statements (continued) December 31, 2002
22- SUBSEQUENT EVENT
On April 24, 2003, the City was granted authorization to borrow $1,600 million to refinance at a lower cost the special payments with respect to the pension plans of the former Ville de Montréal, due through to December 31, 2045. To carry out the aggregate of the financing, several events must occur. Legislative amendments must be passed prior to the payment of this obligation and agreements must be concluded with the unions and the Government of Québec.
An initial issue of debt securities in the amount of $500 million, at an annual interest rate of 6% and maturing in 2043, was floated on the Canadian financial markets on May 8, 2003.
23- AUDITORS’ REPORT
The Auditors’ Report does not cover the supplementary information or the complementary and statistical information.
27 Ville de Montréal Notes and Schedules to Financial Statements (continued) Year ended December 31, 2002
SCHEDULE 1 - OPERATING EXPENDITURES BY ITEM (in thousands of dollars) 2002 Budget Actual Salaries Elected officials 6,537 8,982 Employees 1,211,924 1,250,486 Employer contributions Elected officials 1,911 1,790 Employees 316,465 331,009 Transportation and communication 36,792 34,543 Professional, technical and other services Professional fees 35,247 40,775 Purchase of technical services 124,889 130,116 Other 25,530 24,109 Rental, maintenance and repairs Rental 69,967 67,155 Maintenance and repairs 63,731 58,757 Consumer goods Delivery of public services 85,113 77,293 Other consumer goods 172,662 167,086 Financing expenses Interest and other charges on long-term debt borne by: Municipality 337,743 320,464 Other municipal organizations 2,186 3,596 Québec and Canadian governments and their enterprises 130,995 129,007 Other third parties 73 228 Other financing expenses 2,333 4,042 Contributions to organizations Municipal organizations Allocation of expenditures 276,706 290,550 Other 18,665 28,481 Government organizations 29,546 29,086 Other organizations 40,035 41,131 Other items Doubtful accounts or bad debts 16,647 15,304 Other 148,443 101,381 3,154,140 3,155,371
28 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES
Payable in Canadian dollars
1964-03-01 Sinking Fund bonds 30,500 5.75 2004 3,613 5,273 1964-11-01 Sinking Fund bonds 3,000 5.5 2004 3,000 3,000 1965-11-09 Sinking Fund bonds 19,000 6.0 2005 1,875 2,500 1966-03-01 Serial bonds 21,825 5.375 2006 4,703 5,733 1966-07-01 Serial bonds 24 5.375 2006 5 6 1966-10-01 Serial bonds 713 5.375 2006 154 187 1968-11-01 Sinking Fund bonds 2,348 7.5 2008 2,348 2,348 1969-11-01 Serial bonds 1,188 8.25 2009 126 139 1972-04-01 Serial bonds 65 7.25 2002 5 1972-04-01 Serial bonds 262 7,75 2002 21 1973-06-01 Serial bonds 66 7.0 2003 5 10 1976-05-01 Serial bonds 308 9.75 2006 103 124 1976-06-01 Serial bonds 65 10.5 2006 23 27 1976-06-01 Serial bonds 57 10.5 2006 20 24 1976-06-01 Serial bonds 24 7.625 2006 7 8 1976-06-01 Serial bonds 61 10.75 2006 22 26 1976-08-01 Serial bonds 240 7.875 2006 71 85 1977-09-01 Serial bonds 4,798 10.75 2002 509 1978-02-01 Serial bonds 5,115 10.0 2003 521 994 1978-09-15 Serial bonds 41,461 9.75 to 10.0 2018 33,656 34,469 1979-03-01 Serial bonds 32,947 9.75 to 10.0 2019 27,354 27,941 1979-09-01 Serial bonds 24,989 9.625 to 10.0 2019 20,700 21,148 1979-10-01 Serial bonds 36 9.88 2009 18 20 1980-02-01 Serial bonds 859 9.5 2005 231 295 1980-03-01 Serial bonds 8,877 9.5 to 10.0 2020 7,474 7,620 1981-05-29 Serial bonds 4,510 9.375 to 11.0 2005 1,231 1,570 1981-06-30 Serial bonds 35,070 9.5 to 10.0 2021 29,859 30,401 1982-06-01 Serial bonds 104 9.5 2002 11 1982-06-11 Serial bonds 21,456 9.5 to 10.0 2022 18,760 19,051 1983-01-20 Serial bonds 11,600 10.0 to 11.0 2022 10,231 10,382 1983-04-07 Sinking Fund bonds 10,000 13.25 2003 4,150 4,800 1983-06-01 Serial bonds 191 9.5 2003 20 38 1983-06-01 Serial bonds 700 9.63 2003 74 142 1983-07-19 Serial bonds 2,511 9.625 2008 1,197 1,338 1983-09-15 Serial bonds 7,141 9.5 to 10.0 2023 6,380 6,465 1984-12-05 Sinking Fund bonds 26,000 13.0 2004 12,480 14,170 1985-11-13 Sinking Fund bonds 31,750 11.75 2005 17,302 19,366 1986-04-23 Sinking Fund bonds 40,000 10.25 2006 24,400 27,000 1986-12-15 Serial bonds 12,858 9.5 to 10.0 2026 11,871 11,988 1987-01-27 Sinking Fund bonds 25,000 9.7 2007 25,000 25,000 1988-03-03 Sinking Fund bonds 45,000 11.0 2008 36,000 38,250 1988-09-15 Sinking Fund bonds 50,000 11.375 2008 50,000 50,000 1988-12-15 Sinking Fund bonds 50,000 10.625 2008 50,000 50,000 1989-12-01 Sinking Fund bonds 48,000 10.25 2009 48,000 48,000 1989-12-21 Sinking Fund bonds 43,000 10.25 2009 43,000 43,000 1990-09-20 Sinking Fund bonds 35,000 11.5 2010 35,000 35,000 29 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
1990-12-06 Sinking Fund bonds 53,000 12.0 2010 53,000 53,000 1990-12-13 Sinking Fund bonds 66,000 12.0 2010 66,000 66,000 1991-10-02 Sinking Fund bonds 65,000 10.75 2011 65,000 65,000 1991-11-15 Sinking Fund bonds 50,000 10.25 2011 50,000 50,000 1991-12-18 Serial bonds 24,195 10.0 2011 6,771 6,771 1992-01-14 Serial bonds 6,000 9.25 2002 1,838 1992-03-11 Serial bonds 7,170 9.0 2002 2,545 1992-03-11 Serial bonds 5,551 9.0 2002 1,766 1992-03-11 Serial bonds 7,863 9.0 2002 2,689 1992-04-22 Serial bonds 6,584 10.0 2002 2,532 1992-07-15 Serial bonds 9,000 9.0 2002 2,820 1992-07-15 Serial bonds 7,153 9.0 2002 2,499 1992-11-18 Serial bonds 10,635 8.5 2002 3,635 1992-11-18 Serial bonds 17,180 8.5 2002 7,890 1992-12-02 Serial bonds 8,833 8.5 2002 3,379 1992-12-17 Sinking Fund bonds 100,000 9.0 2002 100,000 1992-12-23 Serial bonds 6,997 8.75 2002 1,639 1993-02-25 Sinking Fund bonds 100,000 9.2 2005 100,000 100,000 1993-03-17 Sinking Fund bonds 125,000 9.0 2003 125,000 125,000 1993-07-14 Serial bonds 11,080 8.0 2003 4,417 4,417 1993-07-14 Serial bonds 7,353 8.25 2003 2,403 2,403 1993-07-22 Sinking Fund bonds 62,500 8.0 to 8.85 2013 62,500 62,500 1993-08-16 Term note 639 7.9 to 8.15 2003 87 167 1993-11-17 Serial bonds 11,664 7.4 2003 3,828 3,828 1993-11-17 Serial bonds 15,000 7.5 2003 4,847 4,847 1994-01-05 Sinking Fund bonds 75,000 7.5 2004 75,000 75,000 1994-04-19 Serial bonds 5,795 8.0 2004 1,715 1,715 1994-05-04 Sinking Fund bonds 100,000 9.03 2004 100,000 100,000 1994-06-01 Serial bonds 7,549 8.75 2004 2,681 2,681 1994-09-06 Serial bonds 10,460 9.6 2004 3,429 3,429 1994-09-20 Serial bonds 10,142 9.25 2004 2,886 2,886 1994-09-20 Serial bonds 6,672 9.5 2004 1,636 1,636 1994-10-18 Serial bonds 25,000 9.25 2004 7,827 7,827 1994-12-20 Serial bonds 4,358 9.6 2004 4,358 4,358 1994-12-20 Serial bonds 7,978 9.6 2004 2,854 2,854 1995-06-13 Serial bonds 15,000 8.4 2005 6,647 6,647 1995-06-20 Sinking Fund bonds 75,000 8.83 2005 75,000 75,000 1995-07-03 Term note 322 8.4 2005 322 322 1995-08-08 Serial bonds 11,144 8.25 2005 4,399 4,399 1995-08-22 Serial bonds 8,059 8.4 2005 1,728 1,728 1995-09-19 Serial bonds 9,300 8.75 2005 3,319 3,319 1995-10-17 Serial bonds 8,440 8.6 2005 1,475 1,475 1995-11-14 Serial bonds 12,047 8.1 2005 4,500 4,500 1995-12-28 Serial bonds 20,000 7.65 2005 6,456 6,456 1996-02-26 Sinking Fund bonds 50,000 7.1 2003 50,000 50,000 1996-03-05 Serial bonds 6,000 7.0 to 7.6 2006 2,860 3,469 30 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
1996-04-16 Serial bonds 6,526 7.4 to 8.1 2006 4,380 4,796 1996-05-14 Serial bonds 7,300 8.0 2006 1,706 1,706 1996-06-05 Serial bonds 11,471 7.75 to 8.2 2006 6,976 7,798 1996-07-09 Serial bonds 9,933 7.5 to 8.0 2006 4,246 4,690 1996-07-09 Serial bonds 8,595 7.4 to 7.85 2006 2,701 3,269 1996-08-21 Serial bonds 8,660 7.9 2006 3,615 3,615 1996-09-05 Serial bonds 7,571 7.8 2006 2,365 2,365 1996-10-15 Serial bonds 8,673 7.5 2006 2,933 2,933 1996-11-20 Serial bonds 8,409 6.8 2006 2,369 2,369 1996-12-11 Serial bonds 20,000 6.1 to 6.6 2006 9,515 11,164 1997-01-08 Term note 848 5.85 2002 566 1997-01-14 Serial bonds 4,014 5.4 2002 3,064 1997-01-14 Serial bonds 5,723 5.4 2002 3,722 1997-02-04 Serial bonds 948 6.09 2002 825 1997-02-19 Term note 459 5.7 2002 223 1997-03-01 Serial bonds 2,697 5.6 2002 1,857 1997-03-04 Term note 148 5.5 2002 99 1997-03-11 Serial bonds 5,256 5.6 2002 4,221 1997-03-11 Serial bonds 3,788 4.5 2002 2,660 1997-03-11 Serial bonds 5,214 5.4 2002 2,201 1997-03-13 Sinking Fund bonds 100,000 6.698 2007 100,000 100,000 1997-04-22 Serial bonds 4,507 5.65 2002 2,348 1997-05-06 Serial bonds 2,891 5.3 2002 1,431 1997-05-06 Serial bonds 1,696 6.1 2002 538 1997-05-14 Serial bonds 6,258 7.1 2007 1,247 4,246 1997-06-17 Serial bonds 5,004 5.8 2002 2,470 1997-06-17 Serial bonds 2,784 5.85 2002 569 1997-06-25 Term note 596 5.7 2002 521 1997-07-04 Sinking Fund bonds 75,000 6.8 to 7.35 2017 75,000 75,000 1997-07-15 Serial bonds 6,423 5.3 2002 4,049 1997-07-15 Serial bonds 3,936 5.3 2002 2,780 1997-07-16 Serial bonds 7,964 6.3 2007 2,629 5,929 1997-07-18 Term note 766 5.35 2002 359 1997-07-29 Term note 397 5.4 2002 323 1997-08-04 Term note 988 5.35 2002 660 1997-08-08 Serial bonds 3,823 4.6 2002 2,787 1997-08-12 Serial bonds 4,858 5.25 2002 1,443 1997-08-20 Serial bonds 11,685 5.6 to 6.1 2007 6,077 7,333 1997-08-26 Serial bonds 1,821 5.4 2002 1,605 1997-08-27 Serial bonds 12,000 5.6 to 6.2 2007 8,038 8,925 1997-09-08 Term note 772 5.5 2002 516 1997-09-15 Sinking Fund bonds 60,000 6.22 2017 60,000 60,000 1997-09-16 Serial bonds 4,048 5.3 2002 2,807 1997-09-23 Serial bonds 2,337 5.4 2002 388 1997-10-06 Term note 1,649 5.45 2002 795 1997-10-14 Term note 877 5.35 2002 234 31 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
1997-10-14 Serial bonds 6,012 5.4 2002 4,252 1997-10-15 Serial bonds 8,104 5.4 to 6.0 2007 5,250 5,889 1997-10-21 Term note 289 5.5 2002 217 1997-11-12 Serial bonds 6,827 4.9 2002 2,002 1997-11-17 Term note 595 5.15 2002 521 1997-11-18 Serial bonds 7,816 5.35 to 6.0 2007 4,766 5,446 1997-12-03 Serial bonds 7,075 5.25 to 5.8 2007 3,045 3,298 1997-12-09 Serial bonds 6,859 5.1 2002 4,851 1997-12-15 Term note 1,283 5.79 2002 809 1997-12-15 Term note 979 5.5 2002 649 1997-12-16 Serial bonds 4,822 5.1 2002 3,104 1997-12-16 Term note 298 5.5 2002 261 1997-12-16 Serial bonds 2,907 5.3 2002 1,050 1997-12-22 Term note 698 5.5 2002 496 1997-12-23 Term note 1,404 5.4 2002 930 1997-12-23 Serial bonds 2,893 5.3 2002 2,506 1997-12-23 Term note 2,087 5.5 2002 1,041 1997-12-23 Serial bonds 1,142 5.5 2002 737 1997-12-23 Serial bonds 5,540 5.3 2002 3,252 1998-01-09 Term note 428 5.25 2003 79 154 1998-01-27 Serial bonds 2,860 5.25 2003 1,723 2,031 1998-02-03 Serial bonds 4,773 5.0 to 5.55 2008 3,163 3,598 1998-02-10 Serial bonds 2,926 4.95 to 5.1 2003 652 1,269 1998-02-24 Serial bonds 2,227 5.2 2003 1,676 1,825 1998-03-20 Term note 82 5.99 2003 73 75 1998-03-23 Serial bonds 5,301 5.2 2003 1,238 2,340 1998-03-23 Term note 142 5.4 2003 72 91 1998-05-11 Term note 404 5.25 2003 212 264 1998-05-12 Serial bonds 3,281 5.1 2003 3,281 3,281 1998-05-12 Serial bonds 9,000 5.1 2003 5,959 6,774 1998-05-25 Term note 81 5.3 2003 19 36 1998-05-26 Serial bonds 3,300 5.1 2003 2,880 2,993 1998-06-01 Term note 700 5.71 2003 313 418 1998-06-01 Term note 1,880 5.74 2003 1,271 1,437 1998-06-15 Term note 706 5.35 2003 613 638 1998-06-23 Serial bonds 2,070 5.15 2003 1,371 1,560 1998-06-23 Serial bonds 5,883 5.15 to 5.4 2008 3,898 4,435 1998-07-08 Serial bonds 4,355 5.2 2003 2,948 3,328 1998-07-14 Serial bonds 13,787 5.2 to 5.55 2008 8,722 10,092 1998-07-14 Serial bonds 5,500 5.2 2003 4,814 4,999 1998-07-14 Serial bonds 5,604 5.2 2003 3,209 3,857 1998-07-15 Term note 115 5.25 2003 26 50 1998-07-21 Serial bonds 5,258 5.2 2003 3,696 4,118 1998-08-04 Serial bonds 5,872 5.2 2003 3,097 3,852 1998-08-04 Serial bonds 6,115 5.2 2003 3,466 4,182 1998-08-10 Term note 1,120 5.5 2003 250 486 32 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
1998-08-14 Term note 1,080 5.5 2003 317 524 1998-08-25 Term note 140 5.96 2003 31 61 1998-09-02 Serial bonds 9,397 5.4 to 5.75 2008 6,491 7,277 1998-09-04 Term note 232 5.9 2003 188 200 1998-09-08 Serial bonds 32,000 5.5 to 5.65 2004 26,000 32,000 1998-09-14 Serial bonds 503 6.2 2003 308 332 1998-09-15 Sinking Fund bonds 150,000 6.236 2008 150,000 150,000 1998-09-25 Serial bonds 2,968 5.5 2003 2,313 2,490 1998-09-25 Term note 549 5.91 2003 404 444 1998-10-09 Sinking Fund bonds 35,000 5.35 to 5.75 2008 35,000 35,000 1998-10-13 Serial bonds 8,100 5.35 to 5.75 2008 5,289 6,041 1998-10-27 Serial bonds 4,192 4.8 2003 3,071 3,376 1998-11-24 Serial bonds 6,024 5.2 2003 5,274 5,477 1998-11-24 Serial bonds 545 5.2 2003 247 329 1998-11-30 Term note 341 5.25 2003 134 173 1998-12-01 Serial bonds 3,303 5.25 2003 1,614 2,077 1998-12-01 Serial bonds 16,000 5.2 to 5.65 2008 10,736 12,150 1998-12-01 Serial bonds 4,812 5.15 2003 3,234 3,664 1998-12-08 Serial bonds 7,748 5.15 2003 3,714 4,805 1998-12-08 Serial bonds 6,225 5.2 2003 2,959 3,842 1998-12-08 Serial bonds 9,097 5.3 to 5.7 2008 5,659 6,595 1998-12-15 Serial bonds 9,700 5.0 to 5.15 2003 6,495 7,361 1998-12-15 Serial bonds 3,971 5.15 2003 2,739 3,072 1998-12-15 Serial bonds 3,415 5.2 2003 2,398 2,673 1998-12-15 Term note 967 5.51 2003 831 868 1998-12-21 Term note 1,213 5.35 2003 897 983 1998-12-29 Serial bonds 6,030 5.0 2003 4,369 4,818 1999-01-25 Term note 194 5.0 to 5.1 2004 121 144 1999-02-15 Term note 260 5.665 2004 236 244 1999-02-15 Term note 315 5.1 to 5.2 2004 256 277 1999-02-18 Serial bonds 40,500 4.85 to 5.0 2005 32,500 40,500 1999-03-30 Serial bonds 2,549 5.25 to 5.3 2004 2,097 2,255 1999-04-13 Serial bonds 5,912 5.25 to 5.3 2004 4,401 4,934 1999-04-27 Serial bonds 2,844 4.8 to 4.9 2004 2,144 2,390 1999-05-11 Serial bonds 3,367 4.75 to 4.85 2004 1,894 2,412 1999-05-12 Serial bonds 7,266 4.75 to 5.25 2009 6,239 6,600 1999-05-17 Term note 188 5.0 to 5.15 2004 143 159 1999-06-01 Serial bonds 2,478 5.0 2003 670 1,305 1999-06-22 Term note 643 5.5 to 5.7 2004 586 606 1999-06-28 Term note 450 5.5 to 5.65 2004 341 380 1999-07-06 Serial bonds 3,694 5.35 to 5.5 2004 2,144 2,704 1999-07-08 Sinking Fund bonds 50,000 5.4 to 5.75 2009 30,500 50,000 1999-07-13 Serial bonds 5,382 5.3 to 5.5 2004 4,299 4,679 1999-07-16 Term note 934 5.9 2004 797 845 1999-08-03 Serial bonds 5,919 5.3 to 5.4 2004 4,712 5,117 1999-08-09 Term note 1,327 6.23 2004 927 1,068 33 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
1999-08-23 Term note 165 6.0 to 6.1 2004 59 68 1999-09-01 Serial bonds 9,223 5.9 to 6.3 2009 7,361 8,015 1999-09-01 Serial bonds 4,858 5.8 to 6.0 2004 3,010 3,661 1999-09-01 Serial bonds 6,033 5.9 to 6.0 2004 3,633 4,331 1999-10-05 Serial bonds 11,905 5.7 to 6.15 2009 9,604 10,412 1999-10-05 Serial bonds 4,892 5.65 to 5.8 2004 3,137 3,630 1999-10-12 Serial bonds 6,394 5.6 to 5.7 2004 4,079 4,896 1999-10-12 Serial bonds 32,000 5.65 to 6.15 2009 27,530 29,108 1999-10-13 Serial bonds 8,356 5.6 to 5.7 2004 6,122 6,907 1999-10-28 Sinking Fund bonds 50,000 6.15 to 6.4 2009 25,800 50,000 1999-11-09 Term note 530 6.0 to 6.15 2004 468 490 1999-11-15 Term note 614 6.675 2004 563 581 1999-11-15 Term note 1,622 6.0 to 6.1 2004 918 1,168 1999-11-16 Serial bonds 252 6.0 to 6.2 2004 231 238 1999-11-19 Term note 1,238 6.45 2004 995 1,066 1999-12-13 Term note 907 6.575 2004 711 781 1999-12-14 Serial bonds 5,000 6.0 to 6.1 2004 4,417 4,623 1999-12-14 Serial bonds 5,928 6.0 to 6.1 2004 2,946 4,008 1999-12-14 Serial bonds 9,015 5.9 to 6.0 2004 7,411 7,977 1999-12-14 Serial bonds 4,846 6.0 to 6.1 2004 3,666 4,082 1999-12-15 Term note 1,341 6.15 to 6.25 2004 1,023 1,136 1999-12-20 Term note 1,698 6.0 2004 543 790 1999-12-20 Term note 1,690 6.55 2004 1,427 1,520 1999-12-20 Term note 1,603 6.0 to 6.15 2004 1,391 1,466 1999-12-20 Term note 1,422 6.63 2004 1,085 1,205 1999-12-20 Serial bonds 6,067 6.0 to 6.1 2004 3,911 4,674 1999-12-22 Serial bonds 15,489 6.0 to 6.5 2009 10,954 12,558 1999-12-29 Serial bonds 12,943 6.0 to 6.4 2009 10,073 11,086 2000-01-07 Sinking Fund bonds 50,000 5.9 to 6.45 2010 50,000 50,000 2000-01-14 Sinking Fund bonds 45,000 6.72 2009 45,000 45,000 2000-01-18 Serial bonds 787 7.01 2005 745 766 2000-02-01 Serial bonds 6,236 6.1 to 6.4 2005 5,879 6,063 2000-02-28 Term note 447 6.25 to 6.55 2005 346 398 2000-03-03 Sinking Fund bonds 45,000 6.25 to 6.7 2010 45,000 45,000 2000-04-04 Serial bonds 4,727 6.0 to 6.2 2005 3,752 4,255 2000-04-11 Serial bonds 4,641 6.0 to 6.15 2005 3,006 3,855 2000-04-17 Serial bonds 5,267 5.9 to 6.1 2005 4,524 4,907 2000-04-18 Serial bonds 2,348 5.9 to 6.1 2005 1,714 2,041 2000-04-25 Serial bonds 4,942 5.8 to 6.0 2005 4,575 4,764 2000-04-25 Serial bonds 3,963 5.9 to 6.1 2005 3,225 3,605 2000-04-25 Term note 1,146 5.9 to 6.05 2005 1,003 1,077 2000-04-25 Term note 1,016 5.9 to 6.0 2005 911 965 2000-05-16 Term note 1,166 6.25 to 6.6 2005 1,107 1,138 2000-06-27 Term note 1,858 6.665 2005 1,558 1,713 2000-06-27 Term note 348 5.9 to 6.15 2005 319 334 2000-07-11 Serial bonds 4,874 5.85 to 6.0 2005 3,619 4,266 34 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
2000-07-11 Term note 1,542 6.66 2005 1,148 1,352 2000-07-11 Serial bonds 4,680 5.9 to 6.1 2005 3,963 4,333 2000-07-19 Term note 1,085 5.9 to 6.1 2005 995 1,041 2000-07-26 Serial bonds 9,344 5.85 to 6.25 2010 7,215 8,313 2000-08-01 Serial bonds 3,577 5.8 to 5.95 2005 2,280 2,949 2000-08-04 Sinking Fund bonds 50,000 5.0 to 6.3 2010 50,000 50,000 2000-08-08 Term note 388 6.0 to 6.05 2005 321 356 2000-08-23 Serial bonds 24,000 5.8 to 6.2 2010 20,234 22,176 2000-08-28 Term note 1,898 5.9 to 6.05 2005 1,669 1,787 2000-09-12 Serial bonds 2,711 5.85 to 6.0 2005 1,878 2,307 2000-09-19 Term note 1,696 5.7 to 5.85 2005 1,083 1,400 2000-09-19 Serial bonds 4,270 5.8 to 5.9 2005 3,557 3,925 2000-09-26 Term note 300 5.75 to 6.0 2005 285 293 2000-10-10 Serial bonds 3,005 5.65 to 5.85 2005 1,915 2,477 2000-10-17 Term note 589 5.7 to 5.9 2005 404 500 2000-10-27 Sinking Fund bonds 50,000 5.75 to 6.2 2010 50,000 50,000 2000-11-01 Serial bonds 6,718 5.7 to 5.85 2005 5,769 6,258 2000-11-07 Serial bonds 4,005 5.7 to 5.85 2005 2,918 3,478 2000-11-14 Serial bonds 4,560 5.65 to 5.8 2005 3,881 4,231 2000-11-14 Serial bonds 8,313 5.6 to 5.8 2005 7,819 8,073 2000-11-14 Term note 1,962 6.45 2005 1,716 1,842 2000-11-24 Term note 941 5.8 to 6.1 2005 856 900 2000-11-28 Serial bonds 2,768 5.75 to 5.9 2005 2,554 2,664 2000-12-05 Serial bonds 2,125 5.8 to 5.95 2005 1,832 1,983 2000-12-05 Serial bonds 6,980 5.8 to 5.95 2005 6,072 6,540 2000-12-06 Serial bonds 18,894 5.8 to 6.3 2010 15,298 17,148 2000-12-11 Term note 642 5.6 to 5.75 2005 536 591 2000-12-12 Serial bonds 5,464 5.7 to 5.85 2005 4,680 5,084 2000-12-12 Serial bonds 6,811 5.75 to 5.9 2005 5,477 6,163 2000-12-15 Sinking Fund bonds 70,000 5.55 to 6.0 2010 70,000 70,000 2000-12-19 Term note 91 7.1 2005 84 88 2000-12-20 Serial bonds 12,879 5.65 to 6.1 2010 9,721 11,346 2000-12-27 Serial bonds 4,601 5.5 to 5.7 2005 4,292 4,451 2000-12-27 Term note 1,200 5.95 2005 1,136 1,169 2000-12-27 Serial bonds 3,515 5.45 to 5.65 2005 3,303 3,412 2000-12-27 Serial bonds 10,000 5.4 to 5.9 2010 6,360 8,233 2001-01-09 Serial bonds 2,291 5.25 to 5.6 2006 2,229 2,291 2001-01-22 Term note 1,272 4.8 to 5.7 2006 1,140 1,272 2001-01-22 Term note 370 4.8 to 5.3 2006 316 370 2001-01-26 Term note 86 4.85 to 6.15 2006 71 86 2001-03-05 Term note 1,034 5.65 2006 956 1,034 2001-03-13 Term note 1,307 5.6 2006 1,226 1,307 2001-03-19 Term note 950 5.515 2006 781 950 2001-03-20 Serial bonds 4,689 4.55 to 5.2 2006 4,465 4,689 2001-03-27 Term note 1,434 4.5 to 5.1 2006 1,258 1,434 2001-04-17 Serial bonds 6,438 4.4 to 5.0 2006 5,937 6,438 35 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
2001-05-01 Serial bonds 1,724 4.35 to 5.15 2006 1,584 1,724 2001-05-08 Serial bonds 1,381 4.35 to 5.85 2006 1,063 1,381 2001-05-28 Term note 550 4.65 to 5.65 2006 507 550 2001-06-05 Serial bonds 4,979 4.5 to 5.35 2006 4,412 4,979 2001-06-27 Serial bonds 1,784 4.55 to 5.55 2006 1,500 1,784 2001-07-05 Sinking Fund bonds 50,000 5.1 to 6.15 2011 50,000 50,000 2001-07-10 Term note 1,343 4.75 to 5.7 2006 1,198 1,343 2001-07-13 Serial bonds 3,831 4.5 to 5.4 2006 3,520 3,831 2001-07-13 Serial bonds 5,974 4.5 to 5.4 2006 5,287 5,974 2001-07-13 Term note 303 4.75 to 5.75 2006 283 303 2001-07-20 Term note 365 4.75 to 5.75 2006 349 364 2001-07-24 Serial bonds 4,804 4.7 to 5.7 2006 4,401 4,804 2001-08-07 Serial bonds 7,834 4.7 to 5.65 2006 7,261 7,834 2001-08-13 Term note 200 6.04 2006 195 200 2001-08-20 Serial bonds 648 5.495 2006 533 648 2001-08-21 Serial bonds 7,521 4.4 to 5.4 2006 6,863 7,521 2001-08-24 Sinking Fund bonds 65,000 5.0 to 6.15 2011 65,000 65,000 2001-09-07 Serial bonds 3,099 4.4 to 5.25 2006 2,761 3,099 2001-09-19 Serial bonds 10,000 4.15 to 5.9 2011 9,663 10,000 2001-09-25 Serial bonds 1,481 4.1 to 5.05 2006 1,393 1,481 2001-10-10 Serial bonds 15,578 3.5 to 5.8 2011 14,750 15,578 2001-10-10 Serial bonds 15,000 3.45 to 5.85 2011 14,456 15,000 2001-10-16 Serial bonds 7,306 3.4 to 4.8 2006 6,517 7,306 2001-10-23 Term note 195 5.14 2006 189 195 2001-10-26 Serial bonds 7,482 3.15 to 5.75 2011 7,082 7,482 2001-10-30 Serial bonds 5,893 3.15 to 4.65 2006 4,476 5,893 2001-11-08 Sinking Fund bonds 45,000 4.35 to 5.9 2011 45,000 45,000 2001-11-09 Term note 191 2.65 to 4.3 2006 157 191 2001-11-09 Term note 664 2.65 to 4.3 2006 559 664 2001-11-13 Term note 136 2.65 to 4.35 2006 125 136 2001-11-21 Serial bonds 15,979 2.7 to 5.45 2011 14,472 15,979 2001-11-26 Term note 623 3.1 to 4.8 2006 574 623 2001-12-04 Serial bonds 2,457 2.65 to 4.25 2006 2,272 2,457 2001-12-05 Serial bonds 9,950 2.5 to 5.45 2011 9,351 9,950 2001-12-06 Serial bonds 4,445 2.75 to 4.55 2006 4,019 4,445 2001-12-11 Serial bonds 6,849 3.0 to 4.7 2006 6,634 6,849 2001-12-12 Serial bonds 11,290 2.5 to 5.45 2011 10,850 11,290 2001-12-17 Term note 761 2.9 to 4.65 2006 693 761 2001-12-18 Term note 669 3.15 to 5.0 2006 617 669 2001-12-18 Serial bonds 4,938 3.1 to 4.8 2006 4,502 4,938 2001-12-19 Serial bonds 10,911 3.15 to 5.95 2011 10,211 10,911 2001-12-19 Serial bonds 15,000 3.2 to 5.95 2011 14,436 15,000 2001-12-27 Serial bonds 1,930 3.05 to 4.8 2006 1,769 1,930 2001-12-28 Term note 75 6.95 2006 74 75 2002-05-17 Serial bonds 56,994 3.25 to 5.95 2012 56,994 2002-05-17 Sinking Fund bonds 40,572 5.95 to 6.45 2022 40,572 36 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in Canadian dollars (continued)
2002-05-17 Sinking Fund bonds 2,434 5.95 2012 2,434 2002-11-08 Serial bonds 125,000 3.05 to 5.25 2012 125,000 2002-12-13 Serial bonds 162,000 2.8 to 5.35 2012 162,000 3,542,766 3,523,794
Loans repayable in Canadian dollars under currency swap agreements
1992-01-20 125,000 SFR 7.25 2002 1992-01-20 85,974 US$ Floating 2002 1992-01-20 Sinking Fund bonds 97,710 CAN$ 9.87 2002 97,710
1992-05-04 100,000 SFR 7.25 2002 1992-05-04 66,256 US$ Floating 2002 1992-05-04 Sinking Fund bonds 79,056 CAN$ 10.215 2002 79,056
1992-05-15 35,790 EUR 8.38 2002 1992-05-15 Sinking Fund bonds 49,400 CAN$ 10.009 2002 49,400
1992-07-13 35,790 EUR 8.45 2002 1992-07-13 Sinking Fund bonds 52,458 CAN$ 9.463 2002 52,458
1992-10-15 8,622,782 YEN 5.5 2002 1992-10-15 70,161 US$ Floating 2002 1992-10-15 Sinking Fund bonds 85,000 CAN$ 8.21 2002 85,000
1993-09-30 3,000,000 YEN 4.8 2003 1993-09-30 2,500,000 YEN Floating 2003 1993-09-30 Sinking Fund bonds 69,655 CAN$ 7.525 2003 69,655 69,655
1994-07-08 6,000,000 YEN 4.57 2004 1994-07-08 Sinking Fund bonds 78,000 CAN$ 9.45 2004 78,000 78,000
1994-10-26 56,000 US$ Floating 2004 1994-10-26 Sinking Fund bonds 75,152 CAN$ 9.744 2004 75,152 75,152
1994-12-06 28,508 EUR 8.375 2004 1994-12-06 Sinking Fund bonds 50,300 CAN$ 9.69 2004 50,300 50,300
1995-03-15 50,000 US$ Floating 2005 1995-03-15 Sinking Fund bonds 70,300 CAN$ 9.975 2005 70,300 70,300
1995-12-19 5,625,000 YEN Floating 2005 1995-12-19 Sinking Fund bonds 75,000 CAN$ 8.264 2005 75,000 75,000
1996-10-16 56,242 EUR Floating 2003 1996-10-16 Sinking Fund bonds 100,000 CAN$ 7.583 2003 100,000 100,000
1996-10-16 30,678 EUR Floating 2003 1996-10-16 Sinking Fund bonds 53,600 CAN$ 6.19 2003 53,600 53,600
37 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Loans repayable in Canadian dollars under currency swap agreements (continued)
1996-11-15 76,694 EUR 6.25 2006 1996-11-15 Sinking Fund bonds 132,500 CAN$ 7.258 2006 132,500 132,500
1997-06-20 29,928 EUR Floating 2007 1997-06-20 Sinking Fund bonds 48,000 CAN$ 7.077 2007 48,000 48,000
1997-10-30 39,663 EUR 5.625 2007 1997-10-30 Sinking Fund bonds 60,626 CAN$ 5.915 2007 60,626 60,626
1998-10-23 29,144 EUR Floating 2008 1998-10-23 Sinking Fund bonds 51,677 CAN$ 5.965 2008 51,677 51,677
1999-02-26 68,664 US$ 5.375 2004 1999-02-26 Sinking Fund bonds 104,432 CAN$ 5.35 2004 104,432 104,432
2000-02-22 54,000 US$ Floating 2010 2000-02-22 Sinking Fund bonds 78,408 CAN$ 7.176 2010 78,408 78,408
2000-12-08 84,553 US$ Floating 2010 2000-12-08 Sinking Fund bonds 130,000 CAN$ 6.574 2010 130,000 130,000
2001-05-17 50,000 US$ Floating 2011 2001-05-17 Sinking Fund bonds 78,650 CAN$ 6.45 2011 78,650 78,650
2001-05-17 25,000 US$ 6.25 2011 2001-05-17 Sinking Fund bonds 39,325 CAN$ 6.45 2011 39,325 39,325
2001-11-14 34,000 US$ Floating 2011 2001-11-14 Sinking Fund bonds 53,210 CAN$ 6.17 2011 53,210 53,210
2001-11-14 20,000 US$ Floating 2011 2001-11-14 Sinking Fund bonds 31,500 CAN$ 6.078 2011 31,500 31,500
2001-11-26 400,000 NOK 6.75 2008 2001-11-26 45,500 US$ Floating 2008 2001-11-26 Sinking Fund bonds 71,207 CAN$ 5.67 2008 71,207 71,207 1,451,542 1,815,166
Total issue in Canadian dollars 4,994,308 5,338,960
38 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
A) BONDED DEBTS AND TERM NOTES (continued)
Payable in American dollars
1964-11-01 Sinking Fund bonds 60,000 US$ 5.0 2004 3,000 4,739 7,168 1966-11-01 Sinking Fund bonds 30,000 US$ 6.0 2006 3,000 4,739 5,973 1999-02-26 Sinking Fund bonds 11,273 US$ 5.375 2004 11,273 17,806 17,955 1999-07-19 Sinking Fund bonds 26,864 US$ Floating 2003 26,864 42,435 42,784 2001-03-15 Sinking Fund bonds 70,000 US$ Floating 2011 70,000 110,572 111,482 2001-12-17 Term note 14,190 US$ 2.33 2002 22,238 2002-10-29 Sinking Fund bonds 35,000 US$ 4.5 2012 35,000 55,286 2002-10-29 Sinking Fund bonds 32,624 US$ 4.125 2009 32,624 51,533 181,761 287,110 207,600
Loans repayable in American dollars under currency swap agreements
1992-10-29 66,468 EUR 8.125 2002 1992-10-29 Sinking Fund bonds 91,678 US$ 7.24 2002 146,007
1993-09-30 6,240,000 YEN 4.92 2003 1993-09-30 Sinking Fund bonds 61,280 US$ 6.245 2003 61,280 96,798 97,595 61,280 96,798 243,602
Total issue in American dollars 243,041 383,908 451,202
Payable in Swiss francs
1993-06-09 Sinking Fund bonds 70,000 SFR 5.25 2003 70,000 79,940 67,179
Payable in Japanese yen
2000-08-14 Sinking Fund bonds 2,750,000 YEN 1.66 2007 2,750,000 36,581 33,432
Payable in Pounds sterling
1888-11-01 Perpetual bonds 1,440 £ 3.0 Perpetual 362 943 863
Total issue in foreign currencies 501,372 552,676
TOTAL – BONDED DEBTS AND TERM NOTES 5,495,680 5,891,636
39 Ville de Montréal Term notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands) Balance Outstanding Issue January 1, December 31, 2002 2002 Nominal Interest In foreign In Canadian In Canadian Date Description value rate Maturity currencies dollars dollars
B) OTHER LONG-TERM DEBT
Loans under leases in Canadian dollars
1994-08-28 3,203 6.705 2014 2,391 2,517 1997-09-01 2,600 7.1476 2017 2,206 2,289 1998-02-27 880 6.69 2003 14 213 4,611 5,019 Other Miscellaneous 5,163 5.673 to 11.0 2014 3,257 4,081 TOTAL – OTHER LONG-TERM DEBT 7,868 9,100
Debt pending refinancing (in Canadian dollars) 1,434
TOTAL – LONG-TERM DEBT 5,503,548 5,902,170
Summary
Canadian dollars CAN$ 5,002,176 5,349,494 American dollars US$ 243,041 383,908 451,202 Swiss francs SFR 70,000 79,940 67,179 Japanese yen Y 2,750,000 36,581 33,432 Pounds sterling £ 362 943 863 5,503,548 5,902,170
Summary (in percentage)
Canadian dollars CAN$ 90,89% 90,64% American dollars US$ 6,98% 7,64% Swiss francs SFR 1,45% 1,14% Japanese yen Y 0,66% 0,57% Pounds sterling £ 0,02% 0,01% 100,00% 100,00%
Norwegian crowns NOK Canadian dollars CAN$ American dollars US$ Euro EUR Swiss francs SFR Pounds sterling £ Japanese yen Y
40 Ville de Montréal Notes and Schedules to Financial Statements (continued) Year ended December 31, 2002
SCHEDULE 3 - LONG-TERM UNFUNDED INVESTMENT EXPENDITURES (in thousands of dollars) 2002
Investment activity deficiency, beginning of year (46,195)
Investment activitiy deficiency for the year (242,871)
Transfer to reserved funds (103)
Transfer to restricted surplus (835)
Other 38
Investment activity deficiency, end of year (289,966)
41 Ville de Montréal Notes and Schedules to Financial Statements (continued) December 31, 2002
SCHEDULE 4 – DIRECT AND INDIRECT DEBT AND LONG-TERM UNFUNDED EXPENDITURES (in thousands of dollars) December 31 January 1 2002 2002
Net direct debt and long-term unfunded expenditures (1)
Long-term debt (Note 11) 5,503,548 5,902,170
Add Long-term unfunded investment expenditures 289,966 46,195 Long-term unfunded financial activity expenditures 24,713 905
Deduct Amounts recoverable from third parties for repayment of long-term debt 1,246,311 1,284,308 Amounts accumulated for repayment 1,287,944 1,390,176 Amounts recoverable through user fees 197,968 206,264
3,086,004 3,068,522
Net indirect debt and long-term unfunded expenditures Organizations included in the financial reporting entity Société de transport de Montréal 207,132 178,003 Société d'habitation et de développement de Montréal 158,347 161,668 Société de développement de Montréal 128,134 98,201 Anjou 80 4,546 4,781
498,159 442,653
Net direct and indirect debt and long-term unfunded expenditures 3,584,163 3,511,175
(1) Excluding the net obligation for pension plans and other employee future benefits of $1,978.9 million ($1,719.5 million as at January 1).
42 FINANCIAL REPORTING C Supplementary information Ville de Montréal Analysis of Revenues Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Taxes On property value General taxes 1,527,109 1,546,486 Industry taxes Debt service 8,670 10,152 Operations 1,900 1,959 Tax and surtax on non-residential immovables 248,050 260,190 Surtax on vacant lots 15,459 13,797 1,801,188 1,832,584
On another basis User fees for municipal services Water 225,518 229,867 Waste water treatment 7,400 7,554 Waste removal and recycling 15,724 16,092 Debt service 41,820 41,852 Capital assets and other capital spending 46 19 Other 33 290,508 295,417
Business taxes On the entire locative value 282,796 290,605 Other 3,673 4,144 286,469 294,749
576,977 590,166
2,378,165 2,422,750
43 Ville de Montréal Analysis of Revenues (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Payments in lieu of taxes Government of Québec and its enterprises Government enterprise immovables and establishments Property taxes 13,349 14,841 Business taxes 14,180 14,778 Tax on non-residential immovables 2,343 251 Compensation for municipal services 9,590 9,700 39,462 39,570
Immovables of the health and social services network and educational system Health and social services 44,811 47,450 Cégeps (junior colleges) and universities 48,099 44,394 Primary and secondary schools 21,702 21,263 114,612 113,107
Other immovables Immovables of certain government and international agencies Property taxes 874 904 Business taxes 2,887 3,912 Classified cultural property 97 101 3,858 4,917
157,932 157,594
Government of Canada and its enterprises Property taxes 17,358 19,512 Business taxes 364 363 Tax on non-residential immovables 11,036 10,338 Compensation for municipal services 7,217 5,922 35,975 36,135
Municipal organizations Compensation for municipal services 2,553 2,923
Other 1,858 1,778
40,386 40,836
198,318 198,430
44 Ville de Montréal Analysis of Revenues (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Other revenues from local sources Services provided to municipal organizations General administration 17 583
Public safety Police 22 Fire protection 295 6 Emergency preparedness 10 327 6
Transportation Road network 672 229 Other 132 804 229
Environmental health Supply and treatment of drinking water 20 159 Water distribution system 53 10 Sewage system 80 Waste removal and recycling 194 153 363
Health and welfare 2,545
Urban planning and development Other 7,093
Recreation and culture Recreational activities 740 1,390 Cultural activities 25,438 23,778 26,178 25,168
Debt service Repayment of long-term debt 3 Financing expenses Interest and other charges on long-term debt 63 39 66 39
34,638 28,933
45 Ville de Montréal Analysis of Revenues (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Other revenues from local sources (continued) Other services provided General administration 5,316 8,341 Public safety 17,980 19,845 Transportation 13,126 18,518 Environmental health 6,550 12,836 Health and welfare 241 228 Urban planning and development 58,030 57,539 Recreation and culture 35,882 40,365 Electricity 22,201 21,814 Other 13,944 22,741 173,270 202,227
Other revenues Fee collection Licences and permits 9,985 14,330 Real estate transfer fees 46,698 85,678 Other 64 56,683 100,072
Fines and penalties Tickets - Traffic and parking 96,843 103,313 Other - Fines and penalties 14,020 9,023 110,863 112,336
Interest Tax arrears 11,383 4,479 Sinking Fund 79,745 69,247 Cash and other interest 31,380 26,612 122,508 100,338
Transfer of capital assets Municipal industrial immovables 37 177 Other assets 15,856 11,488 15,893 11,665
Developers' contributions 15,410 5,974
Other 3,830 4,931 325,187 335,316
533,095 566,476
46 Ville de Montréal Analysis of Revenues (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Transfers Unconditional transfers Québec government subsidies Municipal amalgamation 200 200 Compensation for TGE-FFLA 24,130 24,760 Equalization 3 Central cities 7,966 7,938 Municipal reorganization 177 Neutrality 10,700 11,374 Other 33,251 33,720 76,424 77,995
Conditional transfers Government subsidies General administration 88 14,187
Public safety Police 10,000 Fire protection 262 Emergency preparedness 3 522 3 10,784
Transportation Road network 13,910 20,691 Public transit 74,165 70,734 Other 134 307 88,209 91,732
Environmental health Supply and treatment of drinking water 195 435 Water distribution system 4,563 4,616 Waste water treatment 87,895 89,649 Sewage system 4,784 4,598 Other 2,219 1,775 99,656 101,073
47 Ville de Montréal Analysis of Revenues (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Transfers (continued) Conditional transfers (continued)
Health and welfare 75,195 74,397
Urban planning and development Promotion and economic development 5,598 7,576 Other 9,156 8,271 14,754 15,847
Recreation and culture Recreational activities 911 5,788 Cultural activities Libraries 6,080 790 Other 7,647 7,401 14,638 13,979
Other 43,801 2,100 336,344 324,099
Other conditional transfers 47,052 1,795 383,396 325,894
459,820 403,889
Total revenues 3,569,398 3,591,545
48 Ville de Montréal Analysis of Operating Expenditures Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
General administration City Council 50,851 58,995 Application of the law 37,408 38,409 Financial and administrative management 141,138 138,191 Registry office 14,103 13,549 Valuation 19,446 18,684 Personnel management 27,771 28,853 Other 167,064 141,795 457,781 438,476
Public safety Police 428,958 428,784 Fire protection 239,848 249,446 Emergency preparedness 3,854 1,104 Other 16,547 26,919 689,207 706,253
Transportation Municipal roads 108,151 105,989 Snow removal 146,647 114,132 Lighting 28,919 28,054 Traffic and parking 33,061 39,336 316,778 287,511 Public transit 269,515 269,986 Other 8,839 2,989 595,132 560,486
Environmental health Water and sewers Supply and treatment of drinking water 41,421 43,240 Water distribution system 35,250 44,819 Waste water treatment 49,995 49,646 Sewage system 17,338 21,577 144,004 159,282
Waste removal and recycling Household waste Collection and transportation 52,674 62,373 Disposal 17,850 16,831 Secondary materials Collection and transportation 15,924 20,195 Treatment 6,167 341 Disposal of dry materials 13,941 20,335 106,556 120,075
Environmental protection 7,114 8,867
Other 1,857 1,343 259,531 289,567
49 Ville de Montréal Analysis of Operating Expenditures (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Health and welfare Food inspection 3,888 3,454 Public housing 25,003 23,555 Income security, public employment services and community health 75,002 73,984 Other 2,277 1,699 106,170 102,692
Urban planning and development Urban development, planning and zoning 26,101 33,638
Urban redevelopment Heritage properties 9,983 8,899 Other properties 33,708 31,486 43,691 40,385
Promotion and economic development Industry and trade 49,893 58,710 Tourism 1,664 1,539 Other 547 651 52,104 60,900
Other 8,850 4,251 130,746 139,174
Recreation and culture Recreational activities Community centres 66,924 75,539 Indoor and outdoor skating rinks 38,530 45,013 Swimming pools, beaches and marinas 38,276 42,545 Parks and playing fields 125,892 117,681 Exhibitions and fairs 2,410 760 Other 5,005 9,389 277,037 290,927
Cultural activities Community centres 8,085 11,305 Libraries 68,434 66,166 Heritage Museums and exhibition centres 52,548 53,829 Other 17,110 19,708 146,177 151,008
423,214 441,935
Electricity 19,029 19,451
50 Ville de Montréal Analysis of Operating Expenditures (continued) Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Financing activities Long-term debt Interest 436,901 428,369 Other charges 34,096 24,926 470,997 453,295 Other financing expenses 2,333 4,042 473,330 457,337
Total operating expeditures 3,154,140 3,155,371
51 Ville de Montréal Analysis of Cost of Municipal Services Year ended December 31, 2002
(in thousands of dollars)
Operating Financing expenditures expenses
General administration Valuation 18,684 Other 419,792 10,416 438,476 10,416 Public safety Police 428,784 5,826 Fire protection 249,446 3,463 Emergency preparedness 1,104 86 Other 26,919 89 706,253 9,464 Transportation Road network 287,511 97,646 Public transit 269,986 73,850 Other 2,989 687 560,486 172,183 Environmental health Supply and treatment of drinking water 43,240 3,699 Water distribution system 44,819 15,370 Waste water treatment 49,646 94,658 Sewage system 21,577 21,110 Waste removal and recycling 120,075 2,830 Environmental protection 8,867 156 Other 1,343 175 289,567 137,998 Health and welfare Public housing 23,555 416 Income security, public employment services and community health 73,984 Other 5,153 161 102,692 577 Urban planning and development Urban development, planning and zoning 33,638 4,163 Urban redevelopment 40,385 11,920 Promotion and economic development 60,900 15,660 Other 4,251 37,510 139,174 69,253 Recreation and culture Recreational activities 290,927 48,199 Cultural activities Libraries 66,166 2,739 Other 84,842 6,421 441,935 57,359
Electricity 19,451 87
Financing expenses 457,337 (457,337) 3,155,371
52 Ville de Montréal Analysis of Cost of Municipal Services (continued) Year ended December 31, 2002
Amortization Deferred Operating subsidies subsidies Cost of Capital (governments and (governments and Services (Gain) loss municipal assets their enterprises) their enterprises) provided on disposals services
144 (24) 18,804 14,170 (735) (13,858) (8,900) (525) 420,360 14,314 (735) (13,858) (8,924) (525) 439,164
11,298 (10,000) (19,467) 416,441 6,220 (233) (204) (173) 258,519 355 (18) (263) (56) 1,208 43 (243) (155) 26,653 17,916 (251) (10,710) (19,851) 702,821
116,113 (8,726) (9,446) (18,066) 48 465,080 (44,523) 299,313 1,854 (25) (681) (2) 4,822 117,967 (8,726) (53,994) (18,747) 46 769,215
4,664 (301) (574) (162) 50,566 19,568 (1,048) (1,006) (648) 77,055 36,404 (26,558) (65,379) (399) 88,372 23,793 (2,166) (2,239) (655) 61,420 5,849 (15) (15) (11,121) 117,603 252 (1,854) (176) 7,245 482 (38) 1,962 91,012 (30,088) (71,067) (13,199) 404,223
264 (30) (29) (2,681) 21,495 (70,013) 3,971 119 (4,355) (92) 986 383 (30) (74,397) (2,773) 26,452
4,822 (137) (292) (5,932) (5) 36,257 4,264 (794) (11,054) (50,617) (5,896) 331 (29) (3,281) (590) 58 73,049 15,374 (251) (947) (400) 55,537 24,791 (1,211) (15,574) (57,539) 53 158,947
54,186 (5,661) (8,434) (25,360) 353,857
3,388 (366) (503) (1,817) 69,607 2,484 (424) (3,859) (38,356) 51,108 60,058 (6,451) (12,796) (65,533) 474,572
660 (46) (21,814) (1,662)
327,101 (47,538) (252,396) (208,380) (426) 2,973,732
53 Ville de Montréal Analysis of Investment Expenditures by Type Year ended December 31, 2002
(in thousands of dollars) 2002 Budget Actual
Capital assets Infrastructures Wastewater treatment plants and facilities 21,370 9,529 Sewer 14,545 32,673 Aqueduct 15,311 22,647 Drinking water treatment plants 19,759 1,797 Parks and playing fields 29,421 33,071 Landfills and incinerator 5,670 2,792 Paths, streets, routes and sidewalks 89,004 94,388 Bridges, tunnels and viaducts 22,425 24,311 Parking lots 1,000 12 Street lighting system 4,834 7,413 Other infrastructures 50,045 21,321 273,384 249,954 Power grid 33,879 314 Buildings Administrative buildings 17,326 24,654 Community buildings 39,054 27,654 Leasehold improvements 1,773 Vehicles 23,147 16,243 Office furniture and equipment 32,170 33,964 Machinery, tools and equipment 6,095 5,570 Land 7,693 25 Other 13,787 769 446,535 360,920
Other investments Real estate assets intended for sale 9,302 Long-term receivables 10,623 19,925
446,535 380,845
54 Ville de Montréal Changes in Sinking Fund Investments Year ended December 31, 2002
(in thousands of dollars)
Sinking Fund Investments as at January 1, 2002 1,357,651
Add Contributions 281,673 Balance of closed loan by-laws recorded in the Sinking Fund 608 282,281
Deduct Redemption of bonds from the provision for redemptions 387,397 Loss on foreign exchange fluctuations 129 387,526
Sinking Fund Investments as at December 31, 2002 (1) 1,252,406
(1) Sinking Fund Investments Term deposits and other securities 127,054 Bonds Provinces and government agencies 546,674 Société de Transport de Montréal 25,030 Ville de Montréal 133,322 Other municipalities 150,282 School boards, Cégeps, CLSCs and hospitals 270,044 1,125,352 1,252,406
55 Ville de Montréal Long-Term Debt Maturity December 31, 2002
(in thousands of dollars)
Bonds and term notes Canadian dollars American dollars Swiss Francs Japanese Yen To be To be To be To be YEARS Maturity (1) Maturity (1) Maturity (1) Maturity (1) refinanced (2) refinanced (2) refinanced (2) refinanced (2)
2003 819,429 387,301 90,394 50,653 70,000 46,667 2004 825,781 434,596 13,523 2005 660,613 344,475 750 2006 411,524 261,396 750 2007 343,311 90,002 2,750,000 1,875,000 2008 461,974 198,718 2009 208,920 61,250 32,624 15,424 2010 463,201 114,545 2011 414,466 132,781 70,000 28,015 2012 106,500 71,326 35,000 13,008 2013 46,846 7,823 2014 10,309 2015 11,371 2016 12,543 2017 120,337 14,133 2018 15,264 2019 12,413 2020 7,548 2021 7,393 2022 29,614 8,333 2023 1,605 2024 1,008 2025 1,112 2026 1,226 4,994,308 2,126,679 243,041 107,100 70,000 46,667 2,750,000 1,875,000 Perpetual 4,994,308 2,126,679 243,041 107,100 70,000 46,667 2,750,000 1,875,000
Notes : (1) Amounts in this column represent loans maturing during each of the years shown. (2) Amounts are included in the maturity column. (3) Of this amount, $1,252.4 million is already accumulated in the Sinking Fund as at December 31, 2002. In addition, deferred revenues to these loans amount to $35.5 million.
56 Ville de Montréal Long-Term Debt Maturity (continued) December 31, 2002
Net maturity Bonds and term notes Other debt in Pounds sterling Total value in Canadian dollars Canadian dollars Canadian To be To be To be Maturity (1) Maturity (1) Net maturity Maturity (1) Net maturity dollars refinanced (2) refinanced (2) refinanced (2)
1,042,155 520,605 521,550 730 400 330 521,880 847,143 434,596 412,547 1,406 1,406 413,953 661,798 344,475 317,323 444 82 362 317,685 412,709 261,396 151,313 583 207 376 151,689 379,892 114,943 264,949 393 393 265,342 461,974 198,718 263,256 424 424 263,680 260,453 85,614 174,839 459 459 175,298 463,201 114,545 348,656 496 496 349,152 525,037 177,034 348,003 536 536 348,539 161,786 91,874 69,912 581 581 70,493 46,846 7,823 39,023 629 629 39,652 10,309 10,309 592 592 10,901 11,371 11,371 209 209 11,580 12,543 12,543 224 224 12,767 120,337 14,133 106,204 159 159 106,363 15,264 15,264 1 1 15,265 12,413 12,413 1 1 12,414 7,548 7,548 1 1 7,549 7,393 7,393 7,393 29,614 8,333 21,281 21,281 1,605 1,605 1,605 1,008 1,008 1,008 1,112 1,112 1,112 1,226 1,226 1,226 5,494,737 2,374,089 3,120,648 7,868 689 7,179 3,127,827 362 943 943 943
362 5,495,680 (3) 2,374,089 3,121,591 7,868 689 7,179 3,128,770
To be refinanced 2,374,089 689 2,374,778
5,495,680 (3) 7,868 5,503,548
57 Ville de Montréal Changes in Long-Term Debt Year ended December 31, 2002
(in thousands of dollars)
Long-term debt as at January 1, 2002 5,902,170
Add
Loans incurred Loan, 3.25% to 6.45%, issued on May 17, 2002, for refinancing; 100,000
Loan, 4.125% to 4.5%, issued on October 29, 2002, for refinancing (US$67.6 million); 106,819
Loan, 3.05% to 5.25%, issued on November 8, 2002, for refinancing; 125,000
Loan, 2.8% to 5.35%, issued on December 13, 2002, for capital assets ($73.6 million); for operating expenditures ($25.4 million); for refinancing ($63.0 million); 162,000
Loss on foreign exchange fluctuations 11,913 505,732
Deduct
Refinancing of bonds at maturity 394,811 Bonds redeemed at maturity Sinking Fund 387,397 Operating budget 121,738
Obligations under capital leases repaid at maturity 408 509,543 904,354
Long-term debt as at December 31, 2002 5,503,548
58 COMPLEMENTARY AND D STATISTICAL INFORMATION Ville de Montréal Equivalent Taxable Valuation, Taxation and Collection As at December 31, 2002
Equivalent Taxable Valuation
The City collects significant revenues in respect of certain tax-exempt immovables in the form of payments in lieu of taxes. For these reasons, the taxable valuation has been adjusted to more accurately reflect the values of the immovables on which the City’s revenues are based. The following table sets forth the equivalent taxable valuation of the City’s immovables as at December 31, 2002.
(in thousands of dollars) Equivalent Value % Value
Valuation of taxable immovables (1) 86,864,212 100.0% 86,864,212
Valuation of tax-exempt immovables Government of Québec and its enterprises 634,916 100.0% 634,916 Government of Canada and its enterprises 1,163,697 74.0% 861,136 Foreign governments 44,780 100.0% 44,780 Classified immovable cultural property 5,267 100.0% 5,267 Health and social services network (2) 2,218,398 92.4% 2,049,800 Cégeps and universities (2) 2,346,644 92.4% 2,168,299 Primary and secondary schools (2) 2,859,685 33.9% 969,433 9,273,387 6,733,631
Valuation of taxable and tax-exempt immovables 96,137,599 93,597,843
Comparative factor (3) 1.05 1.05
Standardized taxable valuation 91,207,423
Standardized equivalent taxable valuation 98,277,735
(1) According to the three-year valuation roll for 2001-2003, tabled on September 13, 2000, updated September 14, 2002. (2) The percentage applicable to such immovables in 2002 is established in Avis 8204 of the Government of Québec. (3) The values entered on the City’s three-year valuation roll for 2001-2003 corresponds to 95% in 2002 (median proportion) of the actual value of the valuation units. The comparative factor of the roll, which is the inverse of the median proportion, is 1.05. Consequently, the taxable valuation and the equivalent taxable valuation, which represent the aggregate of the actual value, must be multiplied by a ratio of 1.05 to obtain the standardized equivalent taxable valuation.
Taxation and Collection (in thousands of dollars) Property taxes including local Water-rate and service taxes improvement allocations and business taxes
Current taxation 1,902,777 470,343 Total taxation 1,928,996 471,645 Current taxes collected 1,867,197 454,380 Total taxes collected 1,930,834 470,125
Collection of current taxes 98.13% 96.61%
59 Ville de Montréal 2002 and 2003 Tax Rates Residential Immovables 1
Fiscal 2002 Fiscal 2003
Sectors 2 General Fees Average General Fees Average property (property tax cumulative property (property tax cumulative tax 3 equivalent) 4 rate 5 tax 3 equivalent) 4 rate 5
Anjou 1,6134 0,0972 1,7106 1,6757 0,0972 1,7729 Baie-d'Urfé 0,9761 0,0662 1,0423 1,0339 0,0662 1,1001 Beaconsfield 1,5059 0,2356 1,7415 1,5387 0,2356 1,7743 Côte-Saint-Luc (e) 1,6971 0,0500 1,7471 1,7181 0,0500 1,7681 Dollard-des-Ormeaux 1,5724 0,1481 1,7205 1,5539 0,1481 1,7020 Dorval 1,5792 - 1,5792 1,6539 - 1,6539 Hampstead 1,9986 0,0595 2,0581 1,9702 0,0595 2,0297 Kirkland 1,3496 0,1059 1,4555 1,4077 0,1059 1,5136 Lachine (e) 1,4244 0,4010 1,8254 1,4223 0,4063 1,8286 LaSalle (e) 1,6487 0,3405 1,9892 1,6384 0,3436 1,9820 L'Île-Bizard 1,3179 0,1079 1,4258 1,3885 0,1079 1,4964 L'Île-Dorval 3,7764 0,7609 4,5373 3,7177 0,7609 4,4786 Montréal (e) 5 or fewer units 1,9702 - 1,9702 1,9522 - 1,9522 6 or more units 2,0621 - 2,0621 2,0992 - 2,0992 Montréal-Nord 5 or fewer units 1,7031 0,2039 1,9070 1,6791 0,1617 1,8408 6 or more units 1,9326 0,2039 2,1365 1,9026 0,1617 2,0643 Montréal-Est 1,4878 0,0712 1,5590 1,5444 0,0712 1,6156 Montréal-Ouest 2,0839 0,1024 2,1863 2,0525 0,1024 2,1549 Mont-Royal 1,2068 0,0764 1,2832 1,2731 0,0764 1,3495 Outremont 1,4904 0,1067 1,5971 1,5205 0,1067 1,6272 Pierrefonds 1,7694 0,1834 1,9528 1,7999 0,1834 1,9833 Pointe-Claire 1,4611 0,1363 1,5974 1,5249 0,1363 1,6612 Roxboro 1,6563 0,1839 1,8402 1,6648 0,1839 1,8487 Sainte-Anne-de-Bellevue 1,4107 0,1190 1,5297 1,4866 0,1190 1,6056 Sainte-Geneviève 1,4512 0,5254 1,9766 1,4233 0,5254 1,9487 Saint-Laurent 1,3889 0,1212 1,5101 1,4577 0,1212 1,5789 Saint-Léonard (e) 1,7153 0,2279 1,9432 1,7299 0,1744 1,9043 Senneville 1,0351 0,0469 1,0820 1,0998 0,0469 1,1467 Verdun (e) 1,4799 0,2633 1,7432 1,4717 0,2648 1,7365 Westmount (e) 5 or fewer units 1,2873 - 1,2873 1,2929 - 1,2929 6 or more units 1,5004 - 1,5004 1,5326 - 1,5326
1. All property tax rates are expressed in dollars per $100 of valuation. 2. The sectors refer to the territorial limits of the amalgamated municipalities. Sectors identified by an (e) used forward averaging of the 2001 and 2002 valuation rolls. The forward averaging of value variations has the effect of changing the taxable values of properties and consequently results in higher or lower property tax rates depending on whether the difference between the values on the 1995 three-year roll and those for 2001 is positive or negative. 3. In 2003, there are two categories of residential immovables: immovables with 5 or fewer units (residual category) and immovables with 6 or more units. The property tax rates for these categories are identical for all sectors except Montréal, Montréal-Nord and Westmount, where buildings with 6 or more units have had different rates since 2001. 4. Fee revenues have been translated into property tax rates. The rates are shown for information purposes and represent revenues from water use and waste removal and recycling fees divided by the taxable residential valuation updated to September 13, 2002. In 2003, the property tax rate equivalent is unchanged except in seven municipalities which used forward averaging of the 2001 and 2002 valuation rolls. 5. The combined average rate is the sum of the general tax rate and the fee revenues translated into the property tax rate equivalent. As such, it comes as close as possible to forming an acceptable basis for comparison among the sectors. 60 Ville de Montréal 2002 and 2003 Tax Rates Non-Residential Immovables 1
Fiscal 2002 Fiscal 2003
Business taxes Property tax non- 2 General Property tax Combined rate for Sectors residential property on non-residential non-residential Property tax 4 immovables tax immovables Rate immovables 5 equivalent 3 category
Anjou 1,6134 1,0267 11,83 % 1,6783 4,3184 4,6064 Baie-d'Urfé 0,9761 2,0181 - - 2,9942 3,1895 Beaconsfield 1,5059 1,9965 - - 3,5024 3,6988 Côte-Saint-Luc (e) 1,6971 0,3784 18,54 % 2,5635 4,6390 5,5980 Dollard-des-Ormeaux 1,5724 2,8896 - - 4,4620 4,4246 Dorval 1,5792 2,4212 - - 4,0004 4,1559 Hampstead 6 1,9986 2,0000 - - 3,9986 4,2589 Kirkland 1,3496 2,5758 - - 3,9254 3,9998 Lachine (e) 1,4244 3,0219 - - 4,4463 4,6219 LaSalle (e) 1,6487 2,3207 - - 3,9694 4,0741 L'Île-Bizard 1,3179 2,1412 - - 3,4591 3,6537 L'Île-Dorval 6 3,7764 2,0000 - - 5,7764 6,0064 Montréal (e) 7 1,9702 0,3348 12,99 % 1,6360 3,9410 4,1722 Montréal-Est 1,4878 2,7875 - - 4,2753 4,2353 Montréal-Nord 1,7031 0,9497 13,45 % 1,8937 4,5465 5,0133 Montréal-Ouest 2,0839 0,2381 10,83 % 1,6281 3,9501 4,5282 Mont-Royal 1,2068 0,1039 14,30 % 2,1103 3,4210 3,7881 Outremont 1,4904 0,2775 13,63 % 1,8642 3,6321 4,2936 Pierrefonds 1,7694 1,6564 7,65 % 1,0610 4,4868 4,7923 Pointe-Claire 1,4611 2,6487 - - 4,1098 4,3034 Roxboro 1,6563 2,3335 - - 3,9898 4,1848 Sainte-Anne-de-Bellevue 1,4107 2,5973 - - 4,0080 4,0420 Sainte-Geneviève 1,4512 2,4379 - - 3,8891 4,1132 Saint-Laurent 1,3889 2,1015 - - 3,4904 3,6786 Saint-Léonard (e) 1,7153 1,0380 12,22 % 1,6183 4,3716 4,7576 Senneville 1,0351 0,0954 13,43 % 1,3698 2,5003 2,8211 Verdun (e) 1,4799 3,2481 - - 4,7280 5,3525 Westmount (e) 1,2873 2,2948 - - 3,5821 4,0848
1. All property tax rates are expressed in dollars per $100 of valuation. 2. The sectors refer to the territorial limits of the amalgamated municipalities. Sectors identified by an (e) used forward averaging of the 2001 and 2002 valuation rolls. The forward averaging of value variations has the effect of changing the taxable values of properties and consequently results in higher or lower property tax rates depending on whether the difference between the values on the 1995 three-year roll and those for 2001 is positive or negative. The impact of the property tax rates for the non-residential category is significant, since the value changes were more substantial for immovables in this category. 3. Business tax revenues have been translated into property tax rates for purposes of comparison. 4. The combined non-residential immovables rate is the sum of the general property tax rate, the tax on non-residential immovables and the business tax translated into a property tax rate equivalent. 5. The specific property tax rate for non-residential immovables replaces the general tax rate, the tax rate for non-residential immovables and the business tax rate applied for fiscal 2002. 6. There are no non-residential immovables in these sectors. If a business sets up in the area, the applicable rate will be the one shown in this table. 7. For business establishments with a rental value under $30,000, a credit is available to reduce the effective business tax rate to as low as 11.01% in 2002.
61 Ville de Montréal Property Values in the Boroughs
Taxable value ($M) Tax Total roll Units exempt Commercial/ Vacant Value % Residential ($M) industrial lots ($M) of total Ahuntsic/Cartierville 25,786 4,045,6 963,5 66,2 1,261,5 6,336,8 6,1 % Anjou 10,256 1,290,5 801,1 30,1 149,0 2,270,8 2,2 % Beaconsfield/Baie-d'Urfé 8,288 1,549,6 173,6 41,0 138,0 1,902,2 1,8 % Côte-des-Neiges/Notre-Dame-de-Grâce 22,451 4,584,8 881,5 51,4 1,847,4 7,365,1 7,1 % Côte-Saint-Luc/Hampstead/ 11,712 2,563,4 127,9 49,2 254,7 2,995,2 2,9 % Montréal-Ouest Dollard-Des Ormeaux/Roxboro 15,835 2,122,3 224,2 37,2 213,3 2,597,1 2,5 % Dorval/L'Île-Dorval 6,143 769,3 986,2 40,3 463,0 2,258,7 2,2 % Kirkland 7,009 1,151,7 316,3 22,7 45,0 1,535,7 1,5 % Lachine 10,950 1,091,1 705,0 58,1 284,2 2,138,3 2,1 % LaSalle 16,082 2,120,3 615,2 33,1 423,1 3,191,8 3,1 % L'Île-Bizard/Sainte-Geneviève/ 7,981 939,5 91,8 32,8 287,1 1,351,2 1,3 % Sainte-Anne-de-Bellevue Mercier/Hochelaga-Maisonneuve 24,889 3,181,2 983,5 53,2 1,297,8 5,515,7 5,3 % Montréal-Nord 13,537 1,880,7 429,7 27,5 313,0 2,650,8 2,5 % Mont-Royal 5,677 1,843,3 511,8 34,0 133,9 2,523,0 2,4 % Outremont 5,393 1,653,0 82,6 24,1 343,1 2,102,8 2,0 % Pierrefonds/Senneville 17,627 1,987,5 156,3 44,8 259,8 2,448,4 2,4 % Plateau-Mont-Royal 21,209 3,122,5 971,7 23,4 703,7 4,821,4 4,6 % Pointe-Claire 9,979 1,335,1 967,8 44,0 218,6 2,565,6 2,5 % Rivière-des-Prairies/Pointe-aux- 31,704 3,157,9 1,039,8 177,9 849,0 5,224,7 5,0 % Trembles/Montréal-Est Rosemont/La Petite-Patrie 25,579 3,406,2 650,6 34,0 966,4 5,057,2 4,9 % Saint-Laurent 19,794 2,804,6 2,735,3 186,1 710,6 6,436,6 6,2 % Saint-Léonard 11,701 2,269,6 727,2 33,6 214,3 3,244,7 3,1 % Sud-Ouest 14,397 1,486,3 590,6 75,4 574,8 2,727,1 2,6 % Verdun 15,715 1,938,6 222,1 36,7 333,8 2,531,2 2,4 % Ville-Marie 18,201 2,969,2 7,810,4 68,6 3,779,2 14,627,4 14,1 % Villeray/Saint-Michel/Parc-Extension 22,380 2,795,8 841,8 24,7 667,9 4,330,2 4,2 % Westmount 5,563 2,498,4 317,9 30,1 439,9 3,286,2 3,2 %
VILLE DE MONTRÉAL 405,838 60,558,4 24,925,5 1,380,3 17,171,9 104,036,1 100,0 %
Source: Ville de Montréal, Direction de l'évaluation foncière, 2001 property valuation roll updated to September 13, 2002 .
62 Ville de Montréal Direct and Indirect Debt and Long-Term Unfunded Expenditures December 31, 2002
(in thousands of dollars) 2002
Gross direct debt Long-term debt 5,503,548 Long-term unfunded investment expenditures (1) 289,966 Long-term unfunded financial activity expenditures (1) 24,713 5,818,227 Less: Amounts recoverable from third parties for repayment From the Government of Québec (2) 1,246,237 From other third parties 74 Amounts accumulated for repayment (3) 1,287,944 Amounts recoverable through user fees 197,968 2,732,223
Net direct debt and long-term unfunded expenditures (4) 3,086,004
Indirect debt (A) Organizations included in the reporting entity Société de transport de Montréal Long-term debt 534,913 Long-term unfunded investment expenditures (1) 48,774 583,687 Less: Amounts recoverable from the Government of Québec and the Agence métropolitaine de transport for repayment 249,233 Amounts accumulated for repayment 127,322 207,132
Société d'habitation et de développement de Montréal Long-term debt 158,347
Société de développement de Montréal Long-term debt 128,134
Anjou 80 Long-term debt 4,546
Gross indirect debt and long-term unfunded expenditures 874,714
Net indirect debt and long-term unfunded expenditures 498,159
Gross indirect and direct debt and long-term unfunded expenditures 6,692,941
Net direct and indirect debt and long-term unfunded expenditures 3,584,163
63 Ville de Montréal Direct and Indirect Debt and Long-term Unfunded Expenditures (continued) December 31, 2002
(in thousands of dollars)
Population (5) 1,838,474
Standardized equivalent taxable valuation (page 59) 98,277,735
Net direct debt and long-term unfunded expenditures Per capita (in dollars) 1,679 % of standardized equivalent taxable valuation 3,1%
Net direct and indirect debt and long-term unfunded expenditures Per capita (in dollars) 1,950 % of standardized equivalent taxable valuation 3,6%
Debt service Financing expenses 457,337 Repayment of long-term debt 386,498 843,835 Less: Conditional transfers, Sinking Fund interest and user fees (301,958) 541,877
Total adjusted revenues (6) 3,289,587
% of debt service 16,5%
(A) Indirect bonded debt represents the debt of the organizations included in the reporting entity. The organizations are as follows: Société de transport de Montréal; Société d'habitation et de développement de Montréal; Société de développement de Montréal; Anjou 80.
(1) Long-term unfunded expenditures are included in this schedule for comparison from one year to the next, since borrowings are sometimes deferred, due, among other things, to fluctuations in global financial markets.
(2) The amounts recoverable for repayment of long-term debt represent various subsidized projects supported by the Government of Québec.
(3) The amounts accumulated for repayment comprise the amounts accruing to the Sinking Fund and the deferred revenues resulting from the disposal of assets.
(4) Excluding the net obligation for pension plans and other employee future benefits of $1,978.9 million ($1,719.5 million as at January 1).
(5) The population figures are taken from the Gazette Officielle du Québec.
(6) Adjusted revenues represent total revenues reduced by conditional transfers in payment of debt service, Sinking Fund interest and user fees related to the use of underground conduits.
64 Ville de Montréal General Statistics
MAJOR TAXABLE PROPERTIES
Valuation roll Identification Address (in millions) Percentage (1) $ %
Place Ville-Marie 1-5 Place Ville-Marie 415,0 0,48 Complexe Desjardins 100-190 Sainte Catherine Street West 321,9 0,37 Tour I.B.M. – Marathon 1250 René Lévesque Boulevard West 205,0 0,24 Centre Fairview Pointe-Claire 6701-6901 Trans-Canada Highway 186,0 0,21 Le 1000 de la Gauchetière 1000 de La Gauchetière Street West 182,0 0,21 Centre Bell 1200-1260 de La Gauchetière Street West 150,0 0,17 Les Galeries d'Anjou 8001 les Galeries d'Anjou Boulevard 147,7 0,17 Eaton Centre 705 Sainte Catherine Street West 135,0 0,16 Bell Canada 700 de La Gauchetière Street West 121,0 0,14 Place Bonaventure 800-900 de La Gauchetière Street West 120,6 0,14 Rockland Shopping Centre 2305 Rockland Road 120,0 0,14 Sun Life 1153-1155 Metcalfe Street 117,0 0,13 Place Versailles 7255-7525 Sherbrooke Street East 110,2 0,13 Banque Nationale de Paris 1981 McGill College Avenue 110,0 0,13 Casino de Montréal 1 Casino Avenue 107,1 0,12 Le 100 de Gaspé 100 de Gaspé 104,0 0,12 Place Victoria 800 Place Victoria 100,5 0,12 Bombardier Aéronautique 500 Côte Vertu Road 99,2 0,11 La Place Vertu 3105-333 Côte Vertu Boulevard 92,9 0,11 Queen Elizabeth Hotel 900 René Lévesque Boulevard West 92,2 0,11
(1) Percentage applicable to total valuation of the taxable immovables of $86,864.2 million (spread value) on the 2001-2003 roll, tabled on September 13, 2000, updated on September 13, 2002.
65 Ville de Montréal General Statistics (continued)
MAJOR NON-TAXABLE PROPERTIES YIELDING PAYMENTS IN LIEU OF TAXES
Valuation roll Identification Address (in millions) Percentage (1) $ %
FEDERAL GOVERNMENT AND AGENTS
Transport Canada - Aéroport de Montréal Aéroport de Montréal 244,3 1,43 Canadian Broadcasting Corporation 1400 René Lévesque Boulevard East 101,8 0,60 Transport Canada - Hervé-Saint-Martin Aéroport de Montréal (Annex) 93,3 0,55
GOVERNMENT OF QUÉBEC
Société immobilière du Québec 1 Notre-Dame Street East 152,8 0,89 Société de la Place des Arts 105-175 Sainte Catherine Street West 113,8 0,67
SOCIAL AFFAIRS NETWORK
Hôpital Notre-Dame 1560 Sherbrooke Street East 128,6 0,75 Hôpital Sainte-Justine 3165-85 Côte Sainte Catherine Road 97,6 0,57 Jewish General Hospital 4615 Côte Sainte Catherine Road 96,2 0,56 Royal Victoria Hospital 687-835 Pine Avenue West 91,8 0,54 Hôpital Louis-H.-Lafontaine 7401-45 Hochelaga Street 84,4 0,49
EDUCATION NETWORK
Université de Montréal 2920 Édouard Montpetit Boulevard 272,3 1,59 McGill University 677-961 Sherbrooke Street West 171,6 1.00 Université du Québec à Montréal 400 Sainte Catherine Street East 113,2 0,66 McGill University Health Centre 1547-1597 Pine Avenue West 82,9 0,48 McGill University 455-551 Pine Avenue West 76,1 0,44 McGill University 21111 Lakeshore Road 74,0 0,43 École des Hautes Études Commerciales 3000 Côte Sainte Catherine Road 71,0 0,42 Université du Québec à Montréal 200 Sherbrooke Street West 69,7 0,41 McGill University 3644-90 Peel Street 69,5 0,41 Dawson College 3040 Sherbrooke Street West 64,6 0,38
(1) Percentage applicable to the total valuation of the tax-exempt immovables of $17,105.7 million (spread value) for the 2001-2003 roll, tabled on September 13, 2000, updated on September 13, 2002.
66 Ville de Montréal General Statistics (continued)
PROPERTIES GENERATING HIGHEST REVENUES FROM TAXATION
Revenues (1) Identification Address (in millions) Percentage (2) $ %
Transport Canada - Aéroport de Montréal Aéroport de Montréal 22,5 0,87 Place Ville-Marie 1-5 Place Ville-Marie 20,3 0,79 Complexe Desjardins 100-190 Sainte Catherine Street West 15,8 0,61 Tour I.B.M. – Marathon 1250 René Lévesque Boulevard West 10,4 0,40 Le Palais de Justice 1 Notre-Dame Street East 8,6 0,33 Le 1000 de la Gauchetière 1000 de La Gauchetière Street West 8,5 0,33 Centre Fairview Pointe-Claire 6701-6901 Trans-Canada Highway 7,9 0,31 Centre Bell 1200-1260 de La Gauchetière Street West 7,1 0,28 Eaton Centre 705 Sainte Catherine Street West 6,8 0,26 Place Bonaventure 800-900 de La Gauchetière Street West 6,6 0,26 Place Versailles 7255-7525 Sherbrooke Street East 6,5 0,25 Bell Canada 700 de La Gauchetière Street West 6,4 0,25 Les Galeries d'Anjou 8001 les Galeries d'Anjou Boulevard 6,3 0,24 Sun Life 1153-1155 Metcalfe Street 6,2 0,24 Casino de Montréal 1 du Casino Avenue 6,0 0,23 Banque Nationale de Paris 1981 McGill College Avenue 5,8 0,23 Société de la Place des Arts 105-175 Sainte Catherine Street West 5,8 0,23 Société du Palais des Congrès 200 de La Gauchetière Street West 5,5 0,21 Place Victoria 800 Place Victoria 5,1 0,20 National Bank of Canada 600 de La Gauchetière Street West 5,0 0,19
(1) These amounts are made up of business taxes, water-rate and services taxes, special taxes and real estate taxes. (2) Percentage applicable to fiscal 2003 mass income tax revenues of $2,573.5 million (including taxable and tax-exempt immovables yielding payments in lieu of taxes).
67 Published by the Ville de Montréal Service des finances Direction de la comptabilité et du contrôle financier 155 Notre-Dame Street East, Suite 207 Montréal, Québec H2Y 1B5 CANADA
Fax : 514-872-3145 www.ville.montreal.qc.ca
Legal Deposit 2nd quarter 2003 Bibliothèque nationale du Québec ISBN : 2-7647-0282-5
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