Montréal Moving Forward 2005 ANNUAL REPORT Prepared by the Direction de la comptabilité et du contrôle financier of the Service des finances MESSAGE FROM THE MAYOR AND THE CHAIRMAN OF THE EXECUTIVE COMMITTEE Fellow Montrealers, Montréal enjoys an economic vitality and an incomparable quality of life that are the envy of North America's large metropolises. It is a city open to the world that is proud of its assets and that knows how to tap into the vitality of its citizens. Our City adminis- tration contributes to this vitality each and every day by assuming the leadership required to deliver services that directly impact the quality of life enjoyed by citizens. It is our responsibility to continue to provide this leadership, to build on our achievements, and to make the most of our city's resources to continue to move forward. In 2005, Montréal was home to a wealth of activities and events. In addition to hosting the World Aquatics Championships, Montréal was also named World Book Capital 2005/2006, an event that coincided with the long-awaited inauguration of the Grande bibliothèque du Québec in the heart of the City's Latin quarter. The year also saw the City's administration take substantial action on a number of fronts.Where environmental matters are concerned, we adopted the first Strategic Sustainable Development Plan, the Policy on the Protection and Enhancement of Natural Habitats, and the Tree Policy.We also helped improve Montrealers' living environment by implementing the Heritage Policy and the Cultural Development Policy, and we adopted the Montréal Charter of Rights and Responsibilities, an indispensable tool for building a future based on the values of openness and solidarity.These rules provide a solid framework for the city in carrying out these projects starting in 2006. Of course, there is still much to do, since we will face many challenges in 2006. For example, we have decided to make city cleanliness a major focal point and have created clean-up brigades for this very purpose.We will also focus on repairing our streets, since several stretches of road need major work immediately.We also plan to set up a 3-1-1 telephone service that will be available around the clock to meet the information needs of our citizens. The fight against poverty and exclusion and the availability of social housing are crucial issues that will remain at the centre of our concerns. It is with these issues in mind that we have included, in our Master Plan, an objective of ensuring that 30 % of the housing built in Montréal is affordable. Clearly, one of the main tools we will be using to achieve this objective is the Strategy for including affordable housing in new residential projects adopted last August. Development of our public transit service will also be at the heart of the City's priorities, since this is a major issue from an ecological, economic, and social standpoint.We will also take the necessary steps to sign a satisfactory tax deal with the Québec government in 2006. Finally, as a result of the strategic plan entitled Imagining • Building Montréal 2025 • A World of Creativity and Opportunities, Montréal now has an ambitious plan for the future. It is a plan in which everyone will play a role to ensure that, by 2025, the City ranks among the North American metropolises with the highest standard of living and the best quality of life.Throughout 2006, we will continue to devote the same energy and determination towards building our great city-a city in which we can all continue to take pride. Mayor Chairman of the Executive Committee Gérald Tremblay, Frank Zampino, FCA MESSAGE FROM THE DIRECTOR GENERAL AND THE TREASURER Fellow residents, In 2005,Ville de Montréal, which was created in 2002 with the 27 boroughs on the island of Montréal, had to prepare for the transition towards the new municipal organization that has been in effect since January 2006.This new governance model is now based on Montréal's responsibility, as a central city, to manage the shared services for all citizens on the island, that is, the agglomeration territory, which includes the 19 Montréal boroughs and the 15 newly reconstituted cities. Ville de Montréal is an organization that is forever adapting and modernizing. In 2005, it continuously worked to meet the needs of Montrealers without neglecting current services. Our administration, which is devoted to the economic vitality of Montréal-the driving force behind the metropolitan region-and to the quality of life of citizens, provided invaluable support by creating a series of policies and strategies that are now in effect and to which many of our employees contributed. Some of the most noteworthy are the Policy on the Protection and Enhancement of Natural Habitats, the First Strategic Sustainable Development Plan for Montréal, the Economic Development Strategy, the Heritage Policy, the Cultural Development Policy, and the Tree Policy. In 2006, these achievements will guide the orientations and objectives in our business plan. Providing quality and efficient services to Montrealers in a spirit of responsible management of public funds will serve as a backdrop to this plan. To ensure that Montrealers enjoy an exceptional quality of life in their communities, we will focus our energy on major issues, such as repairing road infrastructure, adopting a strategic transportation plan, upgrading drinking water and sewage treatment plants, deploying clean-up brigades, and improving road, pedestrian, and water safety. Finally, as part of our commitment to responsible management, we will continue working to develop new revenue streams and to forge new partnerships with other levels of government.We plan to work even harder in a number of areas, such as our equal access to employment program, in order to improve representation by the most under-represented groups in our organization.We will also put in place identification mechanisms and staffing measures to ensure succession planning in certain employment sectors. To realize our ambitions and optimize our investments, we must manage by project and by program. By adopting such an approach, we will be able to track how projects are progressing, to measure the impacts right from the planning stage, to assess and control the related costs, and to measure performance. We must face the challenge of bringing about these many transformations together and with enthusiasm, while respecting the efforts of everyone, and never losing sight of our very purpose-which is to continuously deliver better service to all Montrealers. Director General Senior Director and Treasurer, Service des finances Robert Abdallah Robert Lamontagne Montréal Moving Forward TABLE OF CONTENTS 6 . .THE FACE OF MONTRÉAL 8 . .A VISION,AN ACTION PLAN,AND RESPONSIBLE MANAGEMENT 9 . .ONE MISSION, MANY VALUES 10 . .ON THE WORLD STAGE 14 . .CITIZENS:AT THE HEART OF WHAT WE DO 16 . .WATER, ROADS,AND TRANSPORTATION: BUILDING THE FUTURE 18 . .TOWARDS AN ECONOMY OF RESEARCH AND INNOVATION 22 . .A ROOF OVER EVERY HEAD 24 . .A METROPOLIS THAT CARES 26 . .SAFETY:A CONSTANT PRIORITY 28 . .A CITY OF GREEN AND BLUE 30 . .SUSTAINABLE DEVELOPMENT:A DOMINO EFFECT 32 . .A CULTURAL METROPOLIS,A HERITAGE TO DISCOVER 34 . .WORLD-CLASS EVENTS, SPORTS FOR EVERY CITIZEN, RECREATION AT EVERY TURN 36 . .RESPONSIBLE, DISCIPLINED MANAGEMENT OF MUNICIPAL AFFAIRS 38 . .AN ORGANIZATION THAT LISTENS TO CITIZENS 42 . .DEMOCRATIC ORGANIZATION 43 . .ADMINISTRATIVE ORGANIZATION 44 . .THE EXECUTIVE COMMITTEE 45 . .MEMBERS OF THE CITY COUNCIL AND THE BOROUGH COUNCILS 49 . .STANDING COMMITTEES OF THE COUNCIL AND THE COMMISSION DE LA SÉCURITÉ PUBLIQUE 50 . .2005 FINANCIAL RESULTS 59 . .2005 ANNUAL FINANCIAL REPORT Montréal Moving Forward THE FACE OF MONTRÉAL University education 67 (among people aged 20 and over) . .30.3 % Average household income . $49,429/year 1 (year 2000) At the time of preparing this report, the territory of Ville de Population1 . .1,871,770 Montréal underwent an organizational change. Surface area . 500 km2 Effective January 1, 2006, and further to the application of two Percentage of the 3 acts, the Act respecting the consulta- Montréal Census tion of citizens with respect to the Metropolitan Area (CMA) . 52.9 % territorial reorganization of certain Jobs2 . 924,800 municipalities and the Act respecting the exercise of certain municipal Single-person households . 38 % powers in certain urban agglomera- Percentage of the tions, Ville de Montréal now has Montréal economy to 19 boroughs. Montréal Island as a Percentage of persons the Montréal Census 2 whole comprises 16 municipalities; aged 20 to 44 . 39.5 % Metropolitan Area (CMA) . 75 % these municipalities constitute the Montréal agglomeration and are Value of building linked by the services that are permits (2004)2 . $2.5 billion shared among all island residents. Ville de Montréal is the central city and, in this capacity, carries out the Percentage of new agglomeration responsibilities, that housing units built on the is, it continues to provide the serv- island of Montréal (2004)2 . .40 % ices and manage the equipment 2 that are common to all citizens on island of Montréal. Immigrant population . 28 % Consequently, in 2006, the information in this report applies to the entire island of Montréal Mother tongue languages . French: 54 % and should be interpreted as such. English: 17 % . Other: 29 % 4 1 Source: Government of Québec, Décret de population (1248-2005) for 2006.The other data is taken from the Profil socio-économique de Montréal, Ville de Montréal,