Author
Listed:
- Jean-Philippe Meloche
- François Vaillancourt
Abstract
This text is divided into four parts. The first presents the agglomeration of Montreal, its expenditures and its financing mechanisms. The agglomeration created in 2006 covers the administrative territory of the Island of Montreal. It is made up of Montreal City (which includes 88% of the population) and 15 suburban municipalities. In 2020, its main expenditures were for police services (28%), public transport (25%), the fire service (16%) and the water service (10%). Its financing is done by municipal shares. These reflect, for more than 90%, the distribution of real property values among municipalities. The suburbs according to their association consider their contribution to the financing of agglomeration expenditures to be too high. The second part of the report presents the main principles that can be used to choose the method of financing public services. It examines how the agglomeration's services generate more or fewer externalities and are more or less public goods. The third part presents examples of cost-sharing formulas between municipalities for five public services: police, fire, public transport, waste and water. The last part of the paper indicates that the dissatisfaction of the suburbs is not explained by a deterioration of their situation over time. The use of the population as a complementary indicator to the property wealth for the calculation of the quotas will not generate a more equitable distribution, but it may represents an acceptable compromise in the event of a redefinition of the shares. Ce texte se divise en quatre parties. La première présente l’agglomération de Montréal, ses dépenses et ses mécanismes de financement. L’agglomération crée en 2006 couvre le territoire administratif de l’île de Montréal. Ce territoire englobe la Ville de Montréal (qui regroupe 88% de la population) et 15 municipalités de banlieue. En 2020, les principales dépenses de l’agglomération comprennent les services policiers (28%), le transport en commun (25%), le service d’incendie (16%) et le service d’eau (10%). Son financement se fait par quotes-parts. Ces dernières reflètent à plus de 90 % la répartition de la richesse foncière entre les municipalités membres. Les municipalités de banlieue s’exprimant par leur association jugent leur contribution au financement des dépenses d’agglomération trop élevée. La deuxième partie du rapport présente les grands principes pouvant être utilisés pour choisir le mode de financement des services publics. On y examine comment les services de l’agglomération génèrent plus ou moins d’externalités et correspondent plus ou moins à la notion de bien collectif. La troisième partie présente des exemples de formule de partage des coûts entre municipalités pour cinq services publics : police, incendie, transport en commun, matières résiduelles et eau. La dernière partie indique que l’insatisfaction des banlieues ne s’explique pas par une détérioration de leur situation à travers le temps. L’utilisation de la population dans le calcul des quotes-parts ne constitue pas une pratique plus équitable que les valeurs foncières, mais peut représenter un compromis advenant un nouveau partage de la charge fiscale entre les municipalités.
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JEL classification:
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
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