Accounting surpluses masking a soaring debt
Despite an apparent financial health, the Town of Mount Royal faces a worrying budgetary situation. Between 2021 and 2024, the Town continued to post surpluses ranging from $6 to $13 million, even though its expenses increased faster than its revenues. From 2021 to 2024, revenues rose by +24 %, while expenses grew by +26 %. This apparent stability hides a reality: the municipal debt is on track to triple by 2027, from about $60 million to nearly $200 million. This situation reflects a gap between accounting flows and budgetary reality.
For basic financial data see Table-1.
Illusory surpluses:
Current surpluses do not reflect a real budgetary margin. They result mainly from:
• calculations “for fiscal purposes” that exclude asset amortization and include internal fund transfers;
• surpluses accumulated before 2021, which generate interest income;
• an inflated tax base following the 2023 assessment roll, up by 30 to 40 %.
In reality, the Town’s finances rely today on exceptional revenues and temporary accounting practices rather than on a structural capacity to balance long-term expenditures.
For clear summary see Table-2.
For simplified projection 2025–2030 see Table-3.
For transparent and responsible financial management
Once loan repayments for the Sports Centre and the Engineering Building begin, the financial burden on citizens will double. The Town of Mount Royal must present citizens with a clear and honest budgetary vision. Current financial decisions commit the community for the next twenty years. Transparency regarding the real state of public finances is essential to maintain trust and ensure the sustainability of municipal services.
I commit, once elected Mayor of Mount Royal, to :
• Present citizens with an honest picture of the Town’s current financial situation and a clear, transparent budgetary vision for the years ahead.
• Publish an annual, simple, and accessible report on the Town’s current and projected debt levels.
• Provide citizens with an annual forecast of municipal tax trends, taking into account the fiscal impact of current and future projects.
• Ensure, for each major project, an independent and transparent assessment of its impact on public finances and municipal taxes.
• Implement rigorous management of public spending, notably through fair and competitive tenders.
Maryam Kamali Nezhad, Eng., Ph. D.
Candidate for Mayor of the Town of Mount Royal
www.avenircitejardin.com
Table-1: Basic financial data
| Year | Revenues ($M) | Expenses ($M) | Fiscal Surplus ($M) | Municipal Debt ($M) |
| 2021 | 103.6 | 101.9 | 13.4 | 36.9 |
| 2022 | 107.7 | 113.2 | 6.4 | 47.3 |
| 2023 | 121.2 | 123.9 | 11.7 | 53.2 |
| 2024 | 128.9 | 129.1 | 9.3 | 59.2 |
| 2025 (forecast) | 132.0 | 135.0 | ≈5 | ≈140 |
Table-2: Clear summary
| Year | Total Debt ($M) | Annual Service ($M) | % of Budget (≈$130M) | Change |
| 2024 | 60 | 2.6 | ~2 % | — |
| 2026–27 | 200 | 15 | ~11–12 % | +477 % (×5.8) |
Table-3: Simplified projection 2025–2030
| Indicator | 2021–2024 | Trend | 2025–2030 (Forecast) | Comment |
| Property revenues | +24 % | ↑ strong growth | Stabilization | Tax base capped after 2023 |
| Operating expenses | +26 % | ↑ inflation & wages | +8 to +10 %/year | Rising cost of services & energy |
| Debt service | $2.6M/year | stable | $10–13M/year | Weight of new borrowings |
| Fiscal surpluses | $6–13M/year | stable | $0–3M/year | Limited budgetary margins |
| Total debt | $59M (2024) | ↑ | ≈$140M (2026) | Doubling of financial burden |