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City, 'burbs broker pact 'A win-win scenario' Montreal gets more autonomy and new powers of taxation; island suburbs spared millions in shared costs; property owners to get single tax bill Montreal Mayor Gérald Tremblay leads Municipal Affairs Minister Nathalie Normandeau (left) and Westmount Mayor Karin Marks to a news conference at city hall. Two deals signed yesterday amend Bill 22, a bid to resolve a power feud between Montreal and the suburbs. LINDA GYULAI AND DAVID JOHNSTON, The Gazette Published: 6 hours ago Peace was declared yesterday by the municipalities of Montreal Island, and with it comes new tax powers, greater autonomy and special status for the city of Montreal. Mayor Gérald Tremblay, the mayors of the 15 island suburbs and prominent Quebec cabinet ministers announced they had brokered an accord to revamp the agglomeration council that manages island-wide services and has been a source of acrimony since the suburbs demerged from Montreal in 2006. Taxpayers in the suburbs would now receive one tax bill instead of two, while their cities and towns would regain control over maintenance of major roads in their areas and be spared millions of dollars in shared costs with Montreal. And, under a separate deal with Montreal, Quebec agrees to grant a long-standing wish of Tremblay and previous Montreal mayors for more clout and for the power to raise revenue through new forms of taxation. Both deals, signed at Montreal city hall yesterday, provide a package of amendments to Bill 22, legislation that was tabled in the National Assembly last year to resolve a power feud between Montreal and the suburbs. The amendments will be submitted to the National Assembly for a vote before the current session ends late next week. "In every step of this negotiation, we were looking for a win-win scenario," Municipal Affairs Minister Nathalie Normandeau said of the deals. "Today, we can say, 'Mission accomplished.' " Montreal acquires new power to tax assets and property in its territory and to claim royalties for use of resources. The deal also allows Montreal to walk away with $25 million a year in aid from the province starting in 2009, the power to unilaterally set the rate it charges for the "welcome tax" on property sales above $500,000 and a cheque of $9 million a year from the province to cover property tax on the Palais des congrès. The new, potentially sweeping tax power was inspired by the City of Toronto Act, Normandeau said. Using that legislation, Toronto is now creating a personal vehicle tax that it will begin charging car owners this fall. The Montreal deal would overhaul the governance of the downtown Ville Marie borough. It would also bestow status on the city as the metropolis of Quebec, which would be written into the city charter. As well, the deal would allow city council to centralize any borough responsibility in case of danger to health or safety by a majority vote for up to two years. And in response to criticism of the way the city bypassed its independent public-consultation office to approve the redevelopment of Griffintown this spring, the deal would extend the boroughs' power to initiate changes to the city's urban plan to the city council and require such changes to be sent to hearings by the public-consultation office. Tremblay refused to say what new taxes he would create. "We're not going to identify an additional source of taxation today," he said, adding that Toronto spent a year consulting businesses and groups before deciding what new taxes to create. http://www.canada.com/montrealgazette/news/index.html

Ottawa pledges tax cuts as surplus soars STEVEN CHASE Globe and Mail Update September 27, 2007 at 1:02 PM EDT The Canadian government racked up a monster surplus of about $14-billion for the last fiscal year, Ottawa reported Thursday. It said it has used the surplus to retire national debt and will funnel the $725-million interest saved as a result to Canadian taxpayers through tax cuts. That is a break of about $30 to $40 per tax filer in annual savings, depending on how it is allocated. That surplus far exceeds the $9.2 billion forecast in the last budget. Prime Minister Stephen Harper congratulates Finance Minister Jim Flaherty on March 19 after the government's budget speech. It is an embarrassment of riches for the Conservative government of Prime Minister Stephen Harper, which said Canadians were overtaxed when it took office and vowed that there would be no more surplus surprises. Ottawa's coffers are swollen by extra personal and corporate income-tax revenue generated by richer profits from a commodity boom. By law, all this excess cash – $14.2 billion – has been used to pay down Canada's debt and is not available for spending. However, the interest savings generated by the debt paydown – a fraction of the overall surplus – will be used to fund tax reductions, as promised by the Harper government. The surplus hit $13.8-billion and Ottawa ultimately reduced its debt by $14.2-billion last year, the government announced.