Ville de Montréal · Michel Plante Edgar A. Rouleau Frank Venneri Commission sur les arts, la culture et le patrimoine Chairman Claude Trudel Vice-chairwoman Hasmig Belleli Members

Ville de MontréalANNUAL F INANCIAL REPORT

2 0 0 2

Year ended December 31 , 2002

pio-rapport couverture/anglais 03/09/03 9:48 Page 1

Ville de MontréalANNUAL F INANCIAL 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 financesDirection de la comptabilité et du contrôle financier

Ville de Montréal

Nota bene

The Ville de Montréal will enterthis document for the Canadianaward of excellence for financialreports submitted by municipal-ities given annually by theGovernment Finance OfficersAssociation (GFOA) of the UnitedStates and Canada.

The Canadian award of excel-lence recognizes municipaladministrations whose annualreports are deemed to fulfil, insubstance, the evaluation criteriaset by the organization.

The Ville de Montréal feels thatthis document meets all GFOAcriteria and consequently, intendsto submit it for the Canadianaward of excellence for finan-cial reports.

Ville de Montréal

Table of Contents

PageA • 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 InformationEquivalent 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

III

AHUNTSIC-CARTIERVILLE

Beauchamp, MauriceDistrict of Saint-Sulpice

Belleli, HasmigDistrict of Acadie

Eloyan, NoushigDistrict of Cartierville

Lapointe, PierreDistrict of Ahuntsic

Polcaro, AchilleDistrict of Sault-au-Récollet

ANJOU

Beaupré, Carol

Miranda, Luis

Hénault, Andrée

BEACONSFIELD/BAIE-D’URFÉ

Kemp, Roy A.

(Vacant) District of Beaurepaire

Parent, Anne-MarieDistrict of James Morgan

CÔTE-DES-NEIGES/NOTRE-DAME-DE-GRÂCE

Applebaum, MichaelDistrict of Notre-Dame-de-Grâce

Rotrand, MarvinDistrict of Snowdon

Searle, JeremyDistrict of Loyola

Senécal, FrancineDistrict of Côte-des-Neiges

Tremblay, MarcelDistrict of Décarie

Zajdel, SaulieDistrict of Darlington

CÔTE-SAINT-LUC/HAMPSTEAD/MONTRÉAL-OUEST

Berku, Dida

Libman, Robert

Housefather, Anthony

DOLLARD-DES ORMEAUX/ROXBORO

Janiszewski, Edward

Zingboim, Howard

Bayouk, Zoe

DORVAL/L’ÎLE-DORVAL

Yeomans, Peter B.

Bourbeau, Robert M.District of Strathmore

Rouleau, Edgar A. District of Désiré-Girouard

KIRKLAND

Meaney, John W.

Gibson, MichelDistrict of Côte-Sainte-Marie

MacDonald, Brian B. District of Brunswick

LACHINE

Cowell-Poitras, Jane

Dauphin, Claude

Blanchet, Bernard

LASALLE

Barbe, Manon

Deschamps, Richard

Farinacci, Alvaro

Kaluzny, OksanaDistrict of Sault-Saint-Louis

Vadacchino, MichaelDistrict of Cécil P. Newman

L’ÎLE-BIZARD/SAINTE-GENEVIÈVE/SAINTE-ANNE-DE-BELLEVUE

Cardinal, Jacques

Bélanger, RichardDistrict of Jacques-Bizard

Tierney, BillDistrict of l’Anse-à-l’Orme

MERCIER/HOCHELAGA-MAISONNEUVE

Dompierre, RicherDistrict of Maisonneuve

Faust, LynDistrict of Louis-Riel

Larivée, LucDistrict of Hochelaga

Le Duc, IvonDistrict of Tétreaultville

Saint-Arnaud, ClaireDistrict of Longue-Pointe

MONTRÉAL-NORD

Gibeau, Jean-Marc

Infantino, James V.

Parent, Marcel

Fortin, NormandDistrict of Ovide-Clermont

Morin, Georgette L.District of Marie-Clarac

Members of the City Counciland of the borough councils1

1 In conformity with the act on municipal mergers, certain boroughs are divided into electoral districts. In these cases, the district name is indicated below that of the councillor.

Member of the City Council and of the borough council

Borough councillor

BOROUGHSGérald TremblayMayor

MONT-ROYAL

Caron, Suzanne

Carrie, CliffDistrict of Frederick G. Todd

Stephens, NicholasDistrict of Rockland

OUTREMONT

Harbour, Stéphane

Cinq-Mars, MarieDistrict of Joseph-Beaubien

Piquette, Claude B.District of Jeanne-Sauvé

PIERREFONDS-SENNEVILLE

Ward, Bertrand A.

Worth, Monique

Leblanc, René E.

PLATEAU-MONT-ROYAL

Fotopulos, HelenDistrict of Mile End

Poulin, ChristineDistrict of Laurier

Prescott, MichelDistrict of Jeanne-Mance

Tétrault, NicolasDistrict of Plateau-Mont-Royal

POINTE-CLAIRE

McMurchie, Bill

Iermieri, AldoDistrict of Donegani

Trudeau, MorrisDistrict of Valois

RIVIÈRE-DES-PRAIRIES/POINTE-AUX-TREMBLES/MONTRÉAL-EST

Maciocia, CosmoDistrict of Marc-Aurèle-Fortin

Minier, MariusDistrict of Pointe-aux-Trembles

Paul, ColetteDistrict of Bout-de-l’Île

Plante, MichelDistrict of Rivière-des-Prairies

ROSEMONT/LA PETITE-PATRIE

Bourque, PierreDistrict of Marie-Victorin

Larouche, DeniseDistrict of Vieux-Rosemont

Plante, Jean-FrançoisDistrict of Louis-Hébert

Purcell, FrançoisDistrict of Saint-Édouard

Thibault, NicoleDistrict of Étienne-Desmarteau

SAINT-LAURENT

DeSousa, Alan

Dussault, René

Grundman, Irving

Biron, Michèle D.District of Norman McLaren

Cohen, MauriceDistrict of Côte-de-Liesse

SAINT-LÉONARD

Bissonnet, Yvette

Perri, Dominic

Zampino, Frank

Battista, MarioDistrict of Port-Maurice

Zambito, Robert L.District of Grande-Prairie

SUD-OUEST

Bousquet, RobertDistrict of Émard

Hamel, Line District of Louis-Cyr

Montpetit, JacquelineDistrict of Pointe-Saint-Charles

VERDUN

Bossé, Georges

Dugas, Laurent

Trudel, Claude

Gallagher, JohnDistrict of Desmarchais-Crawford

Marotte, GinetteDistrict of Champlain

VILLE-MARIE

Laramée, RobertDistrict of Saint-Jacques

Lemay, MartinDistrict of Sainte-Marie

O’Sullivan-Boyne, LouiseDistrict of Peter McGill

VILLERAY/SAINT-MICHEL/PARC-EXTENSION

Deros, MaryDistrict of Parc-Extension

Lachance, SylvainDistrict of Villeray

Samson, Anie District of Jarry

Tamburello, PaoloDistrict of Saint-Michel

Venneri, FrankDistrict of Jean-Rivard

WESTMOUNT

Marks, Karin

De Castell, JohnDistrict of Côte-Saint-Antoine

Lulham, CynthiaDistrict of W. D. Lighthall

IV

ASSOCIATE COUNCILLORS

Michael Applebaum

Manon Barbe

Suzanne Caron

Stéphane Harbour

Luis Miranda

Marvin Rotrand

Marcel Tremblay

Claude Trudel

The Executive Committee

Gérald TremblayMayor

Frank ZampinoChairman of the

Executive Committee

Francine SenécalVice-chairwoman of the

Executive Committee

Michel PrescottVice-chairman of theExecutive Committee

Louise O’Sullivan-BoyneMember of the

Executive Committee

Cosmo MaciociaMember of the

Executive Committee

Robert LibmanMember of the

Executive Committee

Helen FotopulosMember of the

Executive Committee

Alan DeSousaMember of the

Executive Committee

Claude DauphinMember of the

Executive Committee

Georges BosséMember of the

Executive Committee

Peter B. YeomansMember of the

Executive Committee

V

Commission sur lestransports

ChairmanJeremy Searle

Vice-chairmanMaurice Beauchamp

MembersMichael Applebaum

Pierre Lapointe

Marius Minier

Anne-Marie Parent

Bill Tierney

Commission sur lesfinances, le capitalhumain et les services aux citoyens

ChairmanEdward Janiszewski

Vice-chairmanBertrand A. Ward

MembersAnthony Housefather

Claude B. Piquette

Michel Plante

Edgar A. Rouleau

Frank Venneri

Commission sur lesarts, la culture et le patrimoine

ChairmanClaude Trudel

Vice-chairwomanHasmig Belleli

MembersManon Barbe

Marie Cinq-Mars

Karin Marks

Ginette Marotte

Jean-François Plante

Commission sur le développementéconomique et leCentre des affaires

ChairmanRichard Deschamps

Vice-chairmanCarol Beaupré

MembersMichèle D. Biron

Robert Bousquet

Cliff Carrie

Richer Dompierre

Howard Zingboim

Commission sur les relations interculturelles,l’habitation et ledéveloppement socialet communautaire

ChairwomanJane Cowell-Poitras

Vice-chairwomanMary Deros

MembersRichard Bélanger

Maurice Cohen

Oksana Kaluzny

Sylvain Lachance

John W. Meaney

Commission sur l’urbanisme, l’aménagement du territoire, l’environnement et ledéveloppement durable

ChairwomanSuzanne Caron

Vice-chairmanStéphane Harbour

MembersRobert Bourbeau

Jacques Cardinal

Dominic Perri

François Purcell

Anie Samson

Commission sur la présidence

PresidentMarcel Parent

Vice-chairwomanClaire Saint-Arnaud

MembersDida Berku

Luc Larivée

Cosmo Maciocia

Marvin Rotrand

Anie Samson

Commission de lasécurité publique

ChairmanPeter B. Yeomans

Vice-chairmanMarcel Tremblay

MembersJean-Marc Gibeau

Roy A. Kemp

Claire Saint-Arnaud

Monique Worth

VI

Standing committees of Council andCommission de la sécurité publique

VII

Message from the Mayor and theChairman 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.

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

Fleuve

Saint-Laure

nt

Fleuve Saint-Laurent

Lac desDeux Montagnes

LacSaint-Louis

Canal de Lachine

Canal de l’Aqueduc Îledes Soeurs

Rivière des MilleÎle

s

Rivière desPrairies

Laval

0 3 6 km

Longueuil

The territory of Montréaland its 27 boroughs

Saint-Laurent

Lachine

Côte-Saint-Luc/Hampstead/

Montréal-Ouest

LaSalleVerdun

Sud-Ouest

WestmountVille-Marie

Mont-Royal

OutremontPlateau-Mont-Royal

Rosemont/La Petite-Patrie

Villeray/Saint-Michel/Parc-Extension

Ahuntsic-Cartierville

Montréal-Nord

Saint-Léonard

Anjou

Mercier/Hochelaga-

Maisonneuve

Rivière-des-Prairies/Pointe-aux-Trembles/

Montréal-Est

Pointe-Claire

Dollard-Des Ormeaux/Roxboro

Dorval/L’Île-DorvalCôte-des-Neiges/

Notre-Dame-de-Grâce

L’Île-Bizard/Sainte-Geneviève/

Sainte-Anne-de-Bellevue

Pierrefonds-Senneville

Beaconsfield/Baie-D’Urfé

L’Île-Bizard/Sainte-Geneviève/

Sainte-Anne-de-Bellevue Kirkland



Montréal is a unique city that takes its differences and contrasts in stride.

With a wealth of experience acquired over360 years of history, Montréal, one of theoldest cities in North America, remainsremarkably young and vibrant. This secondlargest francophone city in the world is alsohome to dozens of different communities,speaking many languages. But there is evenmore to Montréal's uniqueness.

Montréal is an ode to diversity. Its residentsare living proof of the possibility of a globalvillage. Montrealers by birth or by adoptionand those who are only passing through live together side by side in harmony. Theresulting cultural mix fosters exceptionalartistic activity. Many Montréal artists havemade their mark on the international scene: Céline Dion, the Cirque du Soleil,Michel Tremblay, Betty Goodwin andLeonard Cohen, to name a few.

This plurality is also evident in everyday life.Commercial streets and public markets arecosmopolitan meeting places. We have aChinatown, a Little Italy and a LittlePortugal, but no ghettos. Montréal's diver-sity also extends to its climate, where thechanging seasons redecorate the city atvery little cost!

Another Montréal paradox is that while itoffers comfortable living, it is also knownfor its nightlife. Openness to the worldmakes Montréal a joyous, gastronomic city,qualities that are reflected not only in itsmany restaurants and cafes, but also in itsinternational festivals and events. At culturalor sporting activities, Montrealers celebratelife 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 answerlies in the fact that Montréal is also anisland, and that its shores, mountain, canaland vast parks have managed to preserve arural, peaceful quality.

And although several boroughs may resem-ble a country village, Montréal is definitelya city of business and action. In addition to the lively downtown area with its skyscrapers and commercial buildings, thecity has many industrial parks, where agreat variety of high-tech products aredeveloped and manufactured. Montréal'seconomy is carving out a leading place for itself in the knowledge industries, suchas biopharmaceuticals, aerospace andtelecommunications.

Montréal is a well-situated island. At theentrance to the Great Lakes, it opens ontothe heart of North America, and also providesquick access to the New England states. Thisstrategic location has been and continuesto be a significant advantage. Many multi-nationals choose Montréal as their gatewayto the eastern U.S. market. And this doesn'ttake into account the financial institutions,international organizations and consulatesthat have settled in the city...

Montréal offers a world of possibilities. A unique, contrasting world that is in constant evolution. The world of Montréal!

XI

A profile of Montréal

A c i ty of contrasts

104Borough councillors, of

whom 73 are also members

of the city council, in addi-

tion to the mayor.

27Boroughs making up the

territory of the new city:

nine from the former cities

of Montréal and Montréal-

Est, and 18 constituted from

the 27 former suburban

municipalities.

$3,657,967,2002002 budget of the Ville

de Montréal.

23,114City employees, in person-

years. The Société de trans-

port de Montréal represents

another 7,181 person-years.

1,838,474Residents making up the

population of Montréal.

They account for over half

the population living in the

census metropolitan area

(CMA), and more than a

quarter of the population

of Québec. A cultural mosaic,

Montréal's population

comprises members of some

100 different communities.

482.84Square kilometres of

Montréal territory, which

includes 11 islands. The

largest, the island of

Montréal, is 50 kilometres

long and 16 kilometres

across at its widest point.

$104 billionTotal property values on

Montréal territory (405,838

valuation units).

772,340Housing units in Montréal,

ranking the city first in

North America and fifth in

the world in terms of

price-space ratio: 66% of

residents are tenants, and

34% own their homes.

US$91.2 billionGross domestic product, or

the “value of all goods and

services produced” in the

Montréal metropolitan area

in 2000, ranking it 19th

among North American

urban agglomerations.

450University and private

research centres that make

Montréal an important

centre for innovation.

4,800Manufacturing companies

providing 150,000 jobs and

making Montréal the third

city in North America in

terms of total number of

jobs in the manufacturing

sector.

260Companies operating in

the aerospace industry,

concentrating in the

Montréal area 55% of

activities in this sector of

the Canadian economy,

and employing some

42,000 people.

1,017,000Jobs within the Montréal

territory, representing 69.7%

of jobs in the metropolitan

area.

XII

A profile of Montréal

20,700,000Metric tonnes of merchan-

dise passing through the

port of Montréal in 2000,

the second largest port on

the eastern coast of North

America.

309,088Conventioneers in Montréal

in 2001; the city ranks third

in North America in annual

number of international

conventions.

$450,000,000Spent annually in the metro-

politan area by business

travellers and conventioneers.

$632,000,000In investment in the film

and television industries for

the 584 productions shot in

Montréal in 2001. These

investments generated eco-

nomic spinoffs of approxi-

mately $521,500,000.

9,700,000Tourists who visited the

metropolitan area in 2001.

40International festivals and

events presented every

year. They contribute to

Montréal's cultural wealth,

and place it on a par with

other leading cultural cities,

such as London, Paris and

New York.

4Universities, two French-

and two English-language,

with which are associated

renowned schools, such as

the École des hautes études

commerciales, École poly-

technique, École nationale

d'administration publique,

École de technologie

supérieure, and Institut

national de la recherche

scientifique.

33Hospitals that are at the

heart of the healthcare net-

work that also includes 29

Centres locaux de services

communautaires (CLSC).

426,910,240Rides taken annually by

users of the public transpor-

tation network, composed

of a Métro with 66 km of

underground tunnels and

65 stations, 173 bus routes

and 5 commuter trains.

5,617Kilometres of roads and 883

kilometres of railway track.

30Kilometres of corridors,

indoor malls and tunnels,

making Montréal the leader

in terms of underground

networks of this type. Every

day, 500,000 people are able

to go about their business

protected from the elements.

140Kilometres of bicycle paths

that contribute to making

Montréal the top cycling

city in North America,

among cities with a popu-

lation of over one million.

Montréal is also home to

88 major corporate head-

quarters, as well as 70

international organizations,

46 consulates general, and

87 international financial

institutions.

XIII

CITY COUNCILMAYOR

Public security commissionStanding committees of Council and

commissions

Arts councilIntercultural council

Ombudsman

Public consultation office

Auditor’s office

Société de transport de MontréalExecutive Committee

DIRECTION GÉNÉRALERobert AbdallahDirector-general

Borough councilsPresidents

Urban-planningconsulting committees

Borough co-ordinationEast Stella Guy, assistant director-generalCentral Gaétan Laberge, assistant director-generalWest Duncan E. Campbell, assistant director-general

Service de la sécurité publique

VacantAssistant director-general

Service des ressourcesmatérielles et informatiques

Roger GalipeauAssistant director-general

Service des finances

André DelisleAssistant director-general

Service des ressourceshumaines

Michel Ste-MarieAssistant director-general

Service du secrétariat général


Service du développementculturel

Rachel LaperrièreAssistant director-general

Service des parcs, des espacesverts, des sports et des loisirs


Service de l'environnement, dela voirie et des réseaux

Yves ProvostAssistant director-general

Service du développementsocial et communautaire

Service du développement écono-mique et du développement urbain

Anjou Borough

Jacques RiouxDirector

Mercier/Hochelaga-Maisonneuve

BoroughMichel Archambault

Director

Montréal-NordBorough

Daniel L'ÉcuyerDirector

Rivière-des-Prairies/Pointe-aux-Trembles/Montréal-Est Borough

Pierre SantamariaDirector

LaSalle Borough

Gervais LemayDirector

Mont-Royal Borough

Ava L. CouchDirector

Outremont Borough

Pierre A. ChapuisDirector

Plateau-Mont-Royal Borough

Johanne FalconDirector

Ahuntsic-CartiervilleBorough

Louis B. ProvencherDirector

Beaconsfield/Baie-D'Urfé Borough

Patrice BoileauDirector

Côte-Saint-Luc/Hampstead/ Montréal-

Ouest Borough

David JohnstoneDirector

Dollard-DesOrmeaux/

Roxboro BoroughJack Benzaquen

Director

Dorval/L'Île-Dorval Borough

Pierre LarivéeDirector

Rosemont/La Petite-Patrie

BoroughPaul Bourret

Director

Saint-LéonardBorough

Gérard SoulardDirector

Villeray/Saint-Michel/Parc-

Extension BoroughErick Santana

Director

Sud-Ouest Borough

Gilles RainvilleDirector

Ville-Marie Borough

Jean MercierDirector

Verdun Borough

Gilles BarilDirector

Westmount Borough

Bruce Saint-LouisDirector

Lachine Borough

Pierre BernardinDirector

Pierrefonds/Senneville Borough

Jacques ChanDirector

Pointe-ClaireBorough

Richard WhiteDirector

Saint-LaurentBorough

Robert FortinDirector

Service de police

Michel SarrazinDirector

Public service commission

Côte-des-Neiges/Notre-Dame-de-Grâce BoroughGaétan RainvilleInterim director

Kirkland Borough

Barry WeldonDirector

L'Île-Bizard/Sainte-Geneviève/Sainte-Anne-de-Bellevue

BoroughJean-Paul Collinge

Director

East boroughs

Central boroughs

West boroughs

Direction de l'évaluationfoncière

Jean BélangerDirector

Direction des communicationset des relations avec les

citoyensJean-Robert Choquet

Director

Electrical services commission

Berthier LandryChairman

Ville de MontréalOrganizational Chart

March 31, 2003

Source : Direction du développement de l'organisationService des ressources humaines

Direction des institutionsscientifiques

Michel LamontagneDirector

Service de sécurité incendiede Montréal

Alain MichaudDirector

Jean-François ViauChairman

Michel DoyonDirector

Heritage council

Planning office

Guy HébertAssistant director-general

Cameron CharleboisAssistant director-general

Political bodies Organizations Municipal departments Boroughs

Jacques-Errol GuérinChairman

OVERVIEW OF FINANCIAL ACTIVITIES AND YEAR 2002 REVIEW

XVII

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.


XVIII

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.


XIX

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.


XX

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.


XXI

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.


XXII

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.


XXIII

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.


XXIV

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

expenditures

13.2 30.0 16.8

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.


XXV

Summary of 2002 Revenues(in millions of dollars)


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.


XXVI

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)


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


XXVII

Long-Term Financing of Financial Activity Expenditures(in millions of dollars)


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.


XXVIII

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.


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.


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.



XXIX

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).


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

Quebec and third parties

1,246.3 1,284.3 (38.0)

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.


XXX

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.


XXXI

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.


XXXII

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).

B FINANCIAL REPORTINGFinancial statements

The Municipal Administration's Responsibility for Financial Reporting

The tinancial statements in this report have been prepared taking into consideration the Charter of theVille de Montréal and œrtain specitic points related to Québec municipal accounting. as described inNote 3 herein.

The financial statements and ail the information included in the present annual financial report are theresponsibility of the Municipal Administration. The Municipal Administration has also ensuredconsistency between the financial statements and ail other information disclosed in the annualfinancial report.

To assess certain facts and operations. the Municipal Administration has made estimates based onits best appreciation of the situation and taking into account the materiality.

The Municipal Administration is responsible for maintaining appropriate internai contrai and accountingsystems which provide reasonable assurance that the policies of the City are followed, that itsoperations are carried out with the appropriate authorizations, that its assets are adequatelysafeguarded 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 municipaltem"torial organization of the metropolitan regions of Montrea/, Québec and the Outaouais, the powersof 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 theExecutive Committee. The Chairman of the Executive Committee, the Director-General and the DeputyDirector-General, Finanœ, and Treasurer, are responsible for examining the financial statements andthe annual financial report and for meeting with the auditor general and the external auditors todiscuss internai contrais.

The financial statements were audited by the auditor general of the City and by two extemal audit firmswhose services were retained by the City Council, namely Samson Bélair/Deloitte & Touche, SEN.C.and KPMG LLP.

The balance sheet as at January 1, 2002 has been compiled from the December 31, 2001 financialstatements of the organizations amalgamated by the Act. Those December 31, 2001 financialstatements were audited, in part, by the auditor of the former Ville de Montréal and by several otherauditors, who issued, in 2002, a report on each of the amalgamated organizations.

~-tAÀ,-t:.< C\

"l

,

Robert AbdallahDirector-General

André DelisleDeputy Director-General, Financeand Treasurer

Montréal, June 11, 2003

of

VILLE DE MONTRÉAL

Bureau du vérificateur général333. rue Saint-Antoine EstBureau 510Montréal (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 thestatements of financial activities, investment activities, surplus and reserved funds, cost of municipalservices, 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. Thosestandards require that 1 plan and perform an audit to obtain reasonable assurance whetherthe financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit al 50 includes assessingthe 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 positionof the City as at December 31, 2002 and the results of its operations and the changes in its financialposition 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 1 express no opinion, has been compiled from thefinancial statements as at December 31, 2001 of the amalgamated entities described in Note 1. Thefinancial statements as at December 31,2001 were audited by other auditors who, in 2002, expressedan opinion without reservation on those financial statements in their reports.

Montréal, June 11,2003

2

Samson DélairDeloitteBr ToucheSamson Bélair/Deloitte & Touche. SENCAssurance and Advisory Services1 l'Iuc" Ville-Muri"Suilc ,CHIOM'!I1lr.:ul Q<: 1131! 4T9

Icleph(!I1e (514)393-7.115l''ux :\514)390-1111\\'\\'\v.deloiUeClI

KPMG LLPChartered Accountants2000 McGi11 Collcgc A,cnueSuite 19()()Montré/Il (Québec) Il:lA :11-18

,el"'Ph(lI1c: (514)840-2100l"ax: (514)840-2187

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 offinancial activities, investment activities, surplus and reserved funds, cost of municipal services, net investment inlong-term as sets and changes in financial position for the year then ended. These financial statements are theresponsibility of the Municipal Administration. Our responsibility is to express an opinion on these financial statementsbased on our audit

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we plan and perform an audit to obtain reasonable assuranœ whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used and thesignificant estimates made by the Municipal Administration, as weil as evaluating the overall financial statementpresentation.

ln our opinion, the se financial statements present fairly, in ail material respects, the financial position of the City as atDecember 31, 2002 and the results of its operations and the changes in its financial position for the year then endedin 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 financialstatements as at December 31, 2001 of the amalgamated entities described in Note 1. The financial statements as atDecember 31, 2001 were, in most cases, audited by other auditors who, in 2002, expressed an opinion withoutreservation on those financial statements in their reports

.&.,;::{?.~;?/ 4-.'\""

'~~:.e~ ~-~&i ~Chartered Accountants Chartered Accountants

Montréal, Canada

June 11, 2003

OeloitteToucheTohmatsu

KPMG LLP. . Canodion owned limitcd li.bliity _enhip ..tabl,shed wœ

thel... of 0.11.;0. i. . member flrm of KPMG In..mational. . SWISS

3

Ville de Montréal

Balance SheetAs at December 31, 2002

December 31, January 1,

Notes 2002 2002ASSETS

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

LIABILITIESCurrent

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' EQUITYUnrestricted 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.

(in thousands of dollars)

4

Ville de Montréal

Statement of Financial ActivitiesYear ended December 31, 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



2002

5

Ville de Montréal

Statement of Investment ActivitiesYear ended December 31, 2002

Note

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





Health and welfare 3



Electricity 1,215 395

16 446,535 380,845

Investment activity deficiency for the year (242,871)



2002

6

Ville de Montréal

Statements of Surplus and Reserved fundsYear ended December 31, 2002

SURPLUS

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

Balance as at 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


Financial activities Investment activities



7

Ville de Montréal

Statement of Cost of Municipal ServicesYear ended December 31, 2002


Operating Financingexpenditures expenses

Expenditures





Health and welfare 102,692 577




Financing expenses 457,337 (457,337)

3,155,371


8

Ville de Montréal

Statement of Cost of Municipal Services (continued)Year ended December 31, 2002

Deferred Operatingsubsidies subsidies (Gain) loss Cost of

Capital (governments and (governments and Services on municipalassets 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

Amortization

9

Ville de Montréal

Statement of Net Investment in Long-Term AssetsYear ended December 31, 2002

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



10

Ville de Montréal

Statement of Changes in Financial PositionYear ended December 31, 2002

Notes 2002

Operating activitiesSurplus 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 activitiesDisposal 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 activitiesProceeds 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


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 Fundsother than the Sinking Fund.


11

Ville de Montréal

Notes and Schedules to the Financial StatementsDecember 31, 2002

12

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 municipalterritorial organization of the metropolitan regions of Montréal, Québec and the Outaouais (the Act), assented to December 20, 2000 by theGovernment of Québec. The City brings together the Communauté urbaine de Montréal, the 28 municipalities of the island of Montréal andthe 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 atDecember 31, 2001 of the amalgamated municipal organizations described in Note 1 and the Montréal Transition Committee. The balancesheets are from the financial statements of these organizations, which have, in most cases, been audited by other auditors. Certain figureshave been adjusted to eliminate interorganization balances or to conform to the new legal requirements in effect and the presentation adoptedfor 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 andwith 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 consolidatedwith 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 arerecognized 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 cashbasis of accounting: interest income from Sinking Fund investments, including their reinvestment, and from long-term receivables, and interestexpense on long-term debt, including any refinancing until the debt is extinguished. The counterpart entry to accrued interest receivable andpayable 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 describedin Note 3 o).

b) Use of estimates

The preparation of the financial statements, in accordance with generally accepted municipal accounting principles in Québec , requiresmunicipal 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 orpremium on investments is amortized on a straight-line basis to maturity. The amounts accumulated in “Investments – Sinking Fund” arerestricted 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.

Ville de Montréal

Notes and Schedules to the Financial Statements (continued)December 31, 2002

13

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 basisfor 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 realestate 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 thebalance of the debt related to the loan by-law ; proceeds of disposal exceeding the balance of debt are recorded in the Statement of FinancialActivities. These deferred revenues are amortized on a straight-line basis over the remaining term of the loan by-law. Deferred revenues fromthe 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 samebasis 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 CityCouncil.

Ville de Montréal


14


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 financingexpenses 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 andcertain other retirement benefits, related to life insurance and insurance covering the reimbursement of medical and dental expenses , are paidto 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 balancesheet. The obligation is determined through actuarial valuations based on actuarial assumptions and according to the municipaladministration’s best estimate assumptions. The plans’ assets are valued using a market-related value, determined over a period notexceeding five years. The counterpart entry to the net obligation is included in the balance sheet in “Amount to be provided.” The actuarialvaluations 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 paymentcontribution 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. Theexpense 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 etd’assurances du Québec . The expense for the year corresponds to the current service contribution.

Ville de Montréal


15


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. Theseprovisioned costs equal the present value of the recovery, control and maintenance expenses of biogas systems and leachates. Theseestimated 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 ofsanitary 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 onthe transaction date.

Investments and loans denominated in foreign currencies are translated using the exchange rates prevailing on the balance sheet date. Debtsubject 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 theexchange rates prevailing at the transaction dates. Gains and losses resulting from the difference between the historical foreign exchange rateand the foreign exchange rate in effect at the date of repayment or payment are charged to revenues and expenditures in the Statement ofFinancial Activities.

The difference between gains and losses resulting from the translation of monetary items at the rate prevailing on the balance sheet date andexchange 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 theloan by-laws.

s) Presentation of operating expenditures

General administration comprises all activities related to municipal administration and management. Expenditures are primarily related to theoperations 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 peopleand goods.

Environmental health encompasses expenditures related to aqueduct and sewer systems , waste management and protection of theenvironment.

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 developthe 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 areshown in the section “Other Financial Activities.”

Ville de Montréal


16


t) Budget data

Budget data related to financial activities include the forecasts adopted by the City Council in February 2002. Budget data related toinvestment activities are taken from the three-year capital expenditure program adopted by the City Council in February 2002 and amended bythe Executive Committee in June 2002.

4- CASH AND INVESTMENTS(in thousands of dollars)

January 1, 2002

SinkingFund 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

December 31, 2002

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 millionas 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%

Ville de Montréal


17

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)


Unrealized net foreign exchange losses 27,835 34,416Assisted departure program 18,658 25,377Elected officials' compensation program 2,467 3,278Issue costs 975 1,135Other assets 13,671 6,914

63,606 71,120

7- LONG-TERM RECEIVABLES(in thousands of dollars)


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.

Ville de Montréal


18

8- CAPITAL ASSETS (in thousands of dollars)

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

December 31, 2002

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 inCanadian or US dollars at floating rates based on the Canadian prime rate, the US prime rate, LIBOR or bankers’ acceptance rate. As atDecember 31, 2002, the lines of credit are undrawn.

10- ACCOUNTS PAYABLE, PROVISIONS AND ACCRUED LIABILITIES(in thousands of dollars)


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

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11- LONG-TERM DEBT(in thousands of dollars)


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:


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. Theseinstruments consist primarily of currency and interest-rate swap agreements that mitigate the exchange risks associated with the repayment ofdebt 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 theuse of financial instruments. When the City uses derivative financial instruments, it only deals with recognized institutions with a higher creditrating 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 theloans 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 millionas 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.

Ville de Montréal


20

11- LONG-TERM DEBT (continued)(in thousands of dollars)

Estimated payments on long-term debt are as follows:

MaturityMaturity 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 Cityemployees:

(in thousands of dollars) December 31 January 1

2002 2002Pension 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 totalobligation 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 pensionplan 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 valuationallowance of $741 million ($791.2 million as at January 1) has been recorded to reflect the existence of projected surpluses, to be sharedaccordingly 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).

Ville de Montréal


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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:

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%

Pension plans Other employee future benefits

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 graduallydecreased 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 presentvalue 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)


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, theaccumulated surplus as at December 31, 2001 of the amalgamated municipalities is credited to taxpayers of those municipalities.

Ville de Montréal


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14- NET INVESTMENT IN LONG-TERM ASSETS (in thousands of dollars)


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' EQUITYAccounts 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 2002Revenues

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)

Ville de Montréal


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16- INVESTMENT EXPENDITURES(in thousands of dollars)

Real estateassets

intended Long-termCapital assets for sale receivables Total

General administration 27,649 27,649Public safety 27,325 27,325

Transportation 144,217 144,217Environmental health 80,705 6,088 86,793

Health and welfare 3 3Urban planning and development 15,883 9,302 3,605 28,790

Recreation and culture 64,743 930 65,673Electricity 395 395

360,920 9,302 10,623 380,845

2002

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 aschanges 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

Ville de Montréal


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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 aprivate organization under an agreement ending on December 31, 2024, and renewable for a minimum additional period of ten years. Uponthe expiry of the agreement, the City is required to repurchase from the organization the capital assets used for metered parking. As atDecember 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 abalance 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 millionregarding the existence of flowering ragweed on City land. In the opinion of the City’s legal counsel, the settlement of these claims will notmaterially 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 itsprobable 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 financingof 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 notbe reimbursed by the Government of Québec or by the Agence métropolitaine de transport. The indirect debt comprises the City’s share of thedebt of the following organizations as at December 31, 2002:

(in thousands of dollars)Anjou 80 4,546

Société de développement de Montréal 128,134Société 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 outstandingbalance is $134.4 million as at December 31, 2002. The City is also responsible for temporary loans of these corporations which, as atDecember 31, 2002, totalled $44.6 million. The City will also defend the Société du parc des Îles against any legal action resulting fromthe performance of its mandate.

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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 NationalAssembly. The CMM ensures consistency of municipal actions as concerns the provision of drinking water and water purification across theentire territory of the Montréal region. The CMM also has jurisdiction over several other areas, including land-use management, economicdevelopment, 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 withrespect 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 Cityand, at the City’s request, administer subsidy programs related to these buildings. The corporations may also save, restore, renovate orrehabilitate buildings of historical or architectural interest and implement any agreements between the Government of Québec and theCity 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 equipmentacquired 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.

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20- INFORMATION ON CORPORATIONS INCLUDED IN THE FINANCIAL REPORTING ENTITY (continued)

a) Equity and results(in thousands of dollars)

Total TotalDecember 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.

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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 tothe pension plans of the former Ville de Montréal, due through to December 31, 2045. To carry out the aggregate of the financing, severalevents must occur. Legislative amendments must be passed prior to the payment of this obligation and agreements must be concluded withthe 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 theCanadian financial markets on May 8, 2003.

23- AUDITORS’ REPORT

The Auditors’ Report does not cover the supplementary information or the complementary and statistical information.

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)

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

2002

28

Ville de Montréal

Term notes and Schedules to Financial Statements (continued)December 31, 2002

SCHEDULE 2 – LONG-TERM DEBT (in thousands)

January 1,

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



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


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


1983-06-01 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




1986-12-15 Serial bonds 12,858 9.5 to 10.0 2026 11,871 11,988








December 31, 2002

Issue

Balance Outstanding

29

Ville de Montréal


SCHEDULE 2 – LONG-TERM DEBT (continued) (in thousands)

January 1,

2002



A) BONDED DEBTS AND TERM NOTES (continued)

Payable in Canadian dollars (continued)





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



1993-07-14 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


1994-04-19 Serial bonds 5,795 8.0 2004 1,715 1,715


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


1995-07-03 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


1996-03-05 Serial bonds 6,000 7.0 to 7.6 2006 2,860 3,469

December 31, 2002

Issue

Balance Outstanding

30

Ville de Montréal



January 1,

2002





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


1997-04-22 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


1997-07-15 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


1997-09-16 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

Issue

Balance Outstanding

December 31, 2002

31

Ville de Montréal



January 1,

2002





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

Balance Outstanding

December 31, 2002

Issue

32

Ville de Montréal



January 1,

2002





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


1998-09-25 Serial bonds 2,968 5.5 2003 2,313 2,490

1998-09-25 Term note 549 5.91 2003 404 444


1998-10-13 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


1999-07-13 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

Balance Outstanding

December 31, 2002

Issue

33

Ville de Montréal



January 1,

2002





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


1999-11-09 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



2000-01-18 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


2000-04-04 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

Balance Outstanding

December 31, 2002

Issue

34

Ville de Montréal



January 1,

2002





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


2000-08-08 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


2000-11-01 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


2000-12-19 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

December 31, 2002

Balance Outstanding

Issue

35

Ville de Montréal



January 1,

2002





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


2001-07-10 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


2001-09-07 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


2001-11-09 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

Balance Outstanding

December 31, 2002

Issue

36

Ville de Montréal



January 1,

2002





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


1992-05-15 35,790 EUR 8.38 2002


1992-07-13 35,790 EUR 8.45 2002


1992-10-15 8,622,782 YEN 5.5 2002

1992-10-15 70,161 US$ Floating 2002


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


1994-10-26 56,000 US$ Floating 2004


1994-12-06 28,508 EUR 8.375 2004


1995-03-15 50,000 US$ Floating 2005


1995-12-19 5,625,000 YEN Floating 2005


1996-10-16 56,242 EUR Floating 2003


1996-10-16 30,678 EUR Floating 2003


Balance Outstanding

Issue

December 31, 2002

37

Ville de Montréal



January 1,

2002




Loans repayable in Canadian dollars

under currency swap agreements (continued)

1996-11-15 76,694 EUR 6.25 2006


1997-06-20 29,928 EUR Floating 2007


1997-10-30 39,663 EUR 5.625 2007


1998-10-23 29,144 EUR Floating 2008


1999-02-26 68,664 US$ 5.375 2004


2000-02-22 54,000 US$ Floating 2010


2000-12-08 84,553 US$ Floating 2010


2001-05-17 50,000 US$ Floating 2011


2001-05-17 25,000 US$ 6.25 2011


2001-11-14 34,000 US$ Floating 2011


2001-11-14 20,000 US$ Floating 2011


2001-11-26 400,000 NOK 6.75 2008

2001-11-26 45,500 US$ Floating 2008


1,451,542 1,815,166

Total issue in Canadian dollars 4,994,308 5,338,960

Issue

December 31, 2002

Balance Outstanding

38

Ville de Montréal



January 1,

2002




Payable in American dollars

1964-11-01 Sinking Fund bonds 60,000 US$ 5.0 2004 3,000 4,739 7,168



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


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

Issue

December 31, 2002

Balance Outstanding

39

Ville de Montréal



January 1,

2002



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

December 31, 2002

Balance Outstanding

Issue

40

Ville de Montréal

Notes and Schedules to Financial Statements (continued)Year ended December 31, 2002

SCHEDULE 3 - LONG-TERM UNFUNDED INVESTMENT EXPENDITURES

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

Notes and Schedules to Financial Statements (continued)December 31, 2002

SCHEDULE 4 – DIRECT AND INDIRECT DEBT AND LONG-TERM UNFUNDED EXPENDITURES

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).


Ville de Montréal

42

C FINANCIAL REPORTINGSupplementary information

Ville de Montréal

Analysis of Revenues Year ended December 31, 2002

Budget Actual

TaxesOn 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 basisUser 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 taxesOn 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


2002

43

Ville de Montréal

Analysis of Revenues (continued)Year ended December 31, 2002

Budget Actual

Payments in lieu of taxesGovernment of Québec and its enterprises

Government enterprise immovables and establishmentsProperty 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 systemHealth 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 immovablesImmovables 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 enterprisesProperty 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 organizationsCompensation for municipal services 2,553 2,923

Other 1,858 1,778

40,386 40,836

198,318 198,430


2002

44

Ville de Montréal


Budget Actual

Other revenues from local sourcesServices provided to municipal organizations

General administration 17 583

Public safetyPolice 22 Fire protection 295 6 Emergency preparedness 10

327 6

TransportationRoad network 672 229 Other 132

804 229

Environmental healthSupply 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 developmentOther 7,093

Recreation and cultureRecreational activities 740 1,390 Cultural activities 25,438 23,778

26,178 25,168

Debt serviceRepayment of long-term debt 3 Financing expenses

Interest and other charges on long-term debt 63 39

66 39

34,638 28,933


2002

45

Ville de Montréal


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 revenuesFee collection

Licences and permits 9,985 14,330 Real estate transfer fees 46,698 85,678 Other 64

56,683 100,072

Fines and penaltiesTickets - Traffic and parking 96,843 103,313 Other - Fines and penalties 14,020 9,023

110,863 112,336

InterestTax 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 assetsMunicipal 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


2002

46

Ville de Montréal


Budget Actual

TransfersUnconditional transfers

Québec government subsidiesMunicipal 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 transfersGovernment subsidies

General administration 88 14,187

Public safetyPolice 10,000 Fire protection 262 Emergency preparedness 3 522

3 10,784

TransportationRoad network 13,910 20,691 Public transit 74,165 70,734 Other 134 307

88,209 91,732

Environmental healthSupply 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


2002

47

Ville de Montréal


Budget Actual

Transfers (continued)Conditional transfers (continued)

Health and welfare 75,195 74,397

Urban planning and developmentPromotion and economic development 5,598 7,576 Other 9,156 8,271

14,754 15,847

Recreation and cultureRecreational 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


2002

48

Ville de Montréal

Analysis of Operating ExpendituresYear ended December 31, 2002

Budget Actual

General administrationCity 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 safetyPolice 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

TransportationMunicipal 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 healthWater 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 recyclingHousehold 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


2002

49

Ville de Montréal

Analysis of Operating Expenditures (continued)Year ended December 31, 2002

Budget Actual

Health and welfareFood 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 developmentUrban development, planning and zoning 26,101 33,638

Urban redevelopmentHeritage properties 9,983 8,899 Other properties 33,708 31,486

43,691 40,385

Promotion and economic developmentIndustry 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 cultureRecreational 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 activitiesCommunity 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


2002

50

Ville de Montréal

Analysis of Operating Expenditures (continued)Year ended December 31, 2002

Budget Actual

Financing activitiesLong-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


2002

51

Ville de Montréal

Analysis of Cost of Municipal ServicesYear ended December 31, 2002


Operating Financing expenditures expenses

General administrationValuation 18,684 Other 419,792 10,416

438,476 10,416

Public safetyPolice 428,784 5,826 Fire protection 249,446 3,463 Emergency preparedness 1,104 86 Other 26,919 89

706,253 9,464

TransportationRoad network 287,511 97,646 Public transit 269,986 73,850 Other 2,989 687

560,486 172,183

Environmental healthSupply 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 welfarePublic housing 23,555 416 Income security, public employment services and community health 73,984 Other 5,153 161

102,692 577

Urban planning and developmentUrban 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 cultureRecreational activities 290,927 48,199 Cultural activities

Libraries 66,166 2,739 Other 84,842 6,421

441,935 57,359


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

Deferred Operatingsubsidies subsidies Cost of

Capital (governments and (governments and Services (Gain) loss municipalassets 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

Amortization

53

Ville de Montréal

Analysis of Investment Expenditures by TypeYear ended December 31, 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


2002

54

Ville de Montréal

Changes in Sinking Fund InvestmentsYear ended December 31, 2002

Sinking Fund Investments as at January 1, 2002 1,357,651

AddContributions 281,673 Balance of closed loan by-laws recorded in the Sinking Fund 608

282,281

DeductRedemption 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 MaturityDecember 31, 2002


YEARS Maturity (1)To be

refinanced (2)Maturity (1)

To be refinanced (2)

Maturity (1)To be



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.

Bonds and term notes

Canadian dollars American dollars Japanese YenSwiss Francs

56

Ville de Montréal

Long-Term Debt Maturity (continued)December 31, 2002

Net maturity

in

Canadian

Maturity (1)To be



Net maturity Maturity (1)To be

refinanced (2)Net maturity dollars

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

Pounds sterling

Other debt

Canadian dollarsTotal value in Canadian dollars

Bonds and term notes

57

Ville de Montréal

Changes in Long-Term DebtYear ended December 31, 2002


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

D COMPLEMENTARY ANDSTATISTICAL INFORMATION

Ville de Montréal

Equivalent Taxable Valuation, Taxation and CollectionAs at December 31, 2002

59

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. Thefollowing table sets forth the equivalent taxable valuation of the City’s immovables as at December 31, 2002.

(in thousands of dollars) EquivalentValue % Value

Valuation of taxable immovables (1) 86,864,212 100.0% 86,864,212

Valuation of tax-exempt immovablesGovernment of Québec and its enterprises 634,916 100.0% 634,916Government of Canada and its enterprises 1,163,697 74.0% 861,136Foreign governments 44,780 100.0% 44,780Classified immovable cultural property 5,267 100.0% 5,267Health and social services network (2) 2,218,398 92.4% 2,049,800Cégeps and universities (2) 2,346,644 92.4% 2,168,299Primary 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 aratio 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%

Ville de Montréal

2002 and 2003 Tax RatesResidential Immovables 1

Fiscal 2002 Fiscal 2003

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.

Averagecumulative

rate 5

Fees(property tax

equivalent) 4

Sectors 2 Generalproperty

tax 3

Fees(property tax

equivalent) 4

Generalproperty

tax 3

Averagecumulative

rate 5

60

Ville de Montréal

2002 and 2003 Tax RatesNon-Residential Immovables 1

Fiscal 2002 Fiscal 2003

RateProperty tax

equivalent 3

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.

Property tax non-residential

immovables

category 5

Sectors 2 Generalproperty

tax

Property taxon non-residential

immovables

Combined rate for non-residential

immovables 4

Business taxes

61

Ville de Montréal

Property Values in the Boroughs

Taxable value ($M) Total roll

ResidentialCommercial/

industrialVacant

lotsValue($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/Montréal-Ouest

11,712 2,563,4 127,9 49,2 254,7 2,995,2 2,9 %

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/Sainte-Anne-de-Bellevue

7,981 939,5 91,8 32,8 287,1 1,351,2 1,3 %

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-Trembles/Montréal-Est

31,704 3,157,9 1,039,8 177,9 849,0 5,224,7 5,0 %

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 .

UnitsTax

exempt($M)

62

Ville de Montréal

Direct and Indirect Debt and Long-Term Unfunded ExpendituresDecember 31, 2002


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


Société de développement de Montréal


Anjou 80


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


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 rollAddress (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.

Identification

65

Ville de Montréal

General Statistics (continued)

MAJOR NON-TAXABLE PROPERTIES YIELDINGPAYMENTS IN LIEU OF TAXES

Valuation rollAddress (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.

Identification

66

Ville de Montréal

General Statistics (continued)

PROPERTIES GENERATING HIGHEST REVENUES FROM TAXATION

Revenues (1)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).

Identification

67

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Legal Deposit2nd quarter 2003Bibliothèque nationale du QuébecISBN : 2-7647-0282-5

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Documents

Ville de Montréal · Michel Plante Edgar A. Rouleau Frank Venneri Commission sur les arts, la culture et le patrimoine Chairman Claude Trudel Vice-chairwoman Hasmig Belleli Members