In a financial position statement tabled at city hall last Monday in accordance with provincial law, Mayor Karin Marks said Westmount's 2008 picture looks "very positive." The City expects to finish this year with a net operating surplus of around $500,000, compared to nearly $798,000 last year.

However, she warned, "this projection could change between now and year-end, especially if we experience a higher-than-average snowfall or a major water main break."

Keeping local taxes in check while maintaining service levels has become "the number one priority for our 2009 budget planning," Marks said.

After five years of tax hikes between 2001 and 2006, averaging 10 per cent for homeowners, the City was able to limit increases to 2 and 2.5 per cent in 2007 and 2008. "It is Council's intention to keep 2009 local tax bills at roughly the same level as those sent out in 2008," Marks added.

Westmount continues to make steady headway in its determination to return to a pay-as-you-go policy for financing capital works projects. In keeping with a plan reintroduced shortly after Westmount's demerger, council will be increasing the budget for pay-as-you-go financing from $2 million to $2.5 million in 2009, thus reducing the City's reliance on long-term loans.

In December 2001 on the eve of the forced merger with the City of Montreal, Westmount had a total unfunded debt of $2.1 million, which, for a city its size, meant being virtually debt-free. This extremely favourable position had been brought about by city council's policy to fund about $4.5 million annually in capital works from the pay-as-you-go account.

But after four years of merger with the City of Montreal, during which the Borough of Westmount was legally forced to take out long-term loans to finance capital works projects, Westmount now finds itself saddled with a debt totaling $37.1 million, which includes the cost for purchasing local water network infrastructure from Montreal and capital expenditures for the last two years. However, debt incurred before 2002 has been completely reimbursed.

On a possibly brighter note, the City currently has a legal case pending against the City of Montreal, for $21.9 million, which Westmount claims it is still owed after demerger. Expenditures for capital works that were never done account for $16.2 million. Another $5.6 million is for operating expenses and Commission de la Santé et de la Sécurité du Travail payments.