The City of Laval finished the 2025 fiscal year with an 11.3 million dollar “functional deficit,” marking a reversal from the previous year’s surplus. According to Mayor Stéphane Boyer, the shortfall is driven primarily by intense winter snow-clearing costs and a new collective agreement for municipal police and blue-collar workers. Because provincial law prohibits Quebec municipalities from running a deficit, the city must cover the gap using its own financial reserves.
Factors behind the 2025 deficit
The city’s financial report indicates that operational expenses exceeded initial projections by about 53 million dollars. Mayor Boyer attributed the pressure on public finances to a particularly harsh winter season in 2025 that required extensive snow-clearing operations. Additionally, the city finalized a new collective agreement for its employees in October 2025, which included salary increases of 21.5 percent and improved scheduling clauses.
While operating revenues grew, they only outperformed expectations by 13 million dollars, largely due to increased government transfers and mutation duties. Despite the deficit, Mayor Boyer maintains that the city’s finances remain under control, noting that the shortfall represents roughly one percent of the city’s 1.2 billion dollar budget.
Laval’s debt ratio currently stands at 12.8 percent of its revenue, which remains below the provincial regulatory ceiling of 20 percent.
Opposition calls for a recovery plan
The Parti Laval has publicly criticized the administration’s handling of the city’s finances. Councillor Louise Lortie, representing the district of Marc-Aurèle Fortin, argued that the city is ignoring “red flags” and demanded the submission of a financial recovery plan within 90 days. The opposition claims that several financial reserves are severely depleted and points to a total city debt that has reached nearly 1.2 billion dollars.
Martin Vaillancourt, the councillor for Fabreville-Sud, stated that the city’s debt has increased by more than 40 percent in less than five years, resulting in annual costs of 159 million dollars. In response, Mayor Boyer dismissed these claims as alarmist, stating that the city has preserved its long-term capacity to act, citing 83.4 million dollars in cash payments for capital assets in 2025—a figure 17.5 million dollars higher than the initial target.
Municipalities across Quebec are currently managing similar fiscal pressures, often in reason of the deficit of maintaining infrastructure. While Laval points to its debt-to-revenue ratio as evidence of stability, the reliance on reserves to balance the budget suggests that the administration may face difficult trade-offs regarding service levels or tax rates if the current economic climate persists over the next two or three years, as the Mayor has suggested.
What happens next?
While the city intends to close the current financial gap during the upcoming year, other Quebec municipalities have already taken more drastic measures to address structural deficits. For instance, Gatineau has announced the end of maintenance for two natural ice rinks, and Montreal is currently pursuing a strategy to eliminate 1,000 non-service positions by 2029, of which 250 have already been removed, to mitigate a projected shortfall by 2028.
Frequently Asked Questions
Why is Laval allowed to have a deficit if the law forbids it?
Under Quebec law, cities cannot technically run a deficit. Laval must cover the 11.3 million dollar shortfall by drawing funds directly from its own financial reserves to balance the books.
What were the primary costs that caused the budget gap?
The two main factors were the high cost of snow-clearing operations during a heavy winter and the implementation of a new collective agreement for police and blue-collar workers, which included a 21.5 percent salary increase.
How does the opposition characterize the current financial situation?
The Parti Laval describes the situation as a result of “imprudent financial management” and has requested that the administration present a formal recovery plan within 90 days to address concerns about rising debt and dwindling reserves.
How will the city’s financial decisions impact the services provided to residents in the coming years?
