Summary#
Montréal city council unanimously adopted a position recommending an amendment to borrowing bylaw RCG 24-024, which funds the Jean-R.-Marcotte wastewater treatment plant’s ozone disinfection project. The amendment would raise the authorized borrowing from $197 million to $381 million. The stated goal is to complete the ozone unit and the oxygen plant it needs to operate; the agglomeration council makes the final decision at a later meeting.
- The proposed amendment adds $184 million in borrowing authority for project construction, equipment and contingencies.
- The work includes finishing construction lots 4, 5 and 6, installing liquid oxygen tanks for lot 8a, and building the oxygen production plant for lot 8b.
- The loan and any refinancing would have a maximum total term of 20 years.
- If approved, the borrowing would be subject to provincial approval by the Minister of Municipal Affairs and Housing.
What it means for you#
- Residents and users of the St. Lawrence River: City staff say the ozone treatment is intended to reduce microbiological contamination in treated wastewater. This decision itself does not put the disinfection unit into operation.
- Linked municipalities on the Island of Montréal: They would pay shares of eligible borrowing costs through quotes-parts (municipal contributions), based on actual expenses and their share of the linked municipalities’ fiscal capacity. A linked municipality could pay some or all of its remaining share in one payment.
- Montréal taxpayers: For project costs not eligible for the named grant programs, the repayment would come from agglomeration general revenues. The materials do not say how much that would mean for any taxpayer.
- The wastewater project: City staff say the additional borrowing is needed to keep construction going, with the oxygen plant needed for the ozone unit to start operating in 2029.
Money#
The proposed amendment raises the borrowing authority by $184 million, from $197 million to $381 million; this is borrowing authority, not a cost estimate for this decision alone.
- The project has government support from TECQ (the federal gas tax transfer and Québec contribution program) and the Canada–Québec Infrastructure Works Fund (FCCQ); the amounts are not stated.
- For eligible TECQ expenses, linked municipalities would pay shares of interest and principal through quotes-parts. Montréal’s TECQ grant and local reserve count as its own payment.
- Costs not eligible for those grant programs would be financed from agglomeration general revenues.
- City staff say the overall project budget was raised to $1.147 billion in July 2025. The materials do not break out how much of that total this borrowing increase would cover, or provide an interest-cost estimate.
What is unclear#
- The materials do not give a breakdown of the additional $184 million by construction work, equipment or contingencies.
- The amounts and conditions of the TECQ and FCCQ support are not stated.
- The materials do not estimate interest costs or each linked municipality’s eventual share.
Case for#
- A possible argument for the increase is that it provides funding to finish work already underway and build the oxygen plant needed to operate the ozone unit.
- City staff say the project is intended to reduce risks from bacteria in wastewater released into the river.
- City staff warn that without the increase, construction delays could bring added costs, contractor claims and risks to already purchased equipment.
Case against#
- The borrowing authority would rise by $184 million, but the materials do not show how that increase is divided among project needs or estimate the interest costs.
- Repayment could extend for up to 20 years, leaving future agglomeration budgets and linked municipalities responsible for costs over time.
- The materials explain staff’s reasons for the increase but do not provide a cost comparison with other ways to complete the project.