City approves regional fund report orientation

Summary#

Montréal city council unanimously adopted an orientation on the annual report for the Fonds régions et ruralité – Volet 2 – Développement territorial (Regions and Rurality Fund, Territorial Development stream), covering April 1, 2025, to March 31, 2026. It set the city’s position to approve the report and send it to Québec’s Ministry of Municipal Affairs and Housing. City staff say the report meets the fund’s accountability requirements; the agglomeration council makes the final decision at a later meeting.

  • The report describes financial support for the Réseau PME MTL and related business services and projects.
  • It records $9,181,458 in contributions and $10,809,361 in expenses, leaving a reported deficit of $1,627,903 at March 31, 2026.
  • The report says the network assisted 3,843 businesses during calendar year 2025.

What it means for you#

  • Businesses and entrepreneurs: The report covers services such as business mentoring, support for innovation and sustainable practices, and funding initiatives. This decision does not create a new service or give businesses a new right to funding.
  • Residents: City staff say the report is to be published on the city’s website and sent to the ministry by September 30, 2026.

Money#

The decision itself requires no new financial intervention, according to city staff; the report records spending under the existing fund.

  • Reported contributions: $7,669,387 from the FRR and $1,512,071 from the Agglomération de Montréal, for total revenue of $9,181,458.
  • Reported expenses: $1,668,199 for supported projects; $4,560,316 for administration and administrative salaries; and $4,580,847 for developing and carrying out intervention priorities.
  • The reported deficit is $1,627,903. City staff say it arose mainly from higher first-year spending to deploy services under the new intervention framework, and expect it to be offset over the remaining two years of the 2025–2028 agreement.
  • City staff say submitting the report allows the city to receive delegated FRR funds for 2026–2027.

What is unclear#

  • The supplied materials do not explain in detail how the reported deficit will be offset or how spending will be adjusted over the remaining two years.
  • They do not break down the administration and intervention-framework expenses by specific service or project.

Case for#

  • The report provides an account of the fund’s contributions, expenses, and supported activities.
  • A possible argument for approving and sending it is that this meets the fund’s reporting requirements and allows the city to receive the next year’s delegated funds.

Case against#

  • One concern is that reported expenses exceeded contributions by $1,627,903 in the first year.
  • Reported administration and framework-development expenses together were $9,141,163, compared with $1,668,199 for supported projects. The materials do not provide more detail to assess that difference.