Municipal Reforms in Montreal and the Issue of Fairness

Abstract

Municipal governance in the Montreal metropolitan region has recently undergone several phases of
transformation. The first, in 2001-2002, was characterized by amalgamation and the introduction of a
metropolitan governance structure. This was followed, in 2006, by a round of de-amalgamation. Using annual
municipal data on residential tax base and global tax rate covering the period from 1996 to 2011 for all
municipalities of the metropolitan area, the impacts of these reforms on fairness are estimated. Our findings
show that amalgamation raises equity among municipalities and that de-amalgamation partly reintroduced
inequity in the metropolitan area.