Montreal promises not to raise property taxes, but some residents may end up paying out more next year under the city's new $3.97-billion budget released Wednesday.

These boroughs have created or increased local service taxes: Anjou Lachine (a flat tarif of $30 per household will be charged) Lasalle Ville-Marie Montreal-North Pierrefonds-Roxboro Saint-Leonard Verdun

Property tax rates won't go up but property values in some areas will rise under the city's valuation rolls, which may result in bigger tax bills for some residents.

New special borough services taxes and a water levy will also increase tax bills in several areas by between 0.1 and 3 per cent.

Montreal will spend more money on public transit, water facilities and roads, including major renovations on Notre-Dame Street and the Bonaventure Expressway, two projects previously announced this year.

Mayor Gérald Tremblay called the 2008 budget a "rebirth" for the city.

"I think that with all the major investments we will put forward, not only with the infrastructures, but the quality of life for families, security and culture, and the sound financial management we put in place — I'm very proud of this budget."

But the need for alternate financing still exists and becomes a more urgent issue every year, the mayor warned.

"We've asked the Quebec government for a revenue stream with growth potential," Tremblay said at a city hall press conference on Wednesday. "I think it's in the government's interest to give us that source, because it will allow us to accelerate investments."

The city will continue efforts to modernize the island's crumbling water aqueduct system, with $542 million earmarked for repairs in 2008.

The budget also allots $181 million for road renovations, bridge, overpass and tunnel repairs.

Montreal will contribute $310 million to the island's public transit budget while continuing efforts to promote shared transportation.

The budget includes long-term funding for the "Quartier des spectacles," Montreal's downtown entertainment district revitalization project.

Montreal will spend $125 million a year over the next five years to develop the area around Place des Arts, with the provincial and federal governments matching the city's spending.

The eight boroughs have created or increased special local taxes to cover municipal services, including Lachine,which will will charge an equivalent tarif of $30 per household.

Opposition leaders reproached the Tremblay-Zampino administration for allowing borough service taxes.

Vision Montréal Leader François Purcell said local taxes should be used to improve services instead of maintaining services, which happens frequently.

With files from the Canadian Press