Laval wants a major cash injection to extend Montreal's Metro system even farther, the mayor announced Monday as he tabled the city's $652.8 million budget for 2008.

Municipal taxes will go up slightly next year, by 1.8 per cent for the average homeowner, but spending on services will also increase because of continuing population growth in the suburban city, said Mayor Gilles Vaillancourt.

But the public transit system needs a billion-dollar boost to make it work for Montreal and Laval, he said.

The orange line extension into Laval opened three new terminals in May after years of delays, giving commuters an alternative to driving into Montreal.

Ideally the U-shaped orange line should run a closed loop through Laval and back to Montreal to circulate people between both islands, Vaillancourt said. "Gas is going to be $1.50 [per litre] by the end of the year," he said after unveiling his budget.

"People will need to have good, reliable public transportation. And the Metro, when you look at the numbers that you're carrying, costs less than the train per passenger, less than the bus per passenger."

The extension was a huge success and Quebec should build on that momentum, he said. A closed loop could run west from the new Montmorency terminal, through Chomedey and Bois Francs into Cote Vertu, the orange line's last stop on its western arm.

Vaillancourt said he'll ask the province to create a dedicated tax fund to pay for a massive extension.

The 2008 Laval budget also freezes water taxes and continues to pay down the city's public debt.

Money is earmarked to set up an anti-gang squad to deal with rising street gang activity.