This compensation mechanism will fill the revenue losses in the devices implemented since the beginning of the crisis.
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The Government has made public, Tuesday, October 12, the distribution of the approximately 200 million euros of support for local public services established by the Rectifying Finance Act (LFR) of 26 July 2021. This mechanism for compensation for losses of Tariff revenues aimed to fill a hole in “safety nets” implemented since the beginning of the health crisis to ensure local authorities the preservation of their tax and public revenues. These, in fact, excluded the industrial and commercial public services operated or managed as well as some communities in the municipal block.
For public service equipment, communities may choose to delegate management to an outside operator or secure themselves with their staff, in control. However, when it comes to an industrial or commercial activity subject to competition, it can not be financed by tax: it is the royalty, that is, the user, who finances the budget. Many regies were in difficulty after considering their tariff revenue collapse, having no access to common law aid for businesses and could not be rescued by the Community budget.
This is why the LFR has planned to compensate for the decrease in gross savings – the difference between expenditures and operating revenues – registered by these governments whose field of activity has been particularly affected by the crisis, such as cultural, sports or tourist equipment. For these, the total amount of the aid is of the order of 130 million euros.
A staffing for 1,200 equipment
Nearly 1,200 public industrial and commercial equipment managed by communities were supported by this staffing. Whether cultural equipment – a hundred structures for just over 10 million euros of aid -; sports facilities or leisure bases – for more than 15 million -; Tourist sites or accommodation – for about 40 million -; parking lots and port or airport infrastructure – for about 50 million -; equipment contributing to local economic life (fairs, markets, agricultural or forestry regies) – for 15 million – or structures involved in the field of health and solidarity – 3.5 million euros.
The second part of the device directly concerns municipalities and intercommunities. For activities that are not subject to competition, they can contribute to their financing. But when they have wiped revenue losses because of the crisis, it is the budget of the community that has been weakened. Those who have seen their gross savings decrease by more than 6.5% between 2019 and 2020, when these tariff revenues accounted for a significant portion of their resources, have benefited from help. Nearly 2,000 communes and intercommunities are concerned, for a total amount of 85 million euros.