Local authorities in highly variable financial situations

With the approach of the ises des finances publics, next Monday, the presentation of the financial results of local authorities in 2022 is of particular importance. Knowing that Bercy constantly points to their good budgetary health.

The preliminary report of the Observatory of local finances and public management (OFGL) unveiled on Tuesday highlights at the end of December “a very contrasting landscape with levels [de collectivités] who are doing well and others who are in much more difficulty,” commented André Laignel, chairman of the local finance committee and mayor (PS) of Issoudun.

Gross savings in the sector, one of the most scrutinized indicators for essing the situation of local finances, increased overall by 4% last year, to 37.9 billion euros. It is thus “nearly 10% higher than before the health crisis, due to a slightly higher increase over this period in operating revenue (+8% between 2019 and 2022) compared to operating expenditure (+ 7.7%),” notes the pre-report.

Moderate increase in debt stock

In detail, this pocket which is used to finance investments and the repayment of the debt has progressed for the regions – “without however catching up with the level of 2019”, points out André Laignel – and for the intermunicipalities, but declined for the departments. As for the municipalities, it is up for those with less than 5,000 inhabitants, but down for the stratum of 5,000 to 100,000 inhabitants. At the level of large cities, it has generally increased (even if it has decreased for 44% of them).

The stock of debt swelled for the third year in a row, but in a “more moderate” way (+1%), while the debt reduction period improved slightly (-0.1 year on average).

“The main expenditure and revenue aggregates were trending upwards, in a context of sustained price increases,” notes the preliminary report. This is the case for operating expenses (+4.9%). Payroll costs increased by 5.1% due to various salary measures, including the 3.5% increase in the index point on 1er last July. “The municipalities were the most impacted, with an increase of +7% for medium-sized and large municipalities”, specifies André Laignel. Energy cost inflation also weighed heavily. “It only covered a few months in 2022. We can predict that it will be much more in 2023”, he anticipates.

Operating receipts are up 4.7%, after a further increase in tax receipts and duties (+4.8%). “State financial istance” increased by 0.6% last year. “So it’s actually a drop in constant euros given inflation,” said André Laignel.

In communities, investment expenses overall increased by 6.8%, due to a “catch-up effect” and a “price effect”. The increase in capital expenditure (+9%) is “84% due to inflation. This means that in constant euros, investments are 7% lower than in 2019,” insists André Laignel.

As a result, “the situation is worrying for local finances”, according to the man who is also the first deputy vice-president of the ociation of Mayors of France.

An average rating of 2.82 out of 7

“The general trend of improvement, already observed last year, continued in 2022 despite the difficulties. However, it covers a great heterogeneity between communities, but also between types of communities”, notes for her part Marie Ducamin, the president of the board of directors of Agence France locale (AFL-ST), the bank created by local authorities. .

In its annual barometer on the financial health of municipalities, intermunicipalities, departments and regions unveiled this week, the institution gives local authorities an average score of 2.82 out of 7 – better than in 2021 -, taking into account their solvency, their indebtedness and their budgetary leeway.