Coronavirus: a bill of 6 billion euros for the municipalities

In town halls, the threat of new confinement has enough to give gray hair to staff in charge of finances.

In 2020, the municipalities saw, like many French people, their economies melt away due to the health crisis.

Between purchases of masks, gels and gowns, household aid and tax losses linked to the lack of economic activity, the Covid-19 bill should amount for them to nearly 6 billion euros for the only year 2020, according to the Association of Mayors of France (AMF).

This cost corresponds to alerts sent through the AMF as of June.

In detail, the municipalities and inter-municipal authorities recorded 3 billion euros in tariff losses (closure of swimming pools, theaters, school restaurants when staff are paid by the town hall), 2 billion euros in tax losses (contribution to the added value, company land contribution, transfer rights, site fees, advertising panels, etc.) and 1 billion euros in direct expenditure (purchase of equipment, masks, gel, Plexiglas, reconfiguration of premises, etc.).

But the association's forecasts for the coming years are even more pessimistic.

While she anticipated 7 to 8 billion euros of losses in three years, she now estimates that this milestone will be crossed by the end of 2021.

Declining tax revenues

"Even if it is impossible to read the future, it is probably a very optimistic vision", insists André Laignel, first vice-president of the AMF and president of the local finance committee.

The municipalities expect in particular to see their tax inflows decrease: these are still calculated over the past year.

So this time, on a strongly degraded activity.

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To enable us to measure the impact of the health crisis on their budgets, two large municipalities have opened their books to us.

Enough to realize to what extent the small and big changes of our daily life have had direct consequences on the budget of the communities.

In Nantes, a loss estimated at 16.6 million euros

In Nantes (Loire-Atlantique), the simple stopping of parking meters linked to confinement resulted in more than 3 million euros in lost revenue for the municipality.

The extra-curricular support linked to the half-classes is estimated at 1.4 million euros.

Buying protective masks?

1.3 million euros.

Like many, the city has put in place aid policies at the local level.

To households which risked falling into precariousness, first of all, with food aid of one million euros.

To businesses, then, through tax exemptions.

Culture and associations, finally, thanks to a support fund of 2 million euros.

In total, the town hall considers having lost 16.6 million euros over the past year.

Or more than a third of his gross savings.

“This shock, we were able to amortize it once thanks to a particularly healthy financial state, underlines Pascal Bolo, financial assistant at the City.

But we can't go on like this over and over again.

In the long term, some investments would end up being threatened.

In Cannes, the note would amount to 25 million euros

Similar alarm in Cannes (Alpes-Maritimes), where the virtual absence of tourists has been costly.

The sector usually accounts for 50% of the city's GDP.

The town has, for example, only received a third of the tourist taxes it is used to receiving, a shortfall of more than 3 million euros.

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The same figure is advanced for the shutdown of casinos, a time half-open this summer only.

In all, the bill would amount to 25 million euros, or 14% of the operating budget of the seaside resort.

This is nearly four times the amount of the subsidy that the city grants to its Communal Center for Social Action (CCAS).

The city, which made a point of consolidating its finances, however intends to maintain its major investments for the time being, like the 8 million euros planned for the development of its coastline in 2021. “We will continue to do so. lower the debt in 2021 ”, even wants to believe Thierry Migoule, the chief of staff of the mayor David Lisnard.

For this, it will surely count on the support measures put in place by the government with regard to local communities.

In particular, the State has launched measures supposed to guarantee a minimum of tax revenues, to compensate for the purchase of protective equipment and to help smooth out unforeseen expenses over the coming years.

But their effects are sometimes slow to be felt.

In the meantime, new expenditure items are added to the balance.

Since January 9, Cannes has already set up two vaccination centers.

Between doctors, nurses and agents responsible for patient reception or administration, the bill currently stands at 220,000 euros per month.

At this rate, it would be nearly a million and a half euros more to be expected by the summer.