What impact will inflation and the cost of energy have on the municipal budget?

On the tightrope. Lille will not be an exception to the economic rule which foresees difficult days in terms of finances for everyone. With indecent inflation, energy prices beyond belief, interest rates soaring, the assembly of the city’s budget for 2023 is more a balancing act than an accounting exercise. Despite everything, the budget guidelines report presented to the press this Friday morning does not plan to plunge Lille into an austerity worthy of East Germany.

“It could have been worse,” admits Audrey Linkenheld, first deputy in charge of ecological transition and sustainable development, while adding that it was nevertheless “difficult to project oneself”. Basically, the 2023 budget will have to be built with two main constraints: exploding expenses and stagnating revenues. The increase in gas and electricity prices alone represents an additional expense of 12.5 million euros. In addition to energy, it is also inflation that weighs mechanically, and in several ways, on city spending. Starting with the increase in the index point of municipal agents to precisely compensate for inflation.

No question of raising the property tax

Faced with this, the city does not have a plethora of levers on which to act without penalizing the inhabitants. Good news, therefore, there is no question of increasing property tax, canteen prices or cutting corners on public services: “We are maintaining our support for associations and a high level of service for children, solidarity , culture, sport”, assures Manon Gautier, elected in charge of the budget. The orientation report also provides for a continuation, and even an increase in investments to the tune of 120 million euros. “Investing in the environmental renovation of public buildings is necessary in order to then lower their operating costs,” explains Audrey Linkenheld.

So, as the money does not grow on the plastic trees of the town hall, it will have to be found elsewhere. “We are going to resort more to borrowing and accept to see our financial balances deteriorate in 2023, assumes the elected official in the budget. This will result in particular in the reduction of our net savings. »

A tenable situation for a time and which will have to be reassessed according to the situation. “We also expect a lot from the State, which sees its budget increase thanks to inflation, with VAT for example”, hopes the first deputy.

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