07 March, 2012

To support capital budget and gross reserve : main fields of challenge for the new Angers mayor

Major action in the life of town, and above all in the first year of office of a new mayor, the Angers municipal council passed on Monday its 2012 budget. The first budget of Frédéric Beatse has a total of 271,60 millions €, it's just a little bit higher than the former one (271 millions €) of his predecessor, Jean-Claude Antonini. The peak of the total budget was reached in 2009, at 278 millions €. The crisis explains that decrease. But it is on a long period (2003-2012) that the comparison of 10 financial years is the most informative.

The capital budget, dedicated to investments decreases, even if, in 2012 vs. 2011, it is on a slight increase (65,8 and 64,26 millions €). Compared to the 2009 financial year, the decrease is important (65,8 vs 80,27 millions €), i.e. -18%. But, for the operating budget, which finances the current expenditures of the city (among them, the wages), there is no decrease. It had a total of 141 millions € in 2003 and 182 millions in 2012, i.e. + 29%. And the gross reserve (the savings of the city), which reached 35 millions € in 2003, will fall at 23,6 millions € in 2012.

 In relative value, that item experiments the most dramatic change. From 15% of the 2003 budget, he represents 9% in the 2012 budget. On a long period the current expenditures are taking more weight while the capital budget stagnates while it should increase in order to support the Angers economy. The main challenge of Mr Beatse will be to keep the operating budget stable and to increase the capital budget and the gross reserve. Because the crisis is not close to the end.

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