So far, the finances of the City of Lausanne have not been too bad. But the current health crisis announces painful tomorrows. “It is paradoxical, we present much better accounts than the budget forecasts, but this presentation comes in a strongly degraded economic context which will have an impact on the coming years”, commented on Tuesday, the trustee Grégoire Junod (PS) during the press conference broadcast via YouTube, coronavirus crisis requires.
In this delicate context, the Municipality decided to freeze the personal income tax rate for the period 2021-2024. The Municipal Council is expected to rule on this tax decree in the fall.
Going back to the 2019 accounts, the deficit is 11.2 million for charges which amount to 1.786 billion, while the budget expected a loss of 42 million. In comparison, the 2018 accounts showed a deficit of almost 28 million. The debt is still over 2 billion. It increases by 4.5 million.
87 million not spent
A situation that Florence Germond (PS), municipal responsible for Finances, describes as “relatively satisfactory”. She believes that expenses have been well under control, since they fell slightly between 2018 and 2019. On the revenue side, growth is “anemic”, according to the municipality. Investments were budgeted at 207 million, but only 120 million were spent. A difference of 87 million. “The City often has bigger eyes than its belly when planning its investments, recognizes Florence Germond. It is not always possible to carry them out because of the procedures which last, like that of the tram, for example. “
The budget envelope for early childhood and security continues to grow. These two public policies are among the priorities of the Left Municipality. But the municipality has to face the downturn in corporate tax revenues due to the anticipation of the third corporate tax reform (RIE III). This represents 38 million less for Lausanne. The Canton compensates up to 16 million. On the other hand, the cost for the City of tax deduction tools, chosen by the Council of State as part of the federal reform (RFFA), will not be known until 2021. “The municipality has become poorer in terms of capacity contributory ”, notes Florence Germond. As a result, Lausanne has put 8 million less into the common pot of inter-municipal equalization.
Contrasting reactions
Chairman of the Finance Commission (COFIN), Valentin Christe remarks that the City, like the Canton, has accustomed us to very cautious budgets in order to have a “good surprise” in the accounts. “But I feel like with the Covid-19, this is the last year.” The liberal-conservative notes that Lausanne still has a deficit of 11million. “Successive Left Municipalities have never tried to curb the structural excess of charges. As a result, the town already had no room for maneuver before the coronavirus. “
On the other side of the political spectrum, COFIN vice-president, Ensemble member on the Left, Johann Dupuis, underlines the negative impact of RIE III. “It is the taxation of individuals that saves the City. Tax revenues increased by 23.4 million compared to the previous year. This illustrates the attractiveness of Lausanne, which invests in public transport, new neighborhoods, etc. ” Rather than freezing the tax rate for the period 2021-2024, the elected official of the radical left advocates increasing it “so that the City can face the crisis, but also to take measures against climate change ”
Created: 03.31.2020, 10:15 p.m.
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