Christian Estrosi, in a serious tone, announced something that had been anticipated for a few weeks. Local taxes will increase, following the results of two financial and technical audits conducted by the firms “Ernst and Young” and “Seti/Alpes Controles/Sudeco,” which revealed that “between 2003 and 2007, the major balances of the municipality have significantly deteriorated due to:
• Decreasing revenues following the transfer of competencies from the City to the CANCA, carried out under non-optimized conditions […]. When the city transferred 800 agents to the CANCA, 1000 others were hired.
• An investment program very significant in comparison to the city’s real financial capabilities, leading to increased borrowing and hence, debt.”
Several scenarios were available to the municipality to reduce a deficit estimated at 366 million euros (1000 euros per resident of Nice): stop investments, continue to invest as if nothing were wrong and risk being placed under administration by 2014, or increase taxes and continue with the planned investments (90 million euros). Estrosi and his team chose the latter option. “I will keep all my promises, and everything will be done to support the economy and employment for the people of Nice,” he declared.
Therefore, local taxes will increase by 15% as early as 2009, which means, for a three-room apartment and a household with two dependents, an increase of 43 euros (3.60 euros per month). Another measure is the non-replacement of municipal employees retiring, equivalent to 150 departures per year.
Christian Estrosi, who considers himself a “declared enemy of taxes,” did not expect such a catastrophic situation. He blamed the former mayor, Jacques Peyrat, for having “an irresponsible attitude” and wanting to live “on credit until the elections.” Peyrat announced that he would respond to “these attacks” at a press conference next Tuesday, which he will certainly use as an opportunity for his political comeback.
The only consolation is that despite this increase, Nice will remain below the tax levels of other French communities.
