The publication of the analytical document by the Institut Montaigne* – which does not make judgments but is limited to the methodological presentation of figures – comes at the right time, in the midst of an election campaign.
As stated in the preamble, “as each municipal election approaches, this question inevitably arises in public debate. Is the outgoing mayor leaving their municipality in a better state than at the beginning of their mandate?”
While Christian Estrosi may see elements of comfort in this report for their policy, the opposition will not fail to highlight the volume of debt – cumulatively between municipality and metropolis – which is nearly 2 billion euros.
As economics is not an exact science, each party will draw the conclusions that suit them.
We already hear the theories from all sides… “today’s debt due to investments is tomorrow’s growth,” “Estrosi, the father of debt!”
It’s up to the voters to interpret correctly and make their choice at the polls! This is called democracy.
Just like in 2014, the Institut Montaigne – in partnership with “Les Echos” – scrutinized the public finances of the largest French cities (Bordeaux, Lille, Lyon, Marseille, Montpellier, Nantes, Nice, Paris, Rennes, Strasbourg, and Toulouse). This audit reveals a “generally healthy and improving situation” based on figures up to the end of 2018, according to Victor Poirier, director of publications of the think tank.
Here is the part of the report concerning the City of Nice and the Metropolis
The main financial indicators of the city of Nice reveal a generally solid financial state.
The municipality has a level of revenue above average, both in static and dynamic terms over the 2014-2018 period, despite a significant decrease (-28%) in the general operating grant (“DGF”) provided by the State. The significant revenue level is notably explained by a high product of direct taxation, due to taxable bases per inhabitant higher than the average for the stratum.
The variation in the level of expenses is generally stable in light of the classic cycles of municipal expenses. In 2018, they amounted to €767 million and remained, in euros per inhabitant, 28.4% higher than the average for the stratum. As part of investment expenses, equipment expenses per inhabitant were, however, €151 less than the average for the stratum in 2014. They gradually approached the average level: by 2018, they were just €30 under the average. Broken down by function, the expenses primarily fund general administration (26% of operating expenses), followed by sports and youth activities (20%), and education (16%).
The city of Nice seems to have made debt reduction a priority: from 2014 to 2018, the debt decreased by 6%. In 2017, the city’s debt reduction capacity was established at 14 years. As part of the financial contract signed with the State, the city of Nice committed to bringing its debt reduction capacity to 10.8 years in 2019. This effort to reduce debt was particularly amplified in 2018.
Created in 2012, the Metropolis of Nice Côte d’Azur has expanded competencies, particularly in the fields of urban planning and transportation. The transfer of investment expenses from the city to the Metropolis of Nice (for example, the funding by the metropolis of the West-East tramway project enhancing the Nice tramway) may explain the reduction of the city’s debt in contrast to that of the Metropolis of Nice Côte d’Azur, which increased by 42% from 2014 to 2018 (from €1,058 million in 2014 to €1,504 million in 2018).
