Montreuil raises property tax to increase investment

However, he promised the opposite during the 2020 spring campaign. Patrice Besac, the mayor of Montreuil (Seine-Saint-Denis), has chosen to raise the property tax on construction real estate (TFPB) for the first time in 12 years. In the commune.

The 2022 municipal initial budget submitted to the city council on Monday, March 21 provided an increase of 2.86 points to 21.44% of this TFPB, thus reaching the average of the nine municipalities in the Est Ensemble municipality where she is. increase. part. Property tax on unconstructed real estate remains, as part of it, at a tax rate of 35.38%.

Double investment

“The worsening of certain situations left only this lever to operate on us to compensate for the increase in operating costs while continuing our investment policy,” said the city’s deputy mayor of finance. Philip Lamarche explains. The 2022 budget, which will be voted on March 30, is expected to spend € 111 million, compared to € 49 million in 2021.

Therefore, 10 million people will be devoted to renovating school buildings and building two new schools, and 20 million will be devoted to maintaining and renovating public spaces. Please note that this change includes € 9 million in repayment of the investment deficit and € 14 million that has not yet been realized from the 2021 program.

This increase will be partially funded by the increase in TFPB, which should generate an additional income of € 11 million (€ 185 million in 2022). To support the remaining investment, the city also expects a surplus of € 20 million in 2021 and a loan of € 39 million. “Debt levels reach € 210 million, which is € 7.7 million less than in 2016, and debt levels have been constantly declining since 2014,” reassures Philippe La Marche. It is said that.

Rising minimum wages, decompression of indices and energy prices

In terms of operating expenditure, the provisional budget is € 8 million (€ 230-238 million), partly related to rising energy prices (+ € 1 million) and rising minimum wages. ) Also provides an increase. This affects 76% of municipal employees and occurs during index point decompression.

“We welcome these legitimate measures of social justice, but they are late and uncompensated,” says Philippe Lamarche. The relocation of the city’s administrative center within the Altais Tower also incurs additional costs. Finally, over € 2 million will be allocated to health, agent computer equipment, and social benefits.

“The population of Montreuil changes by about 1.1% annually, and 46% of its citizens are in a state of instability, so these costs are increasing naturally each year,” explains Philippe Lamarche.

Macron program costs

The adjutant also guarantees that he will be able to cope with the further reduction in income that could be generated by the production tax proposed by a particular presidential candidate.

“60% of Montreuil’s property tax revenue comes from business property tax.” Any expense “will be done again behind the community, therefore these rigorous forecasts, and especially this property. Increased tax “. However, elected officials have specified that the cost of this household increase must be much lower than the savings brought about by the abolition of property taxes.