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Coronavirus infects municipal budgets

The Ascension Bridge should boost the morale of the seaside communities. They really need it. In this second week of deconfinement, we expect people along the coast. The traders (except cafes and restaurants always closed) look forward to the next few days.

Mandatory home support for two months has further delayed the start of the season. The loss of revenue is very significant, for the shops and for the municipal finances. Elected officials have started to do their accounts. And they are not good.

Miss to win

In Dinard (10,000 inhabitants, Ille-et-Vilaine), the first deputy Bruno Deslandes very soon released his calculator. The fall in revenue is already estimated at more than 1.5 million euros. At issue: the shortfall in revenue from casino games; the absence of royalty parking; non-existent space rights on the terraces; a loss of transfer rights, property purchases having been greatly slowed down…

Admittedly, during these 54 days, the city made savings, but not enough to compensate for the losses. Especially since it was necessary to invest in protections (masks …) for the agents and the population. These losses are likely to increase more or less, depending on the pace of the recovery. New expenses could also appear, to help traders in particular … , warns Bruno Deslandes. With the hope that summer will be bright, with as many vacationers as possible.

The select Norman station of Deauville (3,600 inhabitants, Calvados) draws the same observation. Mayor Philippe Augier estimates his losses at two and a half million. And they should increase, due to the start of the season still stopped and the absence this year of (strong) foreign customers.

“Tighten the bolts”

Unlike the state, municipalities are required to have balanced budgets . However, after the cuts in state funding, we had to tighten the bolts on all of our operating expenses. Our room for maneuver is now very limited. One of the solutions, then, will be borrowing. Unless a boost from the government …

The Association of Mayors of France just asked. She wants the state to preserve the financial means of the municipalities by fully compensating for their financial losses and their expenses linked to the crisis . The government estimates the impact of the virus on local budgets at $ 14 billion.

Les Sables-d’Olonne and Pornichet did not wish to react.

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