In an economic context marked by great uncertainty linked to the evolution of the international situation as well as by the consequences of the tax reform and financing of the AVS (RFFA), the 2023 draft budget of the City of Geneva, providing for net charges of 1.285 billion, shows a deficit of 33 million. As in previous years, the latter results from the expected decrease in tax revenue resulting from the entry into force of RFFA in January 2020.
It is also strongly impacted by the increase in the payroll, i.e. the indexation of +2% of the salaries of municipal staff and early childhood institutions, in accordance with the Staff Regulations, due to the increase in the index. consumer prices (+11.1 million), to which must be added wage mechanisms (+7.4 million). The increase in energy costs is estimated at 12 million, to reach 18 million. At the same time, cost-saving measures in this area are being studied, with the aim of achieving a cost reduction of 2 million.
Despite this unprecedented situation involving a constrained framework, the Administrative Council maintains all the services to the population and continues to implement its political priorities, while respecting the process of reducing the deficit that it has established for a return to balance in 2028. This constitutes a legal obligation, set by the law on the administration of municipalities, authorizing the latter to present deficit budgets on a transitional basis, during the RFFA derogatory period.
Revenue growth
Tax revenue as provided by the Cantonal Tax Administration represents 62.5% of the net revenue of the City of Geneva. Inflows related to natural persons as well as those related to legal persons increased compared to the 2022 budget (+5.2 million and +9.4 million). An increase of 2 million in the municipal business tax (108 million) is also planned, due to an impact linked to the health crisis that is less than expected.
The draft budget includes an income of 12 million for the maintenance of cantonal roads, in accordance with a report by the Court of Auditors. As for expenses related to depreciation, they are down by 2.6 million.
Investments commensurate with ecological challenges
The Executive maintains the target investment envelope at 180 million francs. Given the reaffirmed desire to accelerate the renovation of the built heritage and infrastructure, a new position of technical management assistant has been created in order to strengthen human resources in this area. “The scorching summer we are going through materializes in a very concrete way the warnings of the IPCC: climate change is hitting the planet much faster than expected.
This climatic context, to which is added the current geopolitical situation, highlights the need to intensify the energy sanitation of the buildings of the municipal rental stock and the administrative heritage as well as to increase their supply of renewable energy”, underlines Alfonso Gomez. , Administrative advisor in charge of finance. The objective is to achieve a 60% reduction in CO2 by 2030 and carbon neutrality by 2050, as stipulated in the Climate Strategy of the City of Geneva.
Resources for social justice and the environment
The 2023 draft budget materializes two major strategic projects of the CA in terms of social justice. Self-financed by income from the Geneva municipalities following a historic agreement, 200 new places for the year for the reception of homeless people will be made permanent in 2023 for an amount of 8.7 million additional subject to the approval of the Council of State and Grand Council.
The first early childhood reception structure in the City of Geneva will be municipalized at the start of the 2023 school year. This decisive step notably concretizes the will of the Board of Directors to revalorize professions exercised mainly by women. The impact of the internalization of 50.4 positions from September 2023 is estimated at nearly 400,000 francs. In addition, the opening of 69 new preschool places at the start of the 2023 school year (+1 million) will make it possible to meet the needs of families and promote equal opportunities for all children. Finally, the City sees its contribution to extracurricular activities increase by 2.7 million.
Raised to the rank of priority for the legislature, the implementation of the Climate Strategy will be accelerated thanks to the creation of three additional posts. The budget line devoted to arborization, revegetation and biodiversity has been strengthened for better adaptation to climate change. Faced with the multiplication of scorching summers, the maintenance and watering of the tree heritage must indeed intensify considerably, in particular to meet the needs of the 1,445 trees planted since June 2020.
To meet the challenges of the ever-increasing demand on the public domain, the Administrative Council has granted additional resources to the Municipal Police (3 FTEs) and to the Service Voirie Ville Propre (1 FTE). In the field of culture, the draft budget guarantees the activities of cultural institutions and support for cultural actors and draws lessons from the COVID crisis, in particular by increasing the means allocated to grants for artists.
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