For the first time in 20 years, Annecy is increasing its local taxes to finance its environmental shift
Annecy city council has endorsed the desire of the municipal team of environmentalist mayor François Astorg to increase the property tax on buildings, which will drop from 28.29% to 29.79% from January 1, 2023.
This increase will thus bring in an additional three million euros each year to the municipality, which will be added to 800,000 euros from the increase in the housing tax on second homes, which will increase to the maximum authorized, i.e. 60%, against 20 % until now.
These increases will be used to finance the municipality’s 403 million euro investment plan by 2025. And for the mayor of Annecy, there was no possible alternative. “We have examined the question in depth, breadth and crosswise: we have validated this decision based on a principle of good management”explains François Astorg, by limiting the continuous decline in the municipality’s gross savings rate in recent years.
Objective: finance a multi-year plan of 403 million euros
The Annecy municipality has adopted a multi-year investment plan of 403 million euros over five years. Energy renovation and modernization of buildings are given priority, with an envelope of 71.5 million euros, including 30 million for the renovation of the town hall burned down in 2019, and 14 million euros to get rid of diesel the municipal fleet of 700 vehicles.
Investments are also directed towards urban development (70.5 million euros), sports equipment (56.5 million euros, including 37 for the nautical center of the marquisates), school and early childhood equipment ( 45.8 million euros), culture (41.1 million euros, including 24 million euros for the Haras project in connection with the animation sector). Public tranquility and security benefit from 10.5 million euros, in particular for the construction of a police station and video surveillance.
The municipality will acquire land reserves, in this very tense territory in terms of real estate, for an amount of 38 million euros. A revegetation program will benefit three schoolyards each year, as part of an overall €18.6 million program to green the city.
To finance this program, the municipality relies on self-financing, borrowing, subsidies, and therefore the increase in local taxes. It also had to resolve to set aside projects planned in its initial program. Work on the Sports Park, already postponed by the previous municipality, is postponed to the next mandate.
“But it wasn’t enough”, François explains Astorg, who points to the aging communal heritage that was insufficiently maintained in the past. Since his election, the mayor of Annecy has sent two framework letters to limit spending and certain recruitments. On the other hand, the city councilor refuses to cut in support for associations, whose action he underlines in the context of the pandemic.
“If I can lower taxes, I will. »
Despite these savings, “we have no choice but to increase taxation, which had not increased since 2001 in Annecy”notes François Astorg.
The mayor recognizes that this increase occurs in a tense economic context for households, given the surge in energy costs. “Nobody likes raising taxes. (…) If I can lower them tomorrow, I will, but the challenges today are not the same as in the past”he explains.
“We must respond to the challenges of climate change and public service. (…) We all have an important duty vis-à-vis history and our children. So, yes we must avoid tax leverage as much as we can, but we have objectives to meet “, assures François Astorg, who has defended his actions in climate matters.
The municipality is undertaking work on the thermal insulation of public heritage buildings. “It is an energy necessityhe said. We will be winners tomorrow. » As for the revegetation of schoolyards, “It’s not an eco-boho principle! With this, we participate in refreshing the city, and we support the transition to reconnect the youngest with nature. »
The transition from the municipal fleet to electric and hybrid requires investments, but “we will necessarily save money”says François Astorg.
The opposition denounces an outbreak of taxation
For his part, Anthony Granger, member of the first opposition group, Annecy Ensemble, describes the increase in local taxes as “Tax explosion”. By increasing the rate of building land from 28.29% to 29.79%, the municipality imposes an increase of 1.5 points, which is equivalent to an increase of 5.3%, he underlines.
With the revaluation of the bases of calculation, the property tax has since increased by +8% this year, he continues. Added to this are the increase in surface parking and lake party rates.
“We denounce the merits of this increase: we are told that it is to finance the investments of the mandate. But no savings are made in operation”, denounces Anthony Granger.
The municipal councilor is also worried about seeing the increase in local taxes spread over the next few years. “I am told no, but ten million euros more per year will have to be reimbursed at the end of the mandate”he says.
Finally, the agglomeration of Grand Annecy having adopted its own site public transport project, costing between 550 and 700 million euros, the portion of the intermunicipality in the built property tax will increase in turn. “For companies, the cost will be tripled. For households, it will be doubled”denounces the elected official, who advocates savings and a reduction in the investment plan.
For his part, the president of the CCI of Haute-Savoie indicated that he would not keep speaking on this subject. He only mentioned that “from a more general point of view, in terms of business taxation, the CCI of Haute-Savoie considers that it is essential not to increase – and conversely to do everything possible to reduce – the charges weighing on companies, particularly in view of the current economic context. »