Geneva: for the budget, the peak of the COVID years has passed

ThoseGeneva finances –In Geneva, the peak of post-Covid Fast years has passed

While the budget was in deficit, the City released a modest surplus of 10 million francs in 2024. The fruit of corporate tax decreases.

Posted today at 7:17 p.m.

All good things have an end. After two “exceptional” financial exercises in 2022 et 2023a return to normal was operated last year in the town of Geneva. The municipality completed 2024 on a modest benefit of 10 million francs, generated mainly by accounting operations.

A positive result despite everything, knowing that The budget adopted by the municipal council at the end of 2023 provided for a deficit of 16 million francs. “The accounts are always good and in accordance with what we had estimated,” noted on Thursday during a presentation before the Alfonso Gomez press, administrative advisor in charge of finance. Some reasons for “worryHowever, begin to appear on the horizon.

Reverse trends

The taxation linked to legal persons thus melted 67 million francs compared to the budgetary amount, stood at 137 million francs. It still represents a quarter of all of the city’s income. Declining fixes had to be made over the previous years, 2023 in particular.

The flexor of certain economic sectors, already noticed at the cantonal levelbut also for the city the departure of several companies, could explain it. “They will be replaced and this will rebalance it,” said Alfonso Gomez.

The opposite trend is observed for the imposition of natural persons. Here too, these are fixes that allow this time to revise up the perceived amount. With a height of 700 million francs, the tax of natural persons corresponds to half of the municipal revenues.

The abolition of the municipal professional tax, in 2024, produced its first effects. Thanks to the introduction, in compensation, of additional cents on the taxation of the profits of legal persons, as well as in its arrears, the tax revenues are perfectly balanced.

Finally, various accounting operations draw revenues upwards. Between the reassessment of the city’s financial heritage (buildings) and that of the titles of the Cantonal Bank of Geneva belonging to the municipality, some 54 million francs are also counted in municipal revenues. Without them, the city would be in deficit.

Big sites

The charges, for their part, flirt with 1.4 billion francs. They are divided, roughly, in three equal parts: staff wages (slightly drop), subsidies, as well as various expenses (operational and financial). “The charges are in the target,” noted Samuel Blanchot, the city’s financial director. That is to say in adequacy with projections.

Finally, the envelope dedicated to investments, in the amount of 180 million francs, was fully spent last year. This is the first time in the legislature. This is explained by the start -up of several magnitude sites, including the second step the planning project of the Eaux-Vives station et The renovation of the Natural History Museum.

However, less than 5 million francs were devoted to the energy compliance of buildings belonging to the city. “It’s too little,” noted Alfonso Gomez, for whom this file is one of the priorities of the upcoming legislature.

A legislature that will start in June in a more than uncertain international context. Reductions of workforce in international Geneva will have consequences on economic activity, as are customs taxes. Alfonso Gomez also mentioned The savings plan that the Confederation wants to set up.

In short, the financial balance the city is “precarious”. Municipal elected officials are aware of this. “The accounts are only positive. The beautiful years are behind us. We will have to be prudent by starting by mastering expenses and paying attention to what business departures do not multiply, ”argues MCG Daniel Sormanni.

For the socialist Manuel Zwyssig, the situation will become more and more “fragile for the municipalities. “Hence the interest in vigorously opposing” I live there, I pay there, “insists the city councilor. UDC’s INIATIVE advocates municipal taxation only instead of domicile. If it was accepted in vote on May 18, it would cause a shortfall of 70 million francs for the city, according to the municipal administration.

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