Ahoy, matey! The City's model sailboats will return to the P...
Purpose and priorities
The draft budget, which is drawn up by the college of aldermen, is guided by a policy of sustainable development, and is a key step in the implementation of the 2017–2023 mission statement of the college of aldermen.
The City's policy priorities are housing, transport, urban development, education and social cohesion, the environment and safety.
The budget is both a legal and political instrument, subject to a vote of consent by the municipal council, followed by the approval of the Minister of Home Affairs (Ministre de l'Intérieur).
The budget comprises an ordinary and an extraordinary section, both for receipts and expenses. The ordinary section lists the current receipts and expenses, and the extraordinary section lists the capital transactions.
The ordinary and extraordinary sections are divided into functional codes representing the City's various departments, activities and responsibilities.
The budget items indicate the type of receipt or expense, and correspond to the municipalities' standard chart of accounts that is predefined by the Ministry of Home Affairs (Ministère de l'Intérieur).
2019 budget and report
The 2019 draft budget shows a deficit of €53.5 million, due to substantial investment planned for 2019:
- Total ordinary receipts total €781.6 million, including €466.3 million from the municipalities' general endowment fund, €61.5 million from municipal business taxes and €142.1 million from own-source revenue.
- Ordinary expenses are €568.5 million, including €356.9 million in staffing costs and €115.4 million in operating expenditure.
- Extraordinary receipts are estimated at €94.7 million, including €78.6 million in state subsidies and investments.
- Extraordinary expenses total €361.3 million, including €137.4 million for expenses relating to buildings, €84.0 million for infrastructure expenses and €79.3 million for utility network expenses.
2018 budget and report
The 2018 budget was shaped by the entry into force of the Law of 14 December 2016 on the reform of municipal finances, establishing a general endowment fund for the municipalities (la loi du 16 décembre 2016 concernant la réforme des finances communales portant création d’un fonds de dotation globale des communes), and by the impact of the proposed legislation on the organisation of the public rescue services and the creation of the Grand-Ducal Fire and Rescue Corps (Corps grand-ducal d'incendie et de secours – CGDIS).
The 2018 draft budget showed a deficit of €86.7 million due to substantial investment planned for 2018:
- Ordinary receipts totalled €694.9 million, including €400.9 million from the municipalities' general endowment fund, €52.2 million from municipal business taxes and €139.8 million from own-source revenue.
- Ordinary expenses were €553.6 million, including €348.0 million in staffing costs and €112.2 million in operating expenditure.
- Extraordinary receipts were estimated at €107.3 million, including €71.8 million in state subsidies and investments.
- Extraordinary expenses totalled €335.3 million, including €136.0 million for expenses relating to buildings, €64.7 million for infrastructure expenses and €72.1 million for utility network expenses.
The report of the finance, budget oversight and heritage committee for the 2018 financial year was presented by Maurice Bauer.