French General Code of Local Authorities
In forceMunicipalities are prohibited from assuming responsibility in their own budgets for expenditure on the public services referred to in article L. 2224-1.
However, the municipal council may decide on such assumption of responsibility when it is justified by one of the following reasons:
1° When the requirements of the public service lead the local authority to impose particular operating constraints;
2° When the operation of the public service requires the implementation of investments which, due to their importance and in view of the number of users, cannot be financed without an excessive increase in tariffs;
3° When, after the period of price regulation, the elimination of any assumption of responsibility by the municipal budget would result in an excessive increase in tariffs.
The municipal council's decision is the subject of a reasoned deliberation, on pain of nullity. This decision sets out the rules for calculating and paying the service costs borne by the municipality, as well as the financial year(s) to which they relate. Under no circumstances may this assumption of responsibility result in the pure and simple offsetting of an operating deficit.
The prohibition provided for in the first paragraph does not apply:
1° In municipalities with fewer than 3,000 inhabitants and public inter-municipal cooperation establishments of which no member municipality has more than 3,000 inhabitants, to water supply and wastewater services;
1° bis Whatever the population of the competent public inter-municipal cooperation establishments with their own tax status, to water supply and wastewater services, when the operation of the public service requires investments which, due to their size, cannot be financed without an excessive increase in tariffs ;
1° ter Regardless of the population of public inter-municipal cooperation establishments with their own tax status, to water distribution and wastewater treatment services, during the period of harmonisation of water and wastewater tariffs after the competence is taken over by the public inter-municipal cooperation establishment with its own tax status;
2° Regardless of the population of communes and groups of territorial authorities, to non-collective public sanitation services, when they are created and for a period limited to the first five financial years at the most.
3° Regardless of the population of the municipalities and groups of territorial collectivities, to public services for the management of household and similar waste, when the fee for the removal of household waste is introduced and for a period limited to a maximum of the first four financial years.
4° To electricity production services operated under the conditions provided for in the last paragraph of Article L. 1412-1.
When the service has been delegated, the portion borne by the own budget may not exceed the amount of the sums given to the delegatee for public service duties and represent a substantial portion of the latter's remuneration.
