Expenditure

Definition:

Administrative expenditure: this comprises staff expenditure, subsidies and contributions paid out by the City, costs of a general nature, etc. Controlling the growth of such costs is a major issue for local authorities in the face of the sluggishness of revenues.

Definition:

Investment expenses: These represent actual investment expenses and exclude the repayment of debt capital.

Key figure:

Trend in administrative expenditure: +1.0% in 2008, in other words a level slightly below inflation.

In 2008, administrative expenditure stood at €308.8 million. Following fairly lively development in 2007 (+4,7%) due to a number of new facilities being opened (Floresca Guépin Media Library, Petite Amazonie swimming pool, Nantes-Erdre community centre) and exceptional events (Rugby World Cup, inauguration of the Château des Ducs de Bretagne and Estuaire 2007), this expenditure slowed down in 2008 (+1.0%), and thus demonstrated the administrative efforts put in by the City.
Staff costs, the City’s greatest expense item, displayed a very moderate increase (+1.5%) to €159.6 million (50% of operating expenditure). The growth in this expenditure is the result of several factors: the development of staff levels, pay rises (+ 0.5% point increase at 1 March 2008 and + 0.3% on 1 October) and automatic pay increases due to the effects of seniority and career development. The latter factor alone explains more than half (52%) of the increase in payroll costs. The remainder of the increase can be explained by other staff support measures (revaluation of staff meal vouchers, individual guarantees of purchasing power).
The progressive implementation from the 2nd half of the year onwards of the sharing of services between the City and the urban community has already enabled savings in payroll costs of €0.4 million.
With a total figure of €87.1 million, the transfers item brings together all the operating subsidies paid to external bodies. The growth of this item was very limited in 2008 (+0.6%), as the City decided to involve certain subsidised bodies in its search for financial savings (Nantes Habitat, ACCOORD), whilst maintaining its support for other sectors (culture, sports or very young children). The expenses devoted to administering services (€61.9 million), mainly comprising expenses of a general nature, virtually stabilised at the 2007 level (+0.3%). This achievement can be explained by the establishment of various projects in 2008 (purchasing policy, optimisation of land and taxation costs). The slight rise is connected with structural charges, which increased from €12.5 million in 2007 to €13.0 million in 2008 (+4.0%).

Key figure:

Capital expenditure: €59.8 million, or €215 per inhabitant.

Whilst the years 2006 and 2007 were characterised by substantial development costs, in line with the conclusion of the multi-annual investment programme adopted at the start of the term of office, the year 2008 recorded an even higher level of expenditure at €59.8 million.
This outlay chiefly included the City’s own capital expenditure (€57.6 million) and subsidies and contributions paid by the City (€2.3 million). The City’s capital outlay can be broken down between individual operations (€30.5 million), development and improvement works (€10.6 million), long-term maintenance works on assets (€8.4 million) and administrative resources (€8.1 million).
With substantial maintenance and development works, and the launch of the works on the schools at Dervallières-Chézine and Bottière-Chénaie, education was the sector in which the commune made the greatest investment in 2008, (€15.7 million, or 28% of expenditure).
In 2008, expenditure in connection with the living environment took on particular significance (€10.4 million), notably with works on the communal green spaces.
Culture occupies third place with a development outlay of €8.0 million, devoted mainly to work on developing and improving existing facilities, work on the heating and air conditioning of the Regional National Conservatoire and the construction of a cultural centre - l’Atelier - which was delivered in September.
Elsewhere, €5.7 million was invested in sports facilities, in particular to finance works on the Marcel Saupin stadium (€2.0 million), and the long-term maintenance, development and improvement of existing facilities.