Section 2: Financial provisions

Failing agreement between the city council or the Paris council and the arrondissement councils on the methods of calculating the local management allocations for the arrondissements, the sums intended for these allocations shall be distributed among the arrondissements in accordance with the conditions set out below.

The local management allocations for the arrondissements comprise two parts.

The sums allocated by the City Council or the Paris Council under the first part for all the arrondissements may not be less than 80% of the total amount of the local management allocations for the arrondissements. These sums are allocated in the first year on the basis of the relative amount of operating expenditure, excluding staff and financial costs, incurred by the municipality or the City of Paris in each arrondissement over the last three financial years in respect of the facilities and services that will come under the remit of the arrondissement councils pursuant to the provisions of this chapter.The evaluation of this expenditure shall be carried out on an adversarial basis by the committee provided for in article L. 2511-36; if the mayor of the municipality, the mayor of Paris or the mayor of the arrondissement does not agree with the commission's proposals, the municipal council or the Paris council decides. For subsequent years, the share of each arrondissement is modified to take account of changes in the list of facilities or services falling within the remit of the arrondissement. The municipal council or the Paris council assesses the charge corresponding to the new facilities and services by reference to the charge for comparable facilities or services existing in the municipality or in the City of Paris; in the absence of a reference or in the event of disagreement by the arrondissement mayor, this assessment is determined by the municipal council or by the Paris council on a proposal from the commission provided for in Article L. 2511-36.

The sums allocated by the city council or by the Paris council for the second share are distributed among the arrondissements taking into account the specific characteristics of the arrondissements and, in particular, the socio-professional composition of their population.

A decree in the Conseil d'Etat sets out the procedures for applying this article and, in particular, specifies the minimum proportion to be allocated to each arrondissement in respect of the sums allocated by the city council or by the Paris council for all the arrondissements for the second share.