French General Code of Local Authorities
In forceThe departments' overall operating allocation includes an equalisation allocation made up of the urban equalisation allocation provided for in article L. 3334-6-1 and the minimum operating allocation provided for in article L. 3334-7.
From 2005, the annual increase in the balance of the departments' overall operating grant after deduction of the flat-rate grant provided for in article L. 3334-3 and the compensation allowance provided for in article L. 3334-7-1 is divided by the Local Finance Committee between the urban equalisation grant and the minimum operating grant, subject in 2005 to the provisions of the fourth paragraph of article L. 3334-7. Under the conditions set out in Article L. 3334-3, the Local Finance Committee may increase the amounts devoted to increasing the urban equalisation allowance and the minimum operating allowance by an amount that may not exceed 5% of the resources allocated the previous year for each of the two allowances.
For the application of the previous paragraph in 2005, the mass to which the choice of the Local Finance Committee applies is made up, for the urban equalisation grant, of the total equalisation grant received in 2004 by the urban departments, as defined in article L. 3334-6-1, and, for the minimum operating allowance, the total of the amounts of the equalisation allowance and the minimum operating allowance collected in 2004 by the departments mentioned in article L. 3334-7.
The overseas departments, the departmental collectivity of Mayotte, the territorial collectivity of Saint-Pierre-et-Miquelon and the collectivity of Saint-Martin benefit from a share of the equalisation allowance, made up of a share of the urban equalisation allowance and a share of the minimum operating allowance.
From 2009, the share of the urban equalisation allowance paid to each overseas department or collectivity is at least equal to that received the previous year. Similarly, the share of the minimum operating allocation for each overseas department or collectivity that meets the conditions is at least equal to that received the previous year.
When a department meets the demographic conditions set out in the first paragraph of Article L. 3334-6-1 to be considered as urban, the total amount of the urban equalisation allowance is increased by the amount it received the previous year in respect of the minimum operating allowance, the total amount of the latter being reduced accordingly. The urban equalisation allowance received by this department may not be less than the amount of the minimum operating allowance received the previous year.
The first year in which a department no longer meets the conditions provided for in the same first paragraph of article L. 3334-6-1, the total amount of the urban equalisation allowance is reduced by the amount it received the previous year in this respect, the minimum operating allowance being increased accordingly. The minimum operating allocation received by this department may not be less than the amount of urban equalisation allocation received the previous year.
In 2023, the amount of the equalisation allocation mentioned in the first paragraph of this article, before any increase by the Local Finance Committee, is increased by 10 million euros, financed by the reduction mentioned in II of Article L. 3334-3.
