French General Code of Local Authorities
In forceI. - In order to allow resources to be pooled, a public establishment for inter-municipal cooperation with its own tax status may collect, in place of its member municipalities, the amounts from which they benefit under the global operating allocation provided for in Articles L. 2334-1 et seq, on the basis of concordant deliberations by the deliberating body and each of the municipal councils of the member municipalities. In the metropolises governed by articles L. 5217-1 and L. 5218-1, this agreement must be expressed by at least two-thirds of the municipal councils of the communes that are members of the metropolis representing more than half of the total population of the latter, or by at least half of the municipal councils of the communes representing two-thirds of the population.
The public establishment of inter-municipal cooperation pays each year to all its member communes a reversal grant, the overall amount of which is equal to the sum of their overall operating grants.
The individual amount paid to each commune is set by the deliberative body of the public establishment of inter-municipal cooperation by a majority of two-thirds of the votes cast. It is calculated on the basis of criteria that take into account, as a priority, on the one hand, the difference between the commune's per capita income and the average per capita income of the public establishment of inter-municipal cooperation and, on the other hand, the shortfall in the commune's per capita tax potential in relation to the average per capita communal tax potential on the territory of the public establishment of inter-municipal cooperation.
This reversal grant constitutes a compulsory expenditure of the public establishment of inter-municipal cooperation.
II. - The deliberative body of a public establishment for inter-municipal cooperation with its own tax status may, within two months of being notified of the amounts paid as part of the overall operating grant provided for in article L. 2334-1, propose to all of its member municipalities that all or part of the allocations from which each of them benefits be pooled so that these sums are repaid in full to the member municipalities with the aim of solidarity and territorial cohesion. To this end, the proposal includes a list of freely chosen criteria of resources and burdens, according to which the repayments will be determined.
This proposal takes the form of a deliberation adopted by a majority of the votes cast.
The municipal councils have a period of two months from notification of the deliberation mentioned in the first paragraph of this II to approve the proposal by deliberation.
Where no municipal council has rejected the proposal within this period, the deliberative body of the public establishment for inter-municipal cooperation with its own tax system may adopt a distribution of the pooled sums according to the criteria mentioned in its proposal. The difference between the amount initially communicated for a municipality and the allocation resulting from the deliberation of the public establishment for inter-municipal cooperation with its own tax status may not exceed 1% of the actual operating revenue of the main budget of the municipality, recorded in the management account relating to the penultimate financial year.
This distribution takes the form of a resolution adopted by a two-thirds majority of the votes cast by the members of the deliberative body of the public establishment of inter-municipal cooperation with its own tax status.
These distribution methods have no impact on the calculation of the financial indicators and on the rules governing variations in allocations under the various components of the overall operating grant in subsequent financial years.
III. - The procedures for implementing this article are defined by decree in the Conseil d'Etat.
