Understanding the Importance of the General Account in Assessing Municipal Financial Health

2023-07-05 04:51:00

A municipal assembly was on the program Wednesday evening in Basse-Allaine. The thirty or so citizens present notably accepted the 2022 accounts, which end with a deficit of 59,505 francs in the general account. The heirs also approved a loan of 35,000 francs for the purchase of a robotic mower for the Courtemaîche football pitch. An envelope of 25,000 francs for the renovation of the paintings of the Buix school building has also passed the ramp. /alr

Why does RFJ communicate the result of the “general account” to you?

The “MCH2” accounting model distinguishes two final results: the “general account” and the “global account”.

The general account includes the current expenses and receipts (in particular tax) of the municipality. It corresponds to the structural functioning of the municipal household and reveals its financial health.

The global account is an addition of the general account and “special funding”: the latter correspond to the receipts of the municipality’s self-funded services (water service, gas, waste management, SIS, etc.) through taxes. These special funds can only supply the services concerned and cannot legally be integrated into the municipal household. They are therefore not indicative of the “structural functioning” of the municipality.

For these reasons, RFJ chooses to provide you with the results of the general account, a relevant indicator of the municipality’s financial health.

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