Tax Increase Looms for French Community of La Réole as Budget Deficit Emerges – Breaking News

La Réole, Gironde, France – January 23, 2026 – Residents of the Réolais community of communes are bracing for potential tax increases as local officials grapple with a projected €360,121 budget deficit. The news, revealed during a heated budgetary orientation debate on Thursday, has sparked immediate controversy and raised questions about financial management just two months before crucial municipal elections. This is a developing story, and archyde.com is providing up-to-the-minute coverage.

State Mandates and Political Choices Fuel Financial Strain

Francis Zaghet, president of the Réolais community of communes, acknowledged the difficult situation, stating, “There are expenses that we assume, but many that are imposed on us.” He pinpointed several contributing factors, including the ongoing compensation for the elimination of the housing tax by the State (a national policy shift in 2017) and, crucially, what he termed “political choices” – specifically, significant financial support for local agriculture (€100,000-€150,000 annually), the public reading network, sports initiatives, and road maintenance. The latter, Zaghet emphasized, was a responsibility transferred from the State without adequate funding.

“Roads, town planning management, management of travelers… All this costs money,” Zaghet reminded council members. The debate highlights a common tension in local governance: balancing community needs with fiscal realities, especially when external factors – like national policy changes – significantly impact local budgets. This situation isn’t unique to La Réole; many French communes are facing similar pressures, making effective financial planning and transparent communication vital.

Proposed Tax Hikes: What Residents Can Expect

To address the shortfall, Zaghet proposed a substantial increase in property taxes. The plan includes a jump in the property tax rate on buildings from 3% to 6%, on unbuilt properties from 3.76% to 6.76%, and on second homes from 9.65% to 12.65%. For a household in Pondaurat, this could translate to an approximate €45 increase in annual property taxes – a figure Zaghet attempted to downplay, equating it to “two packs of cigarettes per year.”

However, the proposal met with strong opposition. André-Marc Barnett, the mayor of Aillas, and his deputy, François Guillomon, voiced their concerns, arguing that further tax increases are unsustainable. “It’s more difficult to question yourself than to make the necessary efforts. It’s very difficult to swallow the pill of such an increase in two meetings. We cannot continue to increase taxes,” Guillomon stated emphatically. The proposed increases are likely to become a central issue in the upcoming municipal elections.

Health Center Project Secured, But Concerns Remain

Despite the financial challenges, Zaghet assured council members that the planned health center in Saint-Pierre d’Aurillac would proceed as scheduled, beginning construction at the end of 2026. Funding will be secured through grants and loans, with rents calculated to cover loan repayments. This commitment signals a prioritization of essential community services, even amidst budgetary constraints.

However, questions linger regarding the cost of the recently inaugurated House of Public Services, which ultimately cost €6 million – significantly more than the initial estimate of €3.7 million. Zaghet attributed the increase to delays and inflation linked to the war in Ukraine, but some elected officials remain skeptical, questioning whether all possible cost-saving scenarios were explored. This underscores the importance of rigorous project management and transparent cost accounting in public works initiatives.

Operating Savings and the Future of Local Services

Beyond tax increases, the community is exploring operating savings, including non-replacement of retiring agents (with exceptions for critical children and youth services) and a review of rates for leisure centers and music schools. Zaghet stated the goal is to “offer the same services with fewer resources,” a common challenge facing local governments worldwide. The proposals will be put to a vote at the community council meeting on February 26, 2026, marking the final session of the 2020-2026 term.

The situation in La Réole serves as a microcosm of the broader financial pressures facing French communes. Balancing the demands of residents, the mandates of the State, and the realities of a fluctuating economic landscape requires careful planning, transparent communication, and a willingness to make difficult choices. As the debate continues, residents will be closely watching how their elected officials navigate this challenging period. For ongoing updates on this breaking news story and other local developments, stay tuned to archyde.com – your source for reliable, in-depth regional coverage.

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