Herbolzheim has submitted its budget for 2024. Because this cannot be offset, a loan of one million euros should be taken out. The city would then have total debts of nine million euros.
Despite all efforts to reduce costs, reduce expenses and optimize income, Herbolzheim will not be able to present a balanced earnings budget for 2024. Mayor Thomas Gedemer said this at the most recent council meeting on Thursday. “There remains a negative ordinary result of around 900,000 euros,” he explained. This is mainly due to cost centers over which the city has no influence. Gedemer mentioned the tariff increases and the planned increase in the district levy.
In Herbolzheim, budget consolidation is taken very seriously, said Gedemer in his budget speech. We therefore examined where there was potential for savings and what was not absolutely necessary. “Especially when it comes to entertainment measures, it was and is important to ask ourselves responsibly what is inevitable in the coming year, what can be postponed and what is simply desirable,” said Gedemer.
The administration therefore wrote to all offices, local administrations, schools and daycare centers and drew their attention to the tense situation. The accounting office has also corrected all estimates in the earnings budget downwards by ten percent. Anyone who wanted higher expenditure had to justify it with arguments. “In this way, we have responded to the local council’s express wish not to simply update current expenses and permanent costs in a linear fashion, but rather to question them, look for alternatives and, if possible, correct them downwards,” said the mayor.
Everyone can contribute something to a solid financial situation. Saving many small amounts can have a big impact. Gedemer cited the administration’s office supplies as an example. These are now purchased through the municipal department store of the municipal council, which leads to significantly lower prices. The award is also legally secure and the items are sustainable.
It is important that everyone involved understands that the city needs to save and consolidate. Gedemer therefore appealed for understanding from the employees, the local council, the local councils, the administration and the citizens. “We have to pull together, put desires aside and avoid unnecessary battles over distribution,” said Gedemer. Herbolzheim is on the right track. He doesn’t believe in spreading a doomsday mood, but he doesn’t want to sugarcoat the situation either: “We have to make the best of it.” Gedemer also recalled that the annual financial statements were always better than the respective budget had predicted.
After the administration examined all potential savings, possible increases in revenue were considered. Here the administration proposed an increase in trade tax and entertainment tax. Property tax rates A and B remain unchanged. The majority of the local council agreed to this. Increasing the trade tax rate by 60 percentage points will generate additional revenue of around one million euros. The entertainment tax will increase from 16 to 22 percent in 2024 and to 25 percent in 2025. As a result, the administration expects additional income of 160,000 euros for 2024 and 236,000 euros for 2025.
Nevertheless, Herbolzheim will not have a balanced budget. Significant tariff increases would lead to additional expenses of 900,000 euros. There are also financing surcharges. “The proposed increase in the district levy alone would cost us 878,800 euros,” said Gedemer. In addition, a lot of money will continue to flow into child care in the coming year. If you deduct the allocations from the state and the parental contributions from the expenses of around seven million euros, you would be left with a delta of just under 3.9 million euros. For core time it is almost 77,000 euros. Investing in children and education is important. Money is also planned for digitalization and climate protection.
Info: The budget is not expected to be passed until the beginning of 2024.
The key data of the 2024 budget
The budget provides for around 35.2 million euros as ordinary income and expenses of around 36.2 million euros. This creates a deficit of around 927,000 euros. A loan of one million euros is planned. In 2024, Herbolzheim wants to invest around three million euros for the new rescue center, around one million euros for the development of the North Industrial Park, 500,000 euros for the Wagenstadt primary school and 350,000 euros for the Ringstrasse. 300,000 euros have been budgeted for the purchase of the property. The sale of land is expected to bring in income of 6.1 million euros.
2023-11-24 21:05:30
