PressSplit
The costs for the high school (in the background) and the town hall (black building) have increased by over 40 percent since 2021. © Bert Brosch
The district administration is urging the heavily indebted municipality of Kirchheim to cut voluntary services. This would affect clubs.
Kirchheim – It took a long time for the district office, as legal supervisor, to approve the 2024 budget for Kirchheim. But this was only under the condition that a consolidation concept for the hugely indebted municipality was available by the end of November. “Our situation is critical, but not dramatic. But we urgently need to save money,” says Mayor Stephan Keck (SPD).
Legal supervision examines the municipality’s budget
In March, treasurer Christine Brunner-Ernst presented the budget for 2024 to the legal supervision department in the district office. This was necessary because of the enormously high level of debt, which will be around 80 million euros at the end of 2024, because of the insufficient transfer from the administrative to the capital budget of 1.1 million euros – 2.1 million euros would have been necessary – and because of the high borrowing of 25 million euros.
Budget approved subject to conditions
Now the district administration has approved the budget subject to conditions and criticized numerous points: Firstly, there are major doubts about the municipality’s long-term performance. The per capita debt of 6,255 euros this year and 6,839 euros next year is five to seven times higher than the average of the other district municipalities. However, the municipality’s tax capacity is only half as high compared to other districts at 2,024 euros per inhabitant. Since the municipality cannot pay off its loans properly, it is mathematically over-indebted.
District office recommends reducing voluntary benefits, such as grants for clubs
The district office is therefore calling on the municipality to present a consolidation plan by the end of November. It is also recommending a reduction in voluntary services, such as subsidies for clubs, and especially for children’s facilities, where an enormous deficit of 4.7 million euros is incurred annually. The district office is critical of the property on Erdinger Strasse cited by the municipality. Kirchheim is calculating a profit of over 60 million euros here, but the district office has serious doubts about this amount.
(By the way: Everything from the region is now also available in our regular Munich District Newsletter.)
Mayor Keck explains massive increase in construction costs for schools and town hall
Mayor Stephan Keck is calming things down. “On the one hand, almost every municipality in the district is criticized by the district administration for spending too much on voluntary services and should make savings there.” But some of the criticisms are actually correct. “Our current high investments have been known for years. The massive increase in construction costs of up to 40 percent, especially for the schools and the town hall, is causing us problems.”
Consequences of Corona, Ukraine war and situation in construction
According to Keck, the reasons are Corona, war and the inadequacies of those involved in the construction. “Unfortunately, this is a nationwide problem. We regularly experience construction companies blackmailing us. They submit an offer, then increase it extremely and say: either you pay it now or you have to cancel our contract – we have enough orders,” says Keck angrily. For example, there has been a cost increase of over 40 percent at the high school and town hall since 2021, which is 22 million euros more than planned. This results in interest and repayment costs of one million euros every year.
Budget consolidation group has started work
According to Keck, a budget consolidation group started work in December 2023, and there was also a municipal council meeting. “We have put everything to the test and worked out numerous savings opportunities. The necessary decisions will now be made and will be included in the next budget. The detailed discussions started in the main committee on September 17,” said Keck.
Austerity measures combined with business development
Another measure is the new Kirchheim and Heimstetten campus business parks and the upgrading of the existing ones. “Excellent soft infrastructure factors with a local park, schools, kindergartens and much more are available.” In his discussions with companies looking to settle here, Keck has found that “Kirchheim is moving, many want to come to us. If there is no economic crisis, we can manage it – but we have to make significant savings in many areas.” The enormous increase in construction costs could not have been foreseen, so Keck does not blame his predecessor Maximilian Böltl (CSU) for the economic situation of the municipality. “But perhaps we started a few too many projects at the same time,” Keck admits.
