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Treasurer Peter Krank (independent) has reason to be concerned. ihm-fahle © Petra Ihm-Fahle
The increasing district and school levy is making the hole in the city’s coffers bigger. Owners and tenants are threatened with an increase in property tax rates.
Bad Nauheim – Bad Nauheim is facing major financial problems, as was revealed in the city parliament on Thursday evening. The reason is the significantly increasing district and school levies, which is why treasurer Peter Krank (independent) urged the city councilors to rethink their approach. “The golden years are over,” he said.
A large display has recently been installed in the foyer of the drinking spa, which tastefully highlights Bad Nauheim’s tourist offerings. It runs day and night. Will such and other investments in the economic success of the spa town continue to be possible? This question arises after the town council meeting, which took place in the local concert hall on Thursday evening, because the municipality’s finances are likely to be in trouble.
The state of Hesse is also threatened with a budget cut: the fat years are over
Treasurer Peter Krank (independent) provided a dramatic overview when he introduced the draft supplementary budget. Member of Parliament Markus Theis (FW) has already hinted at an unpleasant consequence: he fears an increase in property tax rates for 2026. This would affect property owners, tenants and future owners of building plots in Bad Nauheim (see info).
Finances of the city of Bad Nauheim: Deficit in the 2024 budget increases retrospectively
Krank addressed the deficit in the 2024 budget, which was estimated at 7.14 million euros. “It will grow by 1.36 million euros to 8.504 million,” he explained. On the one hand, this has something to do with the sale of the shares in the Wetterau Health Center, for which the city received one million euros from the Wetterau district At the same time, however, the municipality must pay a final compensation of 1.138 million euros into the GZW reserve account.
PROPERTY TAX C IS COMING
The nationwide Property tax reform will allow municipalities to introduce property tax C from 2025 if they so wish. “C” refers to undeveloped but development-ready land that is not used for agriculture or forestry.
City Councilor Michael Schmale (FW) proposed that the property tax in question be applied: as an “incentive” for owners to bring unused but developed vacant lots onto the market.
Manfred Jordis (CDU) signalled his approval, but described the motion as “unnecessary” since the city administration wanted to introduce property tax C anyway. The parliament approved the proposal unanimously with a few abstentions.
That’s not all, as Krank continued. “An additional 1.981 million euros must be paid, of which 1.854 million euros alone will be collected by the Wetterau district for the school levy in 2024.” In addition to the increase in school levies, there are also plans to increase the district levy. Krank spoke of a dramatic change in the city’s financial performance. Overall, he expects an increase in district and school levies of a total of 21.96 million euros in the planning period from 2024 to 2027.
“This is offset by insufficient revenues or consolidation opportunities, so the increases will have a decisive impact on the city’s future financial performance.”
Bad Nauheim’s budget: liquidity loans may be necessary
According to Krank, the municipality will have to examine the possibility of financing investments in the planning period entirely through loans. Another question is: “Will liquidity loans be needed again? How can we ensure that the loans are repaid if they cannot be generated from our own resources?” As far as future budget approval is concerned, the city is falling into the “yellow critical area”.
According to Krank, the reserves that the city has used to balance its budget in recent years are being reduced more quickly than expected. They will soon be used up. A rethink is needed, the golden years are over. “The 2025 budget, which I will present at the end of the year, will be clearly influenced by this,” he announced. There is no way around a comprehensive prioritization of what the city can and must afford.
Krank appealed to the state and federal governments “not to continue to cut off the financial lifeline.” Instead, they should “provide adequate financial resources and financial aid and support measures.” Otherwise, even essential infrastructure could no longer be maintained.
Manfred Jordis (CDU) requested that the matter be transferred to the city’s main and finance committee, which is what happened. The Free Voters later submitted a motion for nationwide property tax reform, which the House of Representatives approved. According to this, the city should not collect more money from the recalculation of the assessment rates for 2025 than it had planned for 2024. According to FW parliamentary group leader Markus Theis, the aim of the reform is not to generate additional revenue for the public sector. However, with regard to the city’s precarious financial situation, he concluded: “I fear that we will have to talk about raising the assessment rate for the 2026 budget.”
State recommends new property tax rates: This could affect property owners in Frankfurt
