Budget 2025 – Neuheim expects a profit of 172,000 francs – the tax rate should not change

It is likely that the development of Neuheim’s regional tax revenue will become negative due to new tax reductions in connection with the 8th revision of the tax law. These failures will be compensated by the canton for at least four years. Despite these payments, the 8th revision of the tax law could affect net debt in the next few years.

Funding remains a challenge

However, population growth and the loss of the contribution to cantonal financial equality cannot compensate for the shortfall in income due to the 8th revision of the tax law, the council wrote local. A contribution for future buildings of 700,000 francs is expected in the 2025 budget and another 400,000 francs in the planning year 2026. In the planning year 2028, it is expected that a million francs will be withdrawn from this provision. “This means that profits can be reported every year, but the liquidity to finance investments remains a challenge,” he continues.

The planned large investments mean that Neuheim will have to go into debt in the next few years to get financing. As a result, the interest on debt will rise significantly. From the 2028 planning years onwards, the reserves will be continuously released to compensate for the projected annual losses. These reserves were created precisely for this purpose with the positive financial statements in the past.

The financial plan was based on a constant tax rate of 65 percent. The current financial plan is in line with the financial strategy of the city of Neuheim and aims to create financial opportunity for future projects with the most stable tax rate possible.