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The conversion of the Schnitzer barn into a local grocery store is costing Bernbeuren a lot of money. © Hans-Helmut Herold
After Bernbeuren’s municipal coffers recovered somewhat last year, financial resources are now running low again. The treasurer had some words of warning – especially regarding the Schnitzer-Stadel.
Bernbeuren – The financial situation in Bernbeuren is becoming tense again. As became clear in the most recent budget meeting, the municipality can only just exceed the legally required transfer from the administrative budget to the capital budget this year. “By a mere 3,000 euros,” as treasurer Marie Burg warned. “That is a significant reduction compared to previous years.” For comparison: in 2023, Bernbeuren was still able to transfer around 735,000 euros to the capital budget.
According to Burg, the reason for this development is a “gross disproportion” between income and expenditure in the municipal coffers. After all, expenditure in the administrative budget has risen enormously in the current year, which is mainly due to the high district levy (1.7 million euros at 55 percentage points) and the financing of daycare centers. The latter has increased in price by almost a quarter due to increased personnel costs, which is putting a huge burden on Bernbeuren (we reported).
Budget 2024: Bernbeuren continues to get into debt – Treasurer warns
The high expenses are offset by additional income – for example from income tax contributions, where the municipality has recorded a slight increase of four percent this year. The rental income from the Schnitzer Inn, which the district administration has rented to accommodate refugees, is also bringing money into the municipality’s coffers. But the bottom line is that not much is left over: the income is “completely eaten up” by the high expenses, said Burg.
What makes matters worse is that Bernbeuren has “partially stagnating sources of income”. As an example, the treasurer cited the trade tax, which recorded record revenues last year, but is expected to shrink by 15 percent again this year. The losses are due, among other things, to the consequences of the war in Ukraine, the treasurer explained.
In the capital budget, two investments in particular are swallowing up a lot of money: the renovation of the Schnitzer barn and the renovation of the drinking water supply. In order to cover the costs of both projects, Bernbeuren has to take out loans totaling around 1.1 million euros this year – which means that debts are continuing to rise. “We’re slowly reaching the end of the line,” warned Burg, referring to the municipality’s already high mountain of debt (4.4 million euros at the end of the year), of which only five percent is being reduced annually.
Loan of 1.1 million euros for two million-euro projects
The treasurer had words of warning about the Schnitzer-Stadel. The community needs to know “what it wants in good time” in order to avoid high planning or change costs. Since April of this year, costs have already risen by five percent to a total of 5.4 million euros, said Burg.
She was also very critical of the fact that the barn will only be leased to a local supplier for ten years after renovation and conversion. “But with the loan, the municipality has taken on debt for the next 30 years,” stressed Burg. She therefore urgently appealed to the mayor and the local council to ensure that the lease continues after the first ten years.
The treasurer was also not particularly happy that they did not yet have all the written commitments for the funding that would finance a good half of the Schnitzer-Stadel renovation. Erich Kraut took up this point and wanted to know why the treasury was not involved in the application for funding.
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Mayor Karl Schleich explained that he had had the relevant discussions with his deputy Josef Köpf. “I don’t know how the treasury could have helped.” In addition, the complete planning with cost calculations is needed before the application for funding can be submitted, said Schleich. The funds have already been confirmed verbally and by email.
Ultimately, the committee unanimously approved the budget and the investment program. The administrative budget closes at 6.5 million euros, the capital budget at 2.8 million euros.
