Tighten your belt and watch your money – that’s what the city administration will have to do in the coming times. That doesn’t necessarily make budget planning for the upcoming year 2025 any easier. Large projects, such as the construction of the new Donaueschingen secondary school with a three-field sports hall, put a strain on the coffers. The task now is to find opportunities where money can be generated – and where savings can be made.
A big lever that hasn’t been moved in Donaueschingen for a long time is the trade tax. Mayor Erik Pauly already announced that something would happen here when he introduced the budget: “In the future, we will be forced to do things that we don’t want to do,” said Pauly in October.
The topic was now also discussed in the main committee. There, the council finally decided to increase the trade tax rate by 20 points. They did not follow the administration’s proposal, which had envisaged an increase of 30 points.
“I don’t think an increase will lead to migration.”Jens Reinbolz, SPD parliamentary group spokesman | Image: Roland Sigwart
Go with a heavy heart
An increase in trade tax also ensures that companies “increase their efforts to generate their commercial income elsewhere,” said CDU parliamentary group spokesman Marcus Greiner. The group therefore does not want to increase to the extent that the administration had originally planned: “It is with a heavy heart that we would accept an increase of 10 points,” continued Greiner.
You might also be interested in Donaueschingen Money or security: Should Donaueschingen buy its own speed camera trailer?
The liberals saw it completely differently. “I would like to submit a proposal not to increase the trade tax,” said FDP/FW parliamentary group spokesman Niko Reith. Various companies are already considering operating more tax-efficiently elsewhere, says Reith. It is common practice, especially for large companies, to talk about location distribution: “And our tax rate is not the lowest.” Raising it “is wrong,” the group spokesman continued.
For the Liberals, it is a location factor, which ultimately means more revenue is generated “because more companies come.” It is not clear what logic is used to increase it.
In other areas, cuts are being made quickly
People have been talking about the same thing for about 25 years: “And I don’t know of any municipality where trade tax is cheaper,” said SPD parliamentary group spokesman Jens Reinbolz. “I don’t think an increase will lead to emigration.” Reinbolz doesn’t understand how all other areas, be it social or cultural, are quickly being cut, “and why the brakes are being put on the brakes here?” The SPD supports this Administration suggestion.
“We didn’t make it easy for ourselves either.Erik Pauly, Mayor | Image: City of Donaueschingen
If the increase does not take place, it will be difficult in the coming period, explained Green Party spokesman Michael Blaurock. He hoped that the trade tax would improve the budget by 500,000 euros: “Our group stands by it. This would bring us closer to a certain national average,” says Blaurock.
You might also be interested in Donaueschingen Anger over designated commercial area: Does Donaueschingen still have enough space?
The GUB group requested an increase of 20 points. The committee members followed this after the FDP/FW and CDU applications were rejected. The trade tax assessment rate in Donaueschingen should therefore increase from the current 330 to 350.
Unchanged since 2001
“The assessment rate in Donaueschingen has remained unchanged since 2001. In terms of price, we are at the lowest end in the Schwarzwald-Baar district,” explained treasurer Tonino Christiani to the city councilors. When examining the Donaueschingen budget, the regional council will point out: “From there it will be said that we should first increase our trade tax before we take out loans.” Municipalities have to generate income and it is unusual that there has been no increase for so long : “I don’t know of any municipality that hasn’t increased it for so long.”
There is no right or wrong when it comes to this topic, said Mayor Erik Pauly: “We didn’t make it easy for ourselves either. We don’t like to suggest something like that because we also know that companies don’t have it easy.” However, the level in Donaueschingen justifies it.
