Dresden. Since the sale of all city apartments in 2006, Dresden has prided itself on being the only debt-free city.
But that no longer applies if the budget for 2021/2022 is decided in the coming week as planned. At least that’s what city councilor Torsten Nitzsche (Free Voters) says. “For me, Mayor Hilbert clearly runs a shadow budget.”
Administrative center at Ferdinandplatz: “Expensive and unnecessary”
Nitzsche wanted to know exactly and therefore asked Lord Mayor Dirk Hilbert (FDP) about it. His questions have now been answered – even if only in part – by the Deputy Mayor Detlef Sittel (CDU). A dispute is looming over the definition of debt.
Nitzsche is specifically interested in the projects for the new administration center on Ferdinandplatz, the orangutan house for the zoo and the Heinz Steyer Stadium. At the administrative center in particular, Nitzsche had tried several times to stop the project because, in his opinion, it was too expensive and not needed.
At least 130 million euros in loans
For the administrative center on Ferdinandplatz, according to Sittel’s answer, the Dresden municipal real estate is to take out a loan of 116 million euros. At the zoo it is twelve million euros for the new monkey house. The financing has not yet been clarified for the 37 million euro project at the Heinz Steyer Stadium.
However, the Greens, CDU, Linke, SPD and Greens want to finance 28 million euros for the Steyer Stadium with a loan, which the city’s Stesad is likely to take out, and decide to do so with the budget. “Those are also to be blamed for, for which the city vouches, criticizes Nitzsche.
Sittel defends the municipal borrowing ban is not being circumvented. “The planned borrowing for the new administrative center and the orangutan house will be carried out by municipal companies that are not subject to the ban on borrowing.”
However, there are still no loan agreements and therefore no terms or conditions. Financing from own funds and subsidies is planned for the stadium, but no credit.
Violent criticism of Hilbert: “High risk”
“It is always emphasized that the city and its companies are one big family,” said Nitzsche. “It is as if the children take out loans and the parents vouch for them. Here too the city has to vouch. So, in my opinion, Dresden is not free of debt.”
Nitsche also wanted to know whether these three projects are one of the city’s compulsory tasks and therefore have to be implemented now. Sittel’s answer: “There is no legal obligation for the investment projects in question.”
Nitzsche says that compulsory tasks such as schools, roads and bridges are more essential than these projects and, if at all, loans should be taken out for them. “We thought that was more important to the free voters.”
In general, however, Nitzsche says that debts are incurred here and that these are not openly named. “If you want to take out these loans, you have to honestly say that they are municipal companies that are part of the city family, and you can’t say they have nothing to do with the city budget.” Dresden runs a high financial risk through the guarantees, which must also be named.
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