The corona pandemic is causing a massive collapse in trade tax income.
© Hinne-Schneider, Tobias
Not an easy task for Mayor Rainer Busemann and treasurer Alois Langesberg: After the municipality was able to reduce debts in recent years, they expect the mountain of debt to grow again in the next few years. In the local council on Thursday, Busemann and Langesberg presented the draft budget for 2021. The corona crisis has a massive impact on finances. The draft is now to be discussed in the specialist committees and finally agreed in the council.
Bremen – “We are expecting a deficit of 1.2 million euros”, explained treasurer Alois Langesberg. The administration plans to generate income of around 36 million euros and expenses of more than 37 million euros in 2021. “Most of the budget is borne by taxes – that’s more than 60 percent,” said Langesberg. But it is precisely at this point that the planning resembles a view into the crystal ball, Mayor Rainer Busemann had previously explained. In addition, it is still unclear to what extent the federal and state governments will financially support the municipalities in 2021. This year, the federal and state governments will replace the lost trade tax (see info box). “We will not start to make any tricks,” said Busemann. The municipality estimates the tax income at 20.3 million euros in 2021. In the administration’s report it says: “The total tax income will thus remain significantly below the 2019 result and the 2020 approach”. Kämmerer Langesberg finds the amount of loans that the community has to take out worrying – around three million euros are planned. This is necessary because, according to the administration’s planning, the cash balance from ongoing operations will be burdened by over 2.2 million euros. Alois Langesberg pointed out: “We do not generate any income from our operations that we can use for investments, although we are always classified as a taxable municipality.”
Investments of 5.5 million euros
The administration calculates the investment volume at 5.5 million euros. Only 2 million euros are earmarked for civil engineering, of which 1.1 million euros for work on the sewer network and 750,000 euros for road and path construction. 1.9 million euros are budgeted for building construction. Among other things, for school extensions in Niederense and Höingen as well as the extension and renovation of the building yard.
By 2024, according to the administration, the community’s debt will rise to more than 24 million euros. In 2020 the debt burden of the municipality is around 19 million euros. But one does not have to talk about a budget security concept yet. “I see it as my task to find more cost-effective solutions for parts of investments and to discuss them with the council,” said Mayor Rainer Busemann, who warned, despite the tense financial situation, to continue working on the development of the community. Issues such as land use and environmental protection must be pushed ahead. “We have to deal with demographic change, decide how to deal with old houses and we want to green the industrial area,” said Busemann, summarizing important points.
– –
