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The city of Oettingen will invest 18 million euros in 2021. The figures that have now been adopted include numerous major projects. The consequence: the city has to go into enormous debt again.
In 2020, Oettingen’s chamberlain, Birgit Mayer, was still able to prevent the city from having to take out new loans. This year there is no way around it. About the approved budget for 2021, she says: “We have reached a volume that we did not have and probably will not get any more.” Here are the details of the figures.
What are the city’s biggest investments Oettingen?
Chamberlain Mayer presented the budget to the city council on Thursday in a special meeting. The sum in the asset budget, i.e. the amount available for investments, is a never-before-seen level ) Euros, work around the outdoor pool (518,700), the expansion of the mobile home parking spaces (80,000 euros) or the purchase of land for commercial space (300,000). The city apartment building on the Weisse Kreuz costs just under one million euros, and 9.1 million have been earmarked for the renovation and reactivation of the Hotel Krone.
What is being built in the districts?
143,000 euros will be invested in the expansion of the dirt roads, 170,000 euros will be used by the city for better broadband coverage. There are also 14,500 euros for the fire brigade and community centers in Erlbach, Lehmingen, Niederhofen and Heuberg, 15,300 euros for the Marienkapelle in Nittingen, 33,000 euros for the church renovation in Heuberg, 10,000 euros for the planting of compensation areas in Erlbach and 61,000 euros for the Recultivation of the landfills. The district list criticizes the fact that too few projects are being implemented in the districts (see below). But at least some are already planned in the financial plan for 2022, including the bicycle path to Niederhofen (450,000 euros), building areas in Lehmingen, the renovation of the Erlbach fire station or mobile communications.
How is the city financed Oettingen their projects?
The treasurer tells the committee that the total expenditure for investments, grants to citizens, clubs, associations and churches (774,000 euros) and debt servicing is 8.7 million euros. The largest part is financed from government grants, income from sales, transfers from the budget and from the reserve (2.3 million euros). In addition, the city of Oettingen has to take out a loan of around 490,000 euros. According to Mayer, the demand for commercial space is “enormous”: As a result, the city of Oettingen earned 898,000 euros.
How are the city’s expenditures developing in the administrative budget?
The chamberlain counts personnel costs as one of the main expenses with 2.1 million euros. The annual road maintenance accounts for 340,000 euros. The district levy accounts for a large proportion. This year Oettingen has to transfer 3.1 million euros to the district, 2.86 million euros more than in 2020.
What about the current income in the administrative budget, such as taxes?
The chamberlain sets the trade tax at 3.5 million euros, an increase compared to the previous year. The city receives 3.76 million euros from income tax and sales tax participation, the income tax rate and from the key allocations.
How will the debt level develop through that Major project Krone?
The financing plan states that the city of Oettingen will have to provide 9.1 million euros for the crown this year. 6.1 million euros in funding are expected. This means that a further loan will be necessary for the financing gap of around 3 million euros, explains the treasurer. The financial prospects for the city are “not very rosy”. The funds from the general reserve have been used up in full. . In the next three years, the chamberlain estimates, a further 9 million euros in loans will be necessary. The city must be clear that it cannot continue investing like this. Mayer calculates that the debt level of the city of Oettingen will be around 11.5 million euros in 2021, that is 2200 euros per inhabitant. The national average this year is 655 euros.
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