The community’s debt level will increase significantly

Treasurer Maria Scheurl-Böhnlein explained the budget for 2021. “We have planned generously so that we can implement projects quickly if they are pending.” Therefore, the borrowing is at least somewhat higher in the planning. Whether it will actually come to fruition depends on the feasibility of the projects.

The municipality is planning investments of around 17 million euros for 2021. Despite positive balances from administrative activities, these can only be financed by taking out loans. Accordingly, the community’s debt will increase significantly. The situation will continue similarly in 2022 and 2023.

To show spending discipline

For this reason, too, the treasurer warned to adhere to the spending discipline in all areas, to exhaust all income opportunities and to stretch investments if necessary. When making investments, one also has to plan for the additional follow-up costs that will burden the budget. The overall budget is subdivided in the double-entry system, according to which the budget is carried out in the market municipality, into an income budget and a financial budget. In the results budget, income of around 18.7 million euros is expected in 2021. The total amount of the expenses is set at around 17.1 million euros. The surplus of 1.56 million is around 600,000 euros less than in the previous year.

The planning years 2022 to 2023 also provide for a positive annual result, but no longer in the millions as in previous years. Almost half of the income-men comes from taxes that are estimated at around 9.3 million. That is around 212,000 euros less than in the previous year, which is mainly due to a shortfall in trade tax income. For the year 2022, a further decline in tax revenue is assumed to be roughly the same. For the item “Reimbursement of costs and cost allocations”, the chamberlain is expecting around 200,000 euros less income than in 2020, when the reimbursements from the snow disaster in 2019 in particular made a difference.

The municipality’s tax revenue is composed of the municipality’s share of income tax (57 percent), trade tax (24 percent), property tax (10 percent) and the municipality’s share of sales tax (4 percent). The rest are other taxes (e.g. dog tax). While the municipal share of income tax has risen steadily since 2015 and a further increase of 5.2 million is planned for 2021 compared to the previous year, after a high in 2017 of around 2.9 million, there is a slight decline in the three subsequent years for trade tax to around 2.7 million each. A further decrease to 2.2 million is expected for 2021.

3.2 million euros in key assignments

Another large item in the income is the grants and general contributions from the federal and state governments, which were estimated at around 4.96 million euros. The largest part of this, at 3.2 million, are key allocations within the framework of municipal financial equalization.

The largest item in the ordinary expenses are the transfer expenses (district levy, trade tax levy, social and youth welfare) with around six million or 35 percent of the total expenses. In addition, around 3.5 million euros or around 20.5 percent are budgeted for personnel costs. Expenses for goods and services are expected to be around 3.3 million. This item includes all current expenses for buildings, vehicles, offices, underground parking, building yards, sewage treatment plants and so on.

In the financial budget for 2021, an increase of around 1.6 million euros is expected from ongoing administrative activities. In investing activities, payments of around ten million euros are offset by payments of around 17 million euros. This creates a negative balance of around seven million euros. The surplus from the administrative area can therefore only cover part of the deficit from investment activity.

To close the gap, a loan of six million euros is necessary. In the following years, further loans in the amount of 5.5 or five million euros would have to be taken out to realize all planned projects. As a result, the per capita debt in the market municipality will increase significantly from now 268 euros to 847 euros in 2021 and up to around 1,800 euros in 2024.

Due to the ongoing low interest rate phase, the interest payments increase only slightly when these loans are taken out, from around 75,000 euros this year to around 100,000 euros in 2024. With a loan period of 30 years, the repayments will be around 550,000 this year EUR and rise in the following years to a maximum of around EUR 900,000.

High investments planned for this year

The measures planned for 2021 with a high investment volume include the new construction of the Mehring kindergarten, the renovation of the school gymnasium in Oberteisendorf, the renovation of the municipal building yard and the fire station in Teisendorf, the new construction of the recycling yard with green waste storage area, the redesign of the Achthal mining museum and the community share in broadband coverage.

Gasser and the speakers of all parliamentary groups praised Scheurl-Böhnlein for the solid budget and the clear statements. “What we do are investments in the future, in education, sport, trade, living space,” said Alois Stadler, spokesman for the CSU parliamentary group. The many projects in the investment budget are necessary to move the community forward, according to the local council and third mayor Georg Quentin (SPD). “But it cannot all be done at once”, that is what we have to communicate to the citizens. “We must know it as sparingly and carefully as we have run the householdcontinue to do so, «said the parliamentary groupprecherin of the Greens, Elisabeth Aschauer. Bernhard Reitschuh, spokesman for the Free Voters, praised the chamberlain for the timely preparation of the budget. Local councilor Gernot Daxer (CSU) commented on the issue of intergenerational equity: “Equity has increased, substance has been built up. It has to be renovated so that we do not leave ailing buildings behind for future generations. «Kon

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