War in Ukraine, war in the Middle East, low economic growth, energy crisis, housing shortage, high interest rates and shortage of skilled workers are the issues that concern and concern us all. Municipalities are also affected by this. How will income and trade taxes develop as the municipality’s mainstays of revenue? How do high energy costs, rising personnel costs and higher credit costs or inflation, which has still not been overcome, affect our budget? Against the background of these questions, budget planning represents a real challenge. A press release from the CDW.
The 2024 income budget shows a loss of EUR 1.23 million. Since the municipality has an inventory reserve of around 20.4 million euros, this deficit can be offset. Last year it was decided to increase the trade tax rate from 360 to 400 percent from 2024. This increase will significantly improve the municipality’s income situation. However, the spending situation must also be taken into account: the staffing plan shows an increase of two positions among civil servants – the CDW agrees with this because, according to the administration, this is only a temporary increase.
Priorities and visions set the direction for budget planning. These keywords need to be filled with content: The focus of the Wallenhorst budget 2024 and the medium-term investment planning are on the areas of education, roads/traffic and waste disposal.
Education area: Enabling all-day care and creating daycare places
In order to create the framework conditions for the legally required right to all-day care in primary schools, 3.4 million euros are earmarked for the expansion of canteens at primary schools in the 2024 budget and a further 6.8 million euros in the medium term. Unfortunately, subsidies are only expected to amount to 0.9 million euros. A disappointment!
In order to be able to offer as many families as possible a daycare place, we will invest around 4 million euros. The plans include the expansion of the Franziskus kindergarten in Lechtingen, the new construction of the St. Johannes kindergarten in Rulle and the expansion of the St. Elisabeth crèche in Wallenhorst. Renovation measures are also necessary at various daycare centers. In 2024 we will have nine daycare centers in Wallenhorst – the tenth daycare center, which is to be built in Hollage, is being planned.
Roads/Traffic area: Improve conditions for cyclists
Another important infrastructure measure is the expansion of municipal roads. 4.2 million euros are earmarked for the expansion of Hansastrasse. The expansion of Maria Montessori Street will cost the budget 1.5 million euros. The CDW’s application to develop Maria-Montessori-Straße as a bicycle route will enable grants of 500,000 euros to be acquired – a significant contribution to improving the budget situation. From the CDW’s point of view, the current condition of the cycle path in Lechtingen is unsustainable. The CDW has therefore requested that comprehensive changes be made. Such an investment must be financed from the revenue budget. The expansion of the side rooms on Hollager-Straße depends crucially on the funding backdrop. The 2024 budget and the medium-term financial plan provide for investments of 5.3 million euros. Funding of 3.5 million euros is planned.
Disposal and heat planning: making Wallenhorst future-proof
One of the basic tasks of a municipality is to ensure that waste disposal works. EUR 2 million has therefore been earmarked for the expansion of the Hollage sewage treatment plant and the renovation of the pumping stations.
Climate change and sustainable energy supply concern us all. The CDW has therefore applied to initiate municipal heat planning for Wallenhorst. The costs of around 150,000 euros are expected to be subsidized by 90 percent.
Debt: Differentiated consideration is important
The 2023 budget provided for new debt of 9.9 million euros. In fact, new debt in 2023 amounted to 1.5 million euros. The reason for this development is that only half of the investments planned for 2023, amounting to 25 million euros, could be implemented in 2023. In future, the realization of the planned investments should also be taken into account when drawing up the budget.
The investment costs for 2024, after deducting the expected income, amount to 10 million euros. The financing will not be possible without new debt of around 6.8 million euros – but that also means that around 3.2 million euros will be financed from our own resources. The 2024 budget assumes a debt level at the end of the year of around 46.8 million euros – assuming that the planned investments are actually implemented in 2024.
However, when looking at the debt situation, a distinction must be made: A part of this goes to the cost-calculating facilities such as wastewater and rainwater sewage systems. So it is profitable debt. The debt created by the acquisition of the gas and electricity networks means that income is already being generated. Profitability is also present here. Investments in the community’s social infrastructure (e.g. daycare centers and schools) are necessary and are sometimes required by law. Taking on outside funds for financing is unavoidable. In all cases these are long-term loans that are taken out exclusively for investments and not to compensate for ongoing administrative activities. The assets grow with you, and significantly more than the debts.
Nevertheless, we are all called upon not to lose sight of debt relief.
For the CDW group
Manfred Gretzmann
Photo: CDW
2024-01-09 18:51:44
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