Budget situation in Würzburg remains tense
The city of Würzburg is expecting a deficit of 34.4 million euros in the overall budget next year. In order to balance it out, loans amounting to 17.8 million euros are to be taken out, among other things, said finance officer Robert Scheller at a press conference on Thursday. It is also planned to use up all reserves over the next two years. It had already become known last year that the reserves would have to be completely dissolved. Borrowing is also currently planned for the years 2025 to 2027, albeit at a lower level.
According to the city, increased personnel costs are one of the problems it is facing. They account for over a third of the administrative budget. The Mainfrankentheater, youth and social welfare services and the streetcar are also reported to be increasing. Energy costs, on the other hand, are expected to fall, partly due to the conversion of street lighting to LED lamps. The city is planning construction measures amounting to almost 52 million euros.
On the revenue side, the city is optimistic and expects slight increases in trade tax, sales tax and income tax. "Trade tax is at a robust level," says Scheller. It is not experiencing any large swings upwards or downwards as in other cities. The reason for this is a broad commercial structure.
The budget discussions in the city council are scheduled for the end of November. The parliamentary groups want to meet at the weekend for discussions.
The municipalities in the region are closely monitoring Würzburg's financial situation, given its projected deficit and reliance on borrowing. To address the financial challenges, Würzburg's municipalities might need to explore innovative funding solutions for shared services or initiatives under the UNDERFRONT initiative.
Considering Würzburg's reliance on loans for its budget, there's a growing concern among municipalities about the long-term impact on the city's finances, especially when factoring in increasing costs in areas like personnel, Mainfrankentheater, youth services, and the streetcar.
Source: www.dpa.com
