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Germering is planning a record budget: increasing debts and big projects!
Germering presents the 2023 budget with record volumes, stable finances and planned investments in educational institutions.
Germering is planning a record budget: increasing debts and big projects!
Chamberlain René Mroncz had exciting news to announce at the recent town hall meeting. The city of Germering's budget for 2023 has a record volume of 153 million euros. That not only sounds impressive, but also shows that the city is on solid financial footing. A stable labor market and increasing tax sources ensure that income tax is around one million euros above the planned level. A real ray of hope for the city's finances, you could say!
But before there is too much euphoria, it is also important to consider the weak side of development. With trade tax revenue of around 30 million euros, which is almost nine million above expectations, the financial resources are already being invested in large projects. This includes, among other things, the new building of the Ellis Kaut primary school and other childcare projects, which alone will cost around 125 million euros.
Investments in view
In addition, other significant investments are planned, such as the renovation and expansion of the construction yard and remaining work on two schools. In addition, the energy supply is to be reformed using geothermal energy. Despite this year's surplus of eleven million euros, our eyes must remain focused on the future, because this will not be enough to manage future major projects.
According to Mroncz, a balanced budget by 2026 is simply not possible due to one-off effects from taxes and levies. In order to secure Germering's financial performance in the long term, a working group is being set up. This will also be dedicated to the upcoming property tax reform in Bavaria, which will in future take the property area into account instead of the value. According to Mroncz, this reform remains revenue-neutral for the city because not all returns have been processed by the tax office.
A look into the future
The city is faced with a debt that could rise from 28 million euros to almost 78 million euros by 2028. The reserves are reduced to just 6.3 million euros. Meanwhile, it could be seen as essential to engage with modern approaches to budget management as described in the new concepts. The development towards a product-oriented approach and the increased use of budgeting and activity accounting could be crucial in order to best master the financial challenges.
Decision-makers and employees in administration have the opportunity to gain a clear advantage through new methods in budget management. The budget therefore remains not only a central control instrument, but also an important key to future stability and efficiency in Germering.
It remains to be seen what impact these developments will have in the future and whether the city can meet its goal of securing financial performance. A good hand would certainly look good on the city!
Further information on the city's finances can be found in the detailed reports from Wochenanzeiger and Becker eLibrary: Wochenanzeiger reports that... and Becker eLibrary provides information about budget management in municipalities.