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Household in Corona times: Tu felix Poing! No disaster thanks to the extremely high trade tax refund

2020-11-11T16:09:12.997Z


The municipality of Poing is getting through the Corona crisis well thanks to a one-time additional trade tax payment. Mayor Stark: "Sometimes you are lucky in life!"


The municipality of Poing is getting through the Corona crisis well thanks to a one-time additional trade tax payment.

Mayor Stark: "Sometimes you are lucky in life!"

A growing community, as Poing is, not only means a steady increase in the number of inhabitants, but also correspondingly more income, expenditure and tasks.

The result will be a record budget for 2021, as Mayor Thomas Stark (independent) said in the meeting of the Finance and Main Committee on Tuesday evening.

The budget of the municipality of Poing for next year has a volume of almost 82.5 million euros.

Divided into administrative budget with 57.75 million euros and asset budget with 24.75 million euros (all amounts are rounded).

Despite the corona crisis, Stark and treasurer Holger Schmidt were able to announce good news: no borrowing is necessary.

The tax rates for agricultural and forestry operations (property tax A) and for land (property tax B) as well as the trade tax rate remain unchanged - an increase is not planned, according to Stark.

Despite Corona and the unforeseeable effects on the next few years.

Accordingly, the rates remain as follows: Property tax A and B at 385, trade tax at 310.

Income, expenses, reserves, debts

Selection of estimates or approaches by the finance department for the current financial year 2020 (result of the calculation not yet available) and for 2021. The amounts are rounded.

Income year 2020 year 2021

Income tax € 14.6 million € 14.9 million

Trade tax € 10.6 million € 9.1 million

Property tax B € 2.5 million € 2.5 million

Daycare grants € 5.2 million € 5.8 million

Land sale € 281,000 € 10.0 million

Editions year 2020 year 2021

Personnel costs € 8.5 million € 8.6 million

Maintenance costs € 5.8 million € 8.9 million (buildings, roads, etc.)

District levy € 11.5 million € 11 million

Building construction € 11.0 million € 9.5 million (e.g. elementary school Karl-Sittler-Straße and teaching swimming pool / cafeteria)

Civil engineering € 5.3 million € 6.0 million (e.g. new railway underpasses and streets or street renovations and conversions such as Rathausstrasse)

Debt

balance € 24.2 million € 23.3 million

Reserves

€ 32.8 million € 23.7 million

(Source: Municipality of Poing)

How does it come about?

Has Poing won the lottery that the community presumably does not feel the Corona crisis?

Yes, you could actually say it like this: A trade tax arrears allow the community to "get away with a black eye", as treasurer Holger Schmidt said in the meeting for the preliminary consultation of the household.

As already reported, Poing has received 26.4 million euros from a company, the money has already been transferred.

It is an additional payment ordered by the tax office from 2014. Mayor Thomas Stark announced at the finance committee meeting that the company concerned had accepted the decision and waived legal remedies.

Thanks to this unforeseen additional payment (Stark: "Sometimes you are lucky in life!"), The community does not need a loan, as it was actually planned for this year, reported the mayor.

Poing: Still debts of 24 million euros

Nonetheless, the municipality of Poing will soon reach a maximum debt level of around 24 million euros this year and next, which is to be reduced again in the following years.

The reason for this are large projects and corresponding expenses such as the replacement of the Karl-Sittler-Straße elementary school, the new construction of the two railway underpasses (at the S-Bahn station and as an extension of Anzinger Straße) and the new construction of a teaching / school swimming pool with cafeteria.

Conservative budget planning

Whether Corona or not: Poing's Chief Financial Officer Holger Schmidt has always planned and calculated (he has been in office since 1999) more conservatively than daring.

In the budget and in the financial plan for the years up to 2024, for example, he writes that the trade tax rates represent “a cautious financial course or a scenario of the expected”.

Corona-related break-ins are planned, but a second complete lockdown is not.

Poing: Income tax participation is increasing

With this cautious strategy, Schmidt has done well over the past few years and decades.

Not only for trade tax, but also for income tax participation, which is always very high in Poing.

According to the 2019 invoice result, the municipality received a good 14 million euros in income tax, 14.6 million euros in business tax revenue.

For the next few years, Schmidt expects an increase in income tax due to population growth, but at the same time with falling trade tax income.

For the year 2020 he forecasts 14.6 million euros in income tax and 10.6 million euros in trade tax.

Corona effects on finances are difficult to assess

In general, it is impossible to say exactly how the development will be, according to Schmidt and Stark.

Even less because of Corona and the effects the pandemic is having on finances.

“For example, we don't know how many Poingers are on short-time work,” says Schmidt.

In accordance with the lower income, the income tax participation could be lower.

Looking back up to 1998, the conservative course of the combing is recorded in the budget as follows: “So far we have always had more favorable earnings than planned values.” It is better to set expenses higher and income lower so as not to experience any nasty surprises later.

This course, said Mayor Thomas Stark, is also his favorite.

All members of the finance committee agree with the budget charter for 2021 and the financial plan until 2024; there were no major discussions.

The committee recommended that the local council adopt this budget.

This also includes the decrease in reserves from a good 32.8 million euros (end of December 31, 2020) to 530,000 euros (December 31, 2024).

Source: merkur

All news articles on 2020-11-11

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