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Because of tax losses in the corona pandemic: Penzberg is reaching deep into its reserves

2021-08-09T10:14:50.780Z


In view of the tax shortfalls as a result of the corona pandemic, the Penzberg city council has issued a supplementary budget for this year. However, the city refrains from massive deletions in order to compensate for the minus. To do this, she is reaching far deeper into the reserves than planned.


In view of the tax shortfalls as a result of the corona pandemic, the Penzberg city council has issued a supplementary budget for this year.

However, the city refrains from massive deletions in order to compensate for the minus.

To do this, she is reaching far deeper into the reserves than planned.

Penzberg - The city of Penzberg has to cope with 5.2 million euros in tax losses this year. As reported, the greatest impact was a loss of 2.2 million euros in income tax. City treasurer Hans Blank has now presented the supplementary budget for 2021 that had been announced for some time. There will be no reduction in performance this year, he said. There is also no need to borrow. In fact, the city largely refrains from deletions. In some parts of the construction project there is even more expenditure.

The “free financial margin” throws a spotlight on the financial situation: money normally flows from the administrative budget into the asset budget to finance investments.

5.1 million euros were planned this year.

According to Blank, however, the amount shrinks to 0 euros.

According to him, half a million euros must be transferred in the opposite direction from the asset budget to the administrative budget.

City of Penzberg takes almost 9.5 million euros from the reserves

In order to compensate for the difference, the city is reaching far deeper into its reserves this year than originally planned.

According to the supplementary budget, almost 9.5 million euros will be withdrawn from them.

Almost 2.5 million euros were planned.

The city treasurer announced that borrowing would be essential in 2022 and 2023.

From 2022 onwards, all voluntary services will have to be checked, "so that the ability to act and the financial leeway are retained".

Budget discipline, a prioritization of projects and strict adherence to the will to save are necessary, according to Blank.

The sword of Damocles "tax refund": decision on 25 million is still pending

Aleksandar Trifunovic (CSU) asked how a possible trade tax refund could be financed with all of this. As reported, this involves a repayment to Roche. The tax authorities had already decided about half of the maximum additional trade tax demand of 53.5 million euros in 2019: the city had to repay around 18 million euros at the time. According to the town hall, around 25 million euros are still open (not including interest). However, Blank does not expect a decision anytime soon. Should the reimbursement come, "which is safe," there are various options, he said. The payment can be offset against the tax liability and the reserves "attacked more". In addition, the city can count on a state allocation of needs two years later as compensation.Likewise, they then have to pay less district levy. That would have paid off the amount, said Blank. He estimates that the city will have to repay around half of the outstanding amount (not including interest).

Criticism from the ranks of the SPD and the Greens

Elke Zehetner (SPD) criticized: "You could say: The city is in free fall." She described the allocation to the administrative budget and the higher withdrawal from reserves as questionable.

You have to bear in mind "that we have packed a lot of parcels that we have to finance," said Zehetner.

Kerstin Engel (Greens) criticized the fact that savings are not being made, but that the bottom line is two million euros more in expenses.

Projects have only been postponed, money is being taken from the reserves, the bill is based on property sales that have not yet taken place, and the budget is not legally compliant because of the lack of a minimum allocation, she said.

"I find it difficult to see that as a solid household."

Mayor Stefan Korpan (CSU) responded to the criticism that the Greens on the one hand demanded to save a lot, but on the other hand want to spend more on climate protection.

The consequence, he warned, would be to cut voluntary benefits.

Regarding Zehetner's allegation, he said that five years ago the city had 42 million euros in reserves that had been spent within a few years.

Which in turn annoyed Regina Bartusch (SPD): “We didn't throw the money out the window,” she said, but invested in childcare and bought land.

In the end, a clear majority voted in favor of the supplementary budget.

Only Engel, Katharina von Platen and John-Christian Eilert from the Greens voted “No”.

Source: merkur

All news articles on 2021-08-09

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