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Trade tax increase for the general renovation of the Schongau Middle School

2021-11-26T09:05:45.828Z


The general renovation of the middle school is now being tackled. The city has to finance almost half of the 22.5 million euros itself. Therefore, and because there are more holes to be plugged in the budget, the city is now increasing the assessment rates for property and business tax to 380.


The general renovation of the middle school is now being tackled.

The city has to finance almost half of the 22.5 million euros itself.

Therefore, and because there are more holes to be plugged in the budget, the city is now increasing the assessment rates for property and business tax to 380.

Schongau -

The city council met twice this week. In addition to the Tuesday session, a special session was scheduled on Wednesday. On the agenda such important topics as the general renovation of the middle school. “We put the brakes on because of Corona,” Mayor Falk Sluyterman recalled the decision in April 2020 to put even urgent projects on hold. However, all preparatory work for the approval of the general renovation of the middle school with expansion continued in the background. And a partial renovation should have been done anyway - the damage is too great.

The postponement is now costing the city dearly: the prices have risen between ten and 15 percent compared to the first calculation in spring 2020, city architect Sebastian Dietrich made clear, only the fee costs have remained the same.

Dietrich put the total costs including the roof at 19.52 million euros (including a 7 percent risk budget).

An interim solution is also required for 18 classes plus the school administration.

A container system is planned between the current college level building and Fanschuhstraße.

Almost three million euros are budgeted for this.

A total of 22.5 million euros are required for the general renovation with expansion and interim solution.

Middle School: Loan for planned redevelopment runs for 20 years

As of today, a total of 10.64 million euros can be expected. The city itself has to put 11.87 million euros on the table for the implementation, calculated city treasurer Werner Hefele. In order for the city to remain able to act, this amount must be financed: that is 557,000 euros per year over the next 20 years.

But that alone is not enough: In the city council's prioritization list, the renovation of the apartments in the valley is at the top (1.53 million euros investment costs) as is the new homeless shelter (1.4 million euros).

"And then we still have road construction work to the tune of 7.2 million euros in front of our chest," said Hefele. After deducting subsidies and development costs, the city certainly had two million euros left for financing.

In total, around 730,000 euros would have to be financed annually over the next 20 years.

The city's income is insufficient

"The income situation is not enough," Hefele made clear. At least eleven million euros in trade tax income are necessary, without an increase in the assessment rates it will not work. Property taxes A and B are to rise from 350 to 380 percent, and the trade tax will also be increased accordingly by 30 percentage points to 380. As recently as June of this year, it was decided that no retroactive trade tax increase was to be made.

You are now taking a step that you had not dared to take in the past year in order not to conjure up an additional burden during corona times.

“There is no question that we demand something from the companies,” says Sluyterman.

You take a moderate route, "and we don't take it because we're indulging in a luxury project, but because we can no longer fulfill our duties," said the mayor.

Trade tax is only levied on profit

As became clear at the meeting and also at a press conference that was specially scheduled for this reason, this decision was not made easy. The main and finance committee sat together twice and checked every single number. Last week, the city wrote to some of the traders in coordination with Vice Mayor Daniela Puzzovio and City Councilor Winfried Schaur (UWV). Puzzovio once again made it clear: trade tax is only levied on profits. The increase of 30 percentage points means 1.05 percent of the profit.

"We should have reacted sooner," reminded Bettina Buresch (Greens, formerly ALS) that the alternative list has been calling for business taxes to be increased year after year in order to create a financial cushion and avoid an investment backlog. Now there is an urgent occasion, and at the closed meeting this common path has crystallized with great consensus, Buresch countered Michael Eberle's speech. The CSU city council and two other parliamentary group colleagues went too far from 350 to 380 percentage points, Eberle campaigned for a moderate increase to 360 percent. “The companies will not migrate straight away, but they may put a greater strain on another pillar in a different location,” he warned. Against three votes, the city council increased all assessment rates to 380 points.

In a first estimate for the general renovation at the end of 2019, it was even said that the project would cost a total of 24 million euros.

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Source: merkur

All news articles on 2021-11-26

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