Geothermal energy is the main reason for the high debt burden in Oberhaching

Created: 03/11/2022, 12:20 p.m

By: Birgit Davies

In view of current developments, Oberhaching's investment in geothermal energy has once again proved to be justified.

Symbolic photo © Marc Schreib

The municipality of Oberhaching has been investing most of its money in geothermal energy for years.

In times of energy supply shortages, the investment could soon pay off.

Oberhaching

– Treasurer Paul Fröhlich in the municipal council now described the financial situation as “solid and financially strong”.

No further borrowing is foreseen in the 2022 budget, with the debt level currently standing at 51.7 million euros, which corresponds to a per capita debt of around 3790 euros.

The national average for municipalities of this size class is 699 euros.

However, 2.1 million euros could be repaid.

Investments in day-care centers, schools and culture

Treasurer Fröhlich emphasized that Oberhaching is taking responsibility for the future, among other things by investing in daycare centers, schools and culture as well as in infrastructure and real estate, which will enable the community to remain capable of acting in the long term.

However, most of the money has been flowing into geothermal energy for around 15 years, at over 60 million euros.

Josef Ertl (CSU) sits on the supervisory board of the Oberhaching municipal works.

He believes that it was the right step, not only in relation to the promotion of renewable energy, but also because it guarantees independence from the global market and at the same time regionality, which means security.

In his words, "the phones are not ringing at the moment because citizens are very interested in geothermal energy supply".

"Today we can be very happy that we persevered, although some even smiled at us."

Municipal utilities: good plus of five million euros

Thomas Hümmer, managing director of the Oberhaching municipal works, confirms the situation.

Since last year, the municipal utilities have registered increased interest, which has now been reinforced by the rise in gas prices and political events.

Ultimately, 2021 was closed with a good plus of around five million euros in the administrative budget.

When it comes to trade, Oberhaching relies on a wide range of companies in order to maintain income stability.

In addition, plots of land were sold in the commercial area for a total of nine million euros, which not only increased household income significantly in the short term, but also means that additional trade tax can be expected in the coming years.

The municipal councils agreed to leave the assessment rates for trade and property tax stable.

Personnel costs are huge items

The crux: According to Treasurer Fröhlich, expenditure in the administrative budget is constantly increasing.

On the one hand, this is due to increased personnel costs, which are now at 16.2 million euros - 50 percent go to childcare - on the other hand there are increased building and operating expenses of 12.4 million euros.

"In addition, we pay almost a million more district surcharge despite the same assessment rate." In figures, this is 18.2 million euros.

In addition, there is a trade tax allocation of 3.1 million euros.

Oberhaching expects trade tax revenue of EUR 22.3 million in 2022 for the income from the administrative budget.

This year's investments primarily include a further contribution to the Oberhaching municipal works in the amount of almost three million euros for the completion of the energy center with redundant power plant in the commercial area.

In addition, one million euros will be made available for the planned mobility hub at the Deisenhofen S-Bahn station.

In addition, the municipality has 3.2 million euros available for possible land purchases and is investing 400,000 euros as a capital contribution in "Bahnhof Deisenhofen gGmbH".

This year, 400,000 euros will also go into the renewal of Sauerlacher Straße and the bridge over the Gleißental.

2 million euros for a possible land purchase and puts 400,000 euros as a capital contribution into the "Bahnhof Deisenhofen gGmbH".

This year, 400,000 euros will also go into the renewal of Sauerlacher Straße and the bridge over the Gleißental.

2 million euros for a possible land purchase and puts 400,000 euros as a capital contribution into the "Bahnhof Deisenhofen gGmbH".

This year, 400,000 euros will also go into the renewal of Sauerlacher Straße and the bridge over the Gleißental.

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Expansion of the commercial area also has a dubious side

A transfer of 2.9 million euros from the administrative budget to the property budget is planned.

Margit Markl (SPD) emphasized in this context that she fundamentally views the expansion of the commercial area positively, but care must be taken to preserve free space for future generations.

The councilors finally approved the budget unanimously.