There is not enough money for the major projects in Neuching

Created: 09.12.2022, 18:00

By: Bernd Heinzinger

Sports hall and children's home: the municipality of Neuching has to borrow 2.9 million euros to finance these projects (symbolic photo).

© Symbolic photo: Federico Gambarini /dpa

Sports hall and children's home: The municipality of Neuching has to borrow 2.9 million euros to finance these projects.

Neuching

– The municipality of Neuching is not able to finance the major construction work on the sports hall and children's home on its own.

It has been clear for some time that she will have to take out loans.

Treasurer Günter Gels now presented the amount to the municipal council.

(By the way: everything from the region is now also available in our regular Erding newsletter.)

The maximum of 2.98 million euros specified in the budget statute was almost fully exhausted, and the municipality wants to borrow 2.9 million euros from the banks split over two different terms.

The municipal councils eagerly discussed the exact modalities.

First of all, there was disagreement as to whether a split was necessary at all.

Markus Reichender (FWG), for example, called for a term of 20 years for the entire sum.

Robert Riexinger (CSU), on the other hand, advocated a split: "After all, we don't know what will happen in ten years." After a short discussion, only the split was pursued.

Relatively undisputed was the unanimous decision that 1.4 million euros should be borrowed over a period of 20 years with fixed interest rates of the same length.

The interest rate is 3.23 percent, and Neuching has to repay around 77,000 euros a year.

There were different opinions about the second sum of 1.5 million euros.

The first proposal was a ten-year term with a ten-year fixed interest rate.

There were votes to limit the commitment to five years in order to then receive a special right of repayment.

Christian Steiner (WGN) emphasized that the community would certainly not have enough money for this in five years.

Nevertheless, he also argued for a fixed interest rate of five years: "Maybe then there will be better conditions," he said.

You can't know this without a crystal ball, "but I see very good chances for it".

However, Martin Bichlmaier (SPD) did not share this optimism: “In my opinion, interest rates are not going down.

A few years ago we were still talking about six percent, the zero percent phase was very unusual.” Markus Lanzl (FWG) also saw the danger that you could have worse conditions in five years.

Ultimately, with a loan term of ten years, only three councilors voted for a fixed interest rate of five years.

An agreement was reached over ten years for 3.1 percent over the entire term.