Herrsching increases taxes: Investments of around 12 million euros planned

Created: 12/14/2022, 5:05 p.m

By: Laura Forster

Taxes in Herrsching are increased.

© Photo: Sabine Brose/Sorge / IMAGO

The municipality of Herrsching has big plans for 2023.

Investments of around twelve million euros are in the budget.

For this, the trade and dog tax must be increased, a property must be sold and a loan of 3.4 million euros must be taken out.

Herrsching – In just sixty minutes, the draft budget for 2023 was approved by Herrsching’s mayor Christian Schiller and the municipal councils in the Monday evening meeting – a record time.

The quick decision was preceded by a closed meeting in mid-November, at which Treasurer Miryam Goodwin explained the financial situation for the coming year.

The councilors discussed income, expenditure, taxes and applications for a total of eight hours, because "even for 2023 we don't have an easy starting position," said Goodwin on Monday evening in the council room of the town hall.

The reasons: great uncertainty, inflation and cost increases associated with the Ukraine war.

"Unfortunately, we had to cut costs in many areas," said the treasurer.

In addition, the municipality has decided to increase taxes, sell a property and take out a loan.

Because “we need money for some big projects.

The wish list is large,” said Christian Schiller.

Construction of the children's home at Fendlbach: Herrsching's most expensive investment for 2023

With 11.9 million euros that the municipality wants to invest in 2023, the value of expenditure is higher than it has been for a long time - in the following years the amount should decrease again, Goodwin explained in her presentation.

"These are large investments, but they are right and important," said the mayor.

Above all, the construction of the children's home on the Fendlbach, whose foundation stone was laid in October and which is estimated at 6.9 million euros.

24 crèches, 75 kindergartens and 50 after-school care places are to be created there.

The next large sum is needed for the Christian Morgenstern elementary and middle school.

The municipal council has earmarked 1.3 million euros for a new playground, the renovation of the old building, new parking spaces and bicycle racks as well as tablet classes.

In the case of Mühlfelder Strasse, which was already renovated this year, the state building authority will have to pay 250,000 euros in costs and the municipality will have to pay 200,000 euros for the conversion of the bus stop at the Christian-Morgenstern school.

In addition, the budget includes 433,000 euros for the fire brigade, 420,000 euros for the Herrsching high school, 400,000 euros for street lighting and LED conversion, 255,000 euros for civil defense and disaster control and 200,000 euros for the creation of affordable housing planned euros.

Municipality wants to raise taxes and take out a loan

In order for the municipality to be able to cope with the many investments, a few steps are necessary.

Starting with the increase in trade tax: "Of course it's painful, but unfortunately there's no other way," said Goodwin.

The tax rate in Herrsching has been 300 percent since 1996, it is the fourth lowest rate in the district.

From January 1, 2023 it will be 320 percent, putting the community in the middle between Krailling and Berg.

The treasurer emphasizes: "The increase usually has no effect on private companies such as GbRs, KGs or OHGs." You can offset the trade tax up to a rate of 400 percent against the income tax.

"The situation is different for corporations such as GmbHs and AGs." The municipality expects 9 in the new year,

1 million euros in trade tax revenue - the increase results in a plus of 560,000 euros.

Dog owners will also have to pay more in the future.

The municipality is also planning to revise the second home tax in the middle of next year.

"We currently have the lowest rate at eight percent," says Miryam Goodwin.

With the sale of a property, another 685,000 euros should be taken.

But Herrsching probably won’t be able to avoid taking out a loan (3.4 million euros).

"I had hoped that at some point the debt level would be zero, and that's what we've been working towards for the last few years.

However, the credit is not for any gimmicks, but for the future of the children.” The level of debt increases to 3.6 million euros.

Draft budget for 2023: review and approval by the district office

Good news at the end: Due to the higher tax revenue and the sale of the property, the budget balance for 2023, i.e. the surplus in the overall result budget, should be almost one million euros.

This year it was only 6000 euros.

The councilors unanimously approved the budget proposal.

Now it goes to the district office for examination and approval.