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With trade tax and land sales: Valley municipality expands assets

2023-05-30T14:12:57.069Z

Highlights: The municipality of Valley is debt-free and equipped with ample reserves. The sale of land is expected to bring almost three million euros into the municipal coffers. Valley is investing around 1.1 million euros in broadband coverage this year. 2.36 million euros have been earmarked for the construction, maintenance and rehabilitation of roads and parking lots. The municipality pays 2.9 million euros to the district of Oberlaindern for road maintenance and repairs. An investment of 245,000 euros is planned for photovoltaic systems.



Debt-free and equipped with ample reserves: the municipality of Valley, here is an aerial photo. Land sales are expected to bring in almost three million euros this year. © Thomas Plettenberg

Trade tax and land sales: This year, the municipality of Valley is taking in six million euros from these two items alone. The result: no more debts and growing reserves.

Valley – At first glance, the municipality of Valley is characterized by small towns with a very rural character, but if you drive through Oberlainder, you will see mighty commercial buildings there. Among other things, these settlements bring the municipality a hefty trade tax. 3.2 million have been earmarked in the 2023 budget. By way of comparison, Weyarn expects to spend 2 million euros this year.

At the presentation of the budget at the most recent municipal council meeting, Mayor Bernhard Schäfer (FWG) made it clear how important the trade is for the municipality. "The commercial enterprises finance a large part of our personnel costs," he said. These are estimated at just under 1.7 million euros. However, they are by no means the largest item on the expenditure side, as was evident from the presentation by treasurer Heike Finsterbusch. It gave a detailed overview of income, expenses in "everyday business" and investments. Accordingly, the total volume of the budget amounts to 15.7 million euros (2022: 15.5 million): 9.7 million are set aside in the administrative budget and six million in the capital budget.

Except for a short statement by the mayor, there were no requests to speak in the municipal council. The committee waved through the budget and the financial plan for 2024 to 2026 without comment – unlike last year. At that time, for example, there had been criticism because the budget was largely financed by land sales. This year, too, this is the second largest item on the revenue side after trade tax. The sale of land is expected to bring almost three million euros into the municipal coffers. 810,000 euros are reserved for the purchase of land.

A lot of money for daycare centers and elementary schools

It was clear from the figures presented by Treasurer Finsterbusch how much money Valley provides for its youngest citizens. The kindergartens of St. Nicholas, St. Felicitas and the nursery as well as external institutions have a subsidy requirement of 570,000 euros, the expenditure for the primary school amounts to 615,000 euros, 173,000 euros are due for investments in the daycare centres.

Almost 1.3 million euros are planned for the construction, maintenance and rehabilitation of roads and parking lots, the largest measure is the Heckenweg in Oberlaindern with 330,000 euros. The municipality pays 2.9 million euros to the district. Valley is investing around 1.1 million euros in broadband coverage this year. An investment of 245,000 euros is planned for photovoltaic systems.

PV systems and other renewable energies play a major role in the 2024 to 2026 financial plan: 2.36 million euros have been earmarked for this purpose, as well as two million euros for the renovation of municipal buildings and municipal housing.

Reserve will decline again in the future

So far, Valley has been able to make all investments without loans, and this is to remain the case until 2026. The municipality is debt-free and is expected to be able to add 130,000 euros to the reserves this year, which would thus stand at 11.2 million euros at the end of the year (as of 2022: 10.12 million). Finsterbusch pointed out, however, that according to current estimates, reserves will have to be withdrawn in the years 2024 to 2026. This is due, among other things, to road construction measures that have already been planned. Forecast for the level of reserves at the end of 2026: around seven million euros.

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Source: merkur

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