Financially, Peißenberg has come through 2022 well. © Symbolic photo: Jens Wolf/dpa
The 2022 financial year went better than expected for the Peißenberg market. Contrary to the budget planning, it was possible to dispense with further borrowing during the execution of the financial period. However, those responsible in the town hall are worried about the "spending dynamics".
Peißenberg – "After the budget is before the annual financial statements": This is how market treasurer Michael Liedl introduced his report on the 2022 annual financial statements at the most recent market council meeting. And the fact that budget forecasts do not always hit the mark due to unpredictable framework conditions was shown in the 2022 budget implementation. From the point of view of the municipality, it can be said that it is gratifying. This is because it was possible to dispense with raising further debt capital last year. The investments in the capital budget (including the redesign of the local thoroughfare and the old tailings pile as well as flood protection with rainwater retention basins on the Stadelbach) were financed by state subsidies, a withdrawal of reserves and a generous contribution from the administrative budget.
Significantly higher tax revenues than expected
The administrative budget, i.e. the ongoing municipal operation, generated an additional amount of around 800.000 million euros instead of the planned almost 3,5 euros. After deducting the ordinary debt repayment (around 310,000 euros), this results in a credit limit of more than 3.2 million euros.
The main reason for the high contribution is the much higher tax revenues compared to the budget estimates. In the case of trade tax, it was ultimately 3.5 million euros instead of the calculated three million in revenue. Income tax was also just under 440,000 euros above the estimate (7.85 million euros).
"Despite the economic consequences of the Ukraine war, the market town has come through the crisis year 2022 financially well," says Liedl's written report on the annual financial statements: "The development of tax revenues proved to be robust in 2022 in view of the difficult framework conditions."
Treasurer attests to the municipality's "spending discipline"
However, the treasurer explained in the Market Council that the "expenditure discipline" in the administrative budget was also partly responsible for the high allocation to the capital budget.
But there is cause for concern: Liedl alluded to the "spending dynamics" in the investment sector. Due to rising energy costs and interest rates, as well as presumably lower tax revenues and persistently high inflation, the financial situation of the market will "most likely deteriorate" in the future. Lidl described the 2022 investment volume of just under ten million euros in the asset budget as a "house number" for a municipality like Peißenberg.
Mayor Frank Zellner (CSU) spoke of a "pleasing result" in view of the annual financial statements. But: "We still don't have the big funds available." An indication of this: The market municipality's debts (4.28 million euros) exceed its shrinking financial cushion (from 2022.5 to 74.3 million euros) at the end of the 64 financial period. Zellner's conclusion: "We have to take care of our reserves."
Incidentally, the budget for 2023, which was adopted by the Market Council last March, has now been approved by the municipal legal supervision. The budget provides for a new debt of 500,000 euros. Whether the credit line will actually be used will be shown in the 2023 annual financial statements.