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A worried look into the future: Aschheim is building up debts - reserves are shrinking

2024-02-20T10:22:59.402Z

Highlights: A worried look into the future: Aschheim is building up debts - reserves are shrinking. In the coming years the community will have to take out loans - and the reserves will decrease. In addition to the new town hall building, costing around 20 million euros, there is also the general renovation of the Catholic kindergarten (Waldweg) as well as several road construction projects with bridge structures. For the further financial planning of the currently debt-free community, this means borrowing of 14.0 million euros in 2025 and another 10.0million in 2026.



As of: February 20, 2024, 11:15 a.m

By: Nico Bauer

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The current budget in Aschheim still looks good.

© Jens Schicke/Imago

The current budget in Aschheim still looks good.

But in the coming years the community will have to take out loans - and the reserves will decrease.

Aschheim – The 2024 budget wasn’t really a problem.

In the Aschheim finance committee, the figures were unanimously recommended for approval by the local council with hardly any detailed questions.

However, the committee members were already concerned about the future because the community will have to tighten its belt in the coming years.

The financial year 2022 was financially outstanding, in which there was high income and the reserves were able to build up to 20.0 million euros.

According to the preliminary accounting results for 2023, the withdrawal from reserves can be reduced from the initially planned 8.4 million to 2.3.

The 2024 budget now calls for 8.1 million withdrawals from reserves, and in 2025 (3.6 million) and 2026 (3.2) savings will continue to be drawn.

The community's problem is the major challenges of the coming years.

In addition to the new town hall building, costing around 20 million euros, there is also the general renovation of the Catholic kindergarten (Waldweg) as well as several road construction projects with bridge structures.

For the further financial planning of the currently debt-free community, this means borrowing of 14.0 million euros in 2025 and another 10.0 million in 2026.

Where can you save money?

In view of the debt that can hardly be avoided, the Finance Committee was already thinking about cuts in voluntary benefits.

Heinrich Broda (FW) suggested reducing club subsidies across the board by ten percent.

Maria Knoller (CSU) replied that such blanket cuts should not be made.

“After all, we also have clubs that only receive a subsidy of 250 euros throughout the year.” The committee members agreed to forward the budget with the recommendation to the local council and to fundamentally discuss the question of how to deal with voluntary benefits in the future this year.

Local councilor Walter Wiedenhofer (Greens), who is not a member of the committee, sat in the audience and spoke up with the proposal to increase the trade tax rate in the 2024 budget.

He emphasized that the conditions are lower than in the surrounding communities “and this additional income will be needed by 2025 or 2026 at the latest”.

He envisions raising the trade tax rate from 310 to 330 percentage points.

The outside objection was not pursued further in the committee.

If the budget is finally passed by the local council soon, Wiedenhofer will have another chance to push to increase the trade tax.

Further news from Aschheim and the Munich district can be found here.

Source: merkur

All news articles on 2024-02-20

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