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“Garching won’t go bankrupt”: The city has to draw on reserves to finance expensive projects

2024-02-27T11:33:57.661Z

Highlights: “Garching won’t go bankrupt”: The city has to draw on reserves to finance expensive projects. “The sword of Damocles is hanging over us,” says mayor Dietmar Gruchmann. The city council will decide at the meeting on Thursday, February 29th whether the 2024 budget will be approved. The largest item is the construction of the new fire station at around 13 million euros. In total, the project is expected to cost around 30 million.



As of: February 27, 2024, 12:17 p.m

By: Laura Forster

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The foundation stone for the 30 million new fire station was laid last year by (from left) club chairman Johannes Kick, commander Christian Schweiger, architect Inga Mannewitz and mayor Dietmar Gruchmann.

(Symbolic image) © Dieter Michalek

The city of Garching has big plans for 2024. It has to use its reserves to finance expensive projects.

And that will continue in the coming years.

Garching – The city of Garching will have a “record budget” in 2024, said Mayor Dietmar Gruchmann (SPD) recently in the main and finance committee.

The total volume of around 132 million euros is impressive.

However, the city councilors and the mayor did not completely agree on one point: the community center catering, for which 500,000 euros was earmarked without consultation.

The investments that place a financial burden on the municipality are easy to identify (see box).

The largest item is the construction of the new fire station at around 13 million euros.

In total, the project is expected to cost around 30 million.

The groundbreaking ceremony for the building on the bypass took place last summer.

Compromise on the community center restaurant

The last two main and finance committees discussed the 500,000 euros that the administration had budgeted for the restaurant in the community center.

The city had terminated the previous tenant and considered restarting the catering through an outsourced GmbH.

“What are we actually planning to do here?” asked Florian Baierl (UG).

“We should first have a proper discussion about it.

I am not convinced that the city runs a hospitality industry.” Hans-Peter Adolf (Greens) welcomed the idea.

But the project is “not entirely without problems.

This has not yet been fully developed and is therefore not an item that we can include in the budget.

That’s something for the supplementary budget.”

Investments are made here

Renovation of the lakeside stadium: 3.7 million;

Development of communication zone: 1.2 million;

Purchase of land (such as that of the Hochbrück primary school): 5 million;

Road renovations: 1.4 million;

Renewal of the elevator system on Rathausplatz and renovation of the ground floor: 800,000;

IT hardware: 350,000.

At the beginning of February, the committee members voted to cancel the money for the time being.

At the most recent meeting, the mayor returned to the topic.

“I would feel more comfortable if we raised the 500,000 euros straight away,” he said.

“Then we could get started as soon as a decision has been made.” The city councilors once again criticized the fact that “the issue was not discussed in advance in any committee,” as Daniela Rieth (Greens) said.

“That's too oops for me.” Jürgen Ascherl (CSU) said: “That took many people by surprise.” The committee agreed to use 100,000 euros of the money planned for groundwater victims for catering.

At the next city council meeting next Thursday, a contracted consulting firm will present a concept for catering in the community center.

"It's scary"

Regarding the income: Trade taxes are calculated at 48 million - the same as last year.

“General estimates are that revenue will remain the same.

I see it differently,” said treasurer Sascha Rothhaus.

“One of our largest payers is weakening.” The city has to expect an increase of around 8.5 million in the district levy and hand over a total of around 35.3 million to the district.

This year she is taking 30 million from the reserves so that the budget is balanced.

Further withdrawals from reserves of around 37 million are expected in the next three years.

“Even if it looks like things will be tight in 2028, Garching will not go bankrupt,” said Gruchmann.

“It is of course frightening that municipalities in the suburbs of Munich are struggling.

In the future, we have to see what investments Garching can afford.” Although the city does not want to sell any properties, it may be necessary at some point to cover the budget.

“The sword of Damocles is hanging over us.”

The city council will decide at the meeting on Thursday, February 29th whether the 2024 budget will be approved as recommended by the committee.

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

Source: merkur

All news articles on 2024-02-27

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