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Things are going downhill: Unterhaching is in financial decline

2024-03-01T11:34:39.618Z

Highlights: Things are going downhill: Unterhaching is in financial decline. As of: March 1, 2024, 12:20 p.m By: Martin Becker CommentsPressSplit “We are heading towards a perfect storm,” says UnterHaching’s mayor Wolfgang Panzer (SPD) “The good years are not only over – they won’t come back either” The municipality should now “not be afraid of tough decisions”



As of: March 1, 2024, 12:20 p.m

By: Martin Becker

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“We are heading towards a perfect storm,” says Unterhaching’s mayor Wolfgang Panzer (SPD).

© Robert Brouczek

The municipality of Unterhaching is fighting to plug the budget gap.

The aim of reducing trade tax is to remain competitive.

Unterhaching

– If a word appears three times, it probably has an increased meaning.

In his budget speech in the local council, Unterhaching's mayor Wolfgang Panzer (SPD) used the example of a jumbo jet with him as captain to illustrate the financial situation, i.e. the same formulation three times: descent.

Combined twice with the attribute “ordered”, once with “positive”.

But apparently, no question about it, things are going downhill.

Where?

Panzer remained in the flight captain's view: "We're heading into a perfect storm."

Expenses exceed income

So how bad is the Unterhaching downward trend?

The new treasurer Thomas Dannebaum showed this in a bone-dry manner in a set of figures.

88.9 million euros for the administrative budget (i.e. current expenses) and 20.2 million euros for the asset budget (i.e. investments) are budgeted for 2024.

Calculated deficits in ongoing operations arise primarily in the daycare, education and care sector (12.6 million euros) and in sports facility maintenance (3.3 million euros).

There are also district levies (25 million euros) and projects such as the sports park school and Hachinga Hall (2.6 million euros each).

Dannebaum's sober conclusion: "A balance for the 2024 budget cannot be achieved despite savings." In other words, expenses exceed income.

Deep grip on assets

A problem that Unterhaching solves - at least for 2024. Firstly, by exceptionally supporting the administrative budget with 1.7 million euros from the asset budget.

Secondly, by making an impressive withdrawal from the reserves, i.e. the municipal savings account, amounting to 14.7 million euros.

So a deep dive into your assets.

The advantage: No additional loans are necessary for the 2024 budget.

The fact that this is even possible is more of a welcome coincidence.

Namely that in 2023 trade tax revenues developed more positively than forecast.

“They simply miscalculated by 25 million euros,” said Armin Konetzschny (Greens) and castigated “senseless scaremongering”.

This unexpected plus from 2023 will enable Unterhaching to finance 2024.

But what about 2025?

Loan requirement of 28 million euros for the years 2025 to 2027

Chamberlain Dannebaum raised his index finger in warning.

Because after the “structural deficit in 2024”, which has just been met, there is a need for credit: in the amount of 28 million euros for the years 2025 to 2027. A huge chunk of money that will be missing in the future “for large investment projects,” according to the treasurer.

And if another larger trade tax payer were to leave, like Bayerische Hausbau, which moved to Pullach in 2023, that would be “dramatic”.

Claudia Töpfer (Neo parliamentary group) summed it up: “The good years are not only over – they won’t come back either.” The municipality should now “not be afraid of tough decisions”.

Attract companies with less trade tax

It became clear how Unterhaching would react.

A key point: to reduce the assessment rate for trade tax (currently 295) in the competition for companies.

Because, says Christine Helming (FWU), a loss of additional trade tax payers (who bring in 26 million euros per year) would be “a huge catastrophe”.

There is a slowdown in club subsidies, including in municipal projects: “We should put all projects to the test from a volume of 500,000 euros,” recommended Stefan Zöllinger (CSU).

Depletion of reserves, soon new loans, for Peter Hupfauer (FDP) “the last joker has been played”.

Now “the wind of reality will blow more sharply in your face”.

The – albeit controlled – Unterhaching descent becomes a rumbling tour.

Source: merkur

All news articles on 2024-03-01

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