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“Sometimes massive slumps”: the city is feeling the consequences of the weakening economy

2024-03-10T11:17:56.907Z

Highlights: “Sometimes massive slumps”: the city is feeling the consequences of the weakening economy. By the end of 2027, a debt mountain of 35 million euros could pile up. “We have to be careful,” said Mayor Klaus Heilinglechner. The simplest recipe for preventing the municipality's financial difficulties would be to increase income, according to the town hall boss. For him, turning the trade tax screw is the ultima ratio, the very last resort.



As of: March 10, 2024, 12:00 p.m

By: Carl Christian Eick

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The city of Wolfratshausen is feeling the consequences of the recession: According to the mayor, there are “first, sometimes massive, drops in trade tax”.

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Shortly after the budget for the current year was passed, the city of Wolfratshausen began to feel the first consequences of the recession.

“We have to be careful,” said Mayor Klaus Heilinglechner.

Wolfratshausen – At its most recent meeting, the city council approved the budget for 2024 (we reported).

The budget has a total volume of around 62 million euros, and according to town hall boss Klaus Heilinglechner (civil association), the per capita debt is “historically low”.

But city treasurer Peter Schöfmann let the elected officials know: For planned investments, the piggy bank would have to be slaughtered promptly and new loans taken out.

By the end of 2027, a debt mountain of 35 million euros could pile up.

“We have to be careful,” admitted Heilinglechner at a discussion evening held by the citizens’ association in the Flößerei inn.

“Sometimes massive slumps”: the city is feeling the consequences of the weakening economy

“The city is still in a very good position,” said Heilinglechner.

But the consequences of the recession and the weakening economy are already being felt.

“We notice it in the trade tax advance payments.” According to the mayor, there are “initial, sometimes massive drops in trade tax”.

In view of the less than rosy prospects, Engelbert Stapf was interested in the answer to the question: “When will the legal supervision intervene?” They had raised their index finger months ago and warned of Wolfratshausen’s threat of “hidden over-indebtedness” in the medium term.

Measures must be taken to stabilize the administrative budget and “continue to maintain long-term performance”.

Legal supervision intervenes as soon as the city can no longer pay interest on the loan

Heilinglechner explained at the BVW event that there is no reason for the legal supervision to take action.

As long as the rafting town has the legally required minimum reserve of 470,000 euros - “and can service the debt”.

This means: The loan interest is transferred regularly and punctually to the creditor banks.

The simplest recipe for preventing the municipality's financial difficulties would be to increase income, according to the town hall boss.

For him, turning the trade tax screw is the ultima ratio, the very last resort.

“And I can’t balance the budget with the increase in the dog tax,” he said with a smile.

Instead, the mayor once again called for voluntary services to be put to the test.

Heilinglechner had already said at the most recent council meeting with regard to subsidies for clubs: “We always have to ask ourselves: Can we afford this?” (cce)

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Source: merkur

All news articles on 2024-03-10

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