Bad Wurzach: Financial crisis hits the city – budget under pressure!

Bad Wurzach: Financial crisis hits the city – budget under pressure!

The municipal finances in Bad Wurzach are facing significant challenges. City Treasurer Stefan Kunz presented the current quarterly figures on May 19th, which paint a worrying picture. A minus of 24.8 billion euros is forecast for German municipalities in 2023, the largest since reunification. In Bad Wurzach, this trend is reflected in a dramatic decline in trade tax of 35.42% compared to the previous year.

The city's budget was passed on January 28th and confirmed by the municipal and audit office on February 8th. With a May tax estimate, zero growth is expected while inflation is at 2.0%. The share of community taxes, including income tax and sales tax, is on average a quarter below the estimate. Despite this bleak outlook, property taxes A and B achieve the desired revenue neutrality.

Financial forecasts

The city has to expect an increase in the district levy of over 207,000 euros, which will place an additional burden on its finances. Treasurer Kunz foresees a large withdrawal from liquid assets, but remains optimistic and hopes for no major drops in trade tax. The medium-term financial planning calls for borrowing of 4.7 million euros, while the debt level of the city's core budget will increase to 2,364,913 euros by the end of 2025.

For 2025, Bad Wurzach is planning a comprehensive investment package of 52 million euros, divided into 44 million euros for ongoing operations, including personnel costs and maintenance, and 30.4 million euros for the expansion of the fiber optic network. Mayor Alexandra Scherer (CDU) described the budget draft as “confident and good”, especially because the trade tax will not be increased in order to support the local economy.

Future projects and challenges

In addition to the financial planning, important topics for 2025 are on the agenda, including the 50th anniversary of the large community, transport development, promoting youth work and energy and climate protection. In addition, a tower was planned for which 2.3 million euros are budgeted, of which 1.5 million euros will be financed by a federal grant. The referendum on building the tower will take place on February 23rd.

To finance the expenses, it will probably be necessary to draw on reserves of around 16 million euros in order to cover the loss in ongoing operations of almost 700,000 euros. In comparison, the city of Isny ​​is planning a loss of almost 8 million euros and needs almost 10 million euros in loans, which would lead to a debt level of over 37 million euros. Wangen is also facing a similar situation and expects a debt level of 35 million euros by the end of 2025.

The Bad Wurzach local council will vote on the draft budget on January 27th, with approval being considered certain. The key budget data and detailed information on property taxes are available in flyers in the town halls and on the city's website. The introduction of new assessment rates for trade taxes A (465 percent) and B (385 percent) has already been decided; the tax notices should be sent out from January 8th, with the first installment due on February 15th. In this tense financial situation, it remains to be seen how municipal finances will develop in the coming years.

The screen newspaper and the Swabian newspaper report comprehensively on the current situation and the plans of the city of Bad Wurzach.