Egenhausen: Unexpected surplus brings financial peace for the community!

Egenhausen: Unexpected surplus brings financial peace for the community!

Treasurer Daniel Merkle presented encouraging results in his current balance sheet on the financial situation of the Egenhausen community. A surplus of around 2,000 euros was originally calculated for 2024, but a surplus of almost 29,000 euros was actually achieved. This positive development is partly due to delays in important investment projects, including the start of construction on a new primary school, the construction of an elevated water tank and the marketing of the Wolf area. These delays made it possible to generate additional funds amounting to 156,000 euros, which significantly relieved the burden on the municipality's coffers.

At the end of last year, Egenhausen had liquid assets of 5.1 million euros. In the income statement for 2024, income of almost 6.5 million euros was offset by expenses of over 6.4 million euros. A detailed analysis shows that 56% of personnel expenses go to daycare centers, followed by 30% to administration, 8% to the construction yard and 4% to primary schools. Despite tariff increases, the municipality is overall 1.6% below the planned budget.

Stabilization through subsidies and fee adjustments

The municipality of Egenhausen has approved various grants that have a positive impact on the balance sheet. These include, among other things, 777,694 euros for kindergartens, 15,453 euros for fresh water, 21,200 euros for wastewater and 174,478 euros for the Silberdistelhalle. In addition, fee adjustments and a stable population contributed to the positive budget situation. The trade tax approach was almost completely achieved, which also contributes to financial stability.

Despite this positive development, local councilor Florian David warns of the high electricity costs, which amounted to around 50 cents per kilowatt hour in the 2023/2024 bundle tender. However, he hopes for electricity prices to fall in 2025 and 2026, with more significant improvements by 2027. A significant proportion of the electricity costs result from the electrical heating of the refugee accommodation, which further increases the financial burden on the community. The local council approved the closure for 2024.

Growing challenges in municipalities

While Egenhausen presents encouraging balance sheet figures, the financial situation of many municipalities in Germany is in an alarming state. According to a survey by the German Association of Cities, 95% of cities assess their budget situation in the next five years as rather bad or very bad. The President of the Association of Cities, Markus Lewe, describes the situation as a “complete turnaround for the worse”. What is alarming is that 37% of cities can no longer present a balanced budget, while 47% have to resort to reserves to achieve this.

Rising social spending, which cities can hardly influence, is a key factor. The costs for childcare, integration assistance and care are continually rising. In addition, the federal and state governments are transferring more and more tasks to municipalities without guaranteeing secure financing. Against this background, the Association of Cities is calling for no new, unfunded tasks to be passed on to the cities and is calling for a reform of the debt brake. Many citizens are already feeling the effects of the financial crisis through savings on municipal facilities such as swimming pools, sports clubs and schools.

Financial pressures are forcing cities to cut bus and train routes and reduce staff, which can lead to longer processing and waiting times. A sustainable solution to improve municipal finances is urgently needed to ensure the quality of services for citizens.

For more information about developments in Egenhausen, see Black Forest messenger. Further background information on the general financial situation of the municipalities can be found at daily news.