Altenstadt invests in a kindergarten and renovates Sonnenstrasse!

Altenstadt invests in a kindergarten and renovates Sonnenstrasse!

At the citizens' meeting in Altenstadt on May 17, 2025, which took place in the Gasthof Janser, Mayor Andreas Kögl presented a variety of important information about the municipality's finances. Despite some empty seats, enough citizens came to find out about current topics. The focus was on the population, the budget and planned investments. According to the information provided, the municipality had a constant population of 3,498 in 2024, with 27 births and 25 deaths.

The administrative budget for 2024 amounts to approximately 8.3 million euros. The largest source of income was income tax participation at almost 2.5 million euros. The trade tax for 2024 was significantly lower at 934,000 euros compared to almost 2.9 million euros in 2022. The forecast for 2025 envisages an increase to around 1.5 million euros. There were also negative aspects: the community no longer receives a key allocation, after 400,000 euros were available in the previous year.

Investments and expenses

The highest expenses result from the district levy, which amounts to almost 2.9 million euros. The asset budget for 2024 is set at just under 3.4 million euros. A significant part of this budget will flow into new projects, including almost one million euros for the new Schwabniederhofen through-road and Hohenfurcher Straße. Particular attention was paid to the planning of a new building for the kindergarten and the renovation of Sonnenstrasse, for which the costs were estimated at around 2 million euros, with 400,000 euros in reserves already being available.

In addition, support for the old fire station with 8,000 euros and the replacement purchase for a fire engine (LF) 20, for which an own contribution of 435,000 euros is planned, were announced. Mayor Kögl also pointed out the need for demographic neighborhood planning in order to meet the challenges of the future.

Tax framework conditions

In the context of municipal finances, it is important to shed light on the developments in the assessment rates for trade tax and property tax B in 2024. These assessment rates are subject to significant changes resulting from active municipal financial supervision. 14.8 percent of municipalities have increased their trade tax rate, which is partly due to efforts to close coverage gaps. Property tax B also experienced an increase of 14 percentage points to 568 percent.

These increases are not only locally relevant, but also have an impact on the location choice of companies in Germany. The average tax burden is around 30 percent, which is one of the highest in international comparison. High trade tax burdens can result in significant competitive disadvantages for many companies, especially in the service sector, which also affects the establishment of new companies.

The financial situation of communities is under pressure, particularly due to rising costs for services and the integration of refugees. The federal and state governments are therefore required to improve the financial resources of municipalities in order to avoid tax increases. In view of these developments, the discussion about the tax framework remains a central topic in local politics.