Freystadt invests 40 million euros – debts rise dramatically!

Freystadt invests 40 million euros – debts rise dramatically!

The city of Freystadt is planning a budget of 40.12 million euros for 2025, which represents an important step in financial planning. Mayor Alexander Dorr pointed out the significant increase in the district levy, which will have a strong impact on future projects. This district levy, which according to the State Statistical Office accounts for around a third of the districts' total income, has risen to 42.8 percent in Freystadt and is expected to continue to rise until 2027, which will place an additional burden of 1.84 million euros on the city's budget.https://www.nn.de/region/neumarkt/freystadt-plant-40-millionen-euro-budget-Investments-und-krediten-stieg-bis-2028-1.14707944

The draft budget has already been discussed in the main administration and finance committee and is now pending approval in the city council. The committee voted unanimously in favor of the proposal, which includes both the financial and staffing plans. The budget is divided into an administrative and an asset budget, which together amount to 40.12 million euros, with 24.44 million euros being the administrative budget and 15.68 million euros being the asset budget.

Important investments and increase in debt

The budget includes, among other things, investments in the renovation of the multi-purpose hall, which is to be financed with 8.12 million euros. In addition, a sum of 882,000 euros is planned for the Reckenstetten-Rohr cycle path, of which 802,000 euros will be reimbursed. A structural concept for merging the sewage treatment plants will receive 831,500 euros, while a total of almost 19 million euros will be awarded between 2026 and 2028.

The city's debt will be 13.66 million euros at the beginning of 2025, which corresponds to around 1,956 euros per resident. An increase to almost 19 million euros is forecast by 2028. Annual repayments of around one million euros and a special repayment of 1.62 million euros are planned over the next three years. The interest on cash loans will rise from 403,300 euros this year to 555,000 euros in 2028, which puts additional strain on the financial situation.

Fees and other financial challenges

In addition, water (waste) fees are expected to increase due to reduced consumption, while property tax A and B fees could remain stable at 865,000 euros annually, but decrease due to possible appeals. This year there is no construction area designation, and the planned projects, such as the construction of new fire stations in Mörsdorf, Möning and Oberndorf, have been postponed for the time being.

The budget also includes proposals to finance smaller projects through crowdfunding, as well as a higher rate for the retirement home due to necessary renovations. These measures are necessary to overcome the challenges of the city's tight financial circumstances, especially in view of the fact that only 973,000 euros can be allocated to the capital budget in the future.

In summary, the Freystadt budget for 2025 not only provides for significant investments, but also points to significant challenges in terms of rising debts and fees, which are further exacerbated by the high district levy. The financial framework conditions will therefore also be of great importance in the coming years in order to be able to successfully implement the planned projects.