Gossau is struggling with financial gaps: there is a threat of tax increases!

Gossau is struggling with financial gaps: there is a threat of tax increases!

The financial situation of the city of Gossau raises questions again. The largest party in Gossau has pointed out the ongoing challenges arising from budget management. The tax rate remains at 116 percent for the time being, which signals stability, but at the same time also means that the financial situation remains critical. Loud wil24.ch There has been a continuous decline in investment in recent years.

From 2008 to 2019, the tax rate was not constant, but fluctuated between 116 and 126 percent, which had a significant impact on the financing of various projects. The tax rate has been stable at 116 percent since 2019. In particular, the higher education costs, which now make up 53 percent of the overall budget, contribute to the tense financial situation. Former cantonal master builder Binotto pointed out that the ratio of construction costs to operating costs over a period of 35 years is 1:10, which indicates the long-term strain on finances.

Investments and planned projects

The city has carried out numerous construction projects since 2008, including the renovation of the sports hall, the new building of the OZ Buechenwald and the renovation of the school building and the new Haldenbüel kindergarten. These projects were generally adopted without opposition from parliament and citizens. Future investments will include, among other things, the town hall, the Otmarschulhaus and the sports worlds modules 2 and 3. However, there are also critical voices that question the high expenditure.

Stakeholders and citizens are concerned about the growing transfer costs for social assistance and care as well as the additional expenditure on smaller projects. Some suggestions, such as canceling class camps or cutting music school fees, are seen as inadequate. The call to increase revenue remains essential to improve city finances.

Budget development and forecast

The budget for 2025 amounts to around 119 million francs, five million more than last year. Mayor Wolfgang Giella describes the overall result as “a red zero”, as a loss of 216,336 francs was recorded, compared to a loss of 4.9 million in the previous budget. Improvements in finances were achieved through increased tax revenues, lower personnel costs and reduced material expenses. Nevertheless, the operating result for 2025 is forecast to be a loss of a good 8.5 million francs.

Political discussions about possible tax increases are already underway as the city's equity capital declines and the budget is described as "not entirely healthy." Mayor Giella has announced that the integrated task and financial plan (IAFP) until 2029 and the budget 2025 will be discussed in parliament on December 3rd. Rejection of the proposals remains possible.

The ongoing challenges show that Gossau is not alone. Many communities face similar problems that could require an increase in taxes. In this context, restraint in future sports modules and other investments is expected in order to maintain financial flexibility. The author expresses concerns about the responsibility of the mayor and the city council, which are described as unfair and not very self-critical. The issue remains on the political agenda and could have far-reaching consequences for urban development.