Karstädt faces a financial challenge: double budget planned for 2025/2026!

Karstädt faces a financial challenge: double budget planned for 2025/2026!

The Karstädt municipal council is faced with a challenging task: planning the double budget for the years 2025 and 2026. Treasurer Ramona Storbeck has presented a comprehensive draft budget, which is, however, characterized by a tense financial situation. Loud SVZ All outstanding annual financial statements must be submitted before the budget statutes are announced. The deadline for submitting these financial statements was extended by the state parliament to December 1, 2025.

The municipality's financial challenges are clearly reflected in the planned measures for the double budget. These primarily include renovation and investment projects in the education sector, including the renovation of the Dallmin daycare center and the Groß Warnow daycare center as well as classrooms in the Karstädt school building. In addition, the expansion of the Reckenzin through town is planned for 2025 and implementation in 2026. These investments are partly financed from provisions amounting to 3.7 million euros.

Financial situation and deficits

The municipality has a fairly complex financial picture. A deficit of around 1.5 million euros is expected for 2025 and 2.3 million euros for 2026. In order to bridge the financial bottlenecks, a further annual burden of around 1.5 million euros is forecast for 2027 and 2028. The municipality's current liquidable cash reserve is approximately 5.7 million euros, which is worrying for future budget planning.

In addition, the general key allocations decrease significantly, from 3.1 million euros in 2024 to just 2.1 million euros in 2026. This decrease is due to high tax capacity in 2023 and 2024. Trade tax revenue for 2022 was around 3.5 million euros, half of which comes from back payments. Treasurer Storbeck plans to estimate the trade tax at around two million euros. In the context of rising deficits, this situation could severely impact municipal performance.

Future investments and projects

The community's priorities are particularly focused on promoting infrastructure and social facilities. All 13 local councils have already submitted their priority lists for the budget, with particular attention being paid to the need for repairs to village community centers, mourning halls and sports facilities. Furthermore, a necessary repair of the outdoor pool is being sought with a budget of 20,000 euros for the renewal of the inlet nozzles.

The municipal council will decide on the budget on June 26th. The results of the individual parliamentary groups on budget planning will be presented to the main committee on June 5th. A need for concerted action is clear not only because of the financial situation, but also because of the uncertain funding programs of the state and federal government.

For comparison, it should be mentioned that the city of Heidelberg, also with a double budget for 2025 and 2026, has similar problems as shown in the Heidelberg website emerges. The city is planning to invest 187.5 million euros to strengthen its future viability, but is also faced with falling income. An economic offensive is being launched there to increase trade tax revenue, while Karstädt is faced with the challenge of consolidation measures in order to secure the municipality's long-term performance.