Tegernsee: New budget, falling debts and major investments!

Tegernsee: New budget, falling debts and major investments!

The Tegernsee city council unanimously approved the budget for 2025 and the first change to the investment program until 2028. The city is thus financially stable, which is supported by a positive development in reserves and solid trade tax revenue. Treasurer Jürgen Mienert reported during the meeting about the additional costs of converting the heating system in the town hall. These now amount to around 337,000 euros, which is due to unexpected pipe runs and inaccurate inventory plans.

Another important point in the budget discussions was the delay in the state subsidy for the fire station. The grant of 820,000 euros can only be recorded in 2025, which will have a negative impact on the 2024 annual result, but promises an improvement in 2025. In addition, 75,000 euros are planned for the Point leisure area, while the replacement of old parking ticket machines is budgeted at 50,000 euros each for the years 2025 to 2027.

Financial stability and falling debt

The city of Tegernsee can look back on encouraging debt development. Mayor Johannes Hagn informed that the debt is below 1,000 euros per capita for the first time since 2013 and is specifically 990 euros. What's notable is that 90 percent of the debt is profitable and tied to income-producing real estate. With this stable financial basis, the city also plans to purchase a small wheel loader for the garden center and a company car for a new employee in the construction yard.

The positive development of reserves is also reflected in the forecast for the coming years: only a withdrawal amount of 185,000 euros is expected to be required for 2026, while reserves will be added again from 2027. These financial successes come as Bavaria plans to create 6,000 new jobs in the new double budget for 2023 and 2024. Of these, 4,000 are earmarked for the education sector, as Prime Minister Markus Söder (CSU) announced before the budget meeting in Gmund am Tegernsee.

Investments and future plans

The Free State's budget will also implement measures to increase pay for teachers and hire new police and judiciary staff. Further investments are planned for universities, daycare expansion, housing construction and local public transport. Söder emphasized the need to create a “counter-model to the traffic light” in the federal government and to ensure that there is no waste and that reserves are maintained for difficult times.

Given the current economic conditions, the Free State is required to invest in the future while at the same time planning to repay loans from the corona pandemic. The budget meeting, which ends on Monday at noon, represents the first double budget since the Corona crisis. These developments show that efforts are being made at both the local and state levels to ensure stability and further development.