Völklingen in the financial crisis: investments despite a 23.5 million deficit!

Völklingen in the financial crisis: investments despite a 23.5 million deficit!

Despite an alarming budget deficit of around 23.5 million euros, the city of Völklingen is planning comprehensive investments totaling 36 million euros. The budget can be approved because a change in the law in the Saarland Pact allows a higher deficit if it is balanced within five years. This regulation gives the city a certain amount of leeway to push forward with urgently needed projects. Mayor Stephan Tautz is optimistic that Völklingen can receive support from the state to stabilize the financial situation.

The current financial problems are serious: revenue from property tax B has fallen by 1.3 million euros, while trade tax revenue has even fallen by 4 million euros. What plays a role here is that Völklingen is part of seven municipalities in Saarland that have suffered significant losses of income as a result of the property tax reform. In order to balance the budget, an additional 22 million euros in liquidity loans are necessary to maintain day-to-day operations.

Investments and rising costs

The city is planning concrete investments for the future: 12.5 million euros are planned for the construction of a primary school, and 1.7 million euros are to be invested in the construction of a new daycare center. In addition, 2.1 million euros are earmarked for a traffic concept at the school and daycare center and 3.4 million euros for the renovation of the indoor swimming pool. These projects are largely financed through loans, with 19 million euros coming from this source.

Personnel costs in Völklingen have increased by 4.2 million euros, which is putting additional strain on the financial situation. The costs for material and services also increased by 1.1 million euros. These factors contribute to the challenge of creating a sustainable and balanced budget. The city council approved the budget, which includes both an outcome and a financial budget, with 54 votes in favor. However, there were also critical voices, including Denise Baldauf from the FDP, who rejected the budget due to planned expenses for the purchase of the Nature Friends House.

Criticism and future perspectives

The critical voices in the city council emphasize that the budget reads like a “thicket of numbers” and lacks clear information that affects the individual areas. Manfred Becker from the Free Voters described the budget as “strong tobacco” and Jürgen Schneider from the SPD expressed concerns about the confusing finances. However, political groups and administration agree that the cities and municipalities in Saarland are underfinanced and that the federal and state governments need to rethink their approach.

Although the federal government plans to provide 1.2 billion euros for municipal structural change aimed at alleviating the municipalities' financial difficulties, the direct result remains to be seen. The future of Völklingen depends crucially on the implementation of the planned measures and the necessary financial support. The budget is therefore not just a document of the financial status quo, but a benchmark for the city's development in the coming years.