Nesselwang threatens to stop investing: Kämmerer warns of loss of skilled workers!

Nesselwang threatens to stop investing: Kämmerer warns of loss of skilled workers!

In the commercial and holiday resort of Nesselwang, people are thinking about future financial planning. While treasurer Martin Keller presented the community's positive development at the budget meeting for 2024, he was at the same time forced to discuss the effects of the high district levy. These circumstances mean that the Nesselwang market can invest less in its own infrastructure.

In a fundamental analysis of the financial situation, Keller explained that Nesselwang would not take out any new loans in 2023. This corresponds to the line of the past ten years and is seen as positive stability. Although the place can still be viewed as effectively debt-free, investments must be significantly reduced compared to the previous year. Keller described this as a “mathematically difficult year” and a normal process in household management.

The 2024 budget at a glance

The budget for 2024 has a total volume of 17.5 million euros, which represents a significant increase compared to 14.9 million euros in the previous year. The administrative budget amounts to 13.9 million euros, while the asset budget amounts to 3.6 million euros. The main sources of income consist of property and trade tax as well as income tax participation. What is particularly worth mentioning here is the increase in trade tax by 700,000 euros to 2.5 million euros.

A look at the expenses shows that personnel expenses in the administrative budget increase by 140,000 euros to a total of 1.9 million euros, while material and operating expenses decrease slightly. Particular investments are being made in the areas of business and tourism with 1.2 million euros and infrastructure measures. The debt burden remains moderate with a per capita debt of 629 euros per inhabitant, but the high district levy of 2.3 million euros could actually prevent new debt.

Challenges for the future

The upcoming property tax reform will not bring any fundamental changes for Nesselwang, as the assessment rates will remain unchanged. This gives community leaders a little breathing room, while the key allocation decreases and financial leeway could become tighter. Nesselwang must consider how it can implement its plans for flood protection and infrastructure expansion. A significant sum of 4 million euros in general reserves also needs to be taken into account as these are earmarked for different projects.

In Germany, meanwhile, it is reported that municipal budget spending will increase by 12.6% in 2024. Thus, the challenges Nesselwang faces are not exclusive, but rather reflect a larger financial picture. Municipal coffers in Germany are facing a deficit of 24.8 billion euros, underscoring the importance of sound fiscal management in Nesselwang.

Finally, it remains to be said that the parliamentary groups in the local parliament praised the draft budget and are optimistic about the future. However, it remains to be seen how the financial conditions will develop, as the challenges are not getting any smaller. Now it is important to set the course for the coming years with a good hand.

For further details on the topic, you can find the reports from here Allgäu newspaper, District messengers and Destatis.