The effects of Corona-Pandemie on the household the city Burgwedel are very limited. Mayor calculates for the current year Axel Düker with a total surplus of around 2 million euros. For 2021, however, he expects a minus of almost 5 million euros. Nevertheless, the administration wants to invest massively and accepts a “considerable debt”, as Kämmerer did Christian Möhring called. He plans with loans amounting to 24.5 million euros. The complex figures provided Düker now before the members of the finance committee and the local councils. The citizens can breathe a sigh of relief despite the impending debt: “A tax increase is not an option,” announced the mayor.
The result for 2020 should be positive
Expected for 2020 Düker a “very, very good result. It’s more positive than originally thought. ”The fact that this happens is due to fortunate circumstances. Surprisingly, additional trade tax income was added in October due to back payments by companies. The total income increased from 17 to 19.5 million. “That was unpredictable,” said the mayor. The country Lower Saxony had announced financial support for municipalities due to lower income from business tax. The deadline for this was the end of September. “The later money receipts have no influence on a possible compensation payment,” said Dükerwho is now hoping for a financial injection in the “low seven-digit range” from the country.
For the household In 2021, the mayor and the treasurer calculated the so-called ordinary income of 47.3 million euros. This is offset by expenses of 52.3 million euros. The ordinary result is therefore a minus of 5 million euros. In addition to the ordinary, there is also an extraordinary area in the results budget. This includes irregular amounts, such as property sales. They should provide additional income.
Property sales should bring in at least 5 million euros
Plan by selling land Düker and Möhring with revenues of 5 million euros. The mayor emphasized that he would rather be cautious about the calculated income from the property sales. “In principle, there is a possibility that a much higher amount will be taken,” he said. But there could always be delays. “If we should take more, we can be happy about it in the end,” said Düker.
He hopes that there will be no quarrel as the money is distributed to the different areas of the city. The largest item in terms of expenditure with around 7 million euros will go to day care facilities for children in the coming year. A total of 11.1 million euros has been budgeted for children, youth and families. “The daycare sector has by far the highest need for subsidies,” said Düker. The mayor said that the sum has increased sevenfold since 1995 from the equivalent of around one million euros to the present day. “In the same period of time, tax revenues have only doubled.”
Low interest rates encourage borrowing
According to the mayor, the investment volume of almost 30 million euros planned for the next year is “absolutely top. There’s never been anything like it, ”he said. The amount is well above the investments made in previous years. “You don’t do that every year,” he added. It is superficially attractive to take out loans for financing because of the low interest rates. But he warned: “In no case should cheap money lead to careless use of this.”
