The gap of 891,600 euros is to be compensated from the reserve. Loans of 1.3 million euros are required to finance the investments.
The Lollar budget for 2021 has a deficit of 891,600 euros. Symbol photo: dpa
LOLLAR – The Lollar budget for 2021 has a deficit of 891,600 euros. Income of almost 19.8 million euros is offset by expenses of almost 20.7 million euros. The deficit is to be balanced out with funds from the reserve, the city’s savings book. Mayor Dr. Bernd Wieczorek (independent) did not give a budget speech in the parliamentary session, instead the city councilors had a table template. “Given the economic forecasts, it should come as no surprise that we will not be able to present a balanced budget in the coming year,” said Wieczorek.
Regarding the 2020 budget, it is said that the expected drop in trade tax was compensated for due to a larger tax back payment from the previous year and considerable financial support from the state. The municipality’s share of income tax was reduced by almost 800,000 euros in the 2020 budget year, but this was largely more than offset by savings and postponements in the field of goods and services. According to the current information, the 2020 budget will close with a clear surplus. Specifically, around 800,000 euros are expected in the ordinary result and around 1.5 million euros in the financial budget. Even if a deficit is expected for 2021, a positive, decent result should be achieved again in 2022.
In the overall financial budget, it is planned to take out loans of almost 1.3 million euros to finance investments. The commitment appropriations are 390,000 euros and the maximum amount of cash advances remains unchanged at two million. The tax rates remain unchanged: 340 percentage points for property tax A, 470 percentage points for property tax B and 400 percentage points for trade tax.
The largest income item in the municipality’s share of income tax, which amounts to 5.9 million euros. The trade tax is calculated at 2.4 million euros. The largest expenditure item is personnel costs at almost 6.7 million euros, which is 535,000 euros more than in the previous year. This corresponds to around 32.5 percent of the total household expenditure and the equivalent of 650 euros per inhabitant. Big chunks are also the district levy with 4.7 and the school levy with 2.3 million euros.
The establishment plan shows an increase of 5.9 full-time equivalents in 2021, which is mainly due to the good daycare law in the educational service. The debt level for long-term liabilities amounts to 7.35 million euros at the end of 2020 and will be 7.5 million at the end of 2021. A repayment of around one million euros is planned for 2021. 133,000 euros are earmarked for interest expenses.
As a result of the necessary borrowing of almost 1.3 million euros, net new debt cannot be avoided. But even this fact does not call into question the approval of the budget, emphasized the mayor.
The city council took note of the draft. This is now being discussed in the committees and is to be decided in parliament on February 11, 2021.
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