At its most recent meeting, the local council unanimously decided to apply for stabilization aid for the tenth time. Since 2012, with the support of the Free State, the municipality has been using the opportunity to greatly reduce its debt burden and lower the interest burden. With success: After a total of 9.8 million euros “Stabi” flowed in nine years, according to the results of the 2020 annual accounts, the per capita debt was only 737 euros.
The stabilization aid is divided into two pillars: debt repayment and investment share.
According to information from treasurer Florian Peterek, the lenders had been contacted for all current loans. “Unfortunately, none of them are willing to change these long-term contracts in such a way that early repayment would be possible,” says Peterek.
However, there is the option of early repayment for a loan as of January 30, 2022. The remaining liability of 83212 euros can be applied for under Pillar 1 of the stabilization aid.
According to the treasurer, all investments made in the budget years 2021 and 2022 could be included in the investment components (Pillar 2) – with the exception of investments for cost-covering facilities (water, sewer, cemeteries), voluntary services (village renewal, urban development, tourism) and investments that are supported by a government subsidy program. Only the own contribution may be applied here.
This leaves an investment share of two million euros, which is requested.
The prerequisite for applying for stabilization aid was the updating of the budget consolidation concept. It was decided unanimously. After completion, the municipal council must approve the draft. – ul