The council meeting in Meinerzhagen also dealt with the financial situation of the Volmestadt.
© Schliek, Klaus
“The auditing company Mähler und Grote has issued the unqualified auditor’s report for the city’s 2019 annual financial statements, including the appendix and management report,” informed Volkmar Rüsche during the council meeting earlier this week. The Chairman of the Audit Committee also announced that his body fully shares the auditors’ point of view and proposes that Mayor Jan Nesselrath be discharged for the 2019 financial year. The members of the city council unanimously agreed. The mayor and all administrative staff were thanked for their great dedication.
Meinerzhagen – However: Financially, the city was not really well positioned in 2019. According to the report, it was managed solidly and responsibly, but in the end there was still an annual deficit of 3.2 million euros, which the auditors classified as unsatisfactory. “The worsening of the situation is mainly due to the slump in tax revenues,” explained Volkmar Rüsche. Compared to 2018, these decreased by 10.2 million euros.
Counteract the depreciation of equity
According to the report, loans to secure liquidity rose by 3.2 million euros to 13.2 million euros. There is a threat of ever higher interest and repayment payments. The auditors point out that it is now essential to counteract a permanent depreciation of equity. It says: “As long as the annual income does not cover the annual expenses and the balance of the financing, all additional tasks that lead to more expenses and payments are to be seen under a particularly high test bench.”
Applications must contain proposals for cost recovery
The council members are currently feeling this. Any application you submit that incurs costs to implement must include a proposal for financial coverage. Volkmar Rüsche pointed out that the audited household was a set of figures from the time before the pandemic. “We now know what negative effects Corona had on economic development in 2020 and that a preliminary positive annual result for 2020 of almost 4.7 million euros forecast by the treasurer could be achieved solely thanks to the booking of a trade tax equalization benefit of around 9 million euros.”
For the current year, a current extrapolation from the first quarter shows a forecast corona-related damage of around 10 million euros. “The cities and municipalities also need at least one reimbursement of foreseeable losses in trade tax this year and in the coming years. Without further aid from the federal and state governments, the municipalities have no other choice but to go into debt or cut expenses, ”said Volkmar Rüsche.
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