Users of modern cars know this: If the distance to other road users or other obstacles is too small, it beeps. A few years ago, the district also introduced a kind of distance beeper for its finances, the so-called warning indicators. There are five of them – and, to stay in the picture with the car, the distance is too small on almost all sides.
Almost ten years ago, the district council decided on the warning indicators, partly because of the then not inconsiderable debt of around 61 million euros. The aim of the five indicators is to identify problems with district finances at an early stage and, for example, to be able to plan expenditure accordingly. Specifically, there are the indicators of debt reduction, debt service and level of debt, as well as surplus earnings and the proportion of self-financing.
When it comes to self-financing, things are looking bad
The latter, in particular, would shrill particularly loudly if it were a beeper: Actually, the district has to raise at least a quarter of the costs for investments from its own funds, such as reserves, and three quarters can be financed through loans. For the past year, the figure was 28.24 percent – own funds for 12.3 million investments, 8.8 come from loans – still just met. According to the financial plan, this cannot be achieved in the coming years.
In the coming year, the profit surplus is also likely to fall well short of the targets that we have set ourselves: Actually, the surplus should be at least two million euros per year and beyond that at least four percent of the total debt. For this year, the value will be maintained despite a nearly doubling of the debt to 63.4 million euros, namely a comfortable surplus of 12.4 million is expected, which would then be 44 percent.
The administration calls for savings
For 2023, however, the finance department only expects a surplus of 445,561 euros, i.e. a clear shortfall to the two million minimum and only 1.36 percent of the debt of then 72.1 million euros. However, the situation is expected to ease again as early as 2024.
Overall, however, there is no reason for the finance department to celebrate “the district lives beyond its means,” according to the department’s statement. The aim should therefore be to achieve at least a profit surplus of ten million euros for 2023. District Administrator Robert Niedergesäß (CSU) indicated what that could mean in concrete terms: “That will concern us when we think about new projects.”
What will be the case at the latest during the consultations on the 2023 budget, then you have to consider whether you can implement all projects “in the desired form and in the desired time”. What Niedergesäß did not say, but should have been clear to everyone in the committee, is that these projects are primarily the two new schools: the grammar school in Poing and the vocational school center in Grafing-Bahnhof, which according to preliminary estimates will cost 64 and 78 million euros respectively should cost. The district administrator had already declared in February that at least one of them would have to be put on the waiting list indefinitely. And that he expects the Poing grammar school to be built first, because the demand here is very high due to the move and the changeover to G9.
Almost four years ago, district administrator Robert Niedergesäß and Grafing’s mayor Angelika Obermayr presented the location for the district’s vocational school. However, it seems unlikely that construction will begin any time soon.
(Photo: Peter Hinz-Rosin)
However, it cannot yet be ruled out that the grammar school might also move backwards on the timeline. Finally, the other warning indicators are at least close to a loud beep. For example, debt reduction: In order to ensure this, the goal has been set to only allow a debt level of 20 percent of household expenses by 2035. For the past year it would have been just under 18.5 percent, but this year the value is expected to rise to 35.6 and in the next three years to just over 40 percent. What at least does not affect the current debt ceiling, which is 65 percent of annual expenses.