The municipality of Kirchheim must continue to save in order to be financially stable despite the large investments in the Kirchheim infrastructure project in 2030. Treasurer Christine Brunner-Ernst made this clear when she recently presented the provisional administrative budget for 2022 to the main committee. According to your statements, the municipality will only be able to add just under 111,000 euros from the administrative budget to the property budget in the coming year – 1.7 million would be required by law. According to the chamberlain, the financial situation should not relax significantly until 2024.
According to Brunner-Ernst, the low supply can certainly be assessed as a signal that performance is at risk. However, according to her own words, she does not anticipate any legal effects due to the fact that the minimum allocation was not achieved. “It is foreseeable that we will not be permanently below this sum.” In addition, due to the ongoing pandemic, goodwill from the legislature can be expected – after all, many municipalities are currently receiving little or no funding into the budget.
Overall, the provisional Kirchheim administrative budget for the coming year will include revenues of almost 43 million – around four percent more than was budgeted for 2021. The main reason for the increase is higher tax revenues: Kirchheim expects revenues of 14.5 million euros from the trade tax, which is 16 percent more than the estimate for the current year. This increase is to be achieved on the one hand by the expected economic recovery after the pandemic, on the other hand by new commercial space on the two campus areas in Kirchheim and Heimstetten. The finance department also estimates that the share of income tax should rise slightly to 12.5 million euros.
According to Brunner-Ernst, it is difficult to predict how tax revenues will develop in the coming years. Despite the ongoing pandemic, income from trade tax is expected to increase, but uncertainties and unpredictable fluctuations still have to be expected. The municipality expects additional income from income tax in the future through the increase in population that will come with Kirchheim in 2030.
According to the estimates of the finance department, expenditure in the administrative budget will amount to around 42.9 million euros in the coming year, almost three percent more than in 2021. Overall, as in the current year, cuts of ten to 20 percent have been made in all areas as far as possible made, explains Brunner-Ernst. The main expenditure item is the district levy: Kirchheim has to pay around 11.4 million. Due to the municipality’s lower allocation power, this amount is slightly lower than in the current year. Kirchheim intends to spend around 11.3 million euros on allocations and grants, almost 1.4 million more than in 2021. The largest share is made up of staff cost grants to social institutions such as the new house for children. The community’s personnel costs, at 9.2 million euros, account for around 21 percent of the administrative budget. Due to wage and salary increases, this corresponds to an increase of three percent compared to 2021.