Neunkirchen on the abyss: Alert austerity measures and clammy coffers!

Neunkirchen on the abyss: Alert austerity measures and clammy coffers!

Neunkirchen, Österreich - The city of Neunkirchen is faced with serious financial challenges in the coming months. At the last council meeting it was decided to introduce strict austerity measures. This was done under the pressure of a poor testimony of the country's financial inspectors, which made a worrying judgment in the course of a renovation control of the municipality. The test report, which was created as part of the renovation control, is presented to the municipal council after the summer break, and the departure community now has to be careful as the [noen] (https://www.noen.at/neunkirchen/schlechtes-pruefer-im-neunkirchner-rathaus-stadtfinanzen- 479462397)) reported.

An example of the rigid guidelines is the rejection of a approval for a children's swing worth 2,000 euros. Such decisions clearly show that every cent must be placed on the gold scale. At the same time, the municipality carefully managed, but the planned minus of 103,825 euros makes financial stability doubt. The expenditure for restructuring management II, for example in connection with the local heating project, has been postponed to 2023 in order not to tighten the current situation.

Financial situation at a glance

Without a doubt, the financial situation of many municipalities in Austria is tense. A survey by the consulting company EY shows that around 51 percent of cities expect a budget deficit, although it does not look better in Neunkirchen. Detailed planning results in some positive results, such as additional yields of 98,340 euros and less expenditure of 142,275 euros, but there is no stable basis in sight. The overall situation shows that the municipality is expected to conclude with a tax surplus of 200,000 euros, which sounds positive at first glance. But as soon as the unexpected additional needs are taken into account, the air is already thin.

In addition, the municipality is facing additional payments of almost 30,000 euros, especially through the more expensive development of the Bau area of ​​Vorderer Grund II. The investment budget is also under pressure, and the less than imaginary grants for a kindergarten set further financial signals that are rather alarming. Mayor Bernhard Knörzer pointed out that unexpected cost increases are not precisely assessable, which makes planning even more complicated.

effects on the municipal services

The situation is not only tense in Neunkirchen. A comprehensive consideration of the financial difficulties shows that many municipalities in Germany expect an increase in debt due to corona pandemic. After all, 40 percent of municipalities in the old federal states expect their debt burden to increase in the next few years, while in Neunkirchen the residents are already suffering from the parish. The switch to austerity measures, some of which can result in the closure of institutions and an increase in municipal taxes and fees, could soon also achieve Neunkirchen, as the [HTTPS://WWWw.Haufe.de/oeffenter-dienst/haushalt-finanzen/angespanst-bei-bei-bei-kommunen_146_57082.html) describes.