City Council approves additional funds for subsidiaries
At its meeting today, the City Council approved additional funds for the subsidiaries Städtische Theater Chemnitz gGmbH and C3 Chemnitzer Veranstaltungszentren GmbH. An additional EUR 1 million will be made available for the municipal theatres and EUR 750,000 for C3, which will be covered by additional income from trade tax.
Despite the planned subsidy of €33.6 million, Städtische Theater Chemnitz gGmbH is expected to close 2023 with a deficit. This is due to unscheduled and unplanned maintenance expenses for the buildings and technical facilities as well as costs for the refurbishment of the theatre. Various technical installations will have to be written off as they can no longer be used after the refurbishment. In addition, the previous year already closed with a deficit of EUR 580,000 due to lower capacity utilisation of events, wage increases, the increase in the minimum fee and additional costs for the preparation and use of the theatre's interim venue, the "Spinnbau". In order to secure the liquidity of Städtische Theater Chemnitz gGmbH, the City of Chemnitz is providing additional funds totalling EUR 1 million.
The funds for the C3 event centres in the amount of 750,000 euros supplement the subsidies of 4.4 million euros previously allocated in the budget and the additional funds of 250,000 euros already granted. The additional subsidy is necessary, among other things, because revenue from the events could not be realised as expected. There has been a decline of around 20 per cent in the cultural sector in particular. Added to this are the wage increases and unplanned damage to the company's own exhibition centre and town hall properties. The additional funds are intended to strengthen the company's liquidity base.