City of Chemnitz budget adopted by a large majority
Focus: Investments in schools - Mayor Ludwig: Investments provide impetus for trade and the regional economy
The budget of the City of Chemnitz for 2013 and the financial planning up to 2016 have been approved. The budget was approved by a large majority at yesterday's city council meeting. This created an essential basis for starting important investments as early as possible.
"It is good for our city that the city council has created the conditions for us to be able to start many investments soon with great determination and in a very objective discussion," says Lord Mayor Barbara Ludwig.
The 2013 budget has a volume of 575 million euros on the income side and 600 million euros on the expenditure side.
Investments totalling almost 80 million euros are planned for 2013. That is an increase of more than 32 per cent compared to 2012.
Education is a key focus here: In 2013, the city will invest more than 36 million euros in daycare centres and schools. Next year, for example, the plan includes EUR 11.3 million for the school for the physically disabled and EUR 0.5 million for the music school. Including the special school building construction programme, which has a volume of around 40 million euros over the next two years, a total of around 80 million euros will flow into Chemnitz schools in 2013 and 2014. The main investment construction measures planned for daycare centres include the Ludwig-Richter-Straße 27 daycare centre (EUR 1 million), the Stadlerstraße daycare centre (EUR 0.5 million) and the Am Harthwald daycare centre (EUR 0.5 million).
"With these investments, we are expanding our focus areas that are important for the development of the city: First and foremost, these are education and infrastructure," says Lord Mayor Barbara Ludwig. "At the same time, the investments provide impetus for the region's economy and skilled trades."
Investments are also being made in infrastructure: EUR 10.1 million has been earmarked for Dresdner Platz and EUR 5.9 million for Zschopauer Straße. A total of EUR 10 million is available for the remodelling of the stadium on Gellertstraße in 2013.
Despite the development and consolidation concept (EKKo), its update in summer 2012 and considerable efforts within the administration, the budget could not yet be balanced in 2013. In accordance with the cameral system in force until 2010, which forms the basis for the assessment of budget balancing, there is a financing gap of around 9.2 million euros in 2013. It is pleasing to note that the budget data for 2013 has improved significantly compared to the previous budget. In the financial planning for 2015 and 2016, it was therefore possible to balance the cash deficit.
"This is a positive point to emphasise," says City Treasurer Berthold Brehm. "In my view, the 2013 budget is approvable. For the coming years, however, it is necessary to maintain the stringent budget consolidation to date."
The 2013 budget plan fortunately shows increased income from general key allocations and rising tax revenue. On the other hand, however, rising personnel costs and increasing social and youth welfare benefits must also be taken into account as a result of wage developments.