City of Chemnitz submits draft budget for 2021/2022 to the City Council
Investing responsibly in times of a global pandemic
Yesterday, Lord Mayor Sven Schulze and the mayors of the City of Chemnitz presented the draft municipal budget for 2021 and 2022 to the city councillors.
The draft is dominated by the global pandemic and the resulting economic consequences for the city. These include
- Declining tax revenues and municipal income,
- stagnating state allocations,
- simultaneously rising costs in the social sector, youth welfare, at some municipal companies and for municipal staff.
Lord Mayor Sven Schulze: "This draft is a budget of stability and responsibility that pushes the limits of our financial capacity. We can maintain the current level of expenditure for key items, safeguard important tasks and continue to make targeted investments."
Specifically, the City of Chemnitz is planning income of around €1.68 billion in 2021 and 2022. This contrasts with planned expenses of €1.76 billion. The city plans to take out loans to partially offset the loss of revenue.
According to Schulze, the aim of the draft is to set priorities, but also to do without some things that cannot be financed, at least at present. In particular, the aim is to advance important urban development projects, including on the way to becoming the European Capital of Culture 2025, to continue to promote sporting, social and cultural activities at a high level and, above all, to maintain club life and continue to invest in good daycare centres and modern schools.
The Lord Mayor will officially present the budget to the City Council next week and the City Council is expected to approve it at its meeting on 31 March.