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Presscouncil City of Chemnitz
Pressrelease: 759

City treasurer presents draft budget for 2014 and financial planning until 2017

The draft budget for 2014 and the financial planning up to 2017 were presented to the City Council today. The 2014 draft budget shows income totalling EUR 579.4 million and expenses of EUR 604.3 million, resulting in a shortfall of EUR 24.9 million (double-entry).

However, the comparative financial statements are decisive for approval by the legal supervisory authority. Despite all cost-cutting measures, there is still a shortfall of around EUR 11 million in 2014. The requirement of the state authorities is to balance the budget in 2015.

"According to the current status of budget planning, there is still a shortfall for 2015. Further consolidation options are currently being examined in order to demonstrate budget balance for 2015 in the medium-term planning," says City Treasurer Berthold Brehm.

The proposed measures from the administrative and structural concept have not yet been taken into account in the current draft plan, as these will not be presented to the city council for a decision until 18 December 2013. These measures will help to reduce the deficit.

It is pleasing to note that a further increase in tax income is also expected for the coming years. In particular, trade tax, the city's most significant tax revenue, will be boosted by the stimulus provided by the economic data. Overall, the city expects taxes totalling EUR 212.2 million and general key allocations of EUR 153 million for 2014.

Around EUR 78 million is currently earmarked in the municipal budget for construction measures. The majority of this investment sum will be used in the coming years to continue the school building programme and for the construction of the special school for the physically disabled.

"The administration and the city council face the challenge of harmonising income and expenditure in order to be able to submit a balanced budget for 2015 to the state authorities," said the city treasurer.

The resolution on the budget in the city council is scheduled for February 2014.