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Presscouncil City of Chemnitz
Pressrelease: 222

First double-entry annual financial statements confirmed by the city council

Solid financial position of the city established - balance sheet year 2011 with a surplus of EUR 11.8 million - equity ratio of 56 per cent

The annual financial statements for 2011 were approved at today's City Council meeting.

The annual financial statements present the assets, earnings and financial position of the City of Chemnitz as at 31 December 2011. A positive ordinary result totalling 11.8 million euros was recorded. "The first double-entry annual financial statements are primarily a learning process. The lessons learnt could therefore also be taken into account in the 2015 budget planning," says City Treasurer Berthold Brehm.

This positive result is mainly characterised by non-cash changes. For example, the good annual financial statements of the municipal holdings are also reflected in the increase in financial assets.

The result is also accompanied by an increase in cash and cash equivalents totalling EUR 2.4 million. This is primarily due to the increase in tax income and the lower personnel expenses compared to the budget. The increase in trade tax income is not only due to the current economic situation. Part of this is due to one-off effects from back tax payments for previous assessment years.

Thanks to the favourable development of the financial situation, it was also possible to further reduce the level of debt in the course of 2011. This is also reflected in the lower interest expenses.

The balance sheet also shows that Chemnitz has significantly more assets than debts. The City of Chemnitz has an equity ratio of around 56 per cent.