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Editor:
Presscouncil City of Chemnitz
Pressrelease: 261

Municipal budget approved by the state directorate

The State Directorate of Saxony confirms the budget statutes for 2016 adopted by the city council by a large majority in March without any conditions.

Mayor Barbara Ludwig: "The State Directorate currently certifies that the City of Chemnitz has a solid financial situation. This shows that the forward-looking budgetary policy, consistent debt reduction and consolidation efforts of recent years are paying off. This means that the city can continue to invest in its future - which is why the focus of municipal investment this year is once again on daycare centres, schools and transport infrastructure."

City Treasurer Sven Schulze: "It is pleasing that we have received approval for the 2016 budget. This means we can start with the planned measures and make the necessary commitments."

With income totalling 709.6 million euros and expenses of 721.4 million euros, the annual deficit amounts to 11.8 million euros. Nevertheless, the State Directorate of Saxony considers the City of Chemnitz's ability to pay to be secured in the medium term. As with the approvals of previous years, the State Directorate of Saxony reserves the right to impose conditions at a later date, particularly in the event of a deterioration in the city's financial situation.

In its budget approval, however, the State Directorate points out that the city still needs to harmonise income and expenditure. In connection with the increase in personnel expenses, it demands, among other things, that further job increases be avoided.

The legal supervisory authority sees the reduction in debt as a positive aspect. A total of around EUR 139.6 million has been reduced since 2004. This strengthens the ability to act and also opens up future room for manoeuvre. As a result, the city's investment programme for 2016 can be implemented to the tune of 63.2 million euros. These funds will be used for the renovation of schools, daycare centres and sports facilities as well as for measures on the road network, among other things.

Thanks in particular to the additional federal funds from the Investment Strengthening Act, several refurbishment and new construction measures have been included in the current planning.

The decision authorised borrowing of EUR 10 million for investments and investment promotion measures as well as commitment appropriations for subsequent years.