Municipal double budget 2017/2018 approved by the state directorate
The budget for the years 2017 and 2018 of the City of Chemnitz, which was approved by a large majority of the City Council on 8 February, was confirmed by the State Directorate on 11 April without any conditions.
City Treasurer Sven Schulze: "With the approval of the first double budget, the State Directorate has cleared the way for extensive investments. Over the next two years, we will be focussing on the sports sector, especially the sports forum. We will also continue to invest in our daycare centres and schools in the future."
In its budget approval, the legal supervisory authority recognises the city's solid economic situation. At the same time, it points out possible financing risks for local public transport and subsidiaries such as the municipal theatre. As with previous years' approvals, it reserves the right to impose conditions at a later date, particularly in the event of a deterioration in the city's financial situation.
Sven Schulze: "Our city is on a stable financial footing. On the one hand, this is due to the positive economic development of Chemnitz companies and the resulting tax revenue. But it is also a result of the forward-looking budgetary policy of recent years, which we should continue."
With income of around 737.6 million euros and expenses of around 728.1 million euros, the result for the 2017 financial year was positive at around 9.5 million euros. In 2018, the income of 748.4 million euros is 0.8 million euros lower than the planned expenses of 749.2 million euros. However, thanks to the good results of previous years, the shortfall can be fully covered.
The state directorate emphasises the planned debt reduction in its approval notice in a positive light. This year, 34 million euros in debt is to be repaid, while only 16.7 million euros in new loans will be taken out in the next two years. The planned debt will amount to 175 million euros by the end of next year
City Treasurer Sven Schulze concludes: "We want to continue to make targeted investments in the future of our city in the coming years without burdening future generations with the costs. That is why it is important to continue to reduce the level of debt."