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Financial hardship forces austerity measures and an increase in property tax
As the city of Griesheim announced, the city council adopted the draft budget for 2025 on Thursday, March 27. The decision was reached after more than three hours of deliberation and was passed with the votes of the CDU and SPD factions. Part of the resolution includes an increase in property tax A to 1260 percentage points and property tax B to 1290 percentage points.
Mayor Geza Krebs-Wetzl explained: “Due to the precarious state of municipal finances in Hesse, Griesheim is not the only town facing extraordinary financial difficulties. Despite an austerity package with savings of approximately 1.8 million euros in personnel costs and approximately 1.2 million euros in material and service costs, we were unable to avoid a tax increase.”
A deficit of approximately 2.8 million euros can be offset by reserves
According to the approved draft budget, ordinary revenues of €97.36 million are offset by expenditures of €100.17 million. The resulting deficit of approximately €2.81 million is to be covered by reserves. Despite the financial difficulties, the budget is considered approvable. Total investments of approximately €16.1 million are planned.
The draft budget will now be recalculated and finalized, taking the proposed amendments into account. It will then be submitted to the local government supervisory authority. Until approval is granted, the provisional budget will remain in effect.
(Griesheim - Red/PSG)
