Mayor Marcus Kretschmann sees this as an important step towards financial stability – property tax B should not increase further
After several difficult years in the city budget, Riedstadt is seeing signs of financial relief. Mayor Marcus Kretschmann presented the draft budget for 2027 at the most recent city council meeting. With revenues of approximately €72.47 million, it projects a small surplus of €6,000. This will not require a further increase in property tax B. However, Kretschmann emphasized that despite the balanced budget, the city must continue to cut costs and critically review its existing structures.
The draft budget closes with a surplus of 6,000 euros
The draft budget for the 2027 fiscal year projects revenues of €72.469 million and expenditures of €72.463 million in the ordinary result. This results in a surplus of €6,000.
Given the overall volume, the financial leeway remains extremely limited. Nevertheless, Mayor Marcus Kretschmann considers the result an important success of the consolidation efforts to date.
"This is a budget that shows we have taken an important step towards financial stability. But it is also a budget that makes it clear we are still far from our goal," Kretschmann explained when introducing the draft.
It is particularly important that the budget balance is achieved without another increase in property tax B.
The increase in property tax to 1,600 points is having an effect
The already decided increase of the property tax B to a tax rate of 1,600 percentage points had caused considerable discussion in Riedstadt.
Kretschmann admitted that the decision had not been easy for the city councilors. For many residents, the higher property tax would mean an additional financial burden, especially given the increased cost of living.
From the mayor's point of view, however, the step was unavoidable.
"Without this increase in revenue, it would not have been possible to secure our city's financial viability and prepare an approvable budget. The decision was painful. But it was necessary and it is having an effect," Kretschmann emphasized.
The balanced draft budget for 2027 is a direct result of the measures taken.
The city wants to manage without liquidity loans in the long term
According to the mayor, the medium-term financial plan is also developing positively.
According to the plan, the deficits of recent years are to be offset during the further planning period. The city expects a positive bank balance at the end of the planning period.
According to current plans, Riedstadt would no longer need to take out liquidity loans to ensure its ongoing solvency.
However, Kretschmann warned against viewing the balanced budget as a permanent solution to the financial problems.
The city must continue to consistently review its spending, set priorities, and question existing structures.
“Because our goal must be to achieve financial stability not just for one fiscal year, but to secure it permanently,” the mayor explained.
Putting existing facilities to the test
Kretschmann sees a particular need for action regarding the established structures of Riedstadt.
The city consists of five districts, in which numerous public facilities are operated and maintained in parallel.
Given the tight budget situation, it is necessary to discuss whether these structures are financially sustainable in their current form in the long term.
“We must finally be ready to adapt our structures to the financial realities,” demanded the mayor.
This is not about abandoning the identity of individual districts or questioning the value of existing facilities.
Rather, services should be organized in such a way that they can continue to be financed in the future.
Kretschmann was critical of political proposals that demanded the complete preservation of existing facilities and structures without simultaneously presenting concrete proposals for financing.
“Because if we don’t act today, financial constraints will make the decisions for us tomorrow,” he warned.
The administration is already working with limited resources
The city administration itself must also continue to operate economically and sparingly. However, according to the mayor, the possibilities for additional savings there are limited.
Spending on goods and services has already been reduced to a necessary minimum for years.
Furthermore, Riedstadt has a very low staffing level compared to other municipalities of similar size.
That the administration is nevertheless able to manage its tasks is primarily due to the high level of commitment shown by its employees.
Kretschmann warned against constantly assigning new tasks to the administration without simultaneously creating the necessary personnel and financial resources.
County and school levies cost almost 28 million euros
Payments to the Groß-Gerau district represent a particularly heavy burden on the city budget.
The draft budget for 2027 allocates a total of 27,744,469 euros for the district and school levy.
This equates to approximately 38 percent of the city's total planned revenue.
With these levies, Riedstadt contributes, among other things, to the financing of the tasks of the district and the schools.
This leaves only limited financial leeway for personal projects and voluntary services.
“This means that a significant portion of our revenue is already tied up before we can even decide on our own projects and voluntary services,” Kretschmann explained.
Trade tax revenue has more than doubled since 2017
Riedstadt, on the other hand, is seeing a positive development in its trade tax revenues.
According to the mayor, these numbers have more than doubled since 2017.
The increased revenues will help to improve the city's financial situation.
Despite the necessary budget consolidation, investments should still be possible in the future.
However, economic efficiency, potential funding opportunities and, in particular, long-term follow-up costs would have to be taken into account.
Mayor urges respectful discussion
In connection with the controversial property tax increase, Kretschmann also addressed the political interactions between people.
In recent months, both city councilors and administrative staff have been subjected to hostility on social networks and in personal encounters.
The mayor therefore appealed to all involved to treat each other respectfully despite differing positions.
"We can have different opinions. We can have tough discussions about the issues. Sometimes that's even necessary. But we must never forget that treating each other with respect is the foundation of our democratic society."
With the 2027 budget proposal, Kretschmann sees Riedstadt on a better financial path. However, whether the desired stability can be achieved in the long term will depend significantly on whether politicians and administrators are prepared to make difficult decisions in the future as well.
The most important budget figures for 2027
Draft budget: Balanced
Projected revenues: 72,469,000 euros
Planned expenditure: 72,463,000 euros
Surplus in ordinary results: 6,000 euros
Property tax B: Tax rate of 1,600 percentage points, no further increase planned
District and school levy: 27,744,469 euros
Share of the district and school levy in the planned revenues: Approximately 38 percent
Trade tax: Revenues more than doubled since 2017
Medium-term financial planning: Reduction of existing deficits and targeted elimination of liquidity loans by the end of the planning period
Status: Budget proposal submitted by Mayor Marcus Kretschmann, not yet approved
(RIEDSTADT – RED/PSR)
