Amidst the Coronavirus Outbreak: Budget Exhibiting a Surplus and No Accrued Debt
Oldenburg's Budget Surplus: A Promising Outlook for the City
In a positive turn of events, the city of Oldenburg, Germany, is set to enjoy a budget surplus of over eleven million euros for the coming year. This optimistic forecast was presented by Mayor Jürgen Krogmann (SPD) in a draft budget, which also anticipates a slight reduction in debt of one and a half million euros.
Mayor Krogmann, referring to the budget as the "bread and butter foundation," emphasised the crucial decisions that lie ahead, particularly in an election year. He expressed hope that the financial situation will continue to improve and the feared massive impacts will not materialize.
The paper presented to the Finance Committee has a volume of 622 million euros and a surplus of 11.15 million. The city plans to invest 74.8 million euros in the coming year, a reduction of 1 million compared to the current year.
Two significant kindergarten projects, the Tweelbäker Tredde and the Old Dye Works, will receive 1.5 million and 1.75 million euros respectively. The municipal housing subsidy of 1.8 million will be continued, and 300,000 euros will be provided to support cultural carriers in case of need, as in the current budget.
Educational and care facilities will receive a substantial allocation of 25 million euros. The construction of the new city museum is scheduled to begin in mid-2021, with an additional 2 million euros planned for the renovation of the villa.
The positive data in the budget are attributed to strong federal and state aid to mitigate the pandemic's effects, as well as lower-than-expected expenditures. Eleven million euros are earmarked for the further development of the Fliegerhorst, with revenues from the sale of building plots planned at about 3.1 million.
The trade tax for the coming year is projected at 118 million euros, a slight increase from the current year's 108 million euros, which was lower than the initial plan of 125 million but higher than the amended budget of 105 million.
The Old Gymnasium, Caecilienschule, IGS Flohenteich, New Gymnasium, and Bürgeresch primary school will receive 2.5 million, 1.5 million, 2.15 million, 1 million, and 1.1 million euros from the school budget respectively.
Despite initial projections of a deficit, the current budget shows a surplus of 22.9 million euros. The number of unemployed people did not rise as sharply, and fewer people fell into Hartz IV. The new city museum has not been affected by Corona and is not expected to be in the future.
The finance city councilor who presented the current budget plan is Matthias Huber. The city's current debt stands at 190 million euros. This promising budget outlook is a testament to Oldenburg's resilience and its commitment to investing in its future.
