Karlsruhe administration denies the financial blueprint for self-run Pforzheim in 2018
In a recent turn of events, the economic plan for the development of the baths area in Pforzheim has been rejected by the Regierungspräsidium (RP). This decision, announced by the government presidency in Karlsruhe, comes as a setback for the city's plans.
The economic plan, approved last year, included the start of investment projects in the baths area of considerable economic importance, as well as approval-required credit acquisitions and authorization commitments. However, these aspects of the plan have been deemed unapprovable.
Mayor Peter Boch and First Mayor Dirk Büscher, along with EBM Büscher, have recommended approving the business plan in the city council. Despite their recommendation, the RP's rejection was expected due to the plan's provision for a permanent subsidy from the core budget for the baths area, which constitutes a "one-sided deviation" from the approved budget consolidation concept.
The budget consolidation concept does not provide for any more contributions from the municipal budget from 2020 onwards. This rejection, therefore, signifies a significant challenge for the city's plans for the baths area.
If the business plan is rejected by the RP, no funds can be spent on further planning of the approved new baths. This could potentially lead to finding a consensus in the city council being extremely difficult, and inevitable cuts elsewhere would be unavoidable.
The city must now develop a comprehensive, binding, and strategic overall concept for the baths that complies with the requirements of the budget consolidation. One possible solution is the original proposal of the administration, which meets the requirements of the budget consolidation and prioritises school and club swimming. This proposal includes the construction of a combination bath on the site of the current Wartberg and the long-term securing of the school baths Broetzingen (Fritz-Erler-Bad) and Buckenberg.
Another option, while theoretically possible, would undermine the agreed savings from the budget consolidation concept. It involves finding counter-financing for the two new baths in the tax budget, but even then, a subsidy to the EPVB would still be required, and an agreement from the RP would not be certain.
It's important to note that the ongoing business of the EPVB can continue, as the rejection only relates to the baths. Both officials have thanked the EPVB for working intensively on the 2018 business plan. They have also expressed the intention to discuss the business plan with the government presidency before the city council meeting on 24 July, in order to go into the committee with clear messages.
Regardless of the decision made, the budget must comply with the guidelines of the budget consolidation concept and further reduce the deficit. The city council's decision on the business plan will be crucial in determining the future of the baths area in Pforzheim.
