Kamenz under financial pressure: budget freeze paralyzes important projects!

Kamenz under financial pressure: budget freeze paralyzes important projects!

In the city of Kamenz, those responsible are facing a major challenge: financial uncertainties are forcing the city leadership to make far-reaching decisions. Again Weekly Courier reported, in February 2025 the city council passed a double budget for the years 2025 and 2026. This came into force on May 24, 2025 after approval by the legal supervisory authority. But the general conditions have changed significantly since then. The tense overall economic situation is having an impact on municipal finances, which the Saxon Association of Cities and Municipalities describes as structural imbalance.

Revenues fell short of expectations. Lower tax revenues and allocations are putting a strain on the coffers, while expenditure, particularly in the social sector and personnel costs, exceeds all forecasts. A decline in trade tax is forecast for 2025, which will further aggravate the situation. The negative annual result for 2025 could amount to a shocking minus 11.6 million euros, while the city administration is currently forecasting a cash balance of around 4.8 million euros at the end of the year.

Budget freeze in response to financial shortages

Due to the precarious financial situation, the city of Kamenz issued a budget freeze MDR reported. Mayor Roland Danz informed the city council about the necessity of this measure. The massive collapse in trade tax revenue is the main reason why large investment projects, such as the replacement of the fire station in Wiesa and the Kunterbunt daycare center in Kamenz-Ost, have to be put on hold for the time being.

The economic losses mean that around 33,000 euros are blocked for personnel costs. This means that no new positions can currently be filled or temporary positions can be extended. The result is a financial hole of almost twelve million euros, but the city's solvency remains guaranteed.

Future outlook and strategic decisions

Despite these challenges, city leaders remain optimistic. Important projects with high funding rates such as the renovation of the Lessing Museum and the construction of a new combined pool should continue to be prepared or pushed forward. The current budget situation was discussed at a city council meeting at the end of June 2025, and an interim report on the effect of the budget freeze is planned after the summer break. Decisions about a possible supplementary budget and how to deal with the planned investments are on the agenda in autumn.

The design of the municipal financial equalization by the Free State of Saxony and the use of the federal government's special funds will be crucial in order to financially stabilize the city of Kamenz. Like from the Economic service As can be seen, the financial situation of municipalities in Germany has been closely monitored since the beginning of the Corona crisis. Despite difficult times, there are also positive developments that could give hope for the future.

Conclusion: The city of Kamenz is facing major challenges, but also opportunities when it comes to improving the financial situation and securing the quality of life of its citizens through smart decisions and prioritized investments. The coming months will show whether it will be possible to get out of this financial situation.