Kamenz under financial pressure: Budget lock paralyzes important projects!

Kamenz under financial pressure: Budget lock paralyzes important projects!

In the city of Kamenz, those responsible face a major challenge: financial uncertainties are urging the city tour of making far -reaching decisions. As the Wochenkurier reported, the city council passed a double budget in February 2025 for the years 2025 and 2026. On May 24, 2025, it came into force after approval by the legal supervisory authority. But the framework conditions have changed significantly since then. The tense overall economic situation has an impact on municipal finances, which the Saxon Cities and Community Day calls a structural imbalance.

The income remained behind the expectations. Lower tax revenue and allocations burden the cash registers, while expenses exceed all forecasts, especially in the social sector and in the case of personnel costs. For 2025, a decline in trade tax is forecast, which will further tighten the situation. The negative annual result for 2025 could amount to frightening minus 11.6 million euros, while the city administration is currently predicting a means of payment of around 4.8 million euros at the end of the year.

budget lock in response to financial bottlenecks

Due to the precarious financial situation, the city of Kamenz issued a budget lock, such as mdr . Mayor Roland Danz informed the city council about the need for this measure. The massive break-in of trade tax revenue is the main reason why large investment projects, such as the replacement new building of the fire department in Wiesa and the Kita Kunterbunt in Kamenz-Ost, have to be on hold for the time being.

The economic losses mean that around 33,000 euros are closed to personnel costs. This means that no new jobs 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.

Future view and strategic decisions

Regardless of these challenges, the city tour remains optimistic. Important projects with high funding quotas such as the conversion of the Lessing Museum and the construction of a new combined bath should continue to be prepared or promoted. The current budget situation was discussed in a city council meeting at the end of June 2025, and after the summer break, an interim report on the effect of the budget lock is planned. Decisions about a possible supplementary budget and the handling of 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 special fund of the federal government will be crucial to stabilize the city of Kamenz financially. As can be seen from the Wirtschaftsdienst , the financial situation of the municipalities in Germany has been observed carefully 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 faces major challenges, but also with opportunities when it comes to improving the financial situation through clever decisions and prioritized investments and securing the quality of life of the citizens. The coming months will show whether it will be possible to free yourself from this financial imbalance.