Klingenberg saves the budget: no trade tax increase!

Klingenberg saves the budget: no trade tax increase!

The financial situation is on the agenda in Klingenberg. After intensive discussions, the local council decided on a double budget for the years 2025 and 2026, which is perceived to be a balancing act. The planned expenditure amounts to 16.5 million euros for 2025 and 16.6 million euros for 2026, while the income is just 15.8 million euros (2025) and 15.9 million euros (2026). In order to compensate for the deficit, the reserves will be used, which Mayor Torsten Schockbach notes. He emphasizes that the budget was passed despite the challenging financial conditions, particularly in terms of tax revenue. According to the article by Sächsische.de The majority of the local council also decided not to increase the business tax rate, which should benefit entrepreneurs in Klingenberg.

But Klingenberg has to contend with an additional financial challenge: the municipality has to pay back around three million euros in trade tax. This repayment comes as a shock, but Mayor Ralf Reichwein confirms that the reserves are sufficient to plug the budget hole. At a meeting of the main and finance committee it was decided to use reserves to close the financial gap Primavera24 reported. In order to minimize the use of reserves, various savings options are being examined, including insurance, IT and telephone costs as well as training measures.

Budget planning and future prospects

As part of the discussion about the double budget, there were also applications to support daycare centers and after-school care centers, which requested an increase in the budget to cover increased operating and personnel costs. Frank Hannawald from the AfD had suggested this in order to avoid having to increase parental contributions. However, his amendments, which included an adjustment of the trade tax rate to the Saxon average, were rejected. There were two votes in favor, nine against and three abstentions.

Klingenberg's financial decisions also have a broader dimension when one considers the fundamentals of municipal finances. Municipal revenue comes from various sources, including municipal taxes such as trade tax, which is currently under review. In the abundance of municipal expenditure, what stands out is the need for transfer expenditure, which is required by law and has a strong influence on the financial possibilities of the municipalities Wikipedia is presented.

The coming months will be crucial for Klingenberg as it has to face financial challenges and responsibility towards citizens. Mayor Schockenbach warned against excessive spending in order not to endanger the municipality's financial stability. The political and economic situation remains exciting, and it remains to be seen what measures the municipality will take to overcome the financial difficulties.