Debt level rising

There are three big unknowns when it comes to city finances

Mayor Auinger (left) speaks of a record budget, the debt level will rise to 274 million euros by 2029

(Bild: Tröster Andreas)

The Salzburg city government presented the investments up to 2029. The planned 523 million euros represent a record. However, the prestige projects S-Link, festival hall renovation and airport expansion have not yet been fully factored in.

The new red-red-green city government of Salzburg underlined its ambition yesterday in the planning budget: 523 million euros in investments are planned from 2025 to 2029. "A record budget", calls Bernhard Auinger (SPÖ). The new mayor is certainly right about that.

However, the major prestige projects are not included in the city's so-called medium-term financial planning, or only in the form of project costs. For the S-Link subway project next year, for example, only ten million euros. If the referendum in the fall were to result in a "yes" to the mega transport project, there would have to be a major rescheduling. "Yes, there would be losses, of course," said S-Link opponent Auinger.

The costs for the Festspielhäuer renovation are likely to rise sharply - to the detriment of the city's finances

(Bild: Tschepp Markus)

The second unknown in the financial forecast concerns the expansion and renovation of the festival halls. These are unlikely to get by without a substantial price increase in the millions. Most of the additional costs will have to be borne by the city.

Money for land purchase is relatively meagre
And then there is the inevitable construction of Terminal 1 at the airport - prestige building number three. "There are still no decisions or financing agreements for certain major projects," admits Auinger. This means that all three projects could still put a considerable strain on the city budget. The consequence: "Then we will have to cut back on other projects." 

Criticism of the budget came yesterday from an opposition politician who was present: "Taking money that you don't even have is very questionable. A loan of 85 million euros will be needed next year alone." By 2029, the debt level will rise to around 275 million euros.

In any case, relatively little money is earmarked for land in the city that is to be purchased and used for non-profit housing, i.e. the construction of affordable rental apartments. "From 2025, this will amount to ten million euros per year," explains City Vice Mayor Kay Dankl (KPÖ Plus).