City policy required

Search for millions for the Innsbruck budget

The green-red YES coalition led by Mayor Johannes Anzengruber (center) is concerned with finances.

(Bild: Birbaumer Christof)

The 2023 annual accounts will be decided at a special municipal council in Innsbruck on Thursday. More exciting, however, is the question of what the budget for 2025 will look like against the backdrop of the tense financial situation. According to reports, there is a shortfall of around 40 million euros. The debate about the incompatibility of offices continues.

Tyrolean municipalities are reportedly running out of money. The provincial capital of Innsbruck is no exception. Mayor Johannes Anzengruber has already called the state to account several times in clear terms. However, even LH Anton Mattle, the provincial finance officer, is struggling to put together a (reasonably) balanced budget.

Innsbruck's municipal council will receive an overview of the city's financial situation at a special meeting on Thursday: the resolution of the 2023 annual accounts is on the agenda. The key points are already known. The net result is minus € 8 million, debt has been reduced by € 6 million and now stands at € 158 million, liquidity has been reduced by € 22 million. The largest increases were in personnel costs due to new items and inflation compensation.

However, the 2025 budget will be more exciting than the 2023 accounts. In a current document from Finance Director Martin Rupprechter, there is talk of a "tense financial situation". In some cases, credit balances cannot be used to cover new expenditure "as these were already expected in the 2024 budget and have already been budgeted for in the overall budget".

Debt level could increase further
Assets achieved in some areas and reserves released, such as the renewal reserve that has remained untouched for 30 years, are therefore already priced in - and yet the sums are apparently nowhere near enough to cover all desires. There is talk of net new borrowing of 40 million euros for 2025. This would bring Innsbruck's debt level back up to almost 200 million euros, almost as much as when the Patscherkofelbahn was new. However, the largest part of the mountain of debt still results from the construction of the regional railroad. The coalition is expected to present its first budget figures at the beginning of November.

Explosive issues surrounding incompatibility
A month ago, Mayor Anzengruber's red-green coalition recognized an incompatibility with non-executive city councillor Markus Stoll (Das Neue Innsbruck) because he was also the managing director of a timber trading company (outside Innsbruck). What has happened since then? He would have three months from receipt of the relevant letter to resign his political mandate.

Tension in January
If Stoll does not comply with this demand - which can be assumed - the Legal and Incompatibility Committee will be consulted again in January. It could then recommend to the municipal council that an application be made to the Constitutional Court for loss of mandate or office. However, the municipal council does not have to do this, but "can". This is clearly stated in the state expert opinion on the matter.

To put it plainly: this is a purely political decision - and one with considerable implications and explosive force: on the one hand, many political mandataries hold leading positions in the business world. If there is also an incompatibility here, then large sections of society will be excluded from political participation. On the other hand, this would mean that a critical opposition could be removed from a political body by majority vote. The Constitutional Court will probably have to clarify the extent to which this is compatible with democratic principles.

The fact is that there has never been such a motion in the history of Innsbruck. Although in earlier times, city councillors were also active as entrepreneurs while holding office and were also in business contact with the city.

The incompatibility has not yet been an issue for JA city councillor Mariella Lutz, who runs a fashion store in Innsbruck.