Budget for 2025

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05.11.2024 16:27

Up to € 13 million minus in operating business, plus € 59 million in new debt: Innsbruck's budget is falling apart at the seams. BM Johannes Anzengruber wants to take countermeasures by attracting new companies. 

Innsbruck's budget path is rocky. And full of holes. Finance Director Martin Rupprechter and Mayor Johannes Anzengruber presented the key figures for the 2025 budget with serious expressions. The result is alarming: the gap between income and expenditure continues to widen. And there is no end in sight: A €33 million loan will be due in 2033, and expenditure for IKB pensioners will continue to rise from €8 million to €20 million per year.

Liquidity is assured despite the deficit, it is emphasized
The fixed assets that should have cushioned these increases? "All used up long ago," says Anzengruber. In the worst-case scenario, the income and expenditure statement shows a deficit of €13.6 million. "Even less revenue shares are coming from the federal government than expected," explained Rupprechter. Whether the deficit will remain this large is unclear. The fact is that the city senate will approve the first tranche of new debt on Wednesday. It is reported that €35 million in fresh money will be raised, financed by Raiffeisen-Landesbank. Curiously, this will happen before the budget is approved by the municipal council in December.

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Innsbruck is paying more and more - without receiving any compensation from the federal government or the state. The city pays 54 million euros more to the state than it receives back via the Municipal Equalization Fund (GAF).

Bürgermeister Johannes Anzengruber

Expensive projects financed on credit
However, this does not yet cover the money required: the investments amounting to €59 million will be financed 100% with new loans. These are needed for the ice canal, campaign, new Bolzano square and compulsory expenditure in the education and social sectors. The debt level will rise from the current € 171 million to up to € 223 million.

Prepare for fee increases
The green-white-red city government has budgeted €13 million in dividends from Innsbrucker Kommunalbetriebe (IKB). However, it is uncertain whether it will actually be this high. In any case, waste disposal charges are to be increased by 10% and indexation is planned for other charges.

No savings will be made on subsidies
So where will savings be made? Certainly not on subsidies. As in the previous year, these amount to € 27 million. Nor will there be any savings on personnel, which at € 145 million is already the biggest chunk of the budget. On the contrary: 44 new posts will be created.

Business relocations as a way out
Anzengruber is hoping for an increase in revenue by attracting new businesses to urban properties. And he calls for structural reforms at state and federal level. "Otherwise the number of outgoing municipalities will continue to grow!"

This article has been automatically translated,
read the original article here.

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