Budget presented

St. Pölten expects to be millions in the red in 2025

The draft budget is to be adopted by St. Pölten City Hall at the December meeting of the municipal council.

(Bild: APA/HELMUT FOHRINGER)

The provincial capital is once again facing an extremely difficult year financially: the first draft budget for 2025 shows a loss of 29.6 million euros. The ÖVP is harshly critical of the ruling Social Democrats.

New year, old statement: "The municipalities have their backs to the wall", emphasized St. Pölten's mayor Matthias Stadler at the presentation of the draft budget for 2025. With income of 253.8 million euros and expenses of 268.8 million euros, this envisages a negative net result of 29.6 million euros after so-called movements in reserves.

Significant drop in revenue shares
One reason for this is the falling revenue shares - the most important source of income for the city. They are expected to amount to just 37.4 million euros in 2025. In comparison: in 2022, they were still just under 50 million euros. "The budget is more than five million euros better than in 2024, the savings are taking effect," emphasizes Thomas Wolfsberger, the city's Head of Finance.

Mayor Matthias Stadler (left) and Thomas Wolfsberger, Head of Finance Administration

(Bild: Josef Vorlaufer)

The gradual adjustment of fees for water, wastewater, waste and the cemetery over three years until 2026 should help somewhat. 2025 is the second year in this process, after which the fees should cover costs, i.e. not only cover current expenditure, but also past investments in the form of depreciation and future measures via renewal reserves.

5.4 million euros for the promenade
At the same time, further investments are to be made in the state capital despite the precarious situation. Eight million euros will flow into road construction, almost half of which will go into the reconstruction of the Promenade Ring. More than 5.4 million euros have been budgeted for sewer construction and four million euros for the drinking water supply. In addition, the aim is to further develop the location as an educational and economic center of the country.

Stadler's Social Democrats have lost control of the finances in good times. Now the people of St. Pölten are paying the bill.

Vizebürgermeister Matthias Adl

The debt level, which will be around 170 million euros at the end of the year, will rise to a reported 186.6 million euros by the end of 2025. The ÖVP is therefore not sparing with its criticism: "Stadler's SPD has let the finances slip!", emphasizes Deputy Mayor Matthias Adl. According to him, the city has neglected to build up reserves for lean times, despite the bubbling revenues. "Now the people of St. Pölten are paying the bill!"