Kaufmann complains:

“Preparing the budget was extremely difficult”

After tough negotiations with the city's financiers, Andrea Kaufmann is quite satisfied with the 2025 budget.

(Bild: mathis.studio)

Dornbirn's mayor Andrea Kaufmann has to release around 3 million euros in reserves in order to manage the 2025 budget. Costs for personnel, health and social services are rising, while income is stagnating.

Mayor Andrea Kaufmann is not one of those city leaders who have attracted attention in the past by complaining about a tight financial situation. Not least because the trade fair city has managed its finances soundly and with foresight for decades, and municipal taxes and federal revenue shares have been quite generous.

In the coming year, the mayor is expecting an increase of 4.5 percent in municipal tax, but the situation with the revenue shares looks very different. "It's a tragedy, because the revenue shares will decrease by 0.4 million euros," calculates Andrea Kaufmann. At the same time, she has to dig deeper and deeper into her pockets to cover staff costs. In the coming year, these will amount to a whopping 160 million euros (an increase of 7.7 percent). And the amount that Dornbirn residents pay into the social and health fund is also increasing dramatically.

"We have already pulled the emergency brake this year. Staff were not replaced. There were only new appointments in the hospital and childcare facilities." And a strict budget and spending policy also applies for 2025. On the one hand, this applies to personnel and, on the other, 15 percent savings are to be made compared to the previous year's budget.

Projects will be postponed or completed in stages
"We can no longer draw on the full resources," Kaufmann clarifies. Although the construction and renovation of childcare facilities, kindergartens and schools are at the top of the list of investment priorities, patience is required. Some projects have been postponed, others are being tackled in stages.

Budget 2025

Total budget (incl. hospital)

Income: 317.9 million euros

Expenses: 359.3 million euros

Income budget without own operations

Income: 246.4 million euros

Expenditure: 233.9 million euros

Balance: 12.6 million euros

Financing budget without own operations

Incoming payments: 276.7 million euros

Disbursements: 278.8 million euros

Balance: -3.1 million euros

Revenues:

Revenue shares: 93 million euros

Own taxes: 40.6 million euros

(of which 32.6 million euros municipal tax)

Fees: 16.2 million euros

The residents of Haselstauden can count themselves lucky. Their children's and event center will not fall victim to the red pencil and will be completed in 2025 for around 8.5 million euros, the highest amount of investment. A further four million euros, which will be partly financed via the municipal investment program, are earmarked for climate-relevant measures (PV systems, LED lighting, air and heat pumps).

The City of Dornbirn's 2025 budget envisages total revenue of 371.9 million euros. The financial budget, in which income and expenditure flowing throughout the year are offset, amounts to a deficit of 3.14 million euros.

Reserves released
Gritting her teeth, the city manager has to release reserves amounting to around three million euros, but she is nevertheless satisfied with the budget: "I think that it can be presented for approval with a clear conscience. However, my financial experts never tire of emphasizing that the medium-term forecast is a very poor one. If no action is taken, the city will no longer be able to cope with the tasks that lie ahead in the coming years."

Kaufmann is particularly pleased because the people of Dornbirn are unlikely to feel the savings. Although all fees would increase, they would be index-adjusted and therefore so moderate that a four-person household would only have to expect an increase of 40 euros per year. Those responsible expect additional income from a two-residence tax, which could be introduced next year.