Innsbruck's budget woes

Cost explosions and who pays for them

The construction of the Mühlau drinking water tunnel cost 43 million euros, twice as much as estimated five years ago. The people of Innsbruck are footing the bill in the form of increased water and sewerage charges.

(Bild: IKB)

The cost explosion for the Mühlau drinking water tunnel is largely being passed on to the customers of Innsbruck's municipal services. However, they are also responsible for other budget shortfalls.

In the fall of last year, the city government used more cash to maintain the liquidity of the city of Innsbruck. This refers to loans and the use of overdraft facilities, which of course also entails costs. The bill for this was presented to the City Senate on Wednesday. A low five-figure sum in interest payments is due for the cash-strapped city. At 35 million euros in total, the size of the loans was not exactly small.

IKB dividend flows as planned
Most recently, the Innsbruck budget was relieved by the payment of 20 million euros from Tiwag to Innsbrucker Kommunalbetriebe. The background to this was the (late) agreement in the electricity price dispute. This now ensures that the dividend of 13 million euros, which had already been budgeted for by the city, will actually flow to the city. However, it is not yet out of the woods financially. This is because projects such as the new Boznerplatz square, the ice canal, the Campagne-Areal development and increased compulsory expenditure in the education and social sectors will be financed 100% with new loans - a total of 59 million euros.

Finanzdir. Martin Rupprechter and BM Johannes Anzengruber at the budget presentation.

(Bild: Neuner Philipp)

Repayments and increases
What does this mean for the people of Innsbruck? First of all, they received a refund from the municipal utilities last year for overpayments for electricity. For an Innsbruck household with an average annual consumption of between 2,300 and 3,500 kilowatt hours, this amounted to between 102 and 368 euros, depending on annual consumption and product.

10 percent plus for waste 
However, these credits are partly eaten up by the fee increases imposed by the city in the course of the budget shortfalls. For example, waste charges rose by 10% at the beginning of the year, while other municipal charges were at least index-adjusted.

Mühlau tunnel much more expensive than planned 
The explosion in costs for the Mühlau drinking water tunnel will also be passed on to a large extent to IKB customers - in the form of an increase in water and sewerage charges. However, it is not yet clear to what extent.

Provision for new MCI building is released
The new MCI building canceled by LH Anton Mattle also has an impact on the city's budget, but not necessarily a negative one: the city has been setting aside €11.5 million for years to cover the building ban, which would have to be transferred to the federal government in the event of a new building. This reserve could be released if the rejection of the new MCI building actually goes ahead - even after the 2027 state elections.