Budget in Feldkirch

Debt increases by almost 37 million euros

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10.12.2024 15:55

The people of Montfort are feeling the negative effects of the current economic situation. While expenditure is rising, income is stagnating. Due to the difficult financial situation, there is not much room for investment. Mayor Manfred Rädler is only digging deeper into his pockets in the area of education.  

Just under 12 million euros have been earmarked in the Feldkirch city budget for childcare facilities, and just under 8 million euros for school buildings. The investments in waste disposal and the reconstruction of the waste collection center are somewhat smaller: 2.8 million euros are budgeted for this.

Cost-intensive projects are not budgeted, because as in other municipalities, the planned expenditure (128.9 million euros) in the Montfort town exceeds the income (116.5 million euros) many times over. Mayor Manfred Rädler and City Councillor for Finance Benedikt König will have to release reserves and take out loans in order to make up for the minus of 12.4 million euros in the operating budget. The debt level will rise from 76.9 million to 113.5 million euros, with per capita debt at 3091 euros at the end of 2025.

High transfer payments to the state
The high payments to the social and health fund (24.4 million euros) and the increased costs for municipal employees will be a particular burden for the Montfort towns. These will amount to 60 million in 2025 (37 percent of the total budget).

While expenditure is rising, income is stagnating. The difficult economic situation, particularly in the construction industry, is having a negative impact: "Real estate transfer tax has fallen from 9 to 5.3 million euros between 2022 and 2024. The low income from municipal tax is also making itself felt," complains König. And so the people of Feldkirch have no choice but to wait for better economic times.

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

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