Norderstedt facing financial crisis: 20 million euros missing for the summer!

Norderstedt facing financial crisis: 20 million euros missing for the summer!

Norderstedt, the fourth largest city in Schleswig-Holstein, is facing serious financial challenges. Today the main committee brought the city's tense budget planning onto the agenda. The central issues were the approval of new loans to ensure liquidity and the precarious financial situation, which could cost the city over 20 million euros in the coming months in order to get through the summer. In this context, the members of the committee learned that the decision on the requested loans had been postponed again. The deputy committee chairman Tobias Mährlein (FDP) mentioned that open questions have arisen, particularly from SPD politicians, that need to be clarified before a final decision is made. The city council is now scheduled to decide on the loan on June 24, 2025, which is absolutely necessary for liquidity so that Norderstedt does not get into even deeper financial difficulties, as NDR reports.

With worry lines on his face, Jens Rapude, the head of the finance office, reported on the city's sad financial deficit. While the first supplementary budget for 2024/2025 expected a positive annual result of over 5 million euros, a serious minus of 6.7 million euros is forecast for 2026. And things could get even worse in 2027 – with a deficit of 7.8 million euros. The main reasons for the forecast deficits are the decline in funds from municipal financial equalization and increasing personnel expenses. In particular, the new collective agreements in the public sector are putting a strain on the coffers. Experts are already expecting wage increases of up to 8%. In addition, there are additional burdens due to increased renovation and maintenance costs as well as increasing operating costs for the educational center.

Impact on municipal investments

The financial situation also has an indirect impact on important investment projects in Norderstedt. Five of seven planned measures have been postponed indefinitely, including the purchase of public drinking water dispensers and the construction of crossing aids on Oadby and Wigston Road. The planning of a cycle lane in Lemsahler Weg is also on the brink. Fellow citizens are concerned about whether these projects can still be realized in the future or whether the financial problems will continue to worsen. [NOA4].

In the nationwide context, Norderstedt is not alone. According to the German Association of Cities and Municipalities, the financial situation of all municipalities is alarming. The entire municipal sector is struggling with an expected deficit of 13.2 billion euros this year. These figures make it clear that Norderstedt's financial situation is just one piece of the mosaic in a larger picture. Städtetag vehemently advocates for a larger share of community taxes and criticizes the ongoing tasks that are imposed on municipalities without the necessary funds being provided for this.

It is all the more important that Norderstedt not only finds short-term solutions, but also develops long-term, viable concepts to overcome the financial challenges. The coming weeks and months will be crucial in setting the course for a stable future for the city.