Norderstedt before financial crisis: 20 million euros are missing for summer!

Norderstedt before financial crisis: 20 million euros are missing for summer!

Norderstedt, Deutschland - Norderstedt, the fourth largest city of Schleswig-Holstein, is faced with serious financial challenges. Today the main committee brought the city's tense budget planning to the agenda. Central topics were the approval of new loans to ensure liquidity and the precarious financial situation, which the city could cost over 20 million euros in the coming months to get over the summer. In this context, the members of the committee learned that the decision on the requested loans was postponed. The deputy committee chairman Tobias Mährlein (FDP) mentioned that in particular on the part of the SPD politicians, open questions arose that must be clarified before a final decision. The city council is now to decide on the loan on June 24, 2025, which is absolutely necessary for the liquidity so that Norderstedt does not get into an even deeper financial imbalance, such as [NDR] (https://www.ndr.de/nachrichten/schleswig-holstein/haushalt-norderstedt-haup committee-beraet-wieder-wiederstednews3194.html) reported.

with worry lines on the face, Jens Rapude, the head of the office for finance, reported on the sad financial deficit of the city. While the 1st supplementary budget 2024/2025 calculated with a positive annual result of over 5 million euros, a serious minus of 6.7 million euros will be forecast for 2026. And in 2027 it could get worse - with a deficit of 7.8 million euros. The main reasons for the forecast deficits are the decline in funds from the municipal financial equalization and increasing personnel expenses. Above all, the new collective agreements in the public service put a strain on the health insurers. Here experts already expect wage increases of up to 8%. In addition, there are additional burdens due to increased renovation and entertainment expenses as well as increasing operating costs for the education house.

impact on municipal investments

The financial situation also has an indirect impact on important investment projects in Norderstedt. Five out of seven planned measures were postponed for an indefinite period, including the purchase of public drinking water dispensers and the construction of crossing aids in Oadby-and-Wigston-Straße. The planning of a wheel lane in the Lemsahler is also on the brink. The fellow citizens are concerned about whether these projects can still be realized in the future or whether the financial problems are further exhilarating. NOA4 refers to the additional responsibility that the city bears with increasing costs and unclear revenue.

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 fighting this year with an expected deficit of 13.2 billion euros. These figures make it clear that the financial situation of Norderstedt is only a mosaic stone in a larger picture. City Day vehemently occurs for a larger proportion of community taxes and criticizes the continuous tasks that are imposed on the municipalities without the necessary means are provided.