Household

The budget is the financial package that includes all revenues and expenditures. It consists of the budget ordinance and the budget plan, which set forth the estimated revenues and expenditures. These include, among other things, revenues and expenditures from day-to-day administrative activities, such as

revenue from fees (for example, for applying for a new ID card or for issuing a housing eligibility certificate) or
expenditures (such as wages and salaries for employees, grants for organizations, and the repair of roads and bike paths).

The budget ordinance also outlines plans for taking out loans or making major investments in the coming years.

An overview of the city’s finances—such as its debt or tax revenue—is available in the “Municipal Finance Statistics” section.

Current:

A second-home tax will be introduced as of January 1, 2027. The City Council adopted the corresponding ordinance on July 30, 2026. With this measure, the city is implementing another component of its budget consolidation plan and tapping into an additional source of municipal revenue. Read more.

The strained financial situation also necessitates cost-cutting measures in Erlangen’s public transit system (ÖPNV). For the 2026/2027 schedule change, the City Council has approved cost-cutting measures from a list of proposals submitted by ESTW Stadtverkehr GmbH and the city administration. Read more here.

The City of Erlangen is taking further steps to continue implementing the budget consolidation plan. Effective June 25, 2026, cash-affecting expenditure and payment estimates totaling 2.25 million euros will be frozen in the budgets of the city departments and municipal enterprises for the current 2026 fiscal year. The goal remains to restore the city’s financial capacity in the medium term and to ensure Erlangen’s ability to act effectively in the future. Read more.

FAQs - How the City Budget Is Prepared

It’s a long process with many deadlines:

In May, the city departments receive an initial draft of the operating budget and the capital expenditure program from the City Treasury. The departments’ objections to this draft are discussed during the budget negotiations, and an agreement is ultimately reached. The figures are discussed during the budget talks between the departments and the Finance Department. The result is the draft budget. This draft is presented to the City Council in a public meeting. This year, the presentation is scheduled for Thursday, September 24.

Then the critical phase of the budget deliberations begins. The political factions and groups within the City Council discuss the figures internally. In the committees, votes are taken on the motions submitted by the parties and the administration’s subsequent proposals regarding the draft. They may also submit additional motions concerning the budget. Subsequent proposals may be submitted by the city departments. Advisory bodies, such as the Senior Citizens’ Advisory Council or the Youth Parliament, may also submit motions regarding the budget, though only through the mayor.

The City Treasury compiles the approved motions and supplementary proposals in the fall and then drafts the budget ordinance. Following approval by the City Council—usually during the January session—it is submitted to the Government of Middle Franconia (headquartered in Ansbach), the competent supervisory authority, for approval.

Currently, the budget situation is strained due to a significant, unforeseeable drop in trade tax revenue. The administration therefore developed a budget consolidation plan in the spring of 2025 in consultation with the Government of Middle Franconia. The goal of the plan is to restore the city’s long-term financial viability amid a difficult budgetary situation. In May 2025, the Government of Middle Franconia stipulated that the budget consolidation plan must be updated every six months going forward.

Budget Updates

FAQs About the Budget

Answers to frequently asked questions about the tight budget situation.

City council adopts consolidation concept

At its meeting on April 30, Erlangen City Council adopted a comprehensive consolidation concept. The aim of the concept is to ensure the long-term viability of the city in a difficult budget situation.

City Council Approves 2026 Budget

On January 22, the City Council approved the 2026 budget by a vote of 26 to 24.

Debt, Revenue, Expenses

Statistics: Municipal Finances

Expenditures by function, debt comparisons among cities, tax revenues, key figures per resident.

Introduction of the Second-Home Tax

Starting in 2027, the tax will be levied as an annual tax based on annual rental expenses (net rent excluding utilities). Based on a model calculation, gross revenue of approximately one million euros is expected.

Henkestraße bus stop with bus, cyclist and pedestrians.

Public transportation must be financially stabilized

The goal is to implement the necessary cost-cutting measures in a way that preserves a public transit system that is as efficient and attractive as possible.