City council decides on staff cuts

With immediate effect, a six-month ban on reappointment applies to all positions. However, individual areas in which the city fulfills mandatory tasks in particular, for example in the children and youth sector or in municipal schools, are exempt. This should save personnel costs of around 7.5 million euros per year. It was also decided to phase out the temporary labor market allowance for individual areas that are particularly affected by the shortage of skilled workers at the end of 2026. The immediate effect for new hires will save 70,000 euros per year, while the expiry of the allowance will result in annual savings of around 930,000 euros from 2027.

"The aim is to ensure that, on the one hand, the reappointment freeze has significant short-term savings effects and, on the other hand, that the city administration remains in a position to fulfill its mandatory tasks for the citizens. However, it will not be possible to avoid noticeable restrictions and reductions in standards for citizens, particularly in voluntary services but also in the fulfilment of tasks overall," explains Thomas Ternes, Head of Legal Affairs, Human Resources and Digitalization. The 2025 budget, which was actually due to be presented to the city council in September, is currently being thoroughly revised once again together with the departments and will be presented to the city council in October. It will then contain further savings in the city's investments and services and is to be adopted in January 2025.

As already known, the city must expect significantly lower trade taxes this year and next. As finance officer Konrad Beugel reported, following further discussions with major trade tax payers, he expects further trade tax losses and additional tax repayments due to the overall economic development. "For 2024, we are now only expecting revenue of 60 million euros because taxes already received will have to be repaid," explained Beugel. However, official trade tax assessment notices are not yet available in some cases. For 2025, the treasury is forecasting trade tax income of 130 million euros, which corresponds to the 2018 result.

Trade tax is by far the largest revenue item in the municipal budget, which is why the development of companies as well as global market influences have an impact on the municipal budget. Municipal budgets are under pressure throughout Germany due to the economic situation and dependence on trade tax.

The city's treasury department is in regular contact with major trade tax payers. Adjustments during the year and repayments or back payments are not unusual, but are generally significantly lower than at present. The trade tax forecasts for budget planning and the current financial year are adjusted on the basis of the findings from these discussions. However, the official trade tax assessment notices that the tax office receives for each company are decisive for actual payments.

(A short report is also available in the city newspaper "Rathausplatz 1" - October 2024 issue).