Dispute over the community center: Sigmundsherberg is in financial jeopardy!

Dispute over the community center: Sigmundsherberg is in financial jeopardy!

In Sigmundsherberg, a market town in the Horn district of Lower Austria with around 1,698 inhabitants, the focus is on the discussion about building a new community center. However, the plans, which are supported by the ruling ÖVP, have met with strong criticism from the FPÖ and SPÖ, who consider the project to be too big and too expensive. However, Mayor Franz Göd, who was appointed to office by the ÖVP, is convinced that the community can afford the construction that is to be carried out on the Göd family's property. The old community center was destroyed in 2021 by a fire in the village inn, which also belongs to the Göd family. The fire, believed to be caused by a faulty fan motor, also led to the rescue of Göd's parents during the incident.

The new community center will be built on an area of ​​4,000 m² and will offer a variety of facilities, including a community office, a library, an event hall with space for 200 people, a restaurant and 14 residential units. The total costs amount to around 8 million euros, with almost 6 million euros to be financed through loans and around 1.7 million euros through state funding. However, critics fear that the municipal debt could rise to up to 10 million euros. FPÖ local councilor Thomas Wanitschek expresses concerns about the budget viability of the project, while the SPÖ speaks of the financial outlay being too high.

Criticism and legal considerations

What is particularly explosive is the fact that the property on which the new center is to be built belongs to the mayor's family. This has caused the FPÖ to speak of a “crooked optics” and to question the planned sale of the property to the Waldviertel settlement cooperative (WAV). Mayor Göd, who is considering a legal review of the proceedings, emphasizes that there is no unlawful enrichment. Despite the concerns, the purchase contracts with WAV have not yet been signed; the cooperative only has an “option to purchase” the property.

The next steps are eagerly awaited. With 11 mandates, the ÖVP has the absolute majority in the local council and can alone be responsible for decisions on borrowing. The next municipal council meeting could decide whether the project will be implemented or whether the skeptics with concerns can insist on a health check of the project by the municipality.

Investment opportunities for communities

The project in Sigmundsherberg also takes place in the context of a broader financing situation for Lower Austrian communities. In total, Lower Austria will receive around 160 million euros from the municipal investment program (KIP), which was reformed to make it easier for municipalities to realize investments. The aim of this reform is to reduce administrative burdens, which particularly benefits smaller municipalities, which often do not have sufficient financial resources. Johannes Pressl, President of the Association of Municipalities, highlights the advantages of this regulation and emphasizes that the disbursement of funds will begin in October 2025. In addition, the state of Lower Austria supports the municipalities with its own package worth 35 million euros.

The course of the discussions and the decisions in Sigmundsherberg will therefore not only have local effects, but could also represent an indicator for the financial ability of municipalities throughout Lower Austria.