Schwäbisch Hall: City council warns of debt explosion in -house!

Schwäbisch Hall: City council warns of debt explosion in -house!

Schwäbisch Hall, Deutschland - In Schwäbisch Hall sorgt eine alarmierende Schuldenlage im Bereich Abwasserbetriebe für Aufregung. The city administration, represented by treasurer Oscar Gruber and Mayor Daniel Bullinger, defends the controversial debt strategy that the independent examiner considers problematic. In a recent report, the revision came to the conclusion that the debt of the own company has grown to around 55 million euros, with impressive 70 percent of the loans not being repaid. Die Stadt selbst ist der größte Gläubiger mit einem Zinssatz von 4 Prozent. This strategy is regarded as a violation of generation justice, since investments must continue to be repaid, while there are already written costs, such as swp.de In the meantime,

In North Rhine-Westphalia, the third NKF further development law has decided new measures to regulate financial regulation in municipalities. This law, which already came into force on December 31, 2023, introduces the regulations to the annual misalignment, which enable a fictional budget equalization by later surpluses. Due to the changes in the law, supervisory authorities have more powers to monitor the budget planning of the municipalities more precisely. Ein zentrales Element ist zudem die Neuregelung der Kreditaufnahme, die künftig in investive und liquiditätssichernde Kredite unterteilt wird. This was regarded as a necessary step towards the stability of the municipal finances, as bdo-concunia.de

Zusätzlich plant das zuständige Ministerium in NRW Anpassungen an der Kommunalhaushaltsverordnung, um die neuen Regelungen zu reflektieren. However, this could not only affect Schwäbisch Hall, but also other communities that have to fight with similar financial challenges and high debt. The Council in Schwäbisch Hall and the state government in North Rhine-Westphalia are faced with the challenge of finding long-term solutions for the existing financial problems of its communities.