Salzburg's city budget 2025: Major investments despite falling income

Salzburg's city budget 2025: Major investments despite falling income

On Monday, the Salzburg city government provided short-term information about the budget for 2025, after a meeting of the city senate. Finance Director Alexander Molnar presented remarkable figures: The financing budget includes more than 885 million euros in disbursements, of which around 106 million euros come from liquid assets. Molnar said that the level of liquid assets at the beginning of the year would be around 138 million euros, although he predicted that the plan fund balance would be around 32 million euros at the end of the year. Interestingly, the city assumes that it will not have to take out any new loans in 2025. However, he warned of an increasing gap between falling income and increasing expenses: a loss of 30 million euros is expected by 2029.

The city's debt level will be around 10 million euros at the end of 2025. In 2024, however, the budget situation was better than expected, with a forecast outflow of 41 million euros instead of the forecast 94 million. This is due, among other things, to a positive development in local taxes and to the fact that large construction projects have not yet been implemented.

Investments in education and infrastructure

The investment project budget for 2025 provides for total investments of 136 million euros. The largest share, around 32 million euros, is planned for schools, kindergartens and after-school care centers. Furthermore, a total of ten million euros are earmarked for the renovation and expansion of the festival halls. Six million decimal euros are also being budgeted for the active land policy and the renovation of the Lehen apartment block, and the city is investing in various official buildings as well as in the municipal cemetery and Hellbrunn Palace.

In addition, the budget provides five million euros for a sewer rehabilitation program and the same amount for cycle paths and sidewalks. The renovation of fire stations and the improvement of traffic regulations are also taken into account with funds amounting to three million euros. Two million euros have been earmarked for the redesign of public spaces, while the airport is being supported with a similar amount.

Changes in Fees and Tariffs

For 2025, the city plans to increase waste management fees by 7 percent, which should achieve a cost recovery rate of almost 94 percent. In contrast, the sewer fee remains unchanged at 2.48 euros gross per cubic meter. The city is also becoming more child-friendly by allowing children up to the age of five to visit the pools free of charge.

The city's staff plan provides for 3,301 permanent positions, which means an increase of 86 positions compared to 2024. In addition, the Energy 50 program for low-income households will be doubled, and a hardship fund of 100,000 euros will be set up for the first time to provide unbureaucratic support in emergencies.

The political reaction to the budget was mixed. The SPÖ was disappointed with the ÖVP, which did not vote for the budget despite its participation in the government. The KPÖ Plus, on the other hand, expressed satisfaction because many of their demands on housing and social issues were taken into account in the budget. The Citizens' List focuses on public transport and plans to improve the traffic situation in the city.

The NEOS criticized the increase in permanent positions and called for consistent consolidation. This view was supported by the ÖVP and the FPÖ, who described the priorities in the budget as questionable and called for a sound financial policy.

The 2025 budget was passed in the Senate with a majority of seven votes and the final vote in the City Council is still pending. Despite high investments, particularly in education and infrastructure, the city of Salzburg finds itself in a tense financial situation, but the administration remains optimistic.

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