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The municipality of Emmen has budgeted a deficit of 1.23 million francs for 2021. With large investments pending, the city council now wants to increase the tax rate.
The Emmer city council expects a deficit of 1.23 million francs by 2021 with a total expenditure of 222.6 million francs. That is why he wants to raise the tax rate back to 2.25 units to finance the next investments and cushion the unknown effects of the pandemic, he writes in a press release. Emmens’ tax rate is currently 2.15 units. This was after the Lucerne governing council increased to 2.25 units two years ago and then declined again with the tax base exchange as part of the AFR 18 cantonal financial reform.
A year ago, the city council announced that it would raise taxes again in 2021. However, when it presented the 2019 annual financial statements last April, Chief Financial Officer Patrick Schnellmann (CVP) told our newspaper that a tax increase already it wasn’t a problem. In view of the crown crisis, this would send the wrong signal to the citizens. The local council has apparently revised this opinion.
According to current estimates, Corona will cause net direct costs of around 3.45 million francs in budget year 2021, according to the statement. For a positive and sustainable development of community finances, balanced accounts are absolutely necessary, further debt should be avoided.
Calculation results and budgets of the municipality of Emmen.
Compared to budget year 2020, expenditures have increased by 16.8 million francs, it is said. Expenditures in the educational and social sectors show higher than average growth. In both areas, the municipality has little room for maneuver, the population has grown, and the canton’s contributions to primary school are less.
Higher personnel costs
The largest increase in costs was recorded in the personnel area, which amounted to 6.12 million francs (plus 9.1 per cent) with a total of 73.5 million francs in personnel costs. Overall growth, additional tasks, and integration of collection office employees into municipal administration contribute to this increase. The salary costs for teachers are also higher, not least because the school has to create and staff additional classes.
In Emmen, investments of 16.42 million Swiss francs are planned for 2021. The self-financing rate for net investments is 58 percent. Priority will be given to net investments of CHF 71.85 million by 2024, including CHF 38.73 million for school infrastructure.
