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The municipality of Emmen has budgeted a deficit of 1.23 million francs for 2021. With large investments pending in the school hall, the city council now wants to increase the tax rate.
A poster with the crown protection measures on Sonnenplatz: The pandemic is also affecting the municipality of Emmen economically.
The Emmer city council expects a deficit of 1.23 million francs by 2021 with a total expenditure of 222.6 million francs. Although the budgeted deficit is not particularly high, the city council wants to raise taxes to 2.25 units. There are two reasons for this: At Emmen, significant infrastructure investments will be made over the next few years, especially in the classroom, as the number of students is growing steadily and the need for renovation of existing buildings is increasing. In addition, the city council anticipates higher costs or a loss of revenue of 3.45 million francs – caused by the economic consequences of the corona pandemic. Without Corona, the budget could yield a plus of 2.2 million francs.
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 decreased again with the tax base exchange as part of the cantonal financial reform AFR 18. A year ago, the city council announced that it would return. to raise taxes in 2021. However, when he presented the 2019 annual financial statements last April, Chief Financial Officer Patrick Schnellmann (CVP) told our newspaper that a tax increase was no longer an issue. In view of the crown crisis, this would send the wrong signal to the citizens. “I made this statement under the first impression of the pandemic,” Schnellmann says today:
“It was an error of judgment, because bigger deficits would burden the next generations too much.”
Thanks to Corona, Schnellmann expects tax losses and higher expenses, for example in the social area. Losses in the taxes of legal persons have already been evidenced, and the income of municipal companies such as Badi has also decreased. “The long-term consequences are difficult to assess. Many of the effects will only become apparent in the next few years. ”That is why it continues to have crown-related costs of around CHF 3 million per year in the financial plan, although there are still large uncertainties in these estimates.
For a sustainable positive development of community finances, balanced accounts are absolutely necessary, further indebtedness through negative accounts should be avoided, Schnellmann continued. “That is why we and the neighborhood council have to take responsibility. Even if that means a tax increase. “Thanks to this, the community will earn around 3.28 million francs more. The municipal council is in the process of reviewing the municipal and financial strategy, among other things with the aim of increasing the Emmen’s fiscal power. “But that doesn’t happen overnight. This is another reason why we have to raise taxes as a short-term measure,” says Schnellmann.
Higher personnel costs
Compared to the 2020 budget, expenses have increased by CHF 16.8 million. Expenditures in the educational and social sectors show higher than average growth. There the community has little room for maneuver; the population has grown and the canton’s contributions to primary schools will be less next year.
The largest increase in costs was recorded in the personnel area, which amounted to 6.12 million francs (plus 9.1 per cent) for a total of 73.5 million francs in personnel costs. Overall growth and additional tasks contribute to this increase. Furthermore, Emmen will integrate the employees of the debt enforcement office into the municipal administration from 2021, which will also lead to higher personnel costs. However, in the long term, this should lead to financial savings thanks to synergies. The salary costs for teachers are also higher, in part because the school has to create and staff additional classes. In return, the city council decided to waive a general salary increase for administrative staff; the neighborhood council had barely allowed such an increase in recent years.
Investments of 16.42 million Swiss francs are planned in Emmen for 2021, mainly for maintenance and planning work. “We are currently in the preparatory phase for the expansion of the Hübeli school complex,” says Patrick Schnellmann. The self-financing rate for net investments is 58 percent. Investments of CHF 71.85 million are prioritized for 2024, of which CHF 38.73 million will be for school infrastructure. “The administration building also has to be renovated at some point,” says Schnellmann.
