Budget and budget protection concept 2026 adopted

The last time the pilgrimage town of Kevelaer was able to show a positive annual result of € 4,192,385 was in 2022. From then on, the budget could no longer be balanced.

Annual deficit 2023: - € 2,168,732
Annual deficit 2024: - € 4,907,484
Projected annual deficit 2025: - € 13,000,000
Projected annual deficit 2026: - € 9,185,952
projected annual deficit 2027: - € 7,315,505
projected annual deficit 2028: - € 6,056,997
projected annual deficit 2029: - € 5,622,312

• drastic increase in personnel expenses in recent years due to the necessary addition of new staff, but also high wage settlements:

Personnel expenses 2022: € 16,122,426
Personnel expenses 2023: € 17,094,755
Personnel expenses 2024: € 18,831,314
Personnel expenses 2025: € 20,344,993
Personnel expenses 2026: € 20,227,626 (this is where the first savings come through)

• Dramatic cost increases, particularly in the areas of childcare, economic youth welfare and social services, exacerbated the negative financial development, here are a few figures:
  
  

Deficit child daycare facilities and child daycare
2024: - € 5,248,606
2025: - € 6,420,897
2026: - 7.812.206 €

Economic youth welfare deficit
2024: - € 10,272,079
2025: - € 9,272,038
2026: - 12.981.555 €

• no further isolation of crisis-related damage. For the last time in 2023, corona- and war-related additional expenses could be neutralized in the budget; in 2023, this still led to an improvement in earnings of around € 2.1 million; from 2024, this possibility will no longer apply
  
  
• Sharp decline in trade tax due to the general economic situation. In 2022, this amounted to around € 25 million, in 2024 around € 21.5 million and in 2025 only € 15.4 million, i.e. almost € 10 million less than in 2022.
  
  

• Since 2025, there has no longer been sufficient liquidity due to the collapse in revenue; liquidity loans in the millions have to be taken out, which cannot be repaid in the foreseeable future. As a result, the municipal budget is burdened with considerable financing interest.
  
  

• In general, the municipal budget is affected by the same price increases due to inflation as every private household: Maintenance costs (energy, cleaning, etc.) and construction costs have risen very sharply

• In recent years, the federal and state governments have continuously transferred new tasks to the municipalities. However, sufficient funding for these tasks has only been provided in part. The local authorities have to bear a considerable proportion of the additional costs themselves. Here are a few examples:
  
  

1. childcare and education
This is one of the biggest cost drivers. Although education is a matter for the federal states, the local authorities bear the burden of the infrastructure.

• Legal entitlement to daycare places: Since 2013, there has been a legal entitlement for children from the age of one. The operating costs and personnel expenses often far exceed the subsidies from the federal and state governments.
• All-day care in elementary school: From 2026, a legal entitlement to all-day care will be introduced in stages. Local authorities will have to invest massively in buildings and staff for this.
• Inclusion: The implementation of joint teaching of children with and without disabilities requires structural adaptations and additional assistance staff.
  
  

2. social affairs and integration
Social expenditure now accounts for the largest share of many municipal budgets.

• Accommodation and integration of refugees: Since 2015/2016 and again due to the war in Ukraine, local authorities have been doing the main work in terms of accommodation, integration and schooling. The lump sums from the federal and state governments often do not cover the actual costs of housing and social care.
  
  

• Integration assistance: Support for people with disabilities (Federal Participation Act) is a municipal task whose costs are constantly increasing due to rising case numbers and higher standards.
  
  

• Citizen's allowance (SGB II): The local authorities bear the costs of accommodation (KdU). If rents or the number of recipients increase, this places a direct burden on the municipal budget.
  
  

3. digitization and administration

• Online Access Act (OZG): The federal government has decided that almost all administrative services must be available digitally. The technical implementation and maintenance of the IT systems often remain the responsibility of the local authorities.
  
  

• Housing benefit reform: The massive expansion of the group of people entitled to housing benefit led to an enormous administrative burden in the municipal offices, for which insufficient personnel resources were provided.
  
  

4. climate and mobility

• Heat planning: The new Building Energy Act obliges local authorities to draw up detailed heat plans by 2026 or 2028. This requires expensive expert reports and specialist staff.
  
  

• Traffic turnaround: Although the expansion of cycle paths and local public transport is often subsidized, the long-term maintenance costs and operation remain with the municipality.

The city itself can only apply leverage where it has the ability to exert influence, which unfortunately includes, for example, voluntary social services that naturally affect citizens and lead to considerable resentment among the population and those for which there is no legal obligation. However, the reasons for this must be answered by politicians; ultimately, the council made these decisions. The following were particularly hotly debated but decided upon:

• the abolition of the reduction for siblings in the parental contributions for daycare centers and daycare for children. Previously, siblings were exempt from contributions, but this regulation was abolished as part of the budget discussions. However, it must be taken into account that the 2nd and 3rd year of kindergarten are legally free of charge anyway.
• the discontinuation of integration work by Caritas in the refugee sector (in particular housing search and administration, social support in the accommodation centers)
• Savings in the area of climate protection and climate impact adaptation
  
  

Savings were also agreed:

• in the personnel area (job cuts, staffing freezes); savings of around € 700,000 in subsequent years)
• in the event and culture sector as well as city marketing (marketing prize in future only in a slimmed-down form, balloon festival to be discontinued, Kevelaer im Licht only every 2 years)
  
  

Of course, decisions were not only made on savings, but new revenues were also generated, which mainly affect citizens:

• Increase in cost sharing for clubs in the operating costs of sports clubs
• Increase in contributions for the open all-day program
• Abolition of the exemption from childcare contributions for siblings
• Increase in property tax A for agricultural land
• Increase in property tax B for developed properties
• Introduction of a property tax C from 2027 for developable but not yet developed properties
• Increase in trade tax
• Introduction of an accommodation tax from 2027 for overnight stays in accommodation establishments
• Billing of depot services for third-party services (previously provided largely free of charge or for a very small amount)

• The large cost blocks of indoor and outdoor pools, for example, were not discussed at all (except that there were proposals for making the indoor pool more attractive). Restrictions in the operation of the indoor pool are currently not politically debatable, as this would represent a considerable cut in the services offered to the citizens of the city (especially schoolchildren, swimming lessons, a wide variety of courses) and an unused indoor pool would represent dead capital. On the contrary, work is currently underway to renovate the indoor pool (in particular the roof and façade, ventilation technology, total costs around € 8 million). An application for funding has been submitted for this.
  
  
• In the case of the outdoor pool, it must be borne in mind that the Kevelaer swimming pool association bears a considerable proportion of the costs and work and ensures the operation of the outdoor pool with its voluntary work. Closure, for example, would counteract this voluntary work.
  
  
• Savings in green space maintenance by the depot were also rejected. The opinion here is that the maintenance standards have already been reduced to a minimum and that Kevelaer, as a place of pilgrimage and health resort, should ensure an appealing external image.

• Additional burden due to higher property taxes and trade taxes as well as cost sharing in various areas (kindergartens, OGS).
• Reductions in standards due to staff cuts (e.g. longer waiting times). However, this is to be offset by a further expansion of digitalization (electronic application, etc.)

All measures that are necessary for the fulfillment of a city's tasks will continue to be carried out. This includes investment in schools, kindergartens, fire stations, etc. In the future, however, the measures will have to be prioritized and equalized in order to reduce the burden on the individual financial years.

• An originally planned fundamental expansion of the school center, which was estimated to cost over € 30 million, was provisionally rejected in the middle of last year due to financial developments. Necessary extensions are being implemented in smaller individual measures
  
  
• The original decision to expand the Hubertus elementary school to three pupils is being reconsidered. The reason for this is that there is sufficient space available in the Antonius elementary school, which is also available. Alternatively, the gymnasium at Hubertus elementary school could be renovated and structural measures implemented to adapt it to the needs of the open all-day school and school social work. The final decision depends on the costs associated with the two options
  
  
• Photovoltaic systems that are already planned should only be implemented if the economic operation of these systems can be proven and not "only" for climate and environmental reasons.

In principle, the city is not completely incapable of acting even now. Considerable resources are still being invested in further development. However, the measures listed above show that there will be considerable restrictions in some cases. The city's options are essentially limited to measures for which there is no legal obligation. Further tax increases for the coming years cannot be ruled out, but there is agreement that the citizens cannot be burdened indefinitely either. The city will also have to part with a number of cherished voluntary tasks and reduce standards, or at least these can no longer all be carried out free of charge. However, savings cannot be made unconditionally. Without further development, it will not be possible to generate additional revenue. For example, it is important to increase the commercial space available in Kevelaer in order to give existing and new companies development opportunities in Kevelaer. This creates jobs and can generate revenue (share of income tax, trade tax). Advertising measures through city marketing and cultural offers are also not being completely discontinued. However, we must also remain realistic: the town of Kevelaer (like all other towns) will hardly be able to solve its financial problems on its own. Relief from the federal and state governments is indispensable.

According to the statutory provisions of the municipal code, a city with budget protection must demonstrate that it is possible to present a balanced budget again by the 10th year following the financial year at the latest. Current planning assumes that it will not be possible to balance the budget before then either. It goes without saying that this period is very long and that various unforeseeable and plannable changes will occur during this period. In the best-case scenario, trade tax will recover during this period and the federal and state governments will provide the municipalities with sufficient funding. Whether it will then be possible - if a balanced budget can be achieved earlier - to end the budget protection early must then be agreed with the municipal supervisory authority in due course.