Budget and budget protection concept 2026 adopted

The last time our city achieved a positive annual result was in 2022. This amounted to € 4,192,385.

Since then, it has not been possible to balance the budget. The financial development is as follows:

• Annual deficit 2023: - 2.168.732 €
• Annual deficit 2024: - € 4,907,484
• Expected annual deficit 2025: - € 13,000,000
• Planned annual deficit 2026: - € 9,185,952
• Planned annual deficit 2027: - € 7,315,505
• Planned annual deficit 2028: - € 6,056,997
• Planned annual deficit 2029: - € 5,622,312
  
  

This shows a sustained structural shortfall in the budget since 2023 with a significant worsening in 2025 and a gradual reduction in the planned deficits in subsequent years.

The persistent budget deficit of the pilgrimage town of Kevelaer is due to several mutually reinforcing factors.

1. significant increase in personnel expenses
Personnel expenses have risen considerably in recent years. The reasons for this are both necessary increases in personnel to fulfill tasks as well as high wage settlements.

The development at a glance:

• 2022: 16.122.426 €
• 2023: 17.094.755 €
• 2024: 18.831.314 €
• 2025: 20.344.993 €
• 2026: 20.227.626 €
  
  

The first savings measures will take effect in 2026, leading to a slight reduction. Overall, however, the level will remain significantly higher than in 2022.

2. massive cost increases in the social and youth sector
Budget developments are having a particularly strong impact on expenditure in the areas of childcare, economic youth welfare and other social areas.

Deficit child day care facilities and child day care:

• 2024: – 5.248.606 €
• 2025: – 6.420.897 €
• 2026: – 7.812.206 €
  
  

Deficit in economic youth welfare:

• 2024: – 10.272.079 €
• 2025: – 9.272.038 €
• 2026: – 12.981.555 €

There is a structural shortfall here with a clear upward trend. Expenditure in these areas is required by law or by society and can only be controlled to a limited extent.

3. discontinuation of the isolation of crisis-related losses
Up to and including 2023, it was possible to isolate corona- and war-related additional expenses in the budget and thus make them neutral in terms of earnings.

In 2023, this still led to an improvement in earnings of around € 2.1 million. Since 2024, this option has been completely eliminated, meaning that corresponding burdens have a direct impact on the budget.

4. significant decline in trade tax revenue
The general economic situation has a direct impact on trade tax - one of the city's most important sources of revenue.

• 2022: around € 25 million
• 2024: around € 21.5 million
• 2025: € 15.4 million
  
  

This means that revenue in 2025 will be almost € 10 million below the 2022 level. This massive decline will lead to significant structural revenue shortfalls.

5. lack of liquidity and rising interest charges
Since 2025, current income has no longer been sufficient to cover expenditure. Liquidity loans in the millions have to be taken out to ensure solvency.

It is foreseeable that these loans cannot be repaid in the short term. This will result in additional burdens due to considerable financing interest, which will further restrict the budget.

6. general price increases due to inflation
Like private households, the municipal budget is also affected by considerable price increases. Expenses have risen significantly, particularly in the areas of energy, cleaning, maintenance costs and construction services.

These inflation-related additional costs further exacerbate the structural shortfall.

In recent years, the federal and state governments have continuously transferred new tasks to the municipalities. In many cases, however, these additional obligations have not been fully and permanently funded.

A considerable proportion of the additional costs incurred therefore remain with the municipalities and place a structural and permanent burden on municipal budgets.

The effects are particularly evident in the following areas:

1. childcare and education
This area is one of the biggest cost drivers in municipal budgets. Although education is originally the responsibility of the federal states, the local authorities bear a large part of the financial responsibility for infrastructure, buildings and staff.

• Legal entitlement to childcare places
  Since 2013, there has been a legal entitlement to a childcare place for children from the age of one. The actual operating and personnel costs regularly significantly exceed the federal and state subsidies.
• All-day care in elementary school
  From 2026, a legal entitlement to all-day care will be gradually introduced. This will require considerable investment in buildings, equipment and additional staff.
• Inclusion
  The implementation of joint teaching for children with and without disabilities requires structural adaptations, additional specialists and support staff. Here too, costs and funding are often not in balance.
  
  

2. social affairs and integration
Social expenditure now represents one of the largest blocks of expenditure in many municipal budgets.

• Accommodation and integration of refugees
  Since 2015/2016 and again as a result of the war in Ukraine, local authorities have been doing the main work in terms of accommodation, integration and schooling. The lump sums provided often do not fully cover the actual costs - particularly for housing and social care.
• Integration assistance
  The Federal Participation Act has further developed support for people with disabilities. However, the increasing number of cases and higher quality standards are leading to continuously rising expenditure.
• Citizen's allowance (SGB II)
  The local authorities bear the costs of accommodation. Rising rents and a higher number of people entitled to benefits have a direct and full impact on the municipal budget.
  
  

3. digitization and administrative modernization

• Online Access Act (OZG)
  The federal government obliges the public administration to offer almost all services digitally. The technical implementation, system introduction, IT security and ongoing maintenance incur considerable costs, most of which remain with the local authorities.
• Housing benefit reform
  The significant expansion of the group of entitled persons led to a massive increase in the number of applications and therefore to considerable additional administrative work. However, the corresponding additional personnel resources were not made available to a sufficient extent.
  
  

4. climate and mobility tasks

• Municipal heating planning
  New legal requirements oblige municipalities to draw up comprehensive heating plans by 2026 or 2028. This requires cost-intensive expert reports and specialized personnel.
• Traffic turnaround
  Investments in cycle paths and local public transport are partially subsidized. However, the long-term operating, maintenance and follow-up costs remain with the local authorities and lead to additional burdens in the long term.

Our city can only make savings in those areas where it actually has its own scope for action. These are predominantly in the voluntary area or in services for which there is no legal obligation.

However, it is precisely there that cuts often directly affect citizens and understandably lead to discussions and resentment. The decision on the content of these measures was ultimately made by the Council as part of the budget discussions.

Particularly intensively discussed measures

• Abolition of the sibling discount on parental contributions for daycare centers and child daycare
  Previously, siblings were exempt from contributions. This regulation was abolished as part of the budget consolidation. However, it should be noted that the second and third year of kindergarten remain free of charge by law.
• Discontinuation of integration work by Caritas in the refugee sector
  This particularly affects services such as support in finding and managing accommodation as well as social care in shelters.
• Reduction in climate protection and climate impact adaptation measures
  Cuts were also made in this area in order to relieve the pressure on budget funds in the short term.
  
  

Further savings agreed

• Personnel area
  Job cuts and staffing freezes will lead to savings of around € 700,000 in subsequent years.
• Events, culture and city marketing
  • The marketing prize will be held in a reduced form in future.
  • The balloon festival is discontinued.
  • "Kevelaer im Licht" only takes place every two years.

Revenue improvements to stabilize the budget
In addition to spending cuts, measures to increase revenue were also adopted. These affect citizens and companies in various areas:

• Increase in the clubs' contribution to the operating costs of sports facilities
• Increase in contributions for the open all-day program
• Abolition of the exemption from childcare contributions for siblings
• Increase in property tax A (agricultural land)
• Increase in property tax B (developed properties)
• Introduction of a property tax C from 2027 for developable but undeveloped properties
• Increase in trade tax
• Introduction of an accommodation tax for overnight stays from 2027
• More cost-covering billing of depot services for third parties in future

Although numerous savings were agreed as part of the budget consolidation, they were not made in all cost-intensive areas. Cuts were deliberately avoided, particularly in individual larger expenditure blocks.

Indoor pool
The costs for the indoor pool were not fundamentally questioned during the consultations. Restrictions on operation are currently considered politically unacceptable.

Reduced operation or even closure would mean a considerable cut in the services offered to citizens. This would affect them in particular:

• school and club sports,
• swimming lessons for children,
• Rehabilitation, health and prevention courses and
• numerous leisure activities.

In addition, an unused indoor swimming pool would represent a considerable amount of tied-up capital without providing any social benefit. On the contrary: a comprehensive refurbishment is currently being prepared, particularly in the areas of the roof, façade and ventilation technology. The total costs amount to around €8 million. An application for funding has been submitted in order to make the project financially viable.

Outdoor pool
Fundamental cuts to the outdoor pool were also not up for discussion. It should be noted that the Kevelaer swimming pool association bears a considerable share of the costs and organizational effort. The strong volunteer commitment plays a key role in the operation of the pool and makes it possible in the first place.

Closure or drastic cuts would devalue this commitment and permanently weaken the volunteer structure that has grown over the years.

Green space maintenance
Savings in green space maintenance by the depot were also rejected. In the opinion of the political bodies, the maintenance standards have already been reduced to a minimum.

Furthermore, as a pilgrimage and health resort, Kevelaer is particularly dependent on a well-maintained and attractive townscape. The external perception is not only a question of aesthetics, but also of location quality, tourism and identification.

Conclusion
In summary, it can be said that cuts were made particularly in voluntary services, in the event and social areas as well as through structural measures in the areas of personnel and revenue. In areas of high social importance, strong voluntary commitment or long-term infrastructure commitment - such as swimming pools or green maintenance - on the other hand, drastic cuts were deliberately avoided.

The consolidation measures adopted are not without consequences for citizens. They are reflected both in financial terms and in day-to-day contact with the administration. Additional financial burdens The increase in property tax and trade tax will result in additional burdens that will directly or indirectly affect property owners, tenants and businesses. In addition, there will be higher cost sharing in individual areas, including

• for parental contributions for daycare centers,
• in the open all-day program,
• and other municipal services.

For many households, this means a noticeable additional burden, especially at a time when private living costs have also risen overall.

• Effects on service and standards
  In the course of job cuts and staffing freezes, so-called standard reductions may also occur. These manifest themselves, for example, in
  
  
  • longer processing times,
  • limited availability by telephone,
  • or longer waiting times for appointments.
    
    
  The aim is to continue to reliably fulfill the core legal tasks, even if the service in some areas will be less convenient than before.
  
  

• Digitalization as compensation
  In order to minimize the impact on citizens, digitalization is to be further expanded. Processes are to be simplified and accelerated through electronic applications, digital appointments and online services. In the medium term, this can help to alleviate staff shortages and make access to administrative services more flexible.
  
  

Summary
The cost-cutting measures will lead to higher financial contributions and, in some cases, noticeable changes in service. At the same time, the declared aim is to maintain the efficiency of the administration through structural modernization and digitalization, even under difficult financial conditions.

Regardless of the necessary consolidation measures, our city remains capable of acting. All measures that are absolutely necessary for the proper fulfillment of tasks will continue to be implemented.

These include, in particular, investments in central infrastructure areas such as:

• Schools,
• Kindergartens,
• Fire stations
• and other facilities of general interest.

These tasks are essential for the common good and the safety of citizens and are therefore not up for debate.

However, it will be necessary in future to prioritize investments more strongly and spread them out over time. Projects will be more carefully coordinated and, if necessary, their implementation will be extended in order to reduce the burden on individual financial years and ensure the financial stability of the city.

The aim is to continue to enable necessary future investments - but within a realistic, affordable framework.

Against the backdrop of the tight budget situation, individual projects originally planned had to be reassessed, postponed or adjusted in scope. The aim is to continue to make necessary developments possible, but in a financially viable form. Expansion of the school center The originally planned fundamental expansion of the school center with estimated costs of over € 30 million was already provisionally rejected in the middle of last year. In view of the financial development, implementation on this scale no longer seemed justifiable. Instead, necessary expansions are to be implemented in smaller, individually realizable measures in order to both cover demand and distribute the investment burden.

Hubertus elementary school
The decision to expand Hubertus elementary school to three pupils is being reconsidered. The background to this is that there is still sufficient room capacity in the Antonius elementary school, which also exists. As an alternative, a renovation of the gymnasium at Hubertus elementary school and structural adaptations to ensure open all-day schooling and school social work could be considered. The final decision depends largely on a reliable cost comparison between the options.

Photovoltaic systems
In future, planned photovoltaic projects should only be implemented if they can be proven to be economically viable. This means that implementation will only take place if sustainable, economical operation can be ensured. Given the current budgetary situation, purely climate or environmental policy considerations alone are no longer sufficient to justify investments.

In summary, it can be seen that no across-the-board cuts have been made, but rather prioritization is based on financial viability and economic rationality. Projects are adjusted where the scope or timing is no longer compatible with the current budget situation.

Even in the current situation, our city is not incapable of acting. We continue to invest in important projects and ensure that central tasks are reliably fulfilled - for example in schools, kindergartens, the fire department and infrastructure.

At the same time, we have to be honest: the financial leeway has become significantly smaller. Some decisions are not easy - and some will be felt in everyday life.

Savings can be made especially where there is no legal obligation. Unfortunately, this also affects services that many people have grown fond of. In some cases, standards are being reduced or services can no longer be offered completely free of charge in future.

Further tax increases in the coming years cannot be completely ruled out at present. However, we are aware that citizens cannot be burdened indefinitely. It is important for us to keep this limit in mind.

Why not just save money?
As obvious as it sounds, saving money alone will not solve the problem. A city that does not develop further will lose its attractiveness in the long term - and therefore also its income.

It is therefore important to continue investing in our future. One example is the development of new commercial areas. When existing companies can grow and new companies settle here, jobs are created. This strengthens our city - through additional trade tax revenue and a higher share of income tax.

City marketing and cultural offerings will therefore not be completely discontinued. They are part of what makes our city worth living in - for citizens as well as for guests and businesses.

What we have to say realistically
Despite all our efforts, we must not delude ourselves: The financial challenges are so great that they cannot be overcome by our own efforts alone. This applies not only to our city, but to many municipalities.

Tangible and reliable support from the federal and state governments will be necessary in order to create permanently stable conditions.

According to the provisions of the municipal code, a city in budget protection must prove that it can present a balanced budget again no later than the tenth year after the end of the financial year. For our city, this currently means the year 2036.

Current planning assumes that a balanced budget is unlikely to be achieved before 2036.

It is important to understand that this period is very long and will be influenced by numerous factors - many of which are not yet foreseeable or plannable. These include, for example

• the development of trade tax income,
• economic changes,
• possible support from the federal and state governments.
  
  

In the best-case scenario, revenues could recover and the federal and state governments could provide the municipalities with sufficient long-term support. Should this occur sooner, it may be possible to end the budget protection early. A decision on this would then be made in consultation with the municipal supervisory authority.