In June, the DP asked the Board of Aldermen for a time and cost plan of the current and future projects, knowing full well that this is not possible down to the last detail at the moment. To date, however, we have not received a satisfactory answer.
Ordinary budget 2023 without a large surplus
Based on the budget of 2023, we tried to answer these questions ourselves. The DP did not support this budget for the following reasons:
- The budget is only slightly in surplus with €770,000. The expenses are growing much faster than the revenues. The continuously growing personnel costs are understandable. However, savings could be made on different items. We have requested those to be analysed in detail in order to reduce costs.
- The small surplus is by far not enough to compensate for the € 2.15 million deficit of the extraordinary budget. The revenues are mainly based on the sale of land in the Contern Sud PAP (€8.4 million) and on a new debt (€6.5 million).
- Various expenses are necessary and fully supported by us, such as:
- €1.85 million for waste water infrastructure
- €3 million for water supply
- €2.25 million for affordable housing.
- However, several expenses are listed with only a fraction of the final cost:
- Conterstuff renovation: €1.5 of in total €6 million.
- New sports hall: €2.5 of in total €15 million
- School extension: 1 of in total € 14 million
- Planning costs for new town hall: 400.000€, final costs uncertain.
This is a budget that is financed by new debt and the sale of land, contains only a fraction of the costs of many projects, and yet has a large deficit.
What are the prospects for the following years?
Further partial answers were provided by the Multi-Annual Financial Plan 2023-2028 (PPF). More projects for a total volume of €78 million will be added soon.
The Board of Aldermen did not respond to the question of exactly which projects are planned, although the PPF is based on a detailed list which was withheld from us. We interpret this as a lack of transparency towards the municipal council and the citizens. A new debt is to be expected, which is also partly to blame given the current level of indebtedness. The debt will increase to €32 million by 2028, a doubling of the current situation.
According to parliamentary question 7374, our municipality ranks fourth in terms of revenue from the sale of building land last year, while our municipality is far from being one of the largest. More land will have to be sold. Most of these are probably prime properties, such as the old sports hall in Contern or parts of the park in Moutfort. These should remain in public hands. Liveable spaces should be created/maintained, as they are used in public for sporting or cultural activities. Should these liveable spaces be sold, the offer must be compensated elsewhere, which would entail further high investments. These are currently not financially planned and do not seem to be a priority.
We also see a contradiction with the purchase of the Conterstuff. This was acquired, among other things, because of the central location and the land. That is why we voted for the purchase. However, the Board of Aldermen is now planning to sell the surrounding land in order to finance the projects.
Our proposals
- A larger surplus in the ordinary budget, for example by reviewing maintenance and license contracts and analysing operating costs. The representatives in the syndicates must analyse and control their expenses.
- The review of planned future projects. For example, we share the view that additional premises are needed for the community. However, we continue to call for a review of further expansion of the existing community hall instead of planning a new one. This analysis is important to finance further urgently needed investments (e.g. new buildings for the fire brigade).
- To draw up and publish a timetable and financial plan that considers the needs of all the localities in the municipality. The financial policy of this legislative period, as well as what the Board of Aldermen is planning, basically limits all major investments in the village of Contern.
- An analysis of the many planning costs and the potential for savings. Is it possibly cheaper to hire an own expert in municipal finances instead of paying high consulting costs every year?
- Save time and money through better coordination of construction sites.