Account balances exceed anticipated levels
In the heart of Austria, the city of Graz has made a remarkable financial stride, announcing a surplus of almost 88 million euros in its 2024 financial year. This impressive gain is attributed to the diligent budgeting efforts and proactive measures taken by the city administration, led by Mayor Elke Kahr.
Mayor Kahr, who assumed office in November 2021, became the first female and communist mayor of Graz. Her tenure has seen a series of financially beneficial decisions that have contributed to this significant financial gain.
One of the key factors in this success story is the increase in revenues from parking fees. The city saw a substantial boost of +1.3 million euros due to this source alone. Additionally, revenues from own taxes also contributed to the deviations from the planned budget, with property tax revenues increasing by +2.2 million euros.
The surplus in fee revenues was particularly noticeable in areas such as wastewater (+1.2 million euros) and waste disposal (+0.6 million euros). These improvements were not limited to these sectors, as the city invested a substantial 314.3 million euros in central areas of public services in the previous year.
Finance Councilor Manfred Eber (KPOE) commended the balanced budget, proactive measures, and socially acceptable steps implemented. However, he expressed concerns about the future, stating that sustainable budget planning will become increasingly difficult without reliable framework conditions.
In response to these challenges, Councilor Eber has urged the federal government and the state to provide clarity for municipalities. He emphasised the importance of this clarity to ensure the continued financial success of cities like Graz.
Despite these challenges, the city of Graz closed the 2024 financial year with an operating cash flow of -16.6 million euros, significantly better than the originally forecasted value. Looking ahead, an increase in debt to 2.54 billion euros by 2030 was expected at the budget presentation for 2025 and 2026.
As Graz continues to navigate these financial waters, its residents can take comfort in the city's commitment to fiscal responsibility and its ability to exceed expectations, even in the face of adversity.
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