Weingarten: Financial Policy in March 2026 – Budget Improvements, Tax Adjustments, and Investments

Budget Improvement: Between Cost Constraints and Investments

The city of Weingarten faced the challenge in March 2026 of creating a sustainable budget balance for the coming years. At the same time, it had to secure investments for the future without overburdening regular operations. The political decisions made in recent weeks move within this tension.

Budget Improvement for 2026/2027 – Between Cost Requirements and Investment Needs

Weingarten has set itself the goal of improving the operating budget deficit and the surplus of cash by at least 700,000 €. This is particularly necessary because a deficit of 1.26 million € is planned for 2027 and a deficit of 2 million € for 2028.

The main reasons for this development include:

• Collective labor agreements in the public sector, leading to higher personnel costs.
• Rising district levies, increasing by 1.46 million € in 2027.
• Additional costs in public transport, associated with new operating cost agreements.
• Renovation needs, especially in the school complex and the swimming pool renovation.

To master these challenges, the city is relying on funds from the special fund for infrastructure (LuKIFG). This funding program provides 14.3 million € for investments over the next 12 years. These funds are to be primarily used for school relief measures, renovations, and the expansion of full-day operations.

The administration plans to use 3.5 million € of LuKIFG funds for the renovation of the school complex. A further 2.8 million € in investment disbursements could be postponed to 2027 to avoid taking on new debt. The goal is to finance repayment obligations from regular operations and to obtain loan approvals for 2027.

Tax Policy as a Tool for Budget Stabilization

As part of the budget improvement, the municipal council decided on several tax adjustments intended to generate additional revenues:

Entertainment Tax

The entertainment tax is increased from 6% to 9% of the gaming stake. This is expected to yield additional annual revenues of about 98,000 € starting in 2027. However, due to the Gambling State Treaty, the number of gaming halls may be reduced from ten to five, which could lead to a tax revenue drop of up to 500,000 €. The 9% tax rate is constitutionally secure, as confirmed by several courts.

Second Home Tax

The second home tax is increased in two stages:

• 2027: 30% of the net cold rent.
• 2029: 35% of the net cold rent.

This is expected to generate additional revenues of 12,200 € (2027/2028) and 24,400 € (from 2029 onwards). The goal is to optimize the tax structure and generate additional revenues for budget stabilization.

Overnight Stay Tax

The city plans to introduce an overnight stay tax (City Tax) as of 01.01.2027. The tax is 2.00 € per guest and overnight stay, with children under 18 years exempted. Annual additional revenues of about 85,000 € are expected. Approximately 20% of the revenues flow directly into the tourism budget, to strengthen tourism infrastructure.

This tax is already established in over 50 German cities and has proven itself as a financial policy instrument without affecting the number of overnight stays.

Investment Program and Financial Planning

Weingarten has access to a virtual budget of 14.3 million € from the special fund for infrastructure (LuKIFG). The funds may be used exclusively for investments that have commenced no earlier than 01.01.2025. The priority is on investments in education and childcare, particularly in school complexes and daycare centers.

The funds are intended to reduce new loans and avoid interest and repayment burdens. It is important to withdraw the funds as quickly as possible to avoid liquidity issues. A negative cash flow is planned for the years 2028–2030, which presupposes a sustainable budget improvement of at least 700,000 € per year.

Outlook and Challenges

The budget improvement measures in Weingarten demonstrate how closely tax policy, investment planning, and cost constraints are interlinked. At the same time, the city relies on external funding sources such as the LuKIFG to cover investment needs.

The challenges are clear:

• Tax increases can provoke resistance from the population.
• The district levy is rising, creating additional financial pressure.
• Financial planning from 2028 is uncertain, as the budget improvement goals are not sufficient to cover the planned deficits.

Nevertheless, Weingarten’s policy shows that sustainable financial planning is possible when investments, cost-saving measures, and tax policy are closely integrated. The coming months will show whether the planned measures will achieve the desired effects.