Budget Planning and Financial Policy in Friedrichshain-Kreuzberg: Focus on Transparency, Investments, and Property Tax

Transparent Funding Allocation from the Integration Fund

In February 2026, the District Council (Bezirksverordnetenversammlung, BVV) engaged intensively with the allocation of funds from the Integration Fund. The aim of the discussions was to establish a binding and transparent system for the distribution of these funds. The motion DS/1815/VI proposed the development of a standardized guideline with a unified application system to be implemented from 2026 or 2027. The guideline is to be adopted by the BVV and subsequently published on the district's website. It draws on proven models from the districts of Mitte and Charlottenburg-Wilmersdorf. An online application procedure is also planned to simplify access to funding. These measures aim not only to ensure transparency but also to reduce bureaucratic hurdles in order to better support integration projects.

Fair Property Tax and Review of Market Values

Another important financial topic was the review of market values of district-owned and leased properties in connection with the property tax reform. The motion DS/1861/VI called for uncovering potential overvaluations and adjusting property taxes based on realistic values. To this end, market value appraisals for the affected areas are to be prepared and the determined values compared with those in the property tax assessment notices. In cases of significant discrepancies, appeals to the tax administration are planned. Although the motion was later withdrawn, it reflects the district's commitment to making property tax for district areas fairer and alleviating the financial burden on property owners.

Investments in Culture, Youth, and Green Spaces

In the budget year 2026, several investments were approved that concern culture, youth, and green spaces. The BVV approved 12,000 euros for conservation measures for the sculptures of the Menschenlandschaft (DS/1773/VI). Additionally, 4,000 euros from the BVV's special funds were allocated to the initiative "Stadtgärtnern im Görlitzer Park" (Urban Gardening in Görlitzer Park). These measures highlight the importance of culture and local recreation in the district budget. At the same time, discussions are underway on how vacant spaces in the Karstadt building at Hermannplatz can be utilized. The district administration is to initiate negotiations with the property owners and commission a feasibility study. The goal is to provide spaces for youth recreation and neighborhood work, for which funds from the budget are also to be allocated.

Challenges in Ongoing Costs and Personnel

Another financial topic was the evaluation of ongoing costs, particularly in the animal enclosure. It was determined that annual costs of 10,000 to 18,000 euros for feed, operating materials, and labor supplies are incurred, which are currently not reflected in the budget. These funds would therefore need to be considered in the district budget in the future. Interestingly, the personnel positions for the animal enclosure are financed through the Senate Department, which means no personnel costs are incurred in the district budget. This illustrates the complexity of financial planning, in which different levels of administration must work closely together.

Outlook: Transparency as a Key to Financial Stability

February 2026 shows how important transparency and systematic planning are in financial policy. With the development of a guideline for funding from the Integration Fund, the review of property tax values, and investments in culture and youth, Friedrichshain-Kreuzberg is pursuing a long-term and citizen-oriented financial planning approach. The challenge lies in implementing these measures sustainably and avoiding financial pressure on the budget. The discussions in the PHIRW committee highlight that the district relies on close cooperation with the Senate, property owners, and citizens' initiatives in this regard.