Pohlheim: 2019 Financial Budget – Stability, Investments, and Growing Commitments

Pohlheim 2019: A Year of Financial Balance

The town of Pohlheim proved itself to be a financially robust municipality in 2019. Despite rising personnel costs and investments in the municipal sector, the town recorded a surplus of approximately 2.6 million euros. This success, however, exists in the tension between rising obligations and the need to ensure long-term investments.

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Annual Surplus and Liquidity

The 2019 annual report speaks clearly: With an annual result of 2,631,102.67 EUR and a cash balance of 8,515,157.93 EUR, Pohlheim not only secured its financial foundation but also built up considerable liquidity. The regular surplus amounted to 2,098,066.95 EUR, while the extraordinary surplus of 533,035.72 EUR mainly resulted from land sales.

The town’s liquidity remained significantly high. The liquidity ratio 2.1 in 2019 reached 480.36 %, meaning Pohlheim covered its short-term liabilities with liquid funds and receivables more than fourfold. Such a figure is a strong indicator of financial stability in the municipal financial sector.

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Investments and Infrastructure

A key focus of the municipal work in 2019 was investments in infrastructure. The investment budget was increased from 7.8 million EUR to 18.6 million EUR – a clear signal that Pohlheim is investing in the expansion of its infrastructure.

The most important investment projects in 2019:

• Road Construction:
  • Cycle/Walkway between Garbenteich and Dorf-Güll: 781,517 EUR
  • Final Development of Rudolf-Diesel-Str.: 44,562 EUR
  • Development of Schönbornswiese/Furt: 17,340 EUR
• Construction Site Development:
  • Oberweg Construction Area: 229,836 EUR
  • Hausen-Ost Construction Area: 200,458 EUR
• Renovations:
  • Roof and Facade Renewal of Dorf-Güll: 91,377 EUR
  • Renovation of the Multi-Purpose Building in Garbenteich: 102,184 EUR

These projects contribute to a sustainable improvement in the quality of life in Pohlheim while also addressing urban development requirements.

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Personnel Expenses and Tax Developments

Personnel expenses increased from 7,459,092 EUR (2018) to 7,665,836 EUR (2019) – an increase of 293,744 EUR. This trend is also reflected in the total wages for employees, which rose by 608,562 EUR to 5,543,598 EUR. At the same time, salaries of civil servants slightly decreased to 385,113 EUR.

Tax revenues remained stable, with Business Tax (Grundsteuer B) income at 1,750,781.90 EUR, slightly lower than the previous year. Commercial Tax (Gewerbesteuer) income remained nearly unchanged at 1,750,781.90 EUR, while Entertainment Tax (Vergnügungssteuer) saw a slight increase.

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Budget Development and Planning

The 2019 budget planning proved to be realistic, although not fully achieved. The planned surplus was 3,115,430 EUR, while the actual surplus stood at 2,797,044 EUR, falling short by 318,386 EUR. This gap mainly resulted from higher investments and lower income from extraordinary items.

Financing remained low on debt. With 0 EUR in new loans and a financial budget balance of 3,607,730 EUR, Pohlheim has placed its financing on a solid foundation.

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Future Prospects and Challenges

With an equity capital of 52.9 million EUR and an asset coverage ratio of 78.6 %, Pohlheim is in a strong financial position. The town can invest in infrastructure without relying on external loans.

However, certain financial indicators also show some uncertainty. The debt servicing ratio is decreasing, but the tax rate remains high. The town may consider future tax reforms or diversification of revenues to increase its long-term independence.

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Conclusion

2019 was a year of financial stability and investment in Pohlheim. The town fulfilled its obligations, expanded its infrastructure, and achieved a positive financial year-end. At the same time, it shows the need to review its tax structure and strengthen long-term financial planning. With the right strategy, Pohlheim can remain a financially healthy and livable municipality in the coming years.