2026 Budget Plan: Graal-Müritz on Course – Between Austerity and Investment

2026 Budget Plan: Graal-Müritz on Course – Between Austerity and Investment

In the municipality of Graal-Müritz, the budget plan is not only an instrument of financial planning but also a reflection of political priorities. February 2026 brought important decisions that placed the 2026 draft budget and the financing of central projects such as the balcony construction initiative at the center of attention. The Finance Committee discussed not only numbers but also the long-term stability of the municipality.

2026 Budget Plan: Balancing Revenues and Expenditures

The 2026 budget plan is designed to achieve a moderate balance between revenues and expenditures. Business tax revenues are expected to be lower compared to the previous year, due to the high tax yield of the prior year. In addition, key transfers will be lower in 2025, which is why recovery effects are expected for 2026.

The planning for item 13 (goods and services) remains largely stable, although the actual figures from the previous year were significantly below the plan. Reasons for this include time and personnel shortages as well as budgetary restrictions. The administration has been tasked with submitting proposals to improve the annual budget result.

Balcony Construction: Financing and Social Buffering

A central project discussed in the meeting was the financing of the balcony construction. The total costs for six balconies amount to 198,231.85 € gross, with the municipality bearing a share of approximately 148,674 €. The cost per apartment is 166 €/month with full cost recovery or 123 €/month in socially cushioned models.

In the budgets for 2025 and 2026, funds of 100,000 € and 80,000 € respectively have already been planned. However, the measure has been approved subject to the availability of budgetary funds. The municipal council approved the measure on the condition that the cost recovery remains socially acceptable, specifically at 2.00 €/m².

Revenues: Taxes, Concession Fees, and Interest Income

The revenue structure of the municipality is diverse. Taxes remain a central source of income, with the business tax expected to generate approximately 1.8 million €. The property tax B contributes 600,000 € annually, and the second home tax contributes an additional 407,000 €.

In addition to taxes, concession fees (gas, water, sewage) amounting to a total of 125,000 € form another pillar. Interest income sums up to 127,000 €, and cost reimbursements from own enterprises, the state, and other municipalities contribute approximately 450,000 €. These financial sources are crucial for maintaining the municipal finances.

Personnel Expenditures: The Largest Cost Item

Personnel expenditures remain the largest cost item in Graal-Müritz. In 2026, nearly 314,400 € are planned for salaries, with social insurance contributions amounting to approximately 309,400 € and pension contributions of 68,900 € representing additional burdens. These figures show how sensitive the municipality must be in personnel decisions to ensure the budget balance.

Forward-Looking: What's Next?

The 2026 budget plan lays the foundation for stable financial planning in the coming years. The municipality is actively working to improve the annual budget result while also taking into account social aspects, as seen in the balcony construction financing. The planned increase in tax revenues and the expectation of higher key transfers give reason to hope that Graal-Müritz will stand on a more solid financial foundation in future budget years.

In the long term, it remains crucial to maintain a balance between investments and personnel costs while simultaneously developing socially acceptable financing models. The discussions in February 2026 show that Graal-Müritz is consciously addressing these challenges – not least to ensure the quality of life in the town in the long term.