Nordhorn: 2026 Budget Planning – Between Surpluses and Rising Deficits

Nordhorn: 2026 Budget Planning – Between Surpluses and Rising Deficits

Nordhorn achieved an impressive financial settlement in 2025, marked by a surplus of 21.1 million €. However, this success is overshadowed by future challenges: rising deficits in the coming budget years and uncertainty regarding the financing of child daycare. In April 2026, decisions on investment planning, debt, and remaining budget expenditures were central to the discussion.

2025 Financial Settlement: Success and Challenges

The 2025 financial settlement was characterized by a yearly surplus of 21.1 million €, a significant improvement over the original plan. The regular surplus amounted to 16.5 million €, while the extraordinary surplus was mainly driven by land sales, contributing 4.66 million €.

The financial report also showed a liquidity of 23.7 million € and an increase in the balance sheet volume to 465.1 million €. Thus, the city has a financially stable foundation. However, this success is temporary: the financing gap in the budget planning already amounts to 35 million €, and the deficits are continuously increasing.

Investment Planning: Ambitious, but Risky

Nordhorn has planned an investment sum of 109.3 million € by 2028. The aim is to reduce the investment-related budget surplus from 29.09 million € to 14.8 million € by 2028. This requires annual investments of 34.8 million € starting from 2026 – a challenge that could be exacerbated by rising deficits and uncertainty in the financial framework.

The investments are not evenly distributed: 29.4 million € are planned for 2026, 35.4 million € for 2027, and 16.9 million € for 2028. The city is relying on a combination of own funds and external capital, with the county school construction fund already providing 2.2 million € for school construction (GS Am Roggenkamp, Freiherr-vom-Stein OS). A repayment rate of 5% per year is planned, which should strengthen long-term budget stability.

Deficits and Funding Gaps: The Dark Side of Success

The 2026 property tax increase generated 2.6 million €, but it is insufficient to cover the rising deficits. Deficits in the budget years 2026 to 2029 are planned to range from 117 thousand € to 7.1 million €, leading to discussions about repealing the property tax increase to reduce the financial burden on citizens.

Another risk factor is the financing of child daycare, where subsidy requirements could rise sharply. While the district plans to cover half of the municipal deficits from 2027, the reform of financial aid from Lower Saxony is still in the planning phase. For 2026, a transitional solution is expected to generate additional revenues of 1.763 million €.

Digitalization as a Cost Reduction Factor

Nordhorn is also relying on digitalization to reduce costs in the long term. The fully state-funded digital building permit procedure is one example. Similarly, the biometric photo service at the Citizen's Office saved 50,000 € in renovation costs. The upcoming Digitalization Report 2026 will outline further measures to increase administrative efficiency.

Conclusion: Success Now, but Future Planning Is Crucial

In April 2026, Nordhorn presented an impressive 2025 financial settlement. However, the future holds significant challenges: rising deficits, uncertain financial aid, and the need to finance investments within limited financial capacity. The city must therefore strengthen its long-term planning and systematically implement cost reductions through digitalization and efficiency improvements. Only in this way can Nordhorn ensure its financial stability in the coming years.