Rosengarten: Financial Strategy 2026/2027 – Budget, Investments, and Tax Policy in Focus

Budget 2026/2027: Unanimously Approved, but Challenges Remain

The city of Rosengarten unanimously (with one abstention) approved the budget plan for the years 2026 and 2027 in February 2026. The decision marks a milestone but also brings challenges. Maintenance costs are set to increase by €50,000 in 2026 and by €120,000 in the following year. Additionally, expenses for full-day childcare will rise by €84,200 in 2027.

The financial planning shows that the city intentionally avoided interest-only years when taking on loans, which will result in higher repayment payments until 2030. To ensure the loan approval is not jeopardized, annual improvements in results of €60,000 are required.

Despite the rising costs, there are also additional revenues, such as from cemetery fees (+€30,000), late fees and collection charges (+€20,000), and street lighting (+€10,000). However, the property tax B in 2025 was €50,000 lower than the previous year, further burdening the financial plan.

SME Support: Uptrend, but Also Risks

Support for small and medium-sized enterprises (SMEs) in Rosengarten has been realigned. The community's support funding was increased from €30,000 to €40,000, with the community still covering 50% of the costs and the other half coming from the district.

The level of support is now differentiated: up to 15% for small businesses (previously 10%) and 7.5% for medium-sized businesses (previously 5%). A new job creation bonus of up to 20% (for small) and 10% (for medium) businesses has been introduced.

Maximum support is €45,000 in Pillar I, €35,000 in Pillar II, and €10,000 in Pillar III (Digitalization). It is particularly noteworthy that the support rate in Pillar III has been increased to 30% for small businesses and 15% for medium-sized businesses.

These measures show that Rosengarten is actively strengthening the local economy. At the same time, the dependence on co-funding and the limitation of the support amount remain risk factors, especially for smaller projects.

Tax Policy and District Levy: Increases and Pressure on Citizens

The district levy has been increased by 5%, due to a high deficit in the district. The discussion around the property tax reform shows that revenue neutrality could be achieved with a 10 percentage point increase in the tax rate. However, an increase of 55 percentage points would be necessary to secure loan repayments by 2030 from surpluses.

The current tax rate for property tax B is at 400%, after a mistake in the proposal was corrected. In addition, the city has submitted an application for the introduction of a property tax C for developable, undeveloped plots – a step that is currently postponed due to legal uncertainties and high administrative effort.

Tax policy is therefore a central issue in the financial planning, influencing not only the city's financial stability but also the burden on its citizens.

Investment Plan 2026–2030: Focus Areas and Funding

The investment plan for the years 2026 to 2030 includes a total volume of €40.78 million. Focus areas are building construction with €27.47 million, including the renovation of the primary schools in Nenndorf (€8.34 million) and Klecken (€7.4 million), as well as investments in vehicles (€1.96 million) and road construction (€5.41 million).

Funding will be provided through loans: €1.4185 million in 2026 and €13.2896 million in 2027. Liquidity loans are planned at €2.5 million for 2026, not planned for 2027.

Even with the investments, the city of Rosengarten is cautious: For example, no funds have been allocated for a feasibility study on the public swimming pool (natural pool), and the budget proposal for the vault bridge was narrowly rejected. Nevertheless, the city is actively involved in projects such as digitalization – with clear guidelines for consulting and concluding measures.

Conclusion: Balancing Investments and Cost-Cutting

Rosengarten's financial policy in 2026 shows a clear picture: On the one hand, investments are being made – in education, infrastructure, and SMEs. On the other hand, the city is forced to implement cost-cutting measures to secure loan repayments and limit budget deficits.

The challenges are not only in financial planning itself, but also in the balance between rising costs and additional revenues. The SME support and the discussion about property tax C show that Rosengarten is actively looking to the future – even if not all projects and reforms are growing on direct green branches.

By 2030, it will become clear whether the decisions made in 2026 can ensure the city's financial stability in the long term.