Herten's Financial Policy 2026: Between Debt Projections and Renewable Investments

Herten's Financial Policy in Focus: Debt, Liquidity, and Investments

In 2026, Herten faces a crucial financial crossroads. The city recorded a deficit of –12.70 million euros in 2025 and forecasts a balance sheet deficit of –21.37 million euros. At the same time, Herten is investing in renewable energy, including participation in Trianel projects and cooperation with the Hertener Energiehandelsgesellschaft mbH (HEH). This blog analyzes the budget situation, risks from debt, and strategic investments in the energy future.

Herten's Budget Situation: Deficit, Revenue, and Expenditure

The 2025 budget shows significant deficits. With 254.65 million euros in revenues and 263.97 million euros in expenditures, the cost coverage rate was 96.47%. Although the business tax was 4 million euros higher than planned, a year-end deficit of 12.70 million euros remained.

Revenue development was positive in several areas: tax revenues were 1 million euros above plan, and kindergartens benefited from higher state funds (1.175 million euros additional revenue). However, there were also lower revenues in areas such as the Office of Order, Culture Office, and Social Office, which further strained the budget.

Personnel costs were 425,392 euros below plan, indicating cost-cutting measures or a reduction in staff. At the same time, pension costs increased by 272,813 euros, which could be due to rising aging costs or pension burdens.

Energy Investments: Risks and Opportunities

Herten is investing in renewable energy—not just as a vision, but concretely through participations in projects such as the Trianel Hydrogen Power Plant in Hamm. The Hertener Energiehandelsgesellschaft mbH (HEH) is directly and indirectly involved in these projects. For example, the HEH is making a capital contribution of up to 45,000 euros to the Trianel Hydrogen Power Plant Hamm GmbH & Co. KG (TWH) and providing collateral up to 1.35 million euros.

In addition, the HEH is involved in the Stadtwerke EVB Huntetal Energiewende 2 GmbH (SWH EW). The participation is planned in several steps: the HEH acquires an indirect 50% stake in this company for 12.5 thousand euros. The West Energiehandelsgesellschaft mbH is investing up to 775 thousand euros in the project (indirect HEH share: 42.7 thousand euros). The total investment is expected to amount to 4.5 million euros, with 2.3 million euros from equity and shareholder loans.

These investments are not without risk. They are subject to strict legal requirements—loans over 100,000 euros and investment plan changes of more than 10% require the approval of the Shareholders' Meeting. In addition, the return on investment is highly dependent on market conditions and regulations.

Grants and Financial Management: Opportunities and Challenges

Another focus of Herten's financial policy is central grant management. By the end of February 2026, 183 measures will have been recorded, of which 68 are being implemented. The eligible expenditures amount to 55.825 million euros, and the funds already withdrawn total 11.877 million euros.

These grants are essential for closing budget gaps. They enable investments in education, social services, and infrastructure that would otherwise have to be financed from the municipal budget. Nevertheless, financing via third-party funds is associated with uncertainties—grant conditions change, and not all projects achieve the supported goals.

Conclusion: On the Way to an Uncertain, but Climate-Friendly Future

Herten faces a financially strained situation in 2026, characterized by a deficit of 12.70 million euros and a balance sheet deficit of 21.37 million euros. At the same time, the city is investing in renewable energy, which could contribute to the long-term stabilization of its finances—provided these investments are successful and profitable.

Participations in Trianel and SWH EW show that Herten is willing to take risks to invest in the energy future. At the same time, reliance on grants remains, which can affect planning security.

In the coming months, it will be crucial to reduce budget deficits, optimize the use of grants, and strategically steer investments in the energy sector. Only in this way can Herten remain on the path toward a financially stable and climate-friendly future.