Mülheim's 2026/2027 Budget Plan: Between Investments, Deficits, and Digitalization

Mülheim's 2026/2027 Budget Plan: Between Investments, Deficits, and Digitalization

Mülheim a.d.Ruhr faced a decisive chapter of its financial year in January 2026: the draft budget plan for 2026 and 2027 was discussed in the Committee for Finance and Personnel Development. With a deficit of nearly 28 million euros for 2026 and a wide range of investments in education, sports, and digitalization, a complex financial picture emerges.

Budget Structure and Deficits

The budget plan for 2026/2027 includes regular revenues of 520.89 million euros and expenses of 437.66 million euros, resulting in a financial result of minus 27.86 million euros. Overall, the deficit for 2026 is significant, but the planning for 2027 shows a slight improvement to minus 25.75 million euros.

Another important indicator is the overall balance of all investment measures, which in 2026 is at minus 62.54 million euros. Combined with investment disbursements (4.5 million euros) and inflows (1.4 million euros) until 2030, it becomes clear that Mülheim is investing in a long-term investment cycle.

Investments in Education, Sports, and Culture

A key focus of the budget plan is investments in educational institutions. The renovation of the Otto-Pankok-Gymnasium with nearly 34 million euros, the renovation of the Gustav-Heinemann-Schule with 10.3 million euros, and the repayment of PPP contracts at several schools show that Mülheim sees education as a central factor for the future.

In addition to education, the city is also investing in sports and leisure infrastructure. The construction of the three-gymnasium sports hall at Südstraße with a grant of over 11 million euros, along with renovation measures at several sports halls and indoor swimming pools, completes the picture.

Cultural projects such as the renovation of the Kunstmuseum Alte Post (453,236 euros) or the Bismarckturm (580,000 euros) are also part of the investment strategy. These projects contribute to strengthening the city's identity and attractiveness.

Digitalization and IT Investments

Another central topic is the digitalization of the administration. The investment in SAP S/4HANA (650,000 euros in 2026, 300,000 euros in 2027) is a milestone in this regard. In addition, investments in software, screen workstations, and digitalization measures in the immigration office are planned.

The DigitalPakt-Schule brings investments of up to 2.55 million euros, showing that Mülheim wants to advance digitally in the education sector as well.

Budget Risks and Financing Strategies

A central risk is the financing gap. The city plans liquidity loans of up to 1.26 billion euros in 2025, which will decrease to 556.8 million euros by 2027. However, the withdrawal of some banks from municipal credit financing is a problem that makes alternative financing models necessary.

Therefore, bonds, loan notes, and new investors are planned as sources of financing. The city must thus realign its financing strategy in the coming years and possibly rely more on the capital market.

Central Financial Indicators and Personnel Costs

Numerous financial indicators are detailed in the budget plan. The personnel cost ratio varies strongly between product groups – from 17.69% in facility management to 96% in enforcement.

In the area of financial management and accounting (product group 01040), the goal is to process invoices within 2.15 days. This shows that efficiency in financial management is a top priority.

Conclusion: A City in an Investment Cycle

Mülheim a.d.Ruhr has decided on a clear investment course with the 2026/2027 budget plan. Although the deficit is high, a clear prioritization in education, digitalization, and infrastructure is evident. The challenge remains to adapt the financing strategy to the changing market and to remain financially stable in the long term.

In the coming years, it will be crucial how well the city manages its investments, whether financing sources remain stable, and whether efficiency in financial management is maintained. Mülheim is facing an exciting but also risky financial planning period.