Velbert's Finances in April 2026: Challenges, Progress and Financial Planning

Velbert's Budget and Financial Policy: Challenges and Opportunities

Velbert's financial policy is facing a crucial phase in April 2026. The city has dealt with a strained financial situation in recent years, which could persist until 2035. Despite rising costs and interest rates, there are also successes in revenue improvements—particularly in the event sector—that offer hope for long-term stabilization.

Financial Development and Budgetary Situation

The 2026 budget planning is driven by the need to actively advance financial improvements. A central motion concerns the Velbert Cultural and Event Operations (KVBV), where measures such as process optimization, digitization, and synergy effects are to be examined. These optimizations must be analyzed by May 29, 2026, to be included in the 2026 budget.

The balance sheet total of the KVBV increased to 106.3 million euros in 2024, with a slight annual surplus of nearly 95,000 euros. Revenues from events, lease agreements, and facility rentals rose significantly—event revenues, for example, increased by 117%. However, the city's loss compensation remained at a high level of 6.47 million euros.

Cost Development and Investment Risks

The cost development in 2024 was characterized by rising maintenance and energy costs. Maintenance costs increased by 92.7%, and electricity costs even rose by 94.1% to 291,460 euros. In addition, material and personnel costs increased, with the latter at 2.05 million euros forming the largest cost block.

Another risk to Velbert’s financial planning is increasing interest burdens. Due to the ongoing development of interest rates, the financing of extensive investments is becoming increasingly risky. The city therefore relies on long-term loan financing and the use of grants to minimize risks. In addition, depreciation is to be offset by higher rental income, for example at the Forum Velbert.

Audits, Regularity and Financial Key Figures

The 2024 annual accounts were audited by the accounting firm "Breidenbach and Partner" and confirmed as regular. No weaknesses were identified in management or IT-supported processes. The equity ratio increased slightly to 5.4%, while the economic equity ratio remained stable at 40%.

The annual deficit in 2024 amounted to 6,379,800 euros before loss compensation, which was significantly lower than the previous year's figure. However, the cash flow has declined, which is due to an increased outflow of liquidity. The financial fund deteriorated by 7,812 thousand euros, which is due to a lack of financial inflows.

Outlook and Planning for 2025 and 2026

For 2025 and 2026, some positive developments are planned. The turnover revenues of the KVBV are expected to increase by 2,687 thousand euros. In addition, the municipal subsidy will remain constant at 6.5 million euros. The greatest potential for profit remains in the rental of event spaces at the Forum Velbert.

The city also plans to expand the catering sector in 2026 with an additional position. This could lead to higher revenues and increased site attractiveness in the long term.

Conclusion: Stabilization in Sight?

Velbert's financial policy in April 2026 shows that the city is actively addressing the challenges. Although the budget situation remains strained, there are first successes in revenue improvements and process optimization. The planned measures in the cultural and event sector, as well as the investment planning for 2025/26, could contribute to long-term stabilization.

With the right combination of cost-saving measures, revenue increases, and smart financial planning, Velbert could emerge from the strained financial situation by 2035—provided the interest rate development does not last longer than expected.