Budget Development and Financial Policy in Koblenz – Focus on Urban Drainage, Investments, and Public Transport

Budget Development and Financial Policy in Koblenz: Urban Drainage, Investments, and Public Transport

In February 2026, financial topics were again the focus of the city council and administrative meetings in Koblenz. The city is dealing with a complex network of investments, staff shortages, funding applications, and the financing of public transport. Particularly the urban drainage system, as an independent municipal enterprise, played a central role. The following analysis highlights the most important financial issues and their significance for the city's future.

Urban Drainage: Stability Despite Losses

The Koblenz Urban Drainage System remains financially stable, despite recording a loss of €4,216,000 in 2024. The main reason: an unexpected write-down of the sludge gasification plant. Nevertheless, the equity ratio remains at 98.5 %, and liquidity is described as "above average."

A further loss of €218,000 is planned for 2026, mainly due to increased personnel costs and investments. The city has therefore commissioned the Mittelrheinische Treuhand GmbH to review the accounts for 2026–2028 – a step that signals transparency and sustainability.

Long-term, an even balance sheet from 2026 is expected, indicating solid financial planning. Nevertheless, risks such as rising energy costs, construction costs, and cybersecurity requirements remain.

Investments: Planning and Financing in a Tension Field

The city is continuously investing in the infrastructure of the urban drainage system. Investments in 2024 amounted to €7,579,000, including sewer and stormwater retention renovations and investments in technical systems. Depreciations amounted to €14,387,000, with €5,149,000 classified as unplanned.

Future renovation projects such as the biological treatment stage and the acquisition of machinery are planned. Overall, a clear focus on long-term sustainability is evident, which is particularly crucial in times of rising costs.

Public Transport: Financing, Obligations, and Challenges

Public transport in Koblenz is regulated by a transport contract with the Koblenz Transport Company (VRM) until 2030. The city finances stations, bus lanes, and barrier-free infrastructure as well as €354,782 in own funds for 2024. In addition, €500,755 is provided for network contributions and compensation payments to the VRM. The state's share amounted to €145,973.

The city also bears the revenue risk of the public transport offer. Furthermore, marketing contributions are mandatory: 0.5 % of the fare revenue (minimum €5,000) is paid quarterly. In the event of payment delays, the VRM may initiate legal proceedings.

Overall, the financing of public transport remains a sensitive issue, especially in view of rising costs and the need to favor tariff-compliant companies (minimum wage: €12.82 gross per hour). The AfD faction also criticized the underfunding by the state, showing that political tensions in this area persist.

Staff Shortages and Resource Constraints

Another central problem is the lack of qualified professionals. Although the number of applicants has increased, it remains difficult to attract suitable employees. This has direct consequences for the implementation of major projects such as the North Tangent and the Transport Development Plan (VEP).

The VEP 2030 provides for additional full-time positions for planning and coordination, but the realization is lagging behind expectations. In addition, there is a lack of a central project management unit, which complicates communication and coordination.

Outlook and Challenges

Financial policy in Koblenz is characterized by stability, but also by uncertainties. The urban drainage system remains financially sound, investments are planned for the long term, and public transport remains a priority despite financial risks. At the same time, challenges in the areas of personnel, financing, and coordination will be decisive in the coming years.

The planned audit of the accounts from 2026 to 2028 as well as the application for subsidies (e.g., for cycling projects) show that the city remains active and is trying to gain external support. The future will show whether this strategy proves sustainable in the long term and whether Koblenz remains a city that is economically and infrastructurally capable.