Mainz's Financial Planning 2026: Budget, Investments, and Liquidity in Focus

Mainz's Financial Planning 2026: Budget, Investments, and Liquidity in Focus

In March 2026, Mainz's financial planning for 2026 and the medium-term financial planning up to 2030 were central to the committee discussions. The city plans a controlled development with rising revenues, moderate investments, and stable liquidity, both in the administration and in municipal enterprises such as MAW, Mainzer Stadtwerke, and Wohnbau Mainz GmbH.

Budget 2026: Deficit and Revenue Development

The 2026 budget reflects a cautious yet calculable financial plan. Overall, a deficit of €2,863 million is planned, slightly increasing compared to 2025. Revenues are projected at €15,266 million (compared to €13,661 million in 2025), remaining at a stable level. This increase is mainly due to higher earnings from municipal enterprises like MAW and Mainzer Stadtwerke.

Personnel costs are expected to rise to €5,342 million, an increase of 4% compared to the 2025 forecast, reflecting wage increases that took effect from May 1, 2026. Additionally, material costs are projected to increase to €9,306 million, mainly due to higher IT costs and investments in event technology.

Investment Plan 2026: LED Retrofit and Smaller Measures

In 2026, investments of €325 million are planned. The largest investment concerns the LED retrofit in municipal properties, with a volume of €312 million. In addition, smaller investments of €228 million are planned, primarily flowing into areas such as office equipment and technology.

The investment plan is divided by quarters, with the main focus in the second half of the year. Investments over €500 million, such as the LED retrofit, are particularly noteworthy as they enable long-term savings in energy costs.

Liquidity and Cash Flow: Stability Despite Deficit

Liquidity for 2026 is projected at €1,800 million, relatively stable. The liquidity ratio III is 287%, indicating a strong financial standing for the city. The operating cash flow is expected to be negative at €-3,045 million, mainly due to higher investments and personnel costs.

The medium-term planning up to 2030 anticipates a continuous reduction in the deficit. A projected deficit of €3.2 million is expected for 2027, which should decrease to €2.8 million by 2030. This is made possible through cost savings and revenue increases, particularly through the shutdown of events in Volkspark, which have so far been an important source of income.

Municipal Holdings: MAW, Stadtwerke, and Wohnbau

Municipal holdings such as MAW, Mainzer Stadtwerke AG, and Wohnbau Mainz GmbH play a central role in financial planning. MAW plans a deficit of €573 million, to be financed through equity injections of €457 million. Mainzer Stadtwerke AG generates an EBITDA of €3,609 million and plans investments of €38,461 million, primarily in e-mobility and the Energiepark Mainz.

Wohnbau Mainz GmbH plans revenues of €118,440 million in 2027 and a positive period result that should decrease to €6,951 million by 2030. The investment plan includes modernizations of municipal housing properties and the purchase of Pariser Straße 25–33, including new construction.

Outlook: Stability and Caution

Mainz's financial planning for 2026 shows a cautious yet calculable development. The city is pursuing a controlled growth strategy with moderate investments, rising revenues, and stable liquidity. The medium-term planning up to 2030 aims at reducing the deficit and takes into account long-term developments in the administration and municipal enterprises.

Future challenges will primarily lie in financing investments and managing personnel and material costs. Therefore, Mainz will need to focus on increasing efficiency and cost savings in the coming years to ensure its financial stability.