Dessau-Roßlau: Financial Security and Investments in Focus

Budget Decisions in Dessau-Roßlau: Security, Investments, and Financial Discipline

February 2026 was marked by intense discussions in Dessau-Roßlau’s Committee for Finance, Digitization, and Modern Administration. The city is preparing for 2026 with a variety of decisions aimed at ensuring both financial discipline and investments in the future. Central to these discussions were the budget ordinance, a planned loan, and the financial reserve. These measures are part of a comprehensive financial plan that stabilizes the city’s budget while enabling investments.

Loan of 19.1 Million EUR – Risks and Opportunities

Dessau-Roßlau plans to take out a loan of 19.1 million euros in 2026, primarily for investment purposes. The loan has a term of 40 years, with an interest rate binding period of 20 years. The current interest rate is 3.579%, which is below the upper interest rate limit of 4%.

The loan is being arranged at a time when the city already has a debt level of 71.88 million euros (953.29 euros per inhabitant). Annual repayment costs are estimated at 477,500 euros, with interest for 2026 at 629,578.35 euros. By the end of the interest rate binding period (20 years), a total of 10.38 million euros in interest will be due. Assuming the interest rate remains constant for the entire term, the total interest payment will amount to 13.89 million euros.

The decision to take out this loan reflects the city’s strategic orientation: investments in infrastructure, digitization, and modern administration are essential to remain competitive in the long term. At the same time, financial discipline is maintained to prevent further increases in debt.

Financial Reserve under § 27 KomHVO – A Safety Measure

Another central element of the financial plan was the financial reserve under § 27 of the German Local Government Finance Act (KomHVO). This reserve is intended to protect the city’s budget from unplanned or excessive expenses. It applies to the operating budget as well as to investments in 2026 and is an instrument of budgetary discipline.

The reserve was proposed by the responsible committees – the Finance Committee and the Main and Personnel Committee – and subsequently adopted by the City Council on 25.02.2026. It is a decisive step in ensuring the city’s financial stability while directing investments strategically.

2026 Budget Ordinance – A Milestone Decision

The Finance Committee also adopted the resolution to join the 2026 Budget Ordinance. The budget ordinance is a legal framework that structures and makes the city’s budget planning transparent. It defines revenues, expenditures, and budget priorities for the year 2026.

In Dessau-Roßlau, the budget ordinance is a key milestone that ensures the city’s financial planning for 2026. It allows the city to plan investments strategically while minimizing financial risks. The resolution was developed in close coordination with the State Office of Administration and is part of a broader coordination process in municipal financial management.

Outlook: Stability and Growth in Dessau-Roßlau

The decisions made in February 2026 show that Dessau-Roßlau is following a clear course in financial management: the city is investing in its future while maintaining budgetary discipline. The combination of borrowing, the financial reserve, and the budget ordinance is a sign of solid financial planning that ensures both the city’s stability and its growth.

In March 2026, the City Council will conduct a final review of the budget decisions, and the loan will be officially taken out. Implementation will be carried out by the Office for City Finances, which is responsible for the concrete execution.