Struggling communes make their presence felt: law of crisis in full swing
In the picturesque Nagold valley, the city of Bad Liebenzell is grappling with financial difficulties. Hans-Dieter Teske, a member of the Citizens' & Culture Association Bad Liebenzell, has raised concerns about the city's spending, suggesting that the money invested in the spa operation could be better utilised for community infrastructure.
The city's total debt has risen to over 80 million euros, a figure that is expected to exceed 110 million euros by 2028. This debt per capita is almost four times the state average, making Bad Liebenzell the city with the highest debt accumulation per resident in Baden-Württemberg.
The city's budget deficit for this year stands at 6.3 million euros. In an effort to manage these financial challenges, Bad Liebenzell's city council is cutting back on expenses and staying late to address the situation. The local government oversight - the government presidency - will take over, further extending the council's meetings.
The digitization of building files in Bad Liebenzell has been a prolonged process, spanning several years. However, an energy audit and the city council's retreat have been cancelled due to financial constraints. The city is also facing the prospect of losing around 500 inhabitants, which could affect allocation via the municipal financial equalization.
The city is heavily burdened by the multi-million euro costs for the renovation of a kindergarten and the spa house. Additionally, a part of the subsidy for the yearbook of the local history association in Bad Liebenzell has been scrapped.
The financial situation in Bad Liebenzell is not unique. Almost 90% of cities in Baden-Württemberg are planning a negative ordinary result in the 2025 budget, and 80% of districts cannot present a balanced budget. The deficit of municipalities in the southwest, including Bad Liebenzell, Mannheim, Altensteig, Oppenau, Heidelberg, and Feldberg, was three billion euros for the past year.
Even cities like Mannheim, with a nearly 2.6 billion euro debt, are struggling. The high costs associated with personnel, material costs, social benefits, and interest are major cost drivers for municipalities across the region.
In light of these challenges, it remains to be seen how Bad Liebenzell will navigate its financial predicament and whether the city can find a way to invest in much-needed community infrastructure while managing its debt. The well renovation in Bad Liebenzell, originally scheduled for this year, has been postponed, adding to the city's list of unfulfilled projects.
