Municipal finances Chur's financial budget cracks the CHF 300 million mark

The financial budget of the city of Chur is likely to exceed CHF 300 million for the first time in 2025. As city president Urs Marti (FDP) explained on Wednesday, the mark is expected to be broken in terms of both income and expenditure.

Chur is budgeting expenses of CHF 312 million and income of CHF 316 million for the coming year, as Mayor Marti explained to the media in Chur at the presentation of the 2025 budget. This results in a profit of 4.8 million francs, twice as much as estimated for 2024.

On the income side, higher tax revenue of CHF 10.4 million is expected overall, higher fees of CHF 2.8 million and higher transfer income of CHF 3 million. The largest increase in costs is in personnel expenses at CHF 11.4 million. Inflation and rising health and old-age costs are also putting pressure on the city's financial budget.

Heating network, school and sports facilities

Gross investments of CHF 69 million are shown in the budget for 2025. At CHF 16 million, the largest investment item is the generational project for a new school and sports facility (Fortuna).

The expansion of the Chur West train station and the construction of the new Masans school building will each cost over CHF 4 million. And in accordance with the referendum decision, a further CHF 5 million will go to IBC Energie Wasser Chur for a CO2-neutral heating and cooling network. 32.6 percent of the net investment can be self-financed.

Currently, the city's finances are "still healthy", emphasized the mayor. Chur is in a "much better position" than other Swiss cities. However, this does not mean that everything is in order. "There's a lot to come," he said, looking to the near future.

City of Chur faces financial stress test

Despite the good result in the income statement, the city faces a number of financial challenges, according to the mayor. Due to the austerity package rejected by the city parliament, it is becoming increasingly difficult to manage the upcoming investments and maintain the equity ratio of 60 percent, which was also prescribed by the city parliament.

From 2026, various additional costs are expected in healthcare, public transport, education and due to the cantonal tax law revision. This would result in additional costs of CHF 12 to 15 million for the city of Chur. Various major projects, such as the complete renovation of the Obere Au indoor swimming pool, would also have a massive impact on the investment account and the equity ratio in 2026.

The municipal government is therefore asking parliament to reduce the prescribed equity ratio to 55% together with the 2025 budget.