Finances City of Biel has to draw on its reserves for the 2025 budget
Biel's municipal council is presenting a budget for 2025 with a deficit of 4.4 million francs. Once again, this is a transitional budget without a tax increase, the municipal government announced on Tuesday.
24.09.2024, 11:05
24.09.2024, 14:40
SDA
The measures already adopted to stabilize the city's finances would provide some relief. The operating deficit in the overall budget of a good CHF 31 million can currently still be largely offset by withdrawals from special financing.
However, further relief measures are indispensable. The City Council will discuss the budget in mid-October.
The city of Biel has been battling a structural deficit for many years. The measures introduced to date have not been sufficient to permanently eliminate the problem.
The fact that the overall accounts in the last few budgets showed a more or less balanced overall result was also due to withdrawals from special financing and one-off accounting effects. The city of Biel will have to live off its reserves until 2030 by absorbing losses through withdrawals from special financing.
The 2025 budget provides for an increase in investments for urgent property renovations. The municipal council announced that it wanted to ensure the necessary maintenance of the infrastructure despite the tight financial situation.
