Berne City of Biel has to go over its municipal finances again

The city of Biel has set itself the goal of restructuring its financial budget by CHF 45 million per year. The municipal council intends to submit a corresponding package of measures to the city council by fall 2025.

The municipal council has defined a project organization for this work, as announced on Thursday. The first measures should take effect in the 2026 budget.

The restructuring plans go hand in hand with the 2033 financial strategy, with which the city of Biel aims to stabilize its financial situation in the medium to long term. According to the strategy, the relief measures must be implemented according to the so-called 1:1 principle. Accordingly, the annual restructuring target could be achieved with a tax increase of around CHF 22.5 million and a reduction in expenditure of the same amount.

However, such a tax increase would result in a "significant deterioration" in the attractiveness of the location, according to the press release. At the same time, cost-cutting measures on this scale would not be in line with the performance mandate. For this reason, the city wants to divide up the restructuring target as part of the aforementioned package of measures.

The city of Biel has had a structural deficit for a long time. Without measures, it will be overindebted from 2027. The canton would then dictate a restructuring program to the city.