Budget City of Zurich expects a deficit of 226 million francs
The City of Zurich is forecasting a deficit of CHF 226.2 million for 2025. Those responsible are also expecting negative figures for the years after that.
24.09.2024, 11:13
SDA
The city council intends to maintain the tax rate of 119 percent, as Head of Finance Daniel Leupi (Greens) told the media on Tuesday. There is currently no reason for a tax reduction.
In the past, the financial statements were often significantly better than planned. In 2023, for example, the accounts were over 230 million in the black despite a budgeted deficit. "I am an optimist, but I no longer assume that we will always be able to close the next few years in the black," said Leupi.
The planned investment program for the next few years is very large. There are also plans from the federal government and canton to divert money, for example from property gains tax. Leupi also mentioned the cantonal council's decision on Monday to reduce the tax on profits.
Leupi expects a loss of 100 million francs as a result. "We are fighting against the reduction in our income," said the head of finance.
677 additional jobs planned
No savings will be made on personnel: expenditure will rise from CHF 3.45 billion to CHF 3.6 billion, with 677 additional jobs planned. Zurich needs more employees, especially in schools. This is due to rising pupil numbers and the expansion of childcare services due to the nationwide introduction of day schools. Over CHF 61 million more is planned here compared to the 2024 budget.
The City Council is also setting aside over CHF 40 million for salary measures and cost-of-living adjustments. A compensation of 0.7 percent is planned. However, how high this will be will only be decided once the actual figures for 2025 are known.
Record-high property gains taxes
Zurich is planning a lot of money for investments - over 2 billion francs. Head of Finance Leupi expects debt to rise. However, according to the budget, the city of Zurich will have equity of over CHF 2 billion at the end of 2025.
Tax revenues are expected to remain high. In 2025, CHF 2.2 billion is expected to flow into the coffers from natural persons and over CHF 1 billion from legal entities. A record-high CHF 510 million in property gains tax is also expected.
Center-right demands tax cut
Several parties are now calling for a reduction in the tax rate. The GLP announced that it was now up to the municipal council to "rectify this situation". The FDP criticized the city council for using the "nightmare scenario" of a deficit to argue against a tax reduction.
The EPP/Mitte parliamentary group sees scope for a moderate tax cut despite the "wake-up call in terms of financial policy" due to the high level of expenditure.
The left-wing parties take a more positive view of the budget proposal. For the SP, Zurich is "still financially sound". The city is in a position to ease the financial burden on the population. This is also necessary to prevent displacement, for example with affordable apartments.
The Greens welcome planned investments in climate protection and social justice. The AL announces "necessary corrections" in the budget consultation. It is calling for more redistribution to ease the burden on "thin wallets".
