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City of Jena presents approvable budget

11.12.2024
  • Financial capacity to act remains intact

  • Continued high investment programs for the successful development of the city of Jena

  • Culture, social affairs and voluntary services remain important components of the city

The city of Jena has drawn up its budget for 2025 and 2026. With a total volume of 468.3 million euros for 2025 and a large number of consolidation measures, the legal requirements for an approvable budget have been met. This is an important step towards preserving the City of Jena's financial capacity to act even in economically challenging times. The draft budget has been submitted to the City Council as a resolution for the meeting on 18.12.2024.

Where do the funds come from and what are they used for?

The budget plan shows how the City of Jena's financial resources are distributed. In 2025, the budget is made up as follows:

Revenue:

  • Taxes: € 172.6 million
  • Federal and state grants: € 216.9 million
  • Service charges: € 16.5 million
  • Reimbursements: € 28.0 million
  • Other income: € 11.2 million
  • Total income: € 445.2 million


Expenditure:

  • Citizen services, security and order: € 54.0 million
  • Education and youth: € 163.1 million
  • Social affairs and health: € 141.1 million
  • Culture and leisure: € 25.2 million
  • Infrastructure, mobility and environment: €45.9 million
  • Urban development and housing: € 21.9 million
  • Central services: € 17.1 million
  • Total expenditure: € 468.3 million

The revenue of € 445.2 million is offset by expenditure of € 468.3 million. The difference can be covered by surpluses from previous years. The budget is therefore not balanced, but can still be approved.

Significance of an approvable budget

An approvable budget ensures financial stability and the ability to invest in important future projects. This is particularly important in times of high cost increases and uncertain economic prospects. The present double budget creates planning security and enables the city to maintain its high level of performance without making cuts in the areas of culture, social affairs or voluntary services.

Lord Mayor Dr. Thomas Nitzsche emphasizes the importance of the budget presented:

"We had to make many adjustments in order to arrive at an approvable budget in challenging times. It was particularly important to us that we continue to live up to our responsibility in terms of voluntary services, culture and the social sector, while at the same time further strengthening Jena's position as a business and science location."

Head of Finance and Mayor Christian Gerlitz adds:

"With this budget, we are sending a clear signal: we are sticking to our investment projects and maintaining our city's high level of performance. We have succeeded in planning for the future in uncertain times and, unlike the state and federal government, have already created clarity for 2025 and ensured stability in the structures."

Measures that lead to an approvable budget

In order to make the budget approvable, extensive consolidation was necessary, which was achieved thanks to intensive discussions with all of the city's own companies and the specialist services of the administration.

"Every department made its contribution to achieving the common goal of an approvable budget. My sincere thanks for this, because I am aware that everyone has gone to the limits of what is possible, which is sometimes painful," says Head of Finance Gerlitz.

After only moderate job increases in the core administration in order to carry out increased mandatory tasks, savings of EUR 5.3 million were achieved in the administration for personnel costs for the double budget 25/26. For example, long-term sickness, part-time work or partial retirement mean that some positions are temporarily unfilled or cost no money. Figures from recent years show that this accounts for around 4 percent of personnel costs. This discount was therefore applied to the "full" costs of the entire establishment plan.

A further EUR 8 million will be saved over the next five years in general administrative material costs.

In addition, resolutions to change the daycare fees and a minor adjustment to the local transport plan are to be submitted to the city council in 2025. The daycare fees are to be adjusted to reflect the increase in costs since then by adjusting the maximum amounts that have remained unchanged since 2015. A savings volume of EUR 500,000 is to be achieved in local transport services, while maintaining general efficiency. The loss incurred by Jena's local transport system will rise to around EUR 20 million per year in the planning period, reaching a level that can no longer be offset by the municipal utility company's cross-association. In order to limit the Stadtwerke Group's subsidy requirements to an order of magnitude that is just about manageable in the budget, it is necessary to make at least minor restrictions that are manageable for Jena's excellently equipped local transport network. It is up to the city council to decide where these should take place as part of the local transport plan.

The decision on the property tax rates provides for the tax burden to be distributed as fairly and socially acceptable as possible. The assessment rate for property tax B is to be drastically reduced by 95 points to 400 points. This means that the property tax reform in Jena is revenue-neutral. Nevertheless, the tax burden will shift to a certain extent from non-residential properties to residential properties. This is not due to the city's decision, but to the correction of the development of property values over many years that has now been made by the federal legislator. With assessment rates of 495 until 2024 and 400 from 2025, the tax burden on non-residential properties will decrease from €4.85 million to €3.3 million, while it will increase from €7.2 million to €8.8 million for residential properties. These shifts occur in all Thuringian municipalities, although they are comparatively moderate in Jena. The tax burden on residential properties has increased by an average of 22%, compared to 35% in Erfurt, for example.

At the same time, the city of Jena is investing in infrastructure and the business location. This also includes keeping the trade tax constant. Support for JenaKultur or subsidies to Stadtwerke Jena GmbH and the business development company also remain an integral part of financial planning.

Insights into the investment programs of the municipal companies

Municipal Real Estate Jena (KIJ)

Investment projects at KIJ focus on the further expansion of Jena as an educational location and on sustainability and energy efficiency in municipal buildings. For example, the Kulturanum school site is to be renovated and expanded, a sports hall with spectator capacity is to be created and the lighting in schools is to be converted to LED. Other planned projects in the city include the renovation of the former dermatology clinic and the community center in Winzerla.

JenaKultur

The subsidy agreement for JenaKultur aims to secure and further develop the city's culture at a high level in the long term and to use the means of art, culture, cultural education, city marketing and tourism to contribute to the continuation and enhancement of the quality of life and experience of the citizens and guests of Jena. The next four years for JenaKultur will be filled with the continuation and implementation of important strategy and concept processes - for example for the Jena Municipal Museums or the markets and city festivals.

Municipal Services Jena (KSJ)

KSJ's investment projects are in the context of energy efficiency and sustainability. They aim to reduce operating costs in the long term, support the city of Jena's climate targets and offer citizens forward-looking mobility solutions. One key measure is the electrification of the company fleet. By 2035, this will affect around 200 vehicles, particularly in the area of commercial vehicles and heavy commercial vehicles (sweepers to refuse collection vehicles).

Investments in road infrastructure include the Wiesenstraße traffic circle, which is currently under construction, the upcoming renovation of the Forstweg bridge and the northern extension of the streetcar line.

jenarbeit

The range of services offered by jenarbeit to assist, advise and support citizens will be maintained. One of the core competencies of the municipal job center is bringing companies and jobseekers together. For this reason, the Jena Employment Agency and jenarbeit will continue to initiate joint events this year and appear together at job fairs, including the regional "Thuringia is the Future" trade fair at the end of August 2025.

Jena Economic Development Agency

In the coming years, the Jena Economic Development Agency will continue to be able to fulfill the tasks assigned to it by the city council. Funding is still planned for the Jena-Weimar-Erfurt impulse region, the JenaDigital association and Witelo. The services of the Economic Service remain stable.


Regiebetrieb KITT (municipal information technology and telecommunications)

The Regiebetrieb KITT, which was newly founded on 01/01/2023, has been responsible for the needs-based and budget-oriented procurement, operation and associated services for the information and communication technology of the Jena city administration and its affiliated municipal companies since then. The overall business plan for 2025/2026 covers the costs of ongoing existing applications, necessary reinvestments in the existing infrastructure, necessary investments in IT security measures and the city's strategic projects in the IT and digitalization sector.

Future prospects

The city expects that smart investments and maintaining a stable level of performance will enable positive economic development. Even if the financial scope is currently limited, the double budget provides a reliable basis for successfully shaping the coming years.

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