City Council adopts 2025 budget plan

The total volume amounts to 255,819,670 euros.

Auf dem Bild sind Personen in einem Sitzungssaal zu sehen, die die Hände zu einer Abstimmung heben. — Foto (Stadt Hof): Stadtratssitzung

At its most recent meeting, the Hof City Council approved the budget for 2025. After intensive discussions within the city administration and in the political committees, as well as a meeting with the government of Upper Franconia, the budget with a total volume of 255,819,670 euros was approved.

"This budget was more than just a feat of strength. A few weeks ago, we would never have believed that we would be able to present a balanced budget. This really is a great achievement by everyone involved," said Mayor Eva Döhla. "But it is also clear that the situation is serious and remains tense. The result is only possible thanks to the extensive use of our reserves. The balancing act between necessary investments, the fulfillment of our obligatory tasks and our demand to save money is almost impossible to achieve. The municipalities are facing huge challenges."

The administrative budget

The administrative budget amounts to 215,531,080 euros and shows an increase of around 10 % compared to the previous year. The legally prescribed minimum transfer from the administrative budget to the capital budget can therefore not be achieved. Instead, a deep dip into reserves is necessary in order to balance the administrative budget.

Total personnel costs (administration including the building yard and Freiheitshalle) amount to EUR 54,819,640 and have risen significantly in recent years. The reasons for this are significant pay increases (2025: 3%), the necessary creation of new positions in the area of mandatory tasks and the clearing of backlogs in staffing by the new department for personnel development.

Around EUR 9.2 million has been earmarked for building maintenance (roads, sewers and building construction) - more than double the amount in 2024. This expenditure is absolutely necessary in view of the numerous buildings, roads and properties in the city of Hof that are in need of renovation.

The capital budget

40,288,590 euros is included in the assets budget. This represents an increase of 13.12% compared to 2024, with considerable funds flowing into current and new investment projects. These include the continuation and completion of construction work at the vocational school, the technical secondary school and in the area of daycare centers.

However, numerous new projects are also financed via the capital budget:

Extension of the fire department
Acquisition of new fire department vehicles (including MLF Unterkotzau, command vehicle, HLF Hauptwache)
Demolition and new construction of the 'Mittlerer Anger' bridge
Various school measures (e.g. Reinhart-Gymnasium container, CWS planning)
Outdoor facilities at Neuhof railroad station
Various road and sewer construction measures as well as street lighting
Measures at playgrounds, sports and leisure areas (e.g. planning for the renovation of Ossecker Str., Grüne Au, parking 'Am Eisteich', renovation of the swimming jetty)
Bicycle parking garage

Among other things, borrowing of EUR 6,352,330 is planned to finance the capital budget. The city of Hof's debt level is therefore expected to increase to 75.155 million euros - an increase of 13.371 million euros compared to the previous year.

Medium-term financial planning for 2026-2028

Significant challenges are emerging in the medium-term financial planning for the years 2026 to 2028. The withdrawal from the general reserve in 2025 down to the statutory minimum means that no further funds will be available in subsequent years. Budget deficits from 2026 onwards will therefore probably have to be covered by loans.

New process planned for drawing up the budget

Following the adoption of the budget, the budget consolidation concept will be approved this week. Subsequently, evidence and forms for the approval authority will be completed and stabilization aid for 2025 will be applied for.

A fundamental overhaul of the budget preparation process is planned for the coming years, with the aim of achieving a more efficient and effective approach that will enable the budget to be adopted earlier in the medium term, ideally as early as December or January. The core of the new approach is the introduction of budgeting with clearly defined target corridors, which will make it possible to use financial resources in an even more targeted manner and ensure better control throughout the financial year.

A corresponding concept for the renewal of the budget preparation process is being developed within the administration. An initial draft should be available for discussion in the political bodies by the end of June 2025. A prerequisite for the implementation of the reform is the easing of staffing levels in the financial administration. Only with sufficient personnel capacity can such a structured and forward-looking process be successfully established.

"We will fundamentally rethink the budget preparation process. For this year, however, I am pleased that we have now managed to get the 2025 budget right despite the most difficult conditions and the tight personnel situation. This was a real team effort at our town hall," says Mayor Eva Döhla.