There is persistently high inflation and the fall of the cabinet has created many uncertainties. The municipality of Enschede faces a financial gap of many millions in three years’ time, and there are also enormous challenges ahead in the areas of aging, healthcare and climate goals. And yet councilor Marc Teutelink is satisfied with the budget for the coming years, which he is presenting this Thursday. “Despite everything, we are able to implement the plans we have.”
On the second floor of the city hall, a proud Finance Councilor sits in his office. “But none of my colleagues are grumpy here because of the budget,” Teutelink confides to the press. According to him, it has been possible to implement all wishes (from the coalition agreement). But still, dark clouds loom in the distance. If it is not the economic and monetary developments that could cause problems, then it is the announced mega cuts to the Municipal Fund.
Green city, equal opportunities
But first: the good news. The municipality of Enschede will continue to invest a lot of money in the city in the coming years. “What makes me very happy is that we have managed to keep the ice rink open,” said Teutelink. The decision still has to be made next Monday, but appears to be nothing more than a formality. “But we can also continue to make the investments we had in mind in the areas of road safety, equality of opportunity and the green ambition plan.”
“We consciously choose not to look for a solution for these amounts (financial shortages, ed.)”
Marc Teutelink, councilor for Finance in Enschede
In concrete terms, this means that work is being done on a ‘green ribbon’ that roughly connects the various parks and the city center. But also that concrete steps are being taken with the construction of the F35 bicycle highway from Roombeek via Lonneker to Oldenzaal and the construction of a bicycle bridge over the Oostweg.
In addition, 3 million euros is available annually to offer children from vulnerable neighborhoods or families the same development opportunities as peers with a better starting position. And although the property tax will increase by 4.3 percent, this is less high than the expected inflation.
Living room allowance remains unchanged
In fact, little changes compared to the summer memorandum. That is not surprising, because the purpose of this interim review just before the summer holidays is to provide a broad overview of the financial situation for the coming years. This also means that the money that was reserved for the Living Room of the City is still reserved, despite the fact that the project has been canceled now that the move from the library to the Wilminktheater is cancelled.
Money box offers a way out
In order not to have to make cuts, the municipality of Enschede will use its savings pot in the coming years. There is enough fat on the bones to absorb a number of setbacks, including the cuts to the Municipal Fund. According to the forecast, Enschede will write red figures in three of the next four years. “But we don’t expect any problems with the province,” said councilor Teutelink. The province of Overijssel supervises the finances of municipalities. “All structural expenditure is covered by structural income. And like many municipalities in the Netherlands, we will leave the financial gap in 2026 and 2027 as a signal to The Hague. The provinces support that.”
“All kinds of money has been made available for that project in recent years,” says Teutelink. “There was no time in the short time frame for the budget to map this out carefully.” In addition, there will be a discussion about alternatives, such as a necessary renovation of the library and a renovation at the Wilminktheater. Bad news for residents of Glanerbrug who hoped that the money released for the mega project could still be used for the reopening of De Brug Swimming Pool.
Less money, more tasks
Due to a mistake at the municipality, the financial future of the municipality of Enschede looked worse this summer than it actually is. Structural windfalls (10 to 15 million euros) in the Municipal Fund were unexpectedly not included. Nevertheless, the budgets in 2026 and 2027 will be down by around 14 and 17 million euros respectively. “We consciously choose not to look for a solution for these amounts,” says Teutelink. It is a protest action by numerous municipalities, including neighbor Hengelo.
The shortages are caused by government cuts to the Municipal Fund, the main source of income for municipalities. From 2026 onwards, Enschede will receive approximately 30 million euros less than now. Teutelink: “But we are being given more and more tasks, such as in the field of climate and the Environmental Act. This is a selection from the portfolio.”
Hope in the lobby
A national lobby is being conducted to replenish the shortages. Although the full amount seems like a utopia due to announced cuts in the national budget. Due to the fall of the cabinet and the upcoming elections (and coalition negotiations), lobbying also seems more difficult to conduct. “Then we hope for a temporary solution,” says Teutelink.
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Enschede is approaching a financial ravine, but does not want to make cuts yet: ‘This is a signal to The Hague’
And if not? “Then we will have a difficult conversation with the city council next year.” If the government does not help municipalities, cuts or higher taxes seem inevitable. And that is separate from the consequences of inflation. Staff shortages make it increasingly difficult to perform certain tasks.
In addition, higher prices, construction costs and labor costs lead to other challenges. For example, the number of new-build homes sold fell in the past quarter. Despite everything, Alderman Teutelink remains positive. “For the time being, we can continue to invest in what we find important.”