Rheden budget will be balanced for another 2 years, but after that we have to pay

– On November 7, the Rheden municipal council will decide, among other things, on the 2024 budget. And then it will also be determined what the municipality will spend money on in the coming years.

The council still offers a balanced budget for the years 2024 and 2025, in contrast to the perspective stated in the previously presented Framework Memorandum.

But for the years from 2026 onwards, the four members of the council and the mayor have chosen to submit a deficit to the municipal council. This is in line with the call from the Association of Dutch Municipalities (VNG).

Less money in municipal fund as of 2026

A positive balance of EUR 1.2 million is expected in 2024 and EUR 0.7 million in 2025 on a total budget of approximately EUR 120 million. However, from 2026, also known as the ravine year according to Rheden, the income of the municipality of Rheden will decrease. The Cabinet has decided to put less money into the municipal fund from that year onwards.

Millions of euros short

This means that for all municipalities that have approximately the same number of inhabitants as the municipality of Rheden, the income from that municipal fund will be approximately 6 million euros less annually. To show that the costs of carrying out the current tasks of municipalities are greater, the VNG has called for no balanced budgets for the years from 2026 onwards. The council of the municipality of Rheden also responds to this. It shows a deficit of 6.5 million euros for 2026 and even 8.1 million euros in 2027.

2024 and 2025 closed

Contrary to the perspective stated in the Framework Memorandum, the budget for the years 2024 and 2025 can be balanced. To achieve this, a number of choices must be made, which can never be completely without consequences for the residents. Choices that should also provide direction for the frameworks to be provided by the Council for the years 2025 and beyond.

The council sees savings opportunities by, on the one hand, increasing focus in policy and its implementation and, on the other hand, there are opportunities to use resources more efficiently. The council is considering, for example, the costs for joint schemes and the costs of customized solutions in the Social Domain.

WOZ tax up again

The municipality’s income can be increased by increasing the WOZ tax on citizens. This concerns an increase, including the increase due to inflation, of 12%, the municipality of Rheden reports. Another possible solution is to significantly increase citizens’ property taxes. (OZB) The municipal council will make a decision on November 7.

Dorus Klomberg, Finance Councilor: “I think it is important that we as a municipality are prepared for what is to come. Where we could previously count on more income from the municipal fund for developments, we can no longer do that. We have to see what we can do ourselves and, above all, make clear choices.

Also see? Will residents of Rheden pay more taxes?