Karl-heinz hofmann at its meeting on monday, the works committee of the kronach city council dealt with the report on the audit of the 2016, 2017 and 2018 financial statements and unanimously approved the submitted economic plan for 2020 as well as the financial plan for the years 2020 to 2023. Under the leadership of the second mayor angela hofmann (CSU), the commercial manager johannes meitner and plant manager jochen loffler were able to convince with their presented numerical material.
The council unanimously stated that the municipal utilities were on the right track. This was also confirmed by the audit carried out by the bavarian municipal auditing association (BKPV), which, on the basis of a city council resolution of 24. The audit of the annual financial statements for 2016 to 2018 was carried out in september 2019. Accordingly, the BKPV judged the management’s description of the situation to be plausible and consistent, based on the results of the audit and the findings obtained, including the opportunities and risks of future development presented. According to the BKPV, the assessment of the situation by the plant management was appropriate in terms of scope and accurate in terms of content. The audit did not reveal any indications that the continued existence of the company was in jeopardy.
Problem of aid
Under the item "other significant findings" encouraged the supervisory body to examine the aid problem and take the necessary steps to avoid adverse legal consequences. However, the BKPV also points out that in several cases the EU commission has taken the view that certain activities have a purely local impact due to their special characteristics and therefore do not affect trade between member states.
Specifically, for the city of kronach, in the case of swimming pools and other recreational facilities that primarily have a local catchment area, this means that if the state has provided a financial benefit to such an entity, it does not constitute aid because of the lack of effect on interstate commerce. This view is also supported by the decisions of the EU commission on state aid law of 29 june 2009. April 2015.
The members of the works committee approved the 2020 business plan, including the staffing plan, presented by the kronach municipal utility company. A total of 2750,196 euros has been set aside to compensate for the loss of liquidity by the city of kronach, of which 968,000 euros is for planned investments. Another 3.4 million euros are included in the business plan as a direct charge for building yard services.
The stadtwerke kronach has to pay the city of kronach around 155,000 euros in contributions to administrative costs and around 130,000 euros in concession fees from the water supply. The total burden of the city of kronach from the economic plan thus amounts to approximately 5.85 million euros. The kronach public utility company includes the waterworks, parking deck, crana mare water park, wastewater treatment, cemeteries, building yard and energy divisions. The economic plan for 2020 was approved with income of 10,047,500 euros and expenses of 11,858,200 euros. The assets plan lists available funds of 3 650 350 euros and required funds of 3 650 350 euros.
More personnel costs
For the success plan, johannes meitner states that there will most likely be increases in personnel costs in all areas due to the collective bargaining negotiations in 2020. The demand for both materials and external services is also likely to continue to increase due to the economic situation.
The impact of the corona crisis remains a major unknown, and no one is currently in a position to assess its financial consequences. In the asset plan, the investment focus is on water supply, especially rehabilitation of the elevated reservoirs. The implementation of the water mixture in friesen will be completed in the first half of 2020. With a number of other smaller investments, a total of around one million euros is planned. 710,000 euros have been earmarked for various sewerage and clearing system repairs.
The new calculation scheme and the new fees will improve the result by 70,000 euros and, together with the new fees, will help to ensure that both water supply and wastewater disposal do not make a loss. However, considerable investment is required in both areas.
Finally, meitner notes that the 2020 business plan will not require new loans to be taken out.
Second mayor angela hofmann as well as the council assessed the situation positively and expressed their thanks to the municipal utilities and their manager. Everyone was clear that the corona crisis could have an as yet immeasurable impact.
However, it is also clear that the crana mare water park will be put back into operation as soon as the legislator allows it and it is still reasonable in terms of the season.