Oldambt: investment margin in the coming years; cuts in structural costs still necessary

OLDAMBT- There will be room for investment, while the reduction of structural costs remains necessary. This is the message from the Oldambt City Executive when presenting the budget for 2023 to the City Council. The first budget of the new council is therefore exceptional. Alderman for Finance Ger Klein explains: “We have received a lot more money from the central government for the coming years up to and including 2025, which amounts to several million. At the same time, we also know that he will become more sober afterwards. So there is now room for ancillary investments, which we are of course very happy with. At the same time, we still need to reduce our spending to stay financially healthy in 2026 and beyond. The city council will meet on the budget on November 2.

Room for ancillary investments

The 2023 budget and the multiannual estimate show a positive result until 2025 inclusive. In total, these are several million in favor of the Oldambtster budget, which serve, among other things, to fix investment funds on a number of topics. Additionally, a positive result of around €500,000 in 2023 is expected, increasing to around €1,000,000 in 2024 and 2025, decreasing to €30,000 in 2026. To some extent, the coffee grounds are still looking: “ No one knows how the world looks forward to next year. We have tried to take into account elements such as inflation as much as possible, but the final evolution remains uncertain,” says Ger Klein.

Fund for sustainability, energy poverty and spatial quality of villages and neighborhoods

Up to and including 2025, Oldambt can therefore use additional money for incidental expenses. It was proposed to the council to create three funds of approximately 4 million euros each in the coming years, for one-off investments in the field of sustainability, energy poverty and the spatial quality of villages and neighborhoods . Alderman Ger Klein: “These are topics that come out of the coalition agreement and on which the municipal executive wants to make additional efforts. We would like to discuss the details surrounding the implementation with the council and with the residents.

Room was also found in the budget to reverse a number of austerity effects, in line with the coalition agreement. For example, a budget has been included to reverse poverty reduction (€90,000) and there is more money for greenery (including €40,000 to combat exotic species such as Japanese knotweed and hogweed Caucasus) and security. A budget has also been set aside for setting up a participation fund (€90,000) and preserving one of the sheep herds (€35,000). In response to recent developments, the Commission has included provisional items in the budget for, among others, inflation compensation, ICT and staff.

More generous remuneration from the government

The positive result on the budget for the coming years is the direct result of a more generous reimbursement by the State, in explicit combination with the continuation of the austerity strategy. The closure of swimming pool and sports hall De Hardenberg in Finsterwolde from July 1, 2023 is a direct consequence of this. “It remains very doubtful that the swimming pool will have to close now when we have extra money to invest in the years to come. Indeed, in the long term, we will no longer be able to meet the high annual costs of the swimming pool and the he money we currently have is only incidental, in addition, the positive result on the budget is achieved, including the structural reductions to be made in total, approximately 2.4 million euros, including those of De Hardenberg “, says Ger Klein. In the social field, for example in the field of youth assistance, cuts are still to be made in 2023 in accordance with the stimulus measures of 2019.

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Photos: Frans Stegeman