The municipality of Coevorden is facing a major financial challenge. Like many other municipalities, high shortages are expected. The recently published draft framework letter shows that the municipality is expected to be short of approximately 5 million euros per year from 2028.
Coevorden is faced with rising costs, social challenges and ‘inescapable investments’ and choices that the municipality believes must be made.
Last year’s framework letter 2026-2029 showed a different forecast, with fewer major shortages. It was expected that the municipality would only enter the red figures in 2029, with a deficit of 343,000 euros. In 2028, a deficit of 1.7 million euros is expected, in 2029 this will be 5.4 million euros.
According to Coevorden, the negative figures are the result of the causes reported in the May circular. This states exactly how much money municipalities will receive from the central government’s municipal fund in the coming year and in subsequent years.
The effects of wage and price developments, sustainability, related parties (such as the GGD and the Safety Region), autonomous developments and unavoidable choices also cause shortages.
For example, maintenance of the Drostenhal, De Swaneburg Swimming Pool and the Arsenal may incur additional costs in the future. “We have mapped out known developments in which political choices still have to be made. Once these choices have been made, they are incorporated into the budget and a real picture of the budgets is created,” said the spokesperson.
The municipality wants companies to dig deeper into their pockets. The property tax for properties that are not residential will be increased by 10 percent in 2027. This provides additional income. Taxes on housing and waste remain the same.
The outgoing council advises that new plans should only be given money if there is a concrete plan. The council also recommends that existing projects be given priority over new initiatives and investments.
According to the municipality, windfalls and incidental benefits should not be automatically used for new plans, but should first be assessed for their contribution to a financially healthy and future-proof municipality.
The Association of Dutch Municipalities (VNG) emphasizes in a letter the financially uncertain times and that the ravine year has been postponed to 2028 due to the proposed cuts in youth care and the Wmo.
“The VNG once again emphasizes the uncertain financial times. Its advice is to include these cuts cost-neutrally in the multi-year perspective for the time being. We have followed this advice,” said the municipality of Coevorden.
The framework letter will be discussed by the municipal council on June 23 and 30.