The municipality of Borger-Odoorn saved 3.2 million euros last year. This is evident from the annual accounts of 2022. The Board assumed more than 962,000 euros, but it turns out to be more than 2.2 million euros more.
The municipal executive proposes to the city council to put this amount in the general reserves, so that it contains a total of 7.4 million euros.
The fact that Borger-Odoorn is left with an extra 2.2 million euros is partly due to various windfalls, including more income from property tax (OZB) due to the arrival of new solar parks and holiday homes. There have also been more tourists in the municipality, resulting in more income from tourist tax. Borger-Odoorn also paid less interest than expected and received more income from construction fees than predicted.
However, the municipality certainly does not count itself rich. Borger-Odoorn will also incur many unexpected costs due to inflation and price increases on all fronts, among other things. “That is an amount of approximately 1.3 million euros,” says alderman Henk Zwiep of finance. “We are suffering from an inflation ghost in the town hall. Everything is getting more expensive.”
For example, there is a new collective labor agreement for civil servants, which will cost the municipality 920,000 euros. Student transport, for example, has also been more expensive so far because of Ukrainian refugees. The social teams foundation is struggling with higher energy and personnel costs. An extra 90,000 euros must go there.
Joint schemes with all Drenthe municipalities also seem to be more expensive. More money needs to go to the Drenthe Regional Implementation Service (RUD), the GGD and the Emco. Collectively, this amounts to 287,000 euros. The municipality now seems to have 171,923 euros left at the end of this year.
That is why the municipality is ‘conservative’ towards 2024, says Zwiep. He also sees this attitude in other municipalities, because of the current uncertainty. “We live in financially uncertain times. This makes it difficult to plan for the future.” Next week it will become more clear to what extent municipalities will be compensated for the extra costs due to inflation.
Nevertheless, the college plans to make a number of investments next year. This became apparent during the presentation of the 2024 framework memorandum, which includes an advance on next year’s budget. The council proposes to make money available for the Lower Saxony line, the deployment of trainers, special investigating officers (boa), neighborhood mediation and an increase in the appreciation of volunteers.
“We are on the eve of investing in new construction of schools in Buinerveen and Valthermond,” says alderman Bernard Jansen. “We also want to start an investigation into new construction in 2e Exloërmond. That will take a little more time with the possible arrival of an MFA (Multi Functional Accommodation, ed.).” Until 2026 time is taken to ‘get this on track’.
And Borger-Odoorn wants to invest heavily in sports, says alderman Ankie van Tongeren. “The sports complex in Borger is being renovated. We are in the process of privatizing the four football complexes in Borger, Odoorn, Valthermond and Nieuw-Buinen.” For example, Borger-Odoorn has to write off one million euros for the transfer of the football complex in Nieuw-Buinen. “But then we have less capital costs, which in turn gives us financial room for the following years.”
2026 and 2027 in particular will be exciting years. In municipal land, 2026 is also called the ravine year. Then, as it now seems, there will be considerably less income from the government. “I look at it with mixed feelings,” says Zwiep. “The cabinet also has to cut back considerably. There is still a discussion about the structure of the municipal fund. That is uncertain, also for us.
The municipal council of Borger-Odoorn will meet on 22 June to discuss the annual accounts and the framework memorandum.