City Council Approves 2026 Budget Amid Financial Warnings and Political Divisions
Investment Remains High, but Financial Flexibility Shrinks
The 2026 budget was approved in Thursday's (March 26) council meeting with votes from the CDU, SPD, BfGT, FDP, and one Green Party member. The AfD, Left Party, and nine Green Party members voted against it. Despite sustained high levels of investment, the city will continue to avoid austerity measures, tax hikes, or additional burdens on residents. At the same time, it is clear that financial flexibility will shrink significantly in the coming years.
Expenditures totaling around €437 million face revenues of roughly €420 million. The resulting shortfall of approximately €16.8 million will be covered by the city's financial reserves, further depleting them in the process.
The 2026 budget includes total investments of around €92 million. Key priorities are the expansion and modernization of educational infrastructure—such as at Janusz Korczak School—the construction of a new fire station for Gütersloh's fire brigade, the renovation of the municipal works depot on Goethe Street, and measures at the Weberei site. Additional investments will also be made through the city's municipal companies.
The budget does not include tax increases: Property tax rates for agricultural land (A) and developed properties (B), as well as the business tax rate, will remain unchanged. The business tax multiplier stays at 463 points, while property tax rates for A (364 points) and B (703 points) will also remain the same. Meanwhile, the county levy will rise to €79 million. For the first time, personnel costs in 2026 will remain stable, with new positions created only in areas where funding is already secured.
Looking ahead, the challenges remain substantial: Under current projections, the city's financial reserves will be largely exhausted by the end of the decade. Medium-term financial planning anticipates borrowing of around €344 million—€192 million for investments and €149 million to maintain liquidity. This could push total debt to roughly €500 million by the end of 2029.
Securing the city's long-term financial capacity and curbing the "debt spiral" is therefore all the more critical. Together with local policymakers, the ongoing consolidation process will be strategically advanced to set clear priorities and safeguard fiscal sustainability.
All figures, data, and facts on the 2026 budget, as well as budget speeches, are available at www.haushalt.website.
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