Initiation of the Consultation Procedure for the District Budget 2027/2028 The mayors were informed by District Administrator Grootens last Wednesday about the key data of the budget planning for the years 2027 and 2028.

District and Municipalities in Shared Responsibility

The mayors of the thirteen municipalities within the district and District Administrator Klaus Grootens are in agreement: there is an urgent need for a short-term yet sustainable change in the financial structures of the municipal level. This is the central outcome of a discussion between the Oberberg District and the municipalities in the context of initiating the so-called consultation procedure for the 2027/2028 district budget last Wednesday. “We all want and will continue to invest in the future and viability of the district and our 13 towns and municipalities. Whether in schools, disaster protection, infrastructure, volunteer work, or village development—these are all areas that are important to the people in the district, and there is no room for compromise,” said Matthias Thul, Mayor of the City of Bergneustadt and spokesperson for the mayors in the Oberberg District.

District Administrator Klaus Grootens adds: “However, the truth is also that the financial framework conditions for the district and the municipalities are currently extremely challenging, and our ability to act is more than just at risk. This becomes evident when looking at developments in the areas of social expenditures, the regional levy, and the continuously increasing legal standards and demands, which are beyond our control.”

Budget Preparation Under Challenging Conditions

“The preparation of the double budget is therefore being carried out under extremely difficult conditions,” states District Treasurer Stefan Heße, pointing to a continuously rising transfer expenditure. “Additionally, there are numerous other cost increases, including those resulting from the latest wage agreement, the most recent salary adjustments, persistently high energy prices, as well as cost increases for construction services and goods and services.” From the outset, the district administration has also intensively examined where expenditures can be limited, priorities set, and burdens on the municipalities reduced during the budget preparation process. The goal has been and continues to be to keep the district levy as low as possible under the given conditions.

“However, it must be considered that the district cannot control a significant portion of its expenditures. In particular, statutory duties and the associated cost developments directly affect the district budget,” the District Treasurer explains. Examples include the regional levy set by the Rhineland Regional Council. The mayors from Radevormwald to Morsbach appeal to the Rhineland Regional Council to take greater account of its members. This is because they have no choice but to pass on the burden to the municipalities within the district. “The Rhineland Regional Council must therefore implement further relief measures,” says Mayor Dejan Vujinovic from Radevormwald.

The Entire Municipal Family Under Significant Pressure

As initially outlined, the current financial situation affects not only individual cities and towns or individual districts but the entire municipal level. Rising expenditures, particularly in the areas of social services and youth, are met with revenues that are not keeping pace with this development, especially at this time. At the same time, districts and municipalities have limited options to independently improve their revenue situation. “Let’s not kid ourselves: property taxes are already at a high level, and we don’t want to have to increase them further,” said Matthias Thul, who also noted that many municipalities are at risk of sliding into budgetary control due to high deficits.

District Administrator Klaus Grootens emphasizes: “Not only in the Oberberg District are municipal budgets under massive pressure. The entire municipal family, at all levels, is financially struggling and urgently needs sustainable, reliable, and above all, adequate financial structures. And I have already pointed this out to both the Federal Chancellor and the Prime Minister of North Rhine-Westphalia in a personal letter in the middle of the year,” said the District Administrator.

Mayor Sven Engelmann of Lindlar confirms: “The rising costs and responsibilities cannot be managed without adequate federal and state funding. In fact, there is a lack of the necessary principle of connectivity almost everywhere.”

Ulrich Stücker, Mayor of the City of Wiehl, adds that the consequences of this structural underfunding are no longer foreseeable. Every budget preparation in the municipalities is associated with increasing drama, raising concerns about social inequality.

District Focuses on Consolidation and Utilizes Budgetary Options

District Administrator Grootens makes it clear: “Of course, as a district administration, we must do our homework where we can influence things ourselves, and our aim is to raise the district levy only to the extent necessary given the actual burdens and within the scope of our possibilities.” Not only in terms of reduced budget allocations but also in terms of deployed personnel, the Oberberg District is setting an important example: despite significant additional needs due to increasing demands, the staffing plan will be reduced by two positions according to current planning. “Such a decision is anything but easy for us given the growing tasks and demands on the district administration regarding its employees. However, we want to make it clear that the district administration is also making its contribution to consolidation here,” said District Treasurer Stefan Heße. Additionally, in this double budget, the Oberberg District is utilizing all available legal budgetary options to relieve the municipalities.

The mayors acknowledge that the Oberberg District has already intensively examined where expenditures can be limited and burdens on the municipalities reduced during the budget preparation process. “Nevertheless, we expect the district to take another close look in the further process, exhaust all possibilities, and, if necessary, take on further risks to keep the burden on the towns and municipalities as low as possible,” says Ulrich Stücker.

Key Causes Lie Beyond the District’s Control

Despite all these measures, a significant increase in the district levy is expected for the coming budget years. For instance, the Oberberg District had to allocate an additional €8.1 million for the social budget in 2026 due to expenditure developments, particularly in the areas of long-term care and integration assistance.

A significant additional burden arises mainly from the regional levy. According to the budget introduced by the Rhineland Regional Council on 11 September 2026, the payment obligation of the Oberberg District is expected to increase from €97.3 million in 2026 to €110.7 million in 2027, representing an increase of €13.4 million or approximately 14% within a year.

“Neither the Oberberg District nor our towns and municipalities have caused this situation. At the municipal level, we are trying to make the best use of the available resources. But we can no longer escape this structural situation on our own,” is the joint conclusion.

Budget Preparation Begins with the Initiation of the Consultation Procedure

The key data now presented represent an early stage of budget planning. Therefore, changes may still occur during the further process. In particular, the future development of the regional levy, the general economic conditions, and other factors relevant to the district budget are associated with significant uncertainties.

With the initiation of the consultation procedure, the thirteen towns and municipalities in the district have the opportunity to formally comment on the key points of the double budget for the years 2027 and 2028. The budget plan and the budget statute will be presented to the District Council on 5 November 2026. The final decision on the double budget is expected to be made by the District Council in its meeting on 17 December 2026.

The District Budget in Figures: