Situation and background
On 22 June, the Rodgau Town Council approved a series of adjustments to taxes and charges, as well as the introduction of new local taxes. This was prompted by the town’s strained financial situation. An initial analysis of the budgetary and financial situation revealed a shortfall of around 14.1 million euros. The draft budget was not balanced and was therefore not eligible for approval. There are several reasons for the town’s financial situation. For example, it is missing revenue from trade tax, which is significantly lower than usual due to the current weak economic situation. In addition, municipal responsibilities and the associated costs have been rising for years. The town is obliged to provide many of these mandatory services under federal and state laws. These include, amongst other things, the legal entitlement to a nursery place and partial exemption from the associated costs, as well as municipal heating planning. District and school contributions are also rising. Through these, the city contributes, for example, to all-day care at schools, care support and integration assistance. These are all mandatory services for which there is no compensation from the state or the federal government. Added to this are rising costs for staff, materials and services as a result of collective bargaining agreements, inflation and international crises.
Approach
Before any decisions were taken on adjustments to taxes and charges, the administration and political leaders had been looking for ways to make savings since November last year. As a result, measures included limiting the number of meetings eligible for reimbursement from 80 to 60, imposing a recruitment freeze on municipal staff, scaling back park maintenance and cancelling the town festival. Although these savings of just under 5.6 million euros make an important contribution to budgetary consolidation, they are not sufficient. It was therefore necessary to generate additional revenue, which also has a direct impact on residents.
Changes
With effect from 1 January 2026, the assessment rate for property tax B will therefore be increased from 877.5 per cent to 1,250 per cent. The assessment rate for business tax will rise from 380 per cent to 390 per cent. From 1 July, the dog licence fee will be increased and will in future amount to 120 euros per year for the first dog. The fee for additional dogs will also be adjusted. For dangerous dogs, an additional annual charge of 600 euros will be levied on top of the standard licence fee. The tax on gaming machines and the tax on gaming clubs and casinos will also be increased. In addition to these tax increases, new local taxes will be introduced. These will apply from 1 July 2026 for second homes and from 1 October for accommodation providers. Certain individual fees are also rising. These include, amongst other things, the fee for a replacement dog tag, which will cost 25 euros in future, and the adjustment to the meal allowance in childcare centres. The exact regulations are set out in the relevant by-laws and schedules of fees and can be viewed on the City of Rodgau’s website. The measures adopted are intended to balance the city’s budget and thus ensure it meets the requirements for approval. The City of Rodgau and its decision-makers are aware that these adjustments will place an additional burden on residents and businesses. Unfortunately, these steps are unavoidable in order to ensure the City of Rodgau’s financial viability.