Diverse Responses in Kempten to Budget Plans for Municipal Operations

The recent presentation of the 2026 economic plan for Kempten's municipal trade and event operations has sparked varying reactions among local committees. The financial outlook for key venues, including the Kornhaus and the Allgäuer Festwoche, remains challenging as both continue to incur significant operational expenses despite increased revenue efforts.

The forecasted budget projects an overall operating deficit of approximately 1.85 million euros, an increase from the previous year's estimated shortfall of 1.44 million euros. Even after accounting for a municipal subsidy of one million euros, a deficit of about 850,000 euros remains. An additional investment grant of 423,000 euros is planned, a figure notably lower than the previous year's allocation, which was temporarily elevated due to extensive renovation work at the Kornhaus.

Financial adjustments reflect the impact of asset depreciations, particularly from the recent refurbishment of the Kornhaus. Depreciation expenses for the facility have now reached around 500,000 euros. The budget also reserves 380,000 euros to cover security deposits for defect remedies and to finalize the accounting for renovation activities. The team managing the venue intends to benchmark rental prices against the current market to determine the most viable rates for event rentals. Revenue from Kornhaus rentals is anticipated to reach 370,000 euros in 2026, yet the venue is still expected to operate at a loss of approximately 856,000 euros.

Additional costs stem from recent investments, such as new Christmas market stalls and upgraded lighting in several venues, including the Hofgartensaal and the market hall. Unexpected repair work was required at the Allgäuhalle due to water ingress issues. However, a positive development has been the introduction of managed parking at the Allgäuhalle site, from which the municipal operator now receives a fixed income share.

Improvements have also been noted in the weekly market's performance, which no longer operates at a loss, largely due to increased stall fees. The Allgäuer Festwoche remains a considerable budget item, with a forecasted deficit of 960,000 euros. This figure stays within the previously agreed maximum threshold of one million euros as set in 2024. Cost-saving measures have been systematically evaluated across all aspects of the festival to ensure a realistic financial outlook.

Within the relevant committees, members have debated the adequacy of projected rental income from the Kornhaus. Some have expressed that the planned figure of 150,000 euros for hall rental revenue may be underestimated. Suggestions were made to explore more professional event management and enhanced marketing strategies to maximize the use of the recently renovated facility. There was also discussion over whether higher rental fees for associations using the space could contribute to improved revenue without overpromising future results.

The economic plan includes recommendations for reviewing and potentially increasing the anticipated income from venue rentals. Overall, the municipal operation continues to navigate the dual challenges of rising energy and personnel costs while aiming to optimize revenues and contain losses through strategic financial planning and operational improvements.