The Covid-19 pandemic has also hit Salzgitter unexpectedly and hard. With the announcement of the lockdown on Friday, March 13, 2020, a large number of businesses in the retail, services and catering sectors had to close, which has had a significant impact on public, social, economic and social life as a whole.

This has also contributed to a significant change in the budget situation. For example, the pandemic resulted in a slump in trade tax of EUR 31.50 million. It is expected that 100% of the loss will be reimbursed by the state of Lower Saxony. The pandemic also hit the municipal companies hard. KVG and BSF recorded a loss in revenue of over EUR 2.93 million. Due to the Covid-19 pandemic, the Budget and Finance department set up a central budget of EUR 350,000 in 2020. This provides the administration with, among other things, spit protection walls, disinfectants and masks as well as security services. The costs incurred are absorbed by the cover reserve. Despite these negative developments, it was possible to improve the balance of the income budget from EUR -15.40 million to EUR 6.94 million. The following items were the main contributors to this: From 2020 onwards, the federal government will contribute a higher share of both the basic security payments under SGB II and the costs of accommodation (KDU). If an additional payment of EUR 2.82 million for KDU from 2019 is also taken into account, there is an overall improvement of EUR 12.08 million for 2020. In addition, the transfer of a repayment in the area of trade tax and personnel from the result to the provision leads to a relief of the result in the amount of EUR 10.26 million. In recognition of the particularly difficult budget situation of the city of Salzgitter, a corresponding needs-based allocation from the state will be increased by a further EUR 3 million to EUR 8 million for 2020.

On the investment side, necessary replanning in various organizational units will initially lead to a slight deterioration, but this can be compensated for by rescheduling measures in the Civil Engineering and Transport Department, resulting in an overall improvement of EUR 546,250.

The positive result of EUR 6.94 million for the 2020 financial year should not obscure the fact that the budget and financial situation in the following financial years 2021 to 2025 will be characterized by considerable deficits as a result of a drastic drop in trade tax revenue. The additional annual deficits in the double-digit million range will dramatically restrict the city's own ability to act in the coming years. At this point, we would like to point out that this catastrophic financial development is exclusively due to the high slump in trade tax and income tax, and is therefore not home-grown, but externally determined. This catastrophic development is due to the coronavirus pandemic and its economic consequences for businesses in Salzgitter as well as the effects of the correct and necessary transformation processes of companies towards climate-neutral production processes. The city of Salzgitter - like other cities, municipalities and districts in Lower Saxony - will only be able to overcome this financial downturn, for which the city of Salzgitter is not responsible, with further financial support measures from the federal and state governments. The latter also have a duty not to leave their municipalities, which are successfully implementing the coronavirus pandemic and the state's climate neutrality target locally, out in the cold.

Lord Mayor Frank Klingebiel presented the 2nd supplementary budget bylaws with submission 4262/17 to the Council on 28.10.2020. At its meeting on 18.11.2020, the Finance Committee unanimously recommended the adoption of the 2nd supplementary budget bylaws with reference to the list of changes.

The changes to the submission are primarily tax-related. The trade tax payment increases by 1,200,000 euros to 26,200,000 euros. On the other hand, the trade tax levy to be paid increases by EUR 100,000 to EUR 1,420,455.

Interest on trade tax refunds will be reduced by EUR 150,000 according to the foreseeable management status. The planned income from interest on tax arrears will have to be adjusted downwards by EUR 790,000 and will only be
and will now only amount to 600,000 euros.

Additional income compared to the plan is expected from the municipal share of income tax.
income tax. According to current developments and tax estimates, the planned figure is set at EUR 41,264,077, an increase of EUR 829,648. Future developments are nevertheless expected to be worse, not least due to the Covid-19 pandemic.

The centrally established corona budget is increased by 250,000 euros to 600,000 euros.
increased.

Furthermore, the settlement of the 2018 concession fees and the provisional
statement for 2019 resulted in an additional payment from WEVG in the amount of 441,509 euros.
The payment has now been received.

The trade tax equalization is reduced on the basis of a
total shortfall in Lower Saxony of around € 898 million compared to an
available distribution amount of € 814 million according to the current determination by the State Office for Statistics of the payments to compensate for
trade tax shortfalls in accordance with Section 14g of the Lower Saxony Financial Equalization Act
(NFAG) from the planned € 31.5 million to € 25,437,552. The corresponding notification was not yet available at the time of the Finance Committee's decision on 18.11.2020 on its
recommendation was not yet available. The resulting further changes are marked accordingly in the list of changes and the HSK concept.