City records surplus of CHF 36.3 million

Last week the city of Zug announced that it had recorded a surplus of CHF 36.3 million for the year 2018, considerably more than the CHF 0.3 million it had budgeted for.

André Wicki, the head of the city’s Department of Finance, revealed that, for the first time ever, the city’s income at CHF 306.1million had exceeded CHF 300 million, outgoings amounting to CHF 269.8 million, hence the CHF 36.3 surplus.

As to how this would be spent, Wicki explained that CHF 23 million would go on school buildings, at the Riedmatt complex (photograph), for example. Indeed, over the next ten years, CHF 200 million is to be spent on schools. Then, CHF 1.5 million is to go on pension funds, with CHF 0.5 million going to investment in Smart City, the remaining to its own account of reserves.

Of this surplus, income from taxes from individuals rose by CHF 21.8 million, that from companies by CHF 3.2 million.

Just as Heinz Tännler put down the pleasing result of the canton’s finances (a surplus CHF 149.2 million) to stiff discipline, so, too, did Wicki in relation to the city, all departments adhering strictly to restraints.

It is with these good figures that it was also conformed the tax threshold would remain at 54 per cent until at least 2025.

This is an edited version of an article written by Charly Keiser.