Municipal finance
The planning and control cycle is a series of steps to plan and manage municipal money. It begins with creating a budget and ends with reviewing the financial statements. In between, documents such as the framework letter, summer and November notes are used to make adjustments.
The college of B&W regulates and does what is necessary, and tells the city council what they have done, according to the rules established. According to the Dualization of Municipal Government Act, it is the job of the municipal council to make rules and see that everything is going well with municipal money.
Budget 2025
On Nov. 6, the council gave final approval to the 2025 budget at a general meeting.
Earlier, the college issued a firm profit warning in connection with the so-called ravine year. Starting in 2026, the state will apply a 2.5 billion euro cut to the municipal fund. For Heerlen, this means a financial challenge of tens of millions of euros. With such a deficit, it is impossible to spare all residents, parties and organizations. Unfortunately, the pain of the resulting cuts will be felt throughout the city. The budget will be discussed and adopted by the City Council on November 6 and 7.
However, the college is trying to minimize the impact of the cuts from 2026 and to distribute the inevitable pain in such a way that we continue to work on our most important goals. This means that as a result of national choices in Heerlen, we are forced to make choices we would not otherwise make.
Bearish package of cuts
Despite budget cuts, the need to solve problems, seize opportunities and continue to invest exists unabated in numerous places in our city. We want to keep the basics in order; the city must be and remain clean, whole and safe. In addition, Heerlen wants to remain a social city and unabated commitment to the Heerlen-North National Program. In recent years, with an eye to the future, substantial investments have been made throughout the city. In this, the college wants to stay the course, both in the center and in the neighborhoods. This includes the relocation of education to the center, the Roman Museum, greening and the restructuring of Hoensbroek Center. Heerlen also wants to take its responsibility by contributing to the national transition tasks in the areas of energy, climate and housing.
Since the looming budget deficit is structural, the college is looking for a balance between cuts and investments in the medium and long term. "It was a tough job to come up with a balanced package of cuts. We do not want the city to grind to a halt. Also in the future, the city must be an attractive place to live, work and stay. In addition, we want to spare the incomes of vulnerable people as much as possible, and have limited increases in housing costs. But with such a challenging budget, painful decisions are unavoidable. With this package, we hope to distribute the pain as much as possible," said Martin de Beer, alderman for finance.
Lobbying toward The Hague
Heerlen remains hopeful that the State will still correct its mistake. The lobby for this is still ongoing. Heerlen therefore supports the national campaign started by VNG (Association of Dutch Municipalities). De Beer: "the tasks and duties of the municipality of Heerlen are not in proportion to the money Heerlen receives from The Hague. This is unworkable and causes serious damage to the execution of our tasks. Moreover, one-time subsidies are not a sustainable solution. In Heerlen, we know that progress never comes naturally. That it sometimes requires rowing against the current and persevering with determination. Together with tens of thousands of Heerlen residents, entrepreneurs and organizations we put our shoulders under our beautiful city."
Annual financial documents
Budget
The municipal budget is the document that contains the proposed municipal expenditures and revenues. After adopting the budget, the college implements policies within the financial and policy limits specified. The budget is always adopted by the council during general considerations in November.
Framework Letter
In May/June, the college prepares the framework letter. The framework letter provides a first outline for next year's budget. An important source here is the May Circular of the Municipal Fund. The May circular contains the forecasts for the development and distribution of the general allowance and budgets of the State for the three decentralizations. In an election year, the framework letter expires. A handover document is then produced by the outgoing college for the new college. Furthermore, in an election year, the coalition agreement is usually the starting point for the following year's budget.
Read the June 2024 framework letter.
Financial Statements
In the financial statements, the college explains to the council what happened to the previous year's money. This is done in the spring. The council can then see if the college used the money as was agreed upon in the budget. The council also looks at whether the college acted smartly and effectively. Did the college do what it had to do and achieve what it wanted to achieve?
Review the financial statements and read the adjustments in the so-called erratum.