City Council approves revised budget for town hall refurbishment

The City Council has approved the updated cost and risk assessment for the refurbishment of the town hall on Berliner Platz. It was decided to provide financial coverage for the significant project risks, bringing the new total budget to 114.1 million euros. This targeted provision is intended to safeguard the ongoing construction process and prevent delays caused by subsequent budget adjustments.

The renovation of the town hall on Berliner Platz is at an advanced stage. In order to safeguard this major project against future uncertainties and ensure that construction proceeds with as little disruption as possible, the city council had submitted a detailed financial analysis to the political committee. With the draft resolution to amend the budget of Bocholt's building management department, the potential total costs were reassessed on the basis of various risk scenarios. The aim of the process is to identify financial uncertainties with varying probabilities of occurrence at an early stage and to maintain the project's ability to act.

"No one is pleased with these figures - quite the opposite. We know very well how closely the renovation of the town hall is being followed by the people of Bocholt", says Mayor Christian Mangen. But the truth is also this: "Whitewashing the figures and relying on wishful thinking won't get us anywhere."

"We are being deliberately honest here", says Mangen. "We have laid all the cards and all calculable risks on the table, unvarnished. Only with a transparent and robust financial basis can we ensure the viability of this major project", says Mayor Mangen.

The budget adjustment became necessary because the previous budget of 83.9 million euros - which had been increased to around 92.4 million euros in April through short-term additional funding - is no longer sufficient for completion. The basic cost forecast, excluding risk assessment, currently stands at around €102.3 million. This increase of around €18.4 million compared to the original budget is primarily due to planning updates, the revision of preliminary plans, project change requests, construction delays resulting from the project hiatus, and general price rises in the construction sector.

In its decision, the City Council followed the administration's proposal in principle, but limited the financial provision to significant risks. Coverage of risks with a low probability of occurrence was excluded from the resolution, meaning that the maximum sum stands at €114.1 million instead of the theoretically possible €120 million under a comprehensive risk assessment. This overall framework does not automatically mean that all risks will materialise or that the funds will be fully utilised. Rather, it represents a controlled and sound financial basis based on currently known factors.

"We must now see the project through to completion under realistic conditions. The City Council's decision gives us the necessary certainty to continue the construction process without constant interruptions from subsequent budget debates", explains City Planning Officer Dave Welling.

Those responsible remain committed to the goal of completing the building in 2027. In the event that unexpected problems lead to delays, the administration has already, as a precaution, entered into constructive discussions with the funding bodies. This is intended to ensure that the promised funding and loan terms for the city of Bocholt are maintained even in the event of unforeseeable delays, thereby safeguarding the city's budget.