If distinct policy changes are not made, the City of Amsterdam is on course for sizeable financial shortages. Expenditure continues to rise in the face of lower revenue and major budgetary cuts are unavoidable. Savings of 83 million euros are required in 2011, rising to 208 million euros in 2014. This is part of a total annual budget of circa 5.8 billion euros. In absolute numbers, the municipality has never faced such economisation measures.
The College of the Mayor and Alderpersons is dedicated to making clear choices in order to avoid further weakening the financial position of the city and to safeguard continued investment in the future. More than half of the cuts will be realised within City of Amsterdam operations.
The College has made advised choices in order to minimise the impact of the cuts and to share the burden fairly. The first example of this is that more than half of the total cutbacks (112 million euros) will be realised within the municipality itself.
This will require a drastic change to working methods, a reduction in personnel numbers and a considered approach to the use of City offices, ICT and purchasing. In the next four years, the City of Amsterdam will be dedicated more than ever to realising a smaller, more assertive municipal government.
Alongside cuts within the City of Amsterdam organisation, 2011 will also see cutbacks made in the social (12 million euros) and physical (31 million euros) sectors. When making these difficult choices, the College referred back to three basic principles: solidarity, efficiency and forward-looking.
Firstly, members of society who desperately require municipal support will continue to be able to count on such support. Secondly, when allotting municipal funds, the most efficient options will always be selected with Amsterdammers in mind. Thirdly, the College is dedicated to continued investment in the infrastructure that is vital in order to work towards a sustainable future for the city.
Check out more detailed information about where the cutbacks will be centred and the College's objectives for 2011.