1 Foundations and Organization, Public Charges » 15 Districts and Municipalities » 154 Financial Equalization (FAV)

Data Basis

For calculating the resource potential per inhabitant, the cantonal inhabitant statistics from the Office for Economy are used.

II. Equalization Payments

Data Basis

1 The data basis for measuring the indicators for the equalization of burdens in

accordance with Article 9, paragraph 2 of the Act are

a) Geodata from the Federal Office of Topography for calculating the average

height of the settlement area;

b) The population and area statistics from the Federal Statistical Office for

calculating the population density, by dividing the permanent resident population

by the municipal area;

c) The population and area statistics from the Federal Statistical Office for

calculating the traffic area per inhabitant, by dividing the traffic area by

the number of inhabitants;

d) The population statistics from the Federal Statistical Office for calculating the

number of inhabitants;

e) The population statistics from the Federal Statistical Office for calculating the

youth dependency ratio, by dividing the number of inhabitants aged 5 to 14 years by

the number of inhabitants;

f) The population statistics from the Federal Statistical Office for calculating the

old-age dependency ratio, by dividing the number of inhabitants over 80 years of age by

the number of inhabitants;

g) The population and social assistance statistics from the Federal Statistical Office for

calculating the social assistance rate, by dividing the number of inhabitants who are

supported by social assistance by the number of inhabitants.

2 The indicators "height of the settlement area per inhabitant", "population

density", "traffic area" and "number of inhabitants" of the municipality are transformed

using the natural logarithm.

Calculation

1 The indices for the sociodemographic burden equalization and the geographic-

topographic burden equalization are calculated from the indicators according to § 2 using statistical principal component analysis and the standardized indicators.

2 The allocation of the endowment is proportional to the population weighted by the positive indices.

**III. Structural Preservation**

Structural Contributions

a) Prerequisites

1 A municipality has a below-average population number according to § 11 para. 1 lit. a of the Law if it is below the arithmetic average of the population number of all municipalities in the assessment years for the burden equalization according to § 14 para. 2 of the Law.

2 Unreasonable, structure-related burdens according to § 11 para. 1 lit. b of the Law arise in particular when

a) special funds used for fulfilling tasks cannot be balanced with proportionate measures;

b) significant additional expenses arise for fulfilling necessary core tasks;

c) multi-year and significant expenditure surpluses become apparent;

d) future expenditure surpluses lead to disproportionate tax rate increases or high net debt in a cantonal comparison.

b) Determination and Amount

1 The Cantonal Council determines the structural contributions annually, together with the assurances to the districts and municipalities for resource and burden equalization, by mid-July.

2 In conjunction with the assurance of structural contributions pursuant to § 11 of the law, it may impose conditions, such as, in particular, the waiver of additional depreciations or the optimization of fee revenues.

3 The amount of the structural contributions is based not only on the population size and the contributions from resource and burden equalization, but also on financial data such as, for example, the annual financial statements of recent years, net debt, equity, the budget, or medium to long-term investment and financial planning.

Contributions to Infrastructure Projects

a) Requirements

1 Infrastructure projects must be limited to providing the population with public goods and services as required, in accordance with Article 2, paragraph 1, letter b of the Act, within the scope of a municipality’s core tasks.

2 Unreasonable burdens arising from infrastructure projects within the meaning of Article 12, paragraph 1 of the Act occur in particular when

a) the construction or renewal of necessary infrastructure results in unsustainable depreciation and amortisation;

b) the financial viability and fundability of infrastructure projects are not guaranteed in the medium to long term;

c) the financing of infrastructure projects, in a cantonal comparison, leads to a disproportionate increase in the tax rate or to high net indebtedness.

b) Procedure

1 Applications for contributions to infrastructure projects according to § 12 of the Law must be addressed to the Department of Finance.

2 The application must describe the project, including investment costs, follow-up costs, financing, affordability, and long-term financial planning, and justify the indispensable necessity of the project and of a contribution from the Canton.

3 The Government Council shall submit a proposal to the Cantonal Council, along with the municipality's application, within six months regarding the granting of contributions and conditions.

IV. Procedure

Collection of Financial Data

1 The Department of Finance collects the necessary financial data for the calculation

of the resource and burden equalization and may request additional information and

documents from the districts and municipalities.

2 It assesses the financial situation and any unreasonable burdens on

individual districts and municipalities according to § 11 para. 1 lit. b of the Law, on

the basis of the financial data.

Publication

The decision of the Government Council regarding the assurances to the districts and municipalities and the periodic effectiveness report shall be published.

Payment

1 The Department of Finance shall make the payment of contributions from the

resource equalization and the burden equalization to the districts and municipalities in two installments on

31 March and 30 September of the equalization year.

2 For the structural contributions to the municipalities, the payment dates according to

para. 1 apply.

3 The payment of contributions for infrastructure projects shall be made by the Department of Finance

following a decision by the Cantonal Council.

**V. Final Provisions**

Repeal of a Decree

The Enforcement Ordinance to the Law on Fiscal Equalization of 15 January 2002 is hereby repealed.

Entry into Force, Publication

1 This Ordinance enters into force on 1 January 2025.4

2 It shall be published in the Official Gazette and, after its entry into force, incorporated into the collection of laws.

1 GS 27-37.

2 SRSZ 154.100.

3 GS 20-201.

4 Abl 2024 1525.