Three Lower Austrian municipalities rank in top 10 for creditworthiness

Three municipalities in Lower Austria rank among Austria’s ten strongest in a new municipal creditworthiness ranking, ORF reports. Parbasdorf placed second, Hernstein sixth and Göttlesbrunn-Arbesthal tenth.

The ranking was compiled by the Center for Public Administration Research, known by its German abbreviation KDZ. It assessed municipalities using five indicators, including debt, operating revenue and expenditure, and the financial scope available for investment. The analysis was based on financial statements from 2022 to 2024.

Other Lower Austrian municipalities also ranked well. Au am Leithaberge placed 11th and Großgöttfritz 19th. Nußdorf ob der Traisen rose 39 places from the previous year to rank 21st, while Scharndorf fell 17 places to 23rd.

Hernstein Mayor Michaela Schneidhofer said the municipality’s finances benefited in part from volunteer work. Residents, local associations and the municipality’s five fire brigades help carry out projects, reducing the need to hire outside companies. The municipality has about 1,500 residents and, Schneidhofer said, is not especially wealthy.

Hernstein’s main sources of income include revenue shares and needs-based grants from the federal and state governments. Schneidhofer said these contributions had declined in recent years while costs had risen. The municipality also aims to take on only projects it can afford over the long term. One example is a former fire station in the village centre, converted into a local grocery store that opened in September.

Municipal finances are under pressure across Austria as costs rise and obligations to the states weigh on budgets. KDZ said Lower Austrian municipalities rank well not because they have particularly high revenues, but because their ongoing spending on staff, goods and services, and transfers is comparatively low. A high ranking does not necessarily mean a municipality is managed better than others, the centre said; results are also affected by economic strength, population trends and the system for distributing public funds.