Approved consolidated budget of the Rezekne municipality for 2019

On 31 January, on 31 January of the Rēzekne municipality council, Members unanimously adopted a decision on the approval of the basic budget of the municipality of Rezekne and the special budget for 2019.
The budget of the municipality of Rezekne for 2019 shall consist of the basic budget and the special budget, which shall be composed of relevant parts of revenue and expenditure. The municipality has taken into account the interests of all sectors and has sought to balance available financial resources so as to ensure improvements in key areas of society. The projects for the use of the Financial Resources Plan are aligned with the heads of the relevant institutions and bodies.
Budget revenue
The budget revenue of the municipality of Rezekne in 2019 is planned AT EUR 27852842 and consists of tax revenue (personal income tax, real estate tax), non-tax revenue (State and local government fees, revenue from the sale of real estate), paid services and other own revenue, foreign financial assistance for the realization of cross-border projects, as well as transfers of State budget and local government budgets (remuneration of teachers and maintenance of boarding schools, implementation of projects financed BY EU funds, remuneration of paid temporary public works, grant from local government financial equalisation fund, special grant, etc.).
The population income tax (IIT) forecast for 2019 is EUR 9163801 (excluding the previous year's retained IIA), which is EUR 45964 less than was actually received in 2018.
Real estate tax (NIP) forecast (including debts of previous years) – for land – EUR 1115630 for buildings – EUR 122677, for dwellings – EUR 66076.
The grant received in the municipal budget from the municipal financial equalisation fund in 2019 is estimated AT EUR 8358855 (excluding the grant from the municipal financial equalisation fund for the previous year), which is EUR 962526 more than was actually received in 2018.
The State target for the remuneration of teachers and the costs of maintenance of boarding schools is planned AT EUR 3835580 (including EUR 60961 for the work remuneration of school teachers). The target grant SHALL BE CONSIDERED for the implementation of the measures in 2019 at EUR 454122. The State grant for the remuneration of artistic collective managers is planned at EUR 24129. The special grant to municipalities is planned at EUR 349171. The State grant for the provision of social assistants in the 2019 budget is estimated at EUR 476080. The revenue for 2019 is also planned for other national grants for certain purposes (the total national target grants for certain purposes are set AT EUR 14739035).
The municipal budget transfer revenue for 2019 is estimated AT EUR 807652. The amount shall be drawn up by the received transfers from other local governments regarding mutual educational services, as well as from the financing of the City Council of Rezekne in the project “Establishment of a network of industrial territories for the promotion of entrepreneurship in the municipality of Rezekne, Rezekne and Viļānu”.
The non-tax revenue of EUR 287928 consists of various national and municipal fees, fines and sanctions and proceeds from the leasing and sale of immovable property.
The fees and other own revenue of EUR 1476033 consist of revenue from parental fees for educational services, income for space and land rental, public utilities revenue, revenue from rental of movable property, revenue for ticket sales, etc.
Budget expenditure

The budget expenditure is estimated at EUR 31765880 (excluding the repayment of the principal amount of the treasury borrowing).
General government services
The expenditure is estimated at EUR 4235202 and is intended to ensure the economic activity of the municipality, financial management and the servicing of the population, including:
• transfers of municipal maintenance expenses to other municipalities - EUR 48555;
unforeseen cases OF EUR 30000 (reserve fund);
• EUR 100000 is planned for the remuneration of Members and EUR 1112 are planned for the Commission's remuneration;
grant to Latgale Special Economic Zone (LSEZ) – EUR 4000
• for public relations, informing the population of the publication of the newspaper and publication of the annual calendar, as well as for the representative expenditure of the council – total EUR 38308;
• Improving the material base in educational institutions and other important municipal sites – EUR 200000
a parish administration and council for ensuring the administration of the administration of the council OF the council EUR 3813227.
Economic activity
The 2019 expenditure is estimated at EUR 4600232. They are mainly attributable to:
• paid temporary public works (CONSIDERATION OF EUR 504484);
• Provision of the activities of the municipality of Rezekne (EUR 103188);
• for projects “improvement of municipal road infrastructure in Rezekne municipality, 1 st round”, “improvement of municipal road infrastructure in Rezekne municipality, 3 rd round”, “improvement of municipal road infrastructure in Rezekne municipality, 4 th round” - EUR 2178203;
• project (“Establishment of industrial areas for business promotion in the municipality of Rezekne, Rezekne and Viļānu” - EUR 749215;
other expenditure OF EUR 1065142 is attributed to planned projects in rural county and the municipality of Rezekne.
Municipal Territories and Housing Management
The expenditure is estimated at EUR 3460247, including:
• EUR 388336 for the economic activities of the municipality of Rezekne;
• EUR 40000 for the management of non-residential dwellings;
• EUR 12000 for the catching and maintenance of stray animals;
• EUR 70000 for research, processing and submission of engineering network objects in the encumbered area information system (ATIS);
• EUR 2949911 for the operation of parish management utilities.
Health
The expenditure planned by the municipality of Rezekne in 2019 for the provision of the economic activity of outpatient medical treatment institutions shall be EUR 116182.
Recreational, culture and religion
The expenditure is estimated at EUR 2384938, including:
• EUR 146696 for the activities of the cultural division of the municipality of Rezekne;
• EUR 67627 for the activities of the municipality's recreational and sports division of the municipality of Rezekne;
• EUR 454719 for the economic performance of parish libraries;
• EUR 1210223 for the economic activity of parish councils;
• EUR 86384 for the economic activity of museums;
• etc. the expenditure amounts to EUR 419289.
Education
Total expenditure is estimated at EUR 13079659, including:
• EUR 425785 for the economic activity of the municipality of Rezekne;
• EUR 293499 for the activities of the local government of the municipality of Rēzekne and the activities of the youth sports school;
• EUR 2750503 for the remuneration of teachers of primary school educational institutions and the provision of economic activity;
• EUR 7300520 for the remuneration of teachers of general educational institutions and for the provision of economic activity;
• EUR 340532 for interest and vocational training;
• EUR 1100000 for transfers of municipal maintenance expenditure to other municipalities;
• etc. expenditure is EUR 868820 (incl. Planned projects of the Education Administration for 2019).
Social protection
The expenditure is planned FOR EUR 3888420, including various types of benefits OF EUR 963091, for the operation of the social service of the municipality of Rezekne, EUR 480264, EUR 204595 for the economic activities of the Orphan's court of the municipality of Rezekne. EUR 2240470 is planned for other social protection measures.
Programme for the next two economic years
Ongoing road infrastructure improvement projects will be continued. In the project “Establishment of an industrial area network for the promotion of entrepreneurship in the municipality of Rezekne, Rezekne and Viļānu”, the construction of 13 industrial major roads IN Vērēmu, Sakstagala, Stoļerovas, Griškānu, Lūznavas, Mākoņkalna, Ozolaines, Feimaņu and Ilzeskalna parish will be continued. In the framework of the project “improvement of municipal road infrastructure in the municipality of Rezekne”, a reconstruction of 20 local gravel roads will be continued (at least one road/street except, Stružānu, Maltas, Lūznavas, Mākoņkalna, Ilzeskalna parish).
Municipal loans and guarantees
In accordance with closed borrowing agreements with the Treasury, the total amount OF the borrowings of EUR 868442 is expected to be repaid in 2019.
The municipality intends to carry out the following borrowings in 2019:
loan project “improvement of municipal road infrastructure in Rezekne municipality, 1 st round” for implementation OF EUR 440011;
loan project “improvement of municipal road infrastructure in Rezekne municipality, 3 rd round” for implementation OF EUR 1033292;
loan project “improvement of municipal road infrastructure in Rezekne municipality, 4 th round” for implementation OF EUR 628232;
• loan for the purchase of a specialised car for the provision of social services EUR 50000;
• a loan for the reconstruction of the cross-border project “non-border crafts” OF EUR 51000;
• borrowing within the framework of the “following Ideas” cross-border project Lūznavas Kerbedza museum and reconstruction OF stables EUR 111421;
The municipal guarantees of the municipality of Rezekne for 2019 are EUR 63547. Detailed list of guarantee decryption can be found in the Rēzekne municipality council binding Regulation No. 23 “on the budget of the municipality of Rezekne for 2019” In Annex 4.
Special budget
The total revenue of the special budget in 2019 is estimated at EUR 1355346. The balance of funds to 01.01.2019 is EUR 829894. Total planned expenditure in 2019, including repayment of borrowings, is EUR 2185240 (repayment of borrowing EUR 11600).
Characterisation of the socio-economic situation
The economic and social situation of Rezekne municipality will not differ significantly from previous years in 2019. For the most part, the economic situation in the municipality will depend on the main employment-enhancing areas in the area, i.e. harvesting, cereals, pulses and oilseeds, freight transport, tourism as well as mixed farming (cropping and livestock farming).
Over the past decade, 602 new companies have been registered in Rezekne, but 464 are eliminated, which means that the number of enterprises in the municipality has increased by 138. A significant overweight between the municipalities is farms, representing 55,341 TP1T of all undertakings established in Rezekne, and 32,191 TP1T — limited liability companies. In total, 1668 companies are currently registered in Rezekne municipality.
Positive developments in the municipality are marked by increasing income tax per capita in the local government budget. In 2010, the personal income tax per capita in the municipal budget was 133.10 lats or 189.38 EURO, but in 2017 325,28 EURO. As a positive feature is also the decline of unemployment in the municipality – in 2011 the unemployment rate in the municipality was 25.11 TP1T, but in 2018 17.81 TP1T, which decreased by 7.31 TP1T. There is a gradual increase in the number of economically active statistical units per 1000 population, which in 2009 was 54, in 2016 –70, but decreased slightly in 2017.
The planned development tendencies are negative, mainly by decreasing the population, which was 31377 in 2011, but 27200 in early 2018. The natural increase in 2017 was a high negative indicator (-252), with the number of dead well above the number of births. The population is strongly influenced not only by natural growth but also by migration processes, while the population is still moving to larger cities and outside the country. As the population decreases and hence the number of working-age population, the population also increases the demographic load. As a consequence, one of the most important tasks of the local government will be to slow down the reduction in the population.
A variety of activities are implemented in the local government, within which the living environment in the municipality is organised and developed. In 2017, a survey of the municipal population organised in 2017, with 542 respondents, 80.41 TP1T of them provides a satisfactory answer about life in the municipality. The participants of the survey have assessed the work performed by the local government in the improvement of environment and outsourcing, organisation of cultural activities, improvement of road infrastructure, implementation of projects etc.
The budget is the basis of the financial activity of the municipality and the financial instrument with which it ensures the fulfilment of its autonomous functions, as well as the balancing of economic and social needs with the financial capacity of the local government and the long-term development of the territory is formed with the planned budget.
By drawing up the 2019 budget plan, the available resources were placed in line with the priorities for the development of the municipality. The priority area of the budget in 2019 is education, as well as the ability to ensure the long-term sustainability of local government finances. The budget is planned with the precautionary principle, so the budget plan is not based on unrealistic revenue, the nature of which might be called into question and which, in the event of non-compliance, would be seriously hampered by the execution of the municipal functions.
Numerical information regarding the budget revenue, expenditure, borrowings and guarantees of the municipality of Rezekne and is indicated on 31 January of the Rēzekne District Council binding rule No. 23 “on the budget of the municipality of Rezekne for 2019” in Annexes 1, 2, 3, 4. Municipal budget expenditure is planned by linking them to the Rēzekne District Development Programme 2019-2025.
Prepared after the information provided by the Financial and Accounting Unit
Photo: A. Ranāne
Budget presentation for 2019