Approved municipal budget for 2023

At the current meeting of the Rēzekne District Council on 15 December, with the participation of 14 of the 19 members of the Council, a budget of 2023 was approved with planned revenue of 43 316 096 EURO and expenditure of 57 177 097 EURO. The important document was adopted unanimously.

The budget forms the financial basis of the municipal activity, which is the most important instrument for ensuring the performance of the autonomous functions of the local government, the balancing of economic and social needs, as well as the long-term development of the territory. By drawing up the 2023 budget plan, available resources were placed in line with the development priorities of the municipality. The priority area of the budget in 2023 is the improvement of education and the improvement of public infrastructure, as well as the ability to ensure the long-term sustainability of local government finances. The budget is planned to be considered because 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 performance of the municipal functions.

The budget of the municipality of Rezekne for 2023 consists of a basic budget consisting of relevant revenue and expenditure parts. 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.

The numerical information regarding the budget revenue, expenditure, borrowings and guarantees of the municipality of Rezekne is indicated in the explanatory memorandum to Regulation No. 65 of the Rēzekne District Council on the budget of the municipality of Rezekne for 2023, in the explanatory memorandum, Annexes 1 and 2.

The budget revenue is estimated AT EUR 43 316 096 in total and consists of tax revenue, non-tax revenue (government and municipal taxes, penalties and sanctions etc.), other non-tax revenue (from the sale of municipal property, lease of fishing rights, etc.), revenue from fees provided by institutions and other own revenue, as well as transfers (grants received from individual ministries and intended mainly for the payment of teachers, as well as for implementation of projects financed BY EU funds and local government payments for educational services).

The balance of the basic budget of the municipality on 1 January 2023 was EUR 13 022 154.

REVENUE - 2023 ANNUAL PLAN

Income tax (IIT) revenue for the municipality of Rezekne is one of the most important sources of revenue of the basic budget of 2023. THE IIT forecast for 2023 is EUR 13 050 744 (total revenue is estimated at 30.131 TP1T).

The revenue of the current economic year of the real estate tax (NIP), including the debts of previous years and late payment for the immovable property tax not paid in the time period for land, buildings, engineering works and dwellings, is estimated at EUR 1460576. In 2023 they represent 3.371 TP1T of total municipal revenue.

On the basis of revenue dynamics and forecasts, non-tax revenue (revenue from business and property, State (local government) fees and office fees, fines and sanctions, other non-tax revenue, revenue from the lease of State (local government) property, sale and tax of the principal debt of the tax) is planned in 2023 at EUR 1 192 721 (2.751 TP1T of total municipal revenue).

Natural resources tax revenue is estimated at EUR 250000 in 2023 and represents 0.58 % of total basic budget revenue.

The grant from the municipal equalisation fund is estimated AT EUR 11387217 in 2023, representing 26.291 TP1T from total basic budget revenue.

In the municipality of Rezekne, the earmarked grants for the provision of educational functions in 2023 are planned for eight months and constitute EUR 5093129. Target grant for the provision of educational assistant services EUR 33376. The target grant for the remuneration of local artistic collective managers is EUR 29160, a grant for the acquisition of teaching resources EUR 49724, a grant for local government roads OF EUR 1351404, a grant for the remuneration of teachers of musical school teachers planned FOR EUR 208622, a target grant for the remuneration of children of children and youth sports schools planned IN EUR 191144. The amount of the State budget transfers is planned, taking into account the information provided by sectoral ministries regarding the possible amount of financing in 2023, as well as the laws and regulations in force and the agreements on the acquisition of the European Union Structural Funds.

Municipal budget transfers are planned at EUR 810390, or 1.871 TP1T of total municipal revenue generated by revenue from other municipalities for the provision of educational services.

EXPENDITURE - 2023 ANNUAL PLAN

The share of the expenditure of the basic budget of the local government shall be drawn up in the light of the estimated revenue of 2023. The expenditure is estimated at EUR 57 177 097 (excluding the repayment of the principal amount of the treasury borrowing).

EUR 6 695 595 or 11,711 TP1T of total basic budget expenditure is planned to ensure the operation of general government services. Expenditures are planned for the provision of local government activities, financial management and customer service, including:

• FOR the remuneration OF Members of the Council and of the Council of the Council and of the Members of the Working Groups OF EUR 184940;
• Funds for unforeseen cases OF EUR 200000 (or 0.351 TP1T of total expenditure);
• Grant to Latgale Special Economic Zone (LSEZ) – EUR 3810;
• Grant for Rezekne Special Economic Zone (RSEZ) – EUR 65396;
• A total OF EUR 49912 for public relations, informing the population of the information and publication of the annual calendar, as well as for the representative expenditure of the council;
• Members' money for the European Union of Latvia EUR 25334;
• Information technology services OF EUR 144000;
• Loan servicing fees and interest payments to the Treasury OF EUR 264096;
• EUR 833245 for the operation of the farm and real estate management unit;
• An association and council for ensuring the administration of the administration of the administration OF the council EUR 4924862.

Civil protection EUR 2000 planned for provisioning.

Public order and security EUR 143260 or 0.251 TP1T of total basic budget expenditure is planned for provisioning. The expenditure shall be attributed to the operation of the administrative inspection in the municipality of Rezekne.

For economic activity The 2023 expenditure is estimated at EUR 4893308 or 8.561 TP1T of total basic budget expenditure. The expenditure shall be eligible for:

• Paid temporary public works (CONSIDERATION OF EUR 777897);
• The provision of the activities of the municipality of Rezekne (EUR 145917);
• Road repairs “pond street, Chicago” EUR 63865;
• Planned EUR 381899 for the improvement and repair of buildings and road infrastructure;
• The Road Fund funds are estimated at EUR 1541404 for 2023;
• Lendžu administrative buildings, including the energy efficiency of the cultural house IN EUR 176602;
• The remaining expenditure OF EUR 1 805 724 is attributable to the management of real estate and planned projects in associations and the municipality of Rezekne.

Environmental protection the measures are estimated AT EUR 663000, or 1.16 % of total basic budget expenditure.

 For Territorial and Housing Management EUR 5998323 is planned for 2023, or 10.491 TP1T of total basic budget expenditure. The expenditure shall be eligible for:

• EUR 991148 for the economic activities of the municipality of Rezekne;
• EUR 85000 for the management of non-residential dwellings;
• EUR 45000 for the catching and maintenance of stray animals;
• EUR 169149 1 TP5T for urban street lighting;
• EUR 4708026 for the operation of parish management utilities.

For health measures The expenditure planned by the municipality of Rezekne in 2023 for the economic activity of outpatient medical treatment institutions as well AS the planned expenditure of THE VSAC “Viļāni” amounts to EUR 1157780 or 2.02 % of the total basic budget expenditure.

 For culture, recreational and sports estimated AT EUR 4193893, or 7.331 TP1T of total basic budget expenditure. The expenditure shall be eligible for:

• EUR 248625 for the activities of the cultural division of the municipality of Rezekne;
• EUR 111282 for recreational and sporting activities;
• EUR 747721 for the economic operation of parish libraries;
• EUR 2194353 for the operation of the economic activities of parish offices;
• EUR 153129 for the economic activities of museums;
• EUR 198684 1 TP48T for the economic operation of the manor complex;
• etc. the expenditure shall be EUR 540099.

 Education for provision in the municipality of Rezekne, EUR 24291516 is planned for 2023, or 42.481 TP1T of total basic budget expenditure. The expenditure shall include:

• EUR 654234 for the operation of the economic activity of the municipality of Rezekne;
• EUR 429144 for the activities of the local government of the municipality of Rezekne and the activities of the youth sports school;
• EUR 4905473 for the remuneration of teachers of primary school educational institutions and for the provision of economic activity;
• EUR 10143547 for the remuneration of teachers of general educational institutions and for the provision of economic activity;
• EUR 513005 for the remuneration of school teachers and the provision of economic activities;
• EUR 282726 for education of interest and vocational training;

• EUR 2000000 for transfers of municipal maintenance expenditure to other municipalities;
• EUR 49724 for the acquisition of training assets from the national target grant;
• EUR 33376 for the provision of educational assistants;
• The transport of pupils is estimated AT EUR 855936;
• An increase in the energy efficiency OF the Rēznas elementary school building OF EUR 530311;
• Maltas increase in energy efficiency OF children and youth centre buildings EUR 221423;
• Viļānu increase in energy efficiency OF the musical and art school building IN EUR 441586;
• Building of modern, energy efficient sport Halles Viļānos EUR 2855507;
• etc. expenditure shall be EUR 375524 (incl. Projects planned by the Education Administration (2022).

 For social protection planned expenditure OF EUR 9138422, or 15.981 TP1T of total basic budget expenditure. The expenditure shall comprise the following headings:

• The municipality of Rezekne conducts the operation OF the local government's Orphan's court FOR the provision OF economic activity OF EUR 233930;
• EUR 556437 planned for the provision of social care assistants;
• EUR 3156237 is planned for the activities of the municipality of Rezekne, including EUR 2144254 for various types of benefits;
• The amount of EUR 2530158 (Rēzekne municipality social care centre, multi-functional social service centre “Vecružina”) is planned to ensure the activities of the municipality of Rezekne.
• Aid to the civilian population of Ukraine EUR 619975;
• Aid to households in heating season EUR 50000;
• Establishment and development of community-based social service infrastructure in Rezekne, EUR 1819842
• EUR 171843 is planned for the implementation of EU projects of a social nature in Rezekne.

 Programme for the next two economic years

In the next two economic years, it is planned to focus on social policy, education, environmental improvement and infrastructure development.

New projects will be continued as well as new projects will be implemented. They are:

• Live healthy in Rēzekne municipality;
• Europe Direct
• National and local government unified customer service centres;
• Support for the development of individual competences of students;
• Support for reducing early school leaving;
• The establishment of a network of technology integration specialists in the education of pupils' interests;
• Implementation of deinstitutionalisation measures in Latgale region;
• Society-based social service establishment and development of infrastructure Rezeknes in the municipality;
• Improvement of the energy efficiency of the Rēznas elementary school building;
• Maltas increase in energy efficiency of children and youth centre buildings;
• Viļānu energy efficiency improvement of the music and art school building;
• Lendžu administrative buildings, including increasing the energy efficiency of the cultural house;
• Building of modern, energy-efficient sport Halles Viļānos
• Establishment and development of community-based social service infrastructure in Rezekne municipality;
• Other projects.

 Municipal loans and guarantees

On 1 January 2023, 84 borrowing contracts with commitments to 01.01.2023 and eight guarantee contracts with commitments to 01.01.2023 have been concluded for the municipality. The list of municipal loans and guarantees of the municipality of Rezekne is found in Annex 2 to Regulation No 27 of the Rēzekne District Council “on the budget of the municipality of Rezekne for 2022”.

The municipality intends to make the following borrowings in 2023 (total EUR 2 468 389):

• Conversion of administrative building into school street 24, Maltā EUR 73 378;
• Reconstruction of the crutch primary school building at peace street 9, crutches, Silmalas parish EUR 142 590;
• Building of modern, energy efficient sport Halles Viļānos EUR 1 164 949;
• Creation of the day care centre and workshops in the Castle Street 2B, Viļānos and the construction of the group apartments in Castle Street 2B, Viļānos EUR 863 563;
• Maltas increase in energy efficiency OF children and youth centre buildings AT EUR 42 285;
• Increase of the energy efficiency OF the Rēznas elementary school building AT EUR 97 222;
• Viļānu increase in the energy efficiency OF the new building of the musical and artistic school EUR 63 385;
• Lendžu administrative buildings, including an increase in energy efficiency OF the cultural house OF EUR 21 017;

Approved budget presentation available HERE.

Prepared by: Austris sergeant, economist of the municipality of Rezekne.