Approved budget of the Rēzekne municipality council for 2022

On 27 January of the Rēzekne District Council, one of the most important issues was the approval of the municipal budget for 2022. 16 of the 19 members of the Council took part in the adoption of the question. On 13 Members voting “for” and 3 votes against “against”, this year's budget was approved with planned revenue 48 098 073  Eur and expenditure 46 814 679 Eur. The adoption of the budget document was voted by MEPs from the “harmony” of the Socialist Party - Jekaterina Ivanova, Felicia Leščinska and Vasilijs Arbidans. 

This is the first municipal budget adopted during the parliamentary term of the new Rēzekne council, as well as the first after the implementation of the administrative territorial reform, developed jointly with the former Vilnius municipality. The President OF the Rēzekne District Council OF Monvīds Švarcs, after the vote, thanked the leaders and staff of all institutions for the fact that all, in line with the development programme, the complex range of activities had been covered in the form of the 2022 budget, as well as the chairmen of the permanent committee of the Council, who co-ordinated their sectors and worked together with all five heads of the Rēzekne District Board during the development of the budget.  

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 2022 budget plan, the available resources were placed in line with the priorities for the development of the municipality. In 2022, the priority area of the budget 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 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. 

The budget of the municipality of Rezekne for 2022 consists of a basic budget consisting of corresponding 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. 

The numerical information regarding the budget revenue, expenditure, borrowings and guarantees of the municipality of Rezekne shall be indicated in Annex 1 and 2 of Regulation No. 27 of the Rēzekne District Council on the budget of the municipality of Rezekne for 2022. Municipal budget expenditure is planned in coordination with the Rēzekne District Development Programme 2019-2025 and with the Vilnius District Development Programme 2015-2022.  

Revenue

Budget revenue is estimated AT EUR 35 095 470 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 (targeted 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). Estimated revenue in total is 48 098 073 (planned current annual revenue 35 095 470 + cash balance 11 040 030 + borrowings received 1 962 573)  Eur.   

The balance of the basic budget of the municipality on 1 January 2022 was EUR 11 040 030.

Revenue - 2022

Income tax (IIT) revenue for the municipality of Rezekne is one of the most important sources of revenue of the basic budget of 2022. THE IIT forecast for 2022 is EUR 11 557 716 (from total revenue is 32.931 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 planned at EUR 1 467 953. In 2022 they represent 4,181 TP1T of total municipal revenue.

On the basis of the dynamics and forecasts of revenue, 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 from capitalisation of the principal debt of tax) is planned in 2022 at EUR 797 265 (2.271 TP1T of total municipal revenue).

Natural resources tax revenue is estimated at EUR 240 000 in 2022 and represents 0.68 % of total basic budget revenue.

The grant from the municipal equalisation fund is estimated AT EUR 10 199 921 in 2022, representing 29,061 TP1T of the total basic budget revenue.

In 2022, government revenue is planned for local governments with lower revenue OF EUR 250 507, which from total basic budget revenue is 0.711 TP1T.

In the municipality of Rezekne, the earmarked grants for the provision of educational functions in 2022, in accordance with the Law on State Budget for 2022, are planned for eight months and represent EUR 4 289 402. Target grant for the provision of educational assistant services EUR 24 010. The target grant for the remuneration of local artistic collective managers is EUR 29 160, the target grant for the acquisition OF training funds EUR 38 516, the grant for local government roads EUR 1 339 524, the target grant for the remuneration of teachers of musical school teachers is planned AT EUR 202 917, the target grant for the remuneration of children of children and youth sports schools is planned AT EUR 184 495, the target grant for construction of a parking area in Rēzekne Street, Vilnius EUR 50 000. The amount of the State budget transfers is planned, taking into account the information provided by the sectoral ministries regarding the possible amount of financing in 2022, as well as the laws and regulations in force and the agreements concluded on the acquisition of the European Union Structural Funds.

Local government budget transfers are planned at EUR 586 000 or 1.671 TP1T of total municipal revenue generated by revenue from other municipalities for the provision of educational services.

Expenditure - 2022

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 2022. Expenditure planned IN EUR 46 814 679 amount (excluding repayment of the principal amount of the treasury borrowing). Total planned expenses 48 098 073 (current annual expenditure 46 814 679 + repayment of borrowings received 1 283 394) Eur.  

General government service EUR 5 483 986 or 11,711 TP1T of total basic budget expenditure is planned. 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 140 645;
• Funds for unforeseen cases OF EUR 117 523 (or 0,251 TP1T of total expenditure);
• Grant to Latgale Special Economic Zone (LSEZ) – EUR 3800;
• Grant for Rezekne Special Economic Zone (RSEZ) – EUR 50 075;
• For public relations, informing the population of the publication of the newspaper and the publication of the annual calendar, as well as for the representative expenditure of the council – total EUR 43 108;
• Members' money for the European Union of Latvia EUR 25 334;
• information technology services EUR 144 678;
• loan servicing fees and interest payments to the Treasury OF EUR 34 859;
• EUR 453 004 for the operation of the farm and real estate management unit;
• An association and a municipality council for ensuring the administration of the administration OF the administration EUR 4 470 960.

Civil protection EUR 2000 planned for provisioning.

Public order and security EUR 221 496 or 0.471 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 2022 expenditure is estimated at EUR 8 384 475 or 17,911 TP1T of total basic budget expenditure. The expenditure shall be eligible for:

• Paid temporary public works (CONSIDERATION OF EUR 965 425);
• The provision of the activities of the municipality of Rezekne (EUR 134 823);
• “Rebuilding of the road sections of the Road Centre, Pleikes, Ozolaine parish, Rēzekne municipality” EUR 40 088;
• Planned EUR 1 606 006 for upgrading and arranging road infrastructure in associations;
• Planned EUR 50 000 for the construction of a parking area in Rēzekne Street in Vilnius;
• Planned EUR 1 268 879 for the improvement and repair of buildings and road infrastructure;
• The Road Fund funds are estimated at EUR 1 513 511 for 2022;
• Reconstruction of the park and youth street in Sprudzeau village EUR 358 450;
• Reconstruction of Transit in the territory of Vilnius City in the State 1 st Grade Road route Vilnius-Preiļi-Shutgi (P58) at Riga Street, cultural area, EUR 216 383 in Freedom Street;
• Reconstruction of the garden street in Vilnius EUR 88 182;
• Renovation of street cover in Vilnius Street IN Vilnius EUR 86 891;
• The remaining expenditure OF EUR 2 055 837 is attributable to the management of real estate and planned projects in associations and the municipality of Rezekne.

Environmental protection EUR 735 215 or .571 TP1T of total basic budget expenditure are foreseen for the measures.

For Territorial and Housing Management EUR 5 416 935 or 11,571 TP1T of total basic budget expenditure is planned for 2022. The expenditure shall be eligible for:

• EUR 948 877 for the economic activity of the municipality of Rezekne;
• EUR 70 000 for the management of non-residential dwellings;
• EUR 37 000 for the catching and maintenance of stray animals;
• EUR 145 717 for street lighting of the city of Vilnius;
• EUR 4 215 341 for the operation of parish management utilities.

Health support measures The expenditure planned in the municipality of Rezekne in 2022 for the provision of the economic activity of outpatient medical treatment institutions shall be EUR 254 861 or 0.541 TP1T of the total basic budget expenditure.  

For culture, recreational and sports EUR 3 358 494 or 7,171 TP1T of total basic budget expenditure planned. The expenditure shall be eligible for:

• EUR 203 108 for the economic activities of the cultural division of the municipality of Rezekne;
• EUR 58 462 for the activities of the recreational and sports department of the municipality of Rezekne;
• EUR 629 654 for the economic operation of parish libraries;
• EUR 1 921 964 for the provision of economic activities of parish offices;
• EUR 142 644 for the economic activities of museums;
• EUR 122 778 for the operation of the economic activity of the Luznava manor complex;
• etc. expenditure shall be EUR 279 884.

 Education for provision in the municipality of Rezekne, EUR 17 235 442 or 36,821 TP1T of total basic budget expenditure is planned for 2022. The expenditure shall include:

• EUR 582 641 for the economic activities of the local government educational administration of Rezekne;
• EUR 446 465 for the activities of the local government of the municipality of Rezekne for the provision of economic activities of children and youth sports schools;
• EUR 4 022 489 for the remuneration of teachers of pre-school educational institutions and for the provision of economic activity;
• EUR 890 4381 for the remuneration of teachers of general educational institutions and for the provision of economic activity;
• EUR 460 184 for the remuneration of school teachers and the provision of economic activities;
• EUR 324 941 for education of interest and vocational training;

• EUR 1 200 000 for transfers of municipal maintenance expenditure to other municipalities;
• EUR 38 552 for the acquisition of training funds from the national target grant;
• EUR 24 010 for the provision of educational assistants;
• EUR 812 790 planned for the transport of pupils;
• etc. expenditure amounts to EUR 418 989 (incl. Projects planned by the Education Administration (2022).

 For social protection planned expenditure OF EUR 5 721 775 or 12,221 TP1T of total basic budget expenditure. The expenditure shall comprise the following headings:

• The municipality of Rezekne conducts the activities OF the local government Orphan's court FOR the provision OF economic activity OF EUR 221 515;
• EUR 408 177 is planned for the provision of social care assistants;
• EUR 3 482 979 planned for the activities of the municipality of Rezekne, including EUR 1 788 230 for various types of benefits;
• The amount of EUR 1 497 952 (the social care centre of Rezekne, the multifunctional social service centre “Vecružina”) is planned for the provision of the activities of the municipality of Rezekne.
• EUR 111 152 is planned for the implementation of EU projects of a social nature in Rezekne.

Programme for the next 2 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;
• Construction of a parking area in Rēzekne Street, Vilnius;
• Namely, and do;
• Career support in general professional institutions;
• Support for the development of individual competences of students;
• Support for reducing early school leaving;
• Volunteering Cities +
• 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 municipal road infrastructure in Malta, Nautrene, Dricana, Kaunas and Vilnius associations;
• Other projects 

Municipal loans and guarantees

On 1 January 2022, 92 loan agreements have been concluded for the municipality with commitments to 01.01.2022. and 8 guarantee contracts with commitments to 01.01.2022. 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 total amount of municipal liabilities of Rezekne is 5.021 TP1T.

The municipality intends to make the following borrowings in 2022 (total EUR 1 962 573):

• For improvement of road infrastructure in the civil parish association EUR 571 379;
• For improvement of road infrastructure in the Maltese parish association EUR 141 184;
• Improvement of road infrastructure in Kaunatas civil parish association EUR 28 0219
• For improvement of road infrastructure in Nautrene civil parish association EUR 316 273;
• The reconstruction of Livana Street in Ozolaine parish in Beku village EUR 190 970;
• Kr. Baron street reconstruction in Maltese village EUR 70 975;
• Building of Park and youth streets in Sprudzevo village, EUR 304 682 in the parish of Griškans.
• Renovation of street cover in Vilnius Street IN Vilnius EUR 86 891;

A press conference was held following the meeting of the Council, which took part in the management of the Rēzekne District Council and the Heads of Permanent Committees, providing in-depth information on the budget adopted for 2022. 

Austris sergeant,
Rezekne municipality budget economist 

Anna Ranāne,

Rezekne District Office Content Editor