Ventspils City Municipality’s 2019 Budget Approved
On Friday, 8 February, the Ventspils City Council approved the Ventspils City Municipality’s 2019 budget at a council meeting.
The Ventspils City Municipality’s total financial resources for 2019 are planned at EUR 86.52 million. The municipality’s total expenditure for ensuring the functions specified in regulatory enactments, including the maintenance of institutions, improvement of the city environment and performance of social functions, is planned at EUR 81.92 million in 2019. Thus, at the end of 2019, a balance of EUR 4.60 million is expected.
The municipality’s main source of revenue is personal income tax, of which EUR 27.14 million is planned to be received in the 2019 budget. The budget also includes a special grant of EUR 1.03 million to compensate for losses arising from the tax reform and to ensure that the share of municipal budget tax revenues (together with state budget compensation) in total budget tax revenues remains at the average level of previous years, namely 19.6%. Personal income tax revenues in 2019 will continue to be significantly affected by changes in regulatory enactments related to the new labour tax reform, which entered into force in 2018 and will continue in 2019.
Revenue from real estate tax, the municipality’s second-largest source of tax revenue, is planned at EUR 4.65 million in 2019. Tax on buildings and structures accounts for the largest share of total real estate tax revenue—51%, while land tax accounts for 42%, and residential property tax is planned to account for 7%. Tax rates will remain at their current levels in 2019, as will the base values of the cadastral values of properties. All real estate tax reliefs will also remain at their current levels, including relief of 90% and 70%, respectively, for low-income and disadvantaged persons, and relief of 50% for taxpayers with three or more children on buildings and land used for residential purposes.
In addition, in 2019 the Ventspils City Municipality must contribute EUR 481,000 to the municipal financial equalisation fund, or EUR 12 per Ventspils resident. In accordance with the procedure established by the state, these contributions will be allocated to the needs of other municipalities.
BY SECTOR:
It is important for the municipality to assist the city’s most socially vulnerable residents—low-income and disadvantaged families, pensioners, persons with disabilities and orphans. Expenditure in the social sector is planned at EUR 5.09 million in 2019, including EUR 2 million earmarked for social benefits and services.
All types of benefits and services provided in the previous year will be retained in 2019, and from 2019 a monthly payment to foster families for caring for a child placed with the family will be provided as a new form of support: EUR 215 per month for the first child placed with the family and EUR 107.50 per month for each subsequent child.
Expenditure planned for the education sector amounts to EUR 22.63 million, or 28% of total budget expenditure.
Major construction work is planned this year in the building and on the grounds at 15 Brīvības Street, where a preschool education institution for 90 children will be established.
Implementation of the project “Improvement of the Learning Environment Infrastructure and Development of the Material and Technical Base of Ventspils City Educational Institutions” will continue. In 2019, a total of 45 classrooms are scheduled for renovation at Ventspils Primary School No. 1, Ventspils State Gymnasium No. 1, Ventspils Secondary School No. 2, Ventspils Secondary School No. 4, Ventspils Pārventa Primary School and Ventspils Secondary School No. 6, and three new classrooms will be built at Ventspils Primary School No. 1. In addition, electrical supply systems will be renovated and new automatic fire detection and alarm systems installed at Ventspils Primary School No. 1, Ventspils Pārventa Primary School, Ventspils Secondary School No. 2 and Ventspils Secondary School No. 6. To improve the learning process, selected classrooms will be equipped with new projectors. The sports hall at Ventspils Primary School No. 2 is scheduled for renovation in 2019.
Funding for urban environment improvement measures and city maintenance work is planned to total EUR 25.58 million in 2019. The funds will be used to clean and maintain the territory of Ventspils, implement investment projects, renovate infrastructure and improve the urban environment, as well as create new facilities.
This year, considerable emphasis will be placed on continuing the implementation of investment projects already launched or still in preparation, with external funding. The key tasks planned for 2019 include restoring the historic façades of the Old Town buildings at 45 Pils Street and 47 Pils Street, constructing a roundabout at the intersection of Mazā Kurzemes Street and Kurzemes Street, and other major works. The design work for the multifunctional Science and Innovation Centre is scheduled for completion this year.
Various city improvement and infrastructure development works are planned to continue, including the reconstruction of Vasarnīcu Street and Rīgas Street; installation of rubber surfacing beneath play equipment at the Fantāzija children’s park in Pārventa; illumination of pedestrian crossings on Talsu Street and Pāvila Street; replacement of the rubber surface of the basketball court near Ventspils University; replacement of the market shelters on Ostas Street; development of the Adventure Park; restoration of memorial sites and monuments; installation of an electricity connection to the stage on Ostas Street; and other works. Design work for the creation of a children’s recreation and activity centre will continue.
The municipality’s main task in the field of sport is to promote the development of sport in the city by ensuring that residents have the opportunity to participate in sport every day at amateur and professional levels, encouraging the further development and accessibility of the city’s sports facilities, with particular attention devoted to children’s and youth sport.
In 2019, design work for a new swimming pool is planned to continue, existing sports facilities will be improved to enhance sports infrastructure, and new sports equipment will be purchased.
Municipal funding for the sports activities of all 1,200 students of the sports clubs and 1,175 students of the “Spars” Sports School is planned at the current level in 2019.
Funding for culture from the municipality is planned at EUR 6.98 million in 2019.
During the 2014–2020 planning period, the Ventspils City Municipality plans to implement several major investment projects with external funding. This year, the new Ventspils Music School and the “Latvija” Concert Hall will open. As a result, all 500 students of the school will have the opportunity to study in a single facility after an interruption of several years. The concert hall building will include a main hall with 600 seats, a small hall with 200 seats and the Ventspils Music Library. The repertoire of the new “Latvija” Concert Hall will feature performances by Latvia’s finest musicians, as well as exclusive and premiere concerts by foreign artists. The use of two globally unique musical instruments will make the musical programme especially distinctive. The “Latvija” Concert Hall will feature a pipe organ by the German organ-building company Johannes Klais Orgelbau, as well as the world’s largest piano, built by Latvian-born piano maker David Klavins.
As one of its priority development directions in 2019, Ventspils Museum plans to work on the design and begin construction of the multifunctional building of the Seaside Open-Air Museum—including the entrance area and premises for staff, exhibitions, collections and restoration—as well as create a new permanent exhibition within the ERDF project “Preservation and Exhibition of the Cultural-Historical and Natural Heritage of Northern Kurzeme and Development of the Tourism Offer”. Active implementation of the project is planned for 2019 and 2020, with completion in 2021.
By implementing projects with the assistance of European Union funds, in 2019 the Ventspils City Municipality plans to provide a significant volume of orders for businesses—construction contractors, suppliers of goods and service providers—which, in turn, provide jobs for the municipality’s residents.
