Rēzekne City Budget for 2019 Approved
Published: 14.02.2019
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On Thursday, 31 January, at the regular council meeting, the deputies approved the Rēzekne City budget for 2019. As in previous years, the priority areas are to preserve and develop the network of educational, cultural and sports institutions and the services they provide, maintain social security and support for the less well-off segment of society, as well as develop and implement infrastructure development projects by attracting co-financing from the European Union Structural Funds.
The total revenue of Rēzekne City’s consolidated budget in 2019 is forecast at EUR 44.9 million, while total expenditure in the consolidated budget in 2019 is planned at EUR 61.4 million. The financing component of Rēzekne City’s budget is EUR 16.5 million, consisting of a budget balance of EUR 2.8 million at the beginning of the year, which is planned to be allocated to financing budget expenditure, and the difference between planned borrowings and loan repayments—EUR 13.7 million.
The consolidated budget of the Rēzekne City Council consists of the basic budget, which is formed from tax, duty and non-tax revenue and payments received, including revenue from paid services provided by municipal institutions, revenue in the municipal budget for the implementation of projects financed by the European Union Structural Funds, and transfers from the state budget, as well as the special budget, which is formed from the road fund, natural resources tax, donations and gifts.
Basic budget revenue is planned at EUR 43.8 million. Transfers from the state budget in basic budget revenue are planned at EUR 24.6 million, accounting for 56% of total revenue.
The most significant source of municipal budget revenue—the personal income tax—is forecast at EUR 14.3 million this year, which is EUR 623,000 less than the actual revenue in 2018. Revenue from personal income tax accounts for 32% of total basic budget revenue.
Property tax revenue in 2019 is forecast at EUR 836,000 (2% of total basic budget revenue). Other own-source revenue, accounting for 5% of total revenue, is planned at EUR 2.1 million, including gambling tax—EUR 246,000; transfers received from other municipalities and internal transfers from the municipal budget—EUR 1,230,000; duties, fines, other non-tax revenue, and revenue from the disposal of municipal real estate—EUR 608,700. Revenue from paid services, which accounts for 5% of total revenue, is planned at EUR 2 million.
For 2019, the allocation from the Municipal Financial Equalisation Fund to Rēzekne City has been set at EUR 5,966,000.
Basic budget expenditure is planned at EUR 60 million. The priorities of Rēzekne City Municipality for 2019 will remain unchanged compared with previous years. In the basic budget expenditure section, the largest expenditure is allocated to education, the social sector and the development of the city’s infrastructure.
Expenditure on education in 2019 is planned at EUR 22.3 million, accounting for 37% of total basic budget expenditure; culture, recreation and sport—EUR 9.8 million, or 16% of the total basic budget. Funding allocated to economic activity is EUR 16.5 million, accounting for 27% of total basic budget expenditure.
Expenditure of EUR 5.7 million is provided for social protection in the 2019 basic budget, accounting for 10% of the total basic budget.
Having assessed the financial resources of Rēzekne City Municipality and project implementation deadlines, 76 projects with a total value of EUR 25.5 million have been included in the 2019 basic budget capital investment programme, including external funding of EUR 9.3 million.
The largest projects financed by Rēzekne City Municipality in 2019:
Construction of the Rēzekne Olympic Centre—EUR 5.7 million;
Reconstruction of Ausekļa and Vipingas Streets—EUR 1.1 million;
Renovation of the sports field at Rēzekne Secondary School No. 6—EUR 714,000;
Preparation of technical documentation for investment projects—EUR 796,000.
Projects co-financed by the European Union Structural Funds:
- creation of a network of industrial areas to promote entrepreneurship in Rēzekne City, Rēzekne Municipality and Viļāni Municipality—EUR 2.8 million;
- the project “Regeneration of Degraded Areas by Creating Public Infrastructure for Office Space and Manufacturing”—EUR 1.1 million;
- support for the development of commercial activity by creating the public infrastructure necessary for the operation of Kovšu Lake Park (construction of Kovšu Lake Park; construction of a roundabout at the intersection of Brīvības and Viļānu Streets; renovation of sections of Brīvības and Ezera Streets)—EUR 5.5 million;
- development of a nationally significant education centre in Rēzekne City by creating and modernising the learning environment for general secondary education to provide high-quality, modern education—EUR 5 million;
- improvement of the energy efficiency of the Rēzekne City Secondary School No. 2 building at 17 Dārzu Street, Rēzekne—EUR 875,000;
- improvement of the energy efficiency of the Rēzekne State Gymnasium No. 1 building at 3a Dzirnavu Street, Rēzekne—EUR 1.5 million;
- reduction of greenhouse gas emissions through smart lighting technologies in Rēzekne City—EUR 518,000;
- organisation of health promotion and disease prevention measures in Rēzekne City —EUR 218,000;
- development of natural sites—Krasta Street along the river—EUR 198,500;
- urban development site—Northern District Park—EUR 207,725.
The borrowing liabilities of the Rēzekne City Council arise from the council’s decisions to provide funding for projects co-financed by the European Union, guarantees provided by the municipality to municipal capital companies, as well as planned investment projects. The amount of the Rēzekne City Council’s liabilities in 2019 is forecast at 6.9% of basic budget revenue.
Overall, the 2019 budget of Rēzekne City Municipality is intended to maintain the existing level of services provided by educational institutions and social service institutions, make high-level cultural and sporting events accessible to the residents and visitors of Rēzekne City, promote a healthy lifestyle, renovate the infrastructure of municipal streets, roads and pedestrian pavements, and implement the projects included in the investment plan in accordance with the Rēzekne City Development Programme for 2014–2020.
The 2019 budget will promote the continuation of municipal activities launched in previous years, ensure the performance of municipal functions, and support municipal activities aimed at the further economic development of Rēzekne City and improving residents’ quality of life.
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