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Riga Municipality Annual Report 2011

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Riga Municipality Annual Report 2011 Riga, 2012 CONTENT Report of Riga City Council Chairman .................................................................................................................... 4 Report of Riga City Council Finance Department Director ................................................................................... 6 Riga Municipality state ............................................................................................................................................. 7 Riga City population.............................................................................................................................................. 7 Riga Municipality economic state.......................................................................................................................... 8 Riga Municipality administration structure, functions, personnel........................................................................... 10 Riga Municipality property state .............................................................................................................................. 12 Value of Riga Municipal equity capital and its anticipated changes...................................................................... 12 Riga Municipality real estate property state........................................................................................................... 12 Execution of territory development plan ................................................................................................................ 13 Riga Municipality investment projects .................................................................................................................... 14 Riga Municipality financial and budget policy ....................................................................................................... 15 Riga Municipality budget execution performance ................................................................................................. 16 Riga Municipality budget revenue......................................................................................................................... 16 Riga Municipality budget expenses....................................................................................................................... 17 Riga Municipality budget resource utilization for municipality operations ........................................................ 19 Education and sports............................................................................................................................................. 19 Social security....................................................................................................................................................... 20 Health care............................................................................................................................................................ 22 Municipality territory management and housing facilities...................................................................................... 23 Environmental protection....................................................................................................................................... 24 Culture................................................................................................................................................................... 25 Economic activity................................................................................................................................................... 26 Public order and security....................................................................................................................................... 27 Riga Municipality management and operation improvement in order to provide effective operation, internal audit, corruption prevention, etc. .............................................................................................................. 28 Riga Municipality participation in international cooperation projects ................................................................. 29 Promotion of inhabitants’ awareness and education and cooperation with private sector .............................. 30 Promotion of inhabitants’ awareness and education............................................................................................. 30 Cooperation with private sector............................................................................................................................. 30 Activities planned for the next year ........................................................................................................................ 31 Launched projects that will be continued............................................................................................................... 31 Main tasks of the next year and planned cooperation projects............................................................................. 32 Riga Municipality financial statements (summary) ................................................................................................ 33 Auditor’s Report ........................................................................................................................................................ 38 3 REPORT OF RIGA CITY COUNCIL CHAIRMAN Since the state partnership in implementation of Riga City infrastructure objects still is insignificant, Riga City Municipality had to attract considerable external financing in order to run infrastructure projects, thereby increasing Municipality’s payments for the undertaken liabilities. In 2011, Riga City Municipality’s interest payment expenses for covering undertaken liabilities increased by 5,7 million lats. However, in 2011 Riga City Municipality managed to achieve balanced budget execution by means of strong supervision and control over it, as well as result of performed structural changes, having a quite insignificant budget deficit of 0,3 million lats (0,07% from budget revenue). Nonetheless, taking into account blocked funds in joint-stock company “Latvijas Krajbanka”, budget deficit of the financial year was calculated of 10,4 million lats. Education still have a high priority in terms of municipal budget expense structure, 165,5 million lats, by 20,4 million lats more than in the previous year (forming approximately 35% from the total municipal budget expenses) were allocated to this segment from Riga Financial and economic state of Riga City is City Municipality’s budget in the financial year. characterized by gradual recovery of national economy In 2011, a special attention was paid to preschool from crisis during the previous financial year, yet education by means of implementation various steps untoward conditions still remain in labour market and and activities within program “Preschool year”. During social sphere. Although the financial stabilization the financial year the implementation of preschool measures, which resulted in overall stability of financial educational institution network enlargement program for position in Latvia, the development of particular accessibility provision of preschool education, provided branches, such as banking sector, were affected by additional 549 children with places in preschool major shocks and instability. educational institutions. During the financial year Riga After the significant drop of municipal budget revenue City Municipality subsidized 66 private educational during the previous years, in 2011 Riga City institutions (with 985 pupils), which are providing Municipality’s revenue has increased by 5,8% for the approved educational programs. By the 1 September, first time since the beginning of the crisis. Tax revenue 2011 a co-financing of private educational institutions of the municipal budget has increased by 12,4 million was started (93 lats per child) and 1 500 agreements lats (4%), where the most increase was observed in real were signed. As well as agreements were signed and estate tax– by 9,4 million lats (20%). Municipality’s non- Riga City Municipality’s co-financing was distributed tax budget revenue, paid services and other own among 24 private comprehensive schools, which are revenues increased by 11,8 million lats (28,6%), while providing accredited comprehensive elementary and state budget transfers increased only by 1,1 million lats secondary educational programs. These examples (1,3%). show a successful cooperation of Municipality and private sector. In 2011, Riga Municipality budget expenses increased by 13,4% compared to the previous year. The increase In 2011, the most significant cultural event organized by of expenses was mostly determined by growth of the City was celebration dedicated to the Riga’s 810 th expenses for social benefits, what increased by 7,9 anniversary, which was attended by 250 thousand million lats (35%) in 2011. During the financial year Rigans and City guests during three day celebration significantly – by 6,2 million lats (14%) – were increased where more than 60 various cultural, sports and other also Riga City Municipality’s deposits to municipal activities projects were carried out. financial cohesion fund. During the financial year, construction, reconstruction Although Riga City Municipality’s total income of and renovation of educational institution buildings and personal income tax and real estate tax in financial year infrastructure were continued according to plan, were 71,3 million
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