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Annual Report Executive Body of the Kyiv City Council (Kyiv City State Administration) City of Kyiv Annual Report 2016 1 2 Coat of arms Anthem of the City of Kyiv How can one not love you, my dear Kyiv Lyrics: Dmytro Lutsenko Music: Igor Shamo Green waters are playing the waves in quiet sunset, Falling in love with the banks of Dnipro, Where lovely dreams sway in the trees… How can one not love you, my dear Kyiv! Velvety evening, windfall is bliss… How can one not love you, my dear Kyiv! I will pour my heart inside canna flowers, Let ‘em tell my loving how truly I love her. I will dream and live on wings of hope… How can one not love you, my dear Kyiv! Tired city is sleeping, quite and gentle in peace, Lights blossom like necklace above Dnipro. Twilight is glowing in velvet like the surf of the bliss... How can one not love you, my dear Kyiv! Twilight is glowing in velvet like the surf of the bliss... How can one not love you, my dear Kyiv! 3 3 1 September 2017 Dear Kyivans and guests of the capital, I am delighted to present to you the third comprehensive Annual Report of the City of Kyiv prepared by the Kyiv City State Administration based on the results of the year 2016. Its goal is to update you on our social and economic progress and financial performance. In 2016, the City of Kyiv cemented its leading positions among Ukrainian cities in terms of economic development by demonstrating a record increase in revenues of 22% (to UAH 38.7 billion) and a growth in nominal Gross Regional Product (GRP) of 25% to UAH 564.9 billion (estimated value), which makes up 23.7% of the country’s GDP. Due to this and because of the higher efficiency of cost management, we have achieved a budget surplus of UAH 5 billion for the second year in a row. Klitschko, Vitalii The surplus was directed on financing of top-priority projects: development of Volodymyrovych infrastructure facilities (repair works on roads and bridges), education (in Mayor of Kyiv particular, construction of new schools and nurseries), social sphere and environmental protection (renovation of parks and public gardens). We appreciate that each mentioned area has yet much to be done, nevertheless, step by step, we are gradually resolving all issues. Strengthened economy of the city and amplified capital expenditure programs led to creation of new jobs (for 11.9 thousand persons). As a result, an unemployment rate decreased to 6.4%, which is the lowest figure among largest cities and regions of Ukraine. Kyiv keeps expanding: construction of 1,334 thousand square meters of residential properties were completed during the year. A the same time, we continue defending interests of communities and, literally speaking, “fighting” against illegal developments (for instance, we have won a lawsuit in the scandal-ridden Verkhnii Val construction case and succeeded in returning a land plot under the public garden devoted to the Heroes of Heavenly Hundred, etc.). Kyiv is turning into a city for a comfortable life of its residents. And I would like to express my gratitude to my team, the capital’s community, and active citizens for the assistance and participation in transformations that are taking place in our City. Vitalii Klitschko Mayor of Kyiv 4 4 Contents 1. KEY FACTS 6 2. KEY MESSAGES 8 3. GENERAL INFORMATION ABOUT THE KYIV STATE CITY ADMINISTRATION 10 4. STRATEGY OF KYIV 34 5. SOCIAL AND ECONOMIC DEVELOPMENT INDICATORS IN 2016 44 5.1. Demography 48 5.2. Economic development 51 5.3. Infrastructure 66 5.4. Healthcare 74 5.5. Social security and public safety 80 5.6. Education 90 5.7. Tourism 96 5.8. Culture 99 5.9. Science, technology and innovations 105 5.10. Ecology and environment 110 5.11. Other municipal special purpose programs 113 6. ANALYSIS OF BUDGET EXECUTION IN 2016 118 6.1. Regulatory framework of budget process 119 6.2. Main indicators of budget execution 125 6.3. Kyiv City budget revenues 130 6.4. Kyiv City budget expenditures 149 6.5. Local debt and issued insurance 179 7. CONSOLIDATED FINANCIAL SPECIAL-PURPOSE INFORMATION 2016 184 8. SUPPLEMENT 232 List of abbreviations 236 Notes: . Figures in this document are presented in accordance with the international financial standard: UAH 123,456.78 means one hundred and twenty-three thousand four hundred and fifty-six Ukrainian hryvnia seventy-eight kopiyok. Calculated and actual values may differ due to rounding. The financial data of the structural units of the Executive body of the KCC (KCSA), departments, budgetary institutions, municipal enterprises and other companies controlled by the city of Kyiv, are presented in accordance with the Ukrainian Accounting Standards. The financial information provided in Section 7 may differ from some of the financial information in Sections 1-6 due to consolidation and IPSAS adjustments. 5 5 Section 1. KEY FACTS 6 1. KEY FACTS Kyiv in 2016 at glance Kyiv is a political, social, economic, cultural, educational and research center of a modern European country that is comfortable for all UAH 193.7 thousand of 65 head offices of Gross Regional Product banks and 215 of (GRP) per city resident1 insurance companies3 USD 7,468.8 of 1.8 million sq. m of cumulative FDI office space4 per city resident UAH 8,648 of 4 million sq. m of average monthly shopping space, retail, salary entertainment centers 2,884.5 thousand 2 railway hubs persons of resident population 1,968 thousand tourists, 2 international including 1,248 thousand airports foreigners5 97 higher educational 376 thousand students in the institutions City’s universities and colleges 299 organizations that 43.7 thousand scientists carried out research and researchers and development 6,186 thousand ha of 3,566 cultural green spaces in heritage sites public use 6.7 thousand ha of 2 UNESCO water surface area2 Heritage sites 56 educational 14.4 thousand ha of institutions in nature reserve fund lands culture and art Kyiv’s Credit Ratings Leading rating agencies have improved the City’s credit ratings 2015 6 2016 7 Outlook S&P Global Ratings CC B- Stable Moody’s Ca Ca Stable Fitch Ratings CC B- Stable 1 Estimated data 6 Long-term credit ratings of the City of Kyiv debt denominated in 2 Including the waters of the Dnipro River within the city borders foreign currency as at 30 September 2016. Ratings are speculative- 3 Data based on an official registration address grade. Moody’s outlook is stable, and S&P and Fitch outlooks are 4 According to information of DTZ Property Times Ukraine and negative. Source: Сbonds, Moody’s Investors’ Service, S&P Global Сolliers real estate market overview Ratings, Fitch Ratings 5 According to the data of the State Border Service and 7 Source: Сbonds, Moody’s Investors’ Service, S&P Global Ratings, reporting №1-CMA Fitch Ratings (31 March 2017) 7 7 Section 2. KEY FINDINGS OF THE REPORT 8 2. KEY FINDINGS OF THE ANNUAL REPORT Key findings of the Annual Report General information about the Kyiv City The strategy and social and economic State Administration (the KCSA) development of the City of Kyiv in 2016 The KCSA operations are based on the pillars of The Kyiv’s 2025 Development Strategy is pursued legality, personal responsibility, and the balance across 9 key strategic initiatives aimed to enhance between country-wide interests and interests of Kyiv’s the quality of life and economic welfare of its community. residents. In 2016, the executive body of the Kyiv City Council Within the framework the 2025 Development Strategy (the KCSA) was structured as follows: for 2016: . Kyiv’s City nominal GRP increased by . KCSA Executive Office; UAH 113.2 billion (+25%) to UAH 564.9 billion; . 21 departments; . Preliminary estimates indicates that real domestic . 4 divisions (1 inspection); regional product grew by 3.3% as compared to . Child and Family Service; 2015; . Kyiv City Public Archive. Index of the quality of life (an integral indicator based on 21 indicators of the 2025 Development Management of the KCSA is represented by the Strategy) reached 114 from the relative baseline Mayor of Kyiv and his seven deputy Mayors. index of 100 for 2009 (with a target index for the year 2025 of 191). Total headcount of the executive body of the Kyiv City Council (the KCSA) was approved at 1,954 Of the target indicators of the 2025 Strategy, the employees (Resolution of the KSC # 741/741 dated level of execution against the target indicators for 25 December 2014) or 1,906 employees if excluding 2016 were as follows: Department of Information and Communication . 35 indicators: a high level; Technologies, Office for Advertising, Kyiv’s City Public . 18 indicators: a medium level; Archive. 17 indicators: a low level. In 2016, average annual costs per staffing position at the KCSA amounted to UAH 18 thousand. Kyiv’s City budget execution in 2016 Kyiv’s City financial and economic performance in 2016 Kyiv’s City budget revenues grew by 22% to UAH In accordance with the consolidated financial 38.7 billion (the plan execution level of 103%) : statements of municipal entities and budget . Own revenues (net of subventions and subsidies) institutions of the city of Kyiv: grew by 32% – to UAH 29.3 billion (104% of the Total assets as at 31 December 2016 grew from plan) due to the increased proceeds from UAH 89.2 billion to UAH 100.9 billion, including: personal income taxes, corporate income taxes, property taxes, excise taxes, and single tax . Property, plant, and equipment amounted to proceeds; UAH 75.3 billion (prior year: UAH 69.7 billion); .
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