On Wednesday, 15th of July, the Interim Administration of Riga Municipality approved amendments to the City Council's budget 2020, allocating an additional 33.6 million euros to the economic heating programs announced by the state.
Edvīns Balševics, Head of the Interim Administration of Riga Municipality: “Riga Municipality actively participates in the economic heating programs announced by the state and plans investments in culture, education and traffic infrastructure programs later this year. In turn, the implementation of municipally funded investment projects and projects co-financed by the European Union will help mitigate the effects of the Covid-19 crisis by increasing economic activity and employment.”
It has been decided to continue the implementation of the national architectural monument investment project “Reconstruction of the Mežaparks Grand Stage” by implementing Part B, Phase 2 of this project. Provisional costs (construction, author supervision and construction supervision) are planned to be 23 million (eight million euros this year).
Using the measures implemented by the state to support the economy, which foresees an increase in the loan limit for the implementation of municipal investment projects, it is planned to implement 69 municipal building energy efficiency projects with the amount of 14 million euros, of which 10.5 million euros will be borrowed. In the next two years, the local government also plans to implement measures for the expansion of pre-school educational institutions and the construction of new institutions for 9.5 million euros.
The Transport Department of Riga City Council plans to start this year and complete in 2021 the construction of the Imanta-Daugavgrīva and Centrs-Ziepniekkalns bicycle roads, as well as the construction of car parks within the red lines of the streets. In its turn, the Riga Municipal Police plans to develop the city's video surveillance systems, and the Welfare Department will develop anti-fall system technologies in social care centres and at clients' homes.
1.7 million euros are also planned to invest in the renovation of the operating units of Riga 1st Hospital.
In order to eliminate the consequences of the spread of the Covid-19 emergency situation, after reviewing the planned budget expenditures of the executive bodies, the local government renewed the council's reserve fund in the amount of 13 million euros.
However, the Covid-19 crisis had a negative impact on the planned revenue of the Riga Municipality budget for 2020 - the real estate forecast was reduced by 3.5% from the annual plan or 3.8 million euros, while the decrease in non-tax revenue is 1.9 million euros, of which the municipal fee for trade in public places for 420,000 euros.
Approving the budget, the planned amount of municipal loans in 2020 was 13.5 million euros less than the planned loan repayments, but the amount of debt liabilities to be covered by the local government in the current year was 11.4% of revenue, meeting the 20% criterion. Thus, participation in the measures implemented by the state to support the economy does not endanger the stability of the city budget.