Vice President of the Municipality of Budva Nikola Jovanovic has made a decision on temporary financing, which will enter into force after publication in the Official Gazette, thus solving the problem of the city's functioning until the political crisis is resolved and the parliament is constituted.
Jovanović confirmed to "Vijesti" that he signed the decision.
According to the Law on Local Self-Government Financing, if the Municipality does not adopt the budget for the following year by December 31 of the current year, since the Municipal Assembly in Budva has not even been constituted, the Deputy Mayor of the Municipality makes a decision on temporary financing, for a period of no longer than the first three months of the fiscal year.
The temporary funding is thus in effect until March 31st and authorizes the Municipality to spend monthly up to one twelfth of the expenditures in the previous fiscal year, i.e. monthly spending can be no more than the level of average monthly spending in the previous year.
As the legal regulations state, if the Municipal Assembly, after the expiration of the deadline for which the decision on temporary financing was made, does not make a decision on the budget, payments of the Municipality's legal obligations may be made by order of the President, with the prior consent of the Ministry, until the decision on the budget is made, and for a maximum of three months, whereby the Municipality does not have the right to borrow and use the funds of the current budget reserve until the decision on the budget is adopted.
The Budva parliament was not constituted after last year's November elections, and therefore a decision on the budget could not be adopted by December 31st of last year, even though the draft had passed a public debate and was ready to be presented to the councilors.
The constituent session was scheduled for January 10th, but after the verification of the mandate, the attempt to elect the president of the Municipal Assembly failed, because the proposal to be the leader of the European Union was rejected. Petar Odžić He did not even attend the discussion because the session was interrupted after councilors from the "For the Future of Budva" coalition, as well as "Demoikrates - PES" blocked the session, insisting that the session be led by an SNP councilor. Krsto Radjenovic, as a councilor of the "Budva our city" coalition Savo Medigović, as the oldest councilor, first submitted and then withdrew his resignation.
Harrowing scenes followed, as the assembly hall was occupied by activists and supporters of "For the Future of Budva" and the "Democrats - PES" coalition, while the office and hallways of the Mayor of the Municipality on the first floor of the building were filled with activists of the "Budva Our City" coalition.
By constituting the parliament, or rather by electing the president of the Municipal Assembly, the possibility is created for that house to vote on the budget, which would enable the normal functioning of the city. The Investment Plan and the City Development Program await the constitution of the Municipal Assembly, on whose adoption the implementation of the investment cycle depends.
The budget for this year is projected at 64,1 million euros, of which 45 percent is a capital component aimed at modernizing local infrastructure.
The Municipality of Budva received approval from the Ministry of Finance for the draft budget, because the planned current revenues, which amount to 38 million euros, are higher than current expenditures, which are estimated at 32 million euros.
The key items filling the city's coffers this year are taxes and utilities.
"Vijesti" has already announced that this year, as much as 8.814.373 euros will be allocated to the salaries of employees in the administration, while an additional 1.163.000 euros will be allocated to other personal income. Other personal income includes compensation for councilors in the amount of 170 thousand euros, 50 thousand for severance pay, jubilee awards of 20 thousand, while the item other compensation amounts to 923 thousand euros, from which compensation for employees under service contracts and temporary occasional engagements is allocated.
When it comes to transfers to institutions, ten million euros will be spent this year. The most money goes to the Public Institution Museums and Galleries of Budva (1,4 million euros), RTV Budva (1,1 million euros), Public Institution City Theatre 1,3 million euros, the Sports and Recreation Center Budva 750 thousand, the Mediterranean Sports Center 750 thousand, the National Library Budva 750 thousand, while sports institutions have been allocated 1,7 million euros. For events and projects next year, 500 thousand euros will be allocated from the city treasury, 415 thousand for education, and 200 thousand for healthcare.
Under the item "other transfers", spending of 5,2 million euros is planned, of which 1,73 million euros is a transfer to the Municipal Company, 1,6 million to the Wastewater Company, an additional 1,2 million euros to the Municipal Company for the collection of special waste, 400 thousand to the Day Center for Children and Youth with Developmental Disabilities, 260 thousand to the Funeral Services, and 110 thousand to the Academy of Knowledge.
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