The Municipal budget is a useful tool for recording the Municipality’s performance.
It summarises the financial figures and the income plan; it maps the production processes and targets the liquidity that the Municipality wants to achieve. At the same time is identifying these resources that should be mobilized to meet the desired result. The 2021 budget preparation requires proper communication and cooperation among the municipal services and the political administration to collect all information and correct figures.
The number one priority for the city is the social/ welfare sector. Therefore, the budget preparation team tried to incorporate the municipal social provision action plan as a whole and support all levels of social welfare provision that is: the operation of the Municipal Social Structures; with secured funding (Community Center, Women's Counseling Center, Municipal Clinics-elderly centres, At Home Help, Kindergartens); the systematic and increased financial support to the Social Grocery Shop as well as the implementation of the Food and Basic Material Assistance Support (TEVA) program. The total cost for the entire municipal social services programme is 2,822,328.00 €.
The second priority is to improve the quality of the everyday life of our citizens. The administration’s strategic objective for the sector is towards a "Clean Municipality". Therefore, the project team included budget activities such as recycling materials initiatives, maintaining costs for parks, squares and beaches and provide services for the city’s stray animals. The procurements prioritized were recycling bins, machinery, tools, vehicles and extra staff hiring to support the services mentioned above. Simultaneously, safety protection measures for the municipal staff and citizens were considered when budgeting and the respective procurement on personal protective equipment, daily maintenance of the municipal fleet and machinery. The amount for the cleaning services was 8,225,678.00 €.
Thus, the city must maintain and upgrade municipal buildings, schools, sports facilities, streets and sidewalks, parks, and squares, creating a city-friendly city. The respective municipal department designed a comprehensive plan to increase the city’s green spaces and provisioned maintenance works for the existing ones. In our operation program in technical works, the budget team included works of € 15,069,859.00 in total.
The third priority is culture. The city’s festivals, cultural centres’ operation, festive programmed activities such as Christmas and Easter celebration activities, and the cultural associations' support that participate in those, hold a distinct budget line. The total budget for this sector is 1,097,244 €
The fourth priority is devoted to the works supported by the national government and EU. The total cost of the programmes already approved and under implementation is 9,543,213.23 €. These projects cover a broad spectrum of thematics such as social policy, culture, sports and technical projects. In addition, recently submitted project proposals hav been added to the budget; ones related to the new programme calls from the Maritime and Fisheries Fund and the proposal on green spots and the every-day of life ameliorating conditions for our citizens. The total cost of this sector is 14,043,901.00 €.
The fifth priority is digital services. The priority policy towards a "Digital Municipality". The rapid evolution of Information and Communication Technologies creates many challenges in smart and sustainable development. The city has developed a digital strategy to improve efficiency and transparency in public administration services and better-quality digital services for the citizens. The total cost of the digital services planned is 410,996.00 €.
The seventh priority is the overall financial policy. Over the years, the Municipality has developed a relationship based on trust with the local society, respecting and understanding the anxieties and problems that the citizens confront. Therefore, the administration proposed, and the budget team included, in this year’ budget, several city tax reductions measures for businesses affected by Covid-19 and the vulnerable population groups.
Moreover, the municipal procurements department worked in close collaboration with the local professionals to design public contracts. This way provides the local companies with in-depth knowledge of how public procurement works and trains them to participate in the city’s tenders. Finally, working with the local suppliers, we managed to describe those materials found at the local market, including those specifications in municipal tenders and therefore avoid tender exclusion to the local bidders.
When drafting the annual municipal budget, strategic priorities are linked to the organization's supply cycle and produce a broader economic, social and environmental results. The Municipal Procurement Plan has a clear “green” orientation with the binding costs of green procurement, covering more than 20% on all municipal contracts. Kavala has aimed at and achieved to incorporate environmental and social criteria in supply contracts. For the first time nationally, this was performed at the municipal tender on cleaning materials supply.
The fiscal year 2021 aims to support social goods that promote public health, social cohesion, and climate security. Towards this goal, it was an absolute necessity the prior experience in introducing social and environmental criteria in public procurement. This year this practice is planned to be mainstreamed in procurements of food and catering services, office supplies, construction, machinery, furniture, waste, and energy.
The 2021 municipal budget is considered as profoundly developmental and sustainable one since it was co-designed with the citizens and local market and taking into account the people’s expressed needs.
This article was written by: Ioannis Chatzikonstantinou, Head of Kavala΄s Finance Division, ULG Coordinator
