The implementation of new investment projects takes place in accordance with the municipal investment projects reviewed by the Ministry of Environmental Protection and Regional Development, which are approved by the Cabinet of Ministers orders on supported municipal investment projects for granting state loans to reduce and prevent the impact of Covid-19.
Municipal co-financing in the amount of 25% of the total project costs is used for the implementation of projects, as well as borrowing opportunities, financing 75% of the project expenses.
The increase in the amount of Riga City Municipality loans for the implementation of new investment projects in 2020 will increase the positive balance of the municipal budget financing, allowing additional investment projects to heat the economy and maintain the municipality’s financial stability, as well as maintain Riga City Municipality savings at the end of the year. investment project to cover temporary liabilities in 2021 in the amount of 7.4 million euros.
According to the decision of the administration, the increase of financing and expenditure of the programs managed by the Housing and Environment Department of Riga City Council is planned to be 406,730 euros, increase of financing and expenditure of the programs managed by the Welfare Department – 43,625 euros, million euros.
The largest additional funding is for the program Public transport services in the city of Riga – 3.3 million euros.
Taking into account the amendments, the budget revenue of Riga Municipality is planned in the amount of 931.6 million, but the expenditure – in the amount of 1.06 billion.
During the meeting, Aleksejs Remesovs, a member of the Riga City Municipality’s temporary administration, announced that he could not support the allocation of an additional 20,208 euros to the Housing and Environment Department of the Riga City Council to cover losses to SIA Echo Baltia saw.
Losses have arisen due to the provision of municipal waste management services to natural persons whose customers were previously SIAs Urban environment service, in the period of the state of emergency declared in the municipality.
Remesov emphasized that, having read the information available in the documents, he had not received a sufficient explanation of the need to allocate funds and could not support it. He therefore proposed either to exclude EUR 20 208 from the total amending budget or for the responsible officials to justify the need for such an allocation.
Jānis Liepiņš, Director of the Legal Department of the Riga City Council, explained that the Legal Department supports the allocation of funds, but encourages the company to recover the said funds from the previous waste management company by way of recourse.
Remesov pointed out that if the funds were allocated to the company, then there would be no need to recover them by recourse. He insisted that this allocation could not be supported.
The Interim Administration decided to exclude EUR 20 208 from the total amending budget and to decide on it at the next meeting of the Interim Administration.
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