Bulgarian Municipalities to project realistic budgets and savings in 2012

The majority of Bulgarian Municipalities will not raise local taxes and fees in 2012 or, if they do, they will do so by a very small percentage. The draft budgets remain the same as last year or even a bit lower, discovered a survey of Klassa daily. Thus, mayors hope to maintain the tax collection level relatively high. Municipalities are seeking ways to offset the 20% decrease in state subsidies via the concession of facilities or through granting loans. Mayors have also resorted to the proven practice of staff layoffs.


Sofia Municipality has ambitious and realistic projects

This year Sofia expects a revenue of BGN 1.272 bn.
"This amount is lower than the budget proceeds for 2011 but it is a more realistic estimate," explained Deputy Mayor for Finance, Doncho Barbalov.
Sofia has planned to absorb BGN 439 mln under EU operational programmes alone. Taxes and fees will not go up during the new year. The garbage fee in Sofia remains at 1.6 promille of the property tax assessment for citizens and at 10 promilles for companies, but municipal councillors have set themselves a deadline to draft a new methodology for calculating this levy by the summer. At the request of the business sector, the Sofia Municipal Council reduced the tourist tax for 2012


Plovdiv Municipality expects a state subsidy for waste management

The draft framework of the municipal budget of the Plovdiv Municipality is not yet ready, while the expected state subsidy amounts to some BGN 83 mln. Plovdiv city, however, expects an additional financial injection for the processing of Sofia's garbage bales, some of which are already transported on the territory of the Plovdiv municipality. The tension ignited along the axis Sofia-Plovdiv as a result of the transfer of Sofia's domestic waste is expected to decline after Ivan Totev of GERB (Citizens for European Development of Bulgaria party) was elected as Mayor of the second largest Bulgarian city. Nevertheless, Totev caused the anger of his fellow citizens after announcing that, in 2012, kindergarten fees will jump from BGN 35 to BGN 50.


Varna Municipality to impose financial austerity measures

For 2012, the macroeconomic budget framework of the Varna Municipality stands at BGN 184.2 mln, or about 30 mln less than last year. The good news for Varna's residents is that, despite the financial austerity measures imposed by the Municipality, local taxes and fees will not sky-rocket. As of this year, locals who manage to prove that they do not use their real estate throughout the entire year or for several months will be exempt from paying the garbage fee. The education sector is the largest expenditure item, for which a subsidy of BGN 69 mln has been provided. Nearly BGN 10 mln were projected for the repairs of the road network, over which Varna's inhabitants protested several times in 2011. The Varna Municipality has serious ambitions with respect to the OPs of the EU and it is currently developing projects worth over BGN 200 mln.

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