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If the city politician approves the decision, he will at the same time instruct the municipal manager Vilius Šiliauskas to enter into loan agreements, choosing the most economically advantageous option.
With funds loaned in 2021. It is planned to co-finance three projects that are already underway. One of them is the prolonged (not the fault of the City Council) the reconstruction of the S. Darius stadium and the S. Girėnas Sports Center. The value of the project with additional works is 35 million. The implementation period is 2018-2022.
In the publicly announced conclusion prepared by the Municipal Comptroller regarding the possibility of taking a loan to the Municipality of the City of Kaunas, 4,738.0 thousand LTL were used for the reconstruction of the S. Darius Stadium and S. Girėnas Sports Center in 2020. of which 223.6 thousand euros. Funds provided in EUR, 314.4 thousand 4.2 million euros from the municipal budget and 4.2 million euros from the state budget. It is planned to allocate 5 million LTL for the work this year. 6.7 million euros of borrowed funds. 2,318 million euros from the municipal budget. euros from the state budget.
The second project that required loan funds to finance itself was Kaunas Entertainment and Sports Palace on Nemunas Island, Karaliaus Mindaugo Ave. 50, reconstruction. The value of this project is 25.8 million. EUR, implementation period 2020-2022
In 2020, LTL 3 million was used for the reconstruction of the Kaunas Sports and Entertainment Palace. Funds loaned in euros and 300 thousand. euros from the municipal budget. This year, it is planned to build the structural parts of the building, seal the building, perform interior decoration and install technological parts of the pools. The municipality plans to allocate LTL 7,658 million for these works. Funds loaned in euros and 2,841 million euros. euros from the municipal budget.
The money borrowed also funds a portion of the ongoing renovation / reconstruction of the City Garden Square with driveways. Preliminary value of the project – 3,337 million. The implementation period is 2020-2021. Last year 700 thousand were used for the project. borrowed funds. LTL 1,761 million is expected to be used to finance the works this year. Funds lent in EUR and EUR 1,242 million. euros from the municipal budget.
It should be noted that, according to the Law of the Republic of Lithuania on the approval of financial indicators of the state budget and municipal budgets for 2021, the current debt limit of the Kaunas city municipality is 120.073 million. euros. Municipal debt under long-term loan contracts in 2020 December 31 amounts to 55, 81 million. euros. Under the loan agreements signed this year it will have to repay 7,673 million. loans in euros.
The law also establishes that in 2021. The amount of the municipality’s annual net indebtedness may exceed income by the amount of the cyclical component of the municipal budget balance, which is calculated by the Ministry of Finance according to the latest published economic development scenario. The cyclical budgetary component of the municipality of the city of Kaunas amounts to 6,746 million euros.
“After estimating loan repayments in accordance with the agreements signed and the cyclical size of the budget component, in 2021 the Municipality can borrow 14,419.9 thousand LTL. euros. The legal acts provide an opportunity for the Municipal Council to take a loan, because the established debt limits have not been exceeded, ”states the conclusion of the Municipal Comptroller’s Office.
At the same time, attention is drawn to the “risk that it tends to increase the need for resources from the municipal budget to meet the debt obligations assumed by the Municipality.” Possible negative consequences are also anticipated from the decision taken in 2021 by the Finance and Economy Division of the Kaunas City Municipal Administration. January 31 In the explanatory note.
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