Bez tytulu slajdu

1
Program for the improvement of financial
condition and development of the Solec Kujawski
commune
2
Program for the improvement of financial
condition and development of the Solec Kujawski
commune Goals direct goal improve the
financial condition and the effectiveness of
managing the commune, long-term goal
strengthen the communes ability for development.

3
SOLEC KUJAWSKI TIME FOR A CHANGE
4

• DETERMINANTS OF SOLEC DEVELOPMENT AND MAJOR
  CHANGE FACTORS IN RECENT YEARS
• Demography
• Economy and job market
• Quality of life
• Financial condition

5

• DEVELOPMENT DETERMINANTS AND MAJOR CHANGE FACTORS
  IN RECENT YEARS
• DISADVANTEGOUS FACTORS
• lower level of education in Solec as compared to
  Bydgoszcz and Torun,
• limited borrowing power,
• planned budgets overloaded with repayments of
  liabilities,
• increase in current expenditure, with no
  simultaneous rise of income, in the divisions of
  education, culture, sport and recreation, real
  estate management and social care,
• degradation of town center,
• decrease in the number of students.

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AVERAGE RESULTS OF PRIMARY SCHOOL TEST IN 2005 AVERAGE RESULTS OF PRIMARY SCHOOL TEST IN 2005
SOLEC KUJAWSKI 27.26 ( 28.32 AND 25.66)
CITIES OF MORE THAN 100 000 INHABITANTS 30.47
TOWNS OF UP TO 20 0000 INHABITANTS 28.64
CITY OF BYDGOSZCZ 30.9
CITY OF TORUN 30.8
AVERAGE RESULTS OF MIDDLE SCHOOL EXAM IN 2005 AVERAGE RESULTS OF MIDDLE SCHOOL EXAM IN 2005 AVERAGE RESULTS OF MIDDLE SCHOOL EXAM IN 2005
HUMANITIES MATHEMATICS
SOLEC KUJAWSKI 30.32 20.75
CITIES OF MORE THAN 100 000 INHABITANTS 34.68 25.70
TOWNS OF UP TO 20 0000 INHABITANTS 32.23 23.00
CITY OF BYDGOSZCZ 35.00 26.00
CITY OF TORUN 35.1 26.1
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Limited borrowing power
  2003 2004 2005 2006
credit tranche 560 942 2 646 345 3 570 633 5 060 993
interest 405 969 265 859 568 078 700 000
capital payments 1 373 381 1 282 739 1 593 571 2 693 903
debt balance 8 514 459 9 773 867 12 701 035 15 068 125
  2003 2004 2005 2006
total debt/income 33.2 33.5 42.5 42.8
total debt/income service 6.9 5.3 7.2 9.4
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No Repayment type Yearly repayments of liabilities planned Yearly repayments of liabilities planned Yearly repayments of liabilities planned Yearly repayments of liabilities planned Yearly repayments of liabilities planned Yearly repayments of liabilities planned Yearly repayments of liabilities planned
No Repayment type 2006 2007 2008 2009 2010 2011
1 2 3 4 5 6 7 8
1 Redemption of shares issued by local government authorities 1 000 000.00 1 500 000.00 15 000.00      
  interest 272 594.00 100 513.00 50 256.00      
2 Credit repayments          
  long-term credits 717 332.00 1 857 666.00 1 680 000.00 1 780 000.00 1 356 000.00 934 000.00
  Interest 203 386.00 263 882.00 198 406.00 140 352.00 67 847.00 19 207.00
3 Loan repayments            
  long-term loans 1 092 493.00 1 322 092.00 1 647 080.00 801 704.00 420 000.00  
  interest 134 865.00 114 568.00 60 552.00 15 327.00 2 106.00  
4 Prospective amoounts of repayments due to guarnatees issued 577 832.00 377 832.00 177 832.00 103 832.00 52 941.00 52 941.00
5 Total 3 998 502.00 5 536 553.00 3 829 126.00 2 841 215.00 14 102 894.00 1 006 148.00
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Increase in expenditure with no simultaneous rise
of income education
03/04 04/05 05/06
Current expenditure 7 480 925 8 161 742 9 132 210
Capital expenditure 0 5995 9175
Subsidy per student 2781 3138 3222
Total subsidy 5 610 757 6 093 569 6 070 772
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Increase in expenditure on education
06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14
Current expenditure 9223532 9315767 9408925 9503014 9598044 9694024 9790965 9888874
Subsidy per student 3286 3369 3453 3539 3628 3718 3811 3907
Predicted total subsidy 5921372 5956392 5797587 5757953 5735868 5722002 5632658 5817523
Communes own resources on education 3302160 3359375 3611338 3745061 3862176 3972023 4158307 4071352
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Increase in expenditure
Solec Cultural center 2003 2004 2005
Total income including - budget grant Total expenditure including - personal expenditure - material expenditure 777 880.33 570 000 850 023.72 491 372.12 358 651.60 846 741.12 668 000 939 826.25 545 907.03 393 919.22 903 827.84 742 100 951 802.71 550 810.68 400 992.03
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Increase in expenditure
Sport and Recreation center 2003 2004 2005
Total income Total expenditure including personal expenditure material expendture 206 369.88 778 213.27 317 298.62 460 914.65 224 776.26 799 921.33 327 798.97 472 122.36 219 728.81 838 295.81 350 044.90 488 250.91
Additional expenditure expected indoor
swimming pool 2006 PLN 300 000 2007 and
beyond PLN 600 000
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Decrease in the number of students
Primary schools
Middle schools
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• DEVELOPMENT DETERMINANTS AND MAJOR CHANGE FACTORS
  IN RECENT YEARS
• ADVANTAGEOUS FACTORS
• increase in the number of job positions and
  companies income,
• increase of number and income of employed
  persons,
• communes clear spatial structure,
• improvement in the quality of public services,
• improvement of the Solec image,
• increase in the number of inhabitants,
• modernisation and enlargement of communes
  assets,
• increase in communes own income.

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Increase in the number of job positions
  Number of job positions in Solec Kujawski (acc. to PIT 4)
2000 3227
2001 3117
2002 3060
2003 2978
2004 3115
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• Improvement in the quality of public services
• Technical infrastructure
• Sports hall and swimming pool
• Culture center
• Healthcare
• Roads

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• Improvement of the Solec Kujawski image
• PR co-operation
• Sporting and cultural events
• Industrial estate and new companies
• Incubator
• Attractive offer of new residential areas

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Increase in the number of inhabitants
Solec Kujawski population in the years 1988-2005
Population
Population
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Increase in the companies profits
Income levels business activity and legal
entities
Legal entities Business activity
Business activity
Legal entities
20
Increase in the populations income
Populations income by source in Solec Kujawski
Remunerations
Pensions
Business activity
Other sources
Cash capital
Personal activity
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Gross pay (in PLN) Tax base (in PLN) Advance income tax payment (in PLN) Annual income tax (in PLN) Tax paid to the commune (in PLN)
899.10 629.00 18.70 224.40 80.78
1000.00 711.00 28.00 336.00 120.96
1200.00 873.00 46.00 552.00 198.72
1500.00 1117.00 74,00 888.00 319.68
2000.00 1524.00 119,00 1428.00 514.08
250000 1930.00 165,00 1980.00 712.80
3000.00 2336.00 211.00 2532.00 911.52
3500.00 2743.00 257,00 3084.00 1110.24
4000.00 3149.00 649.00 7788.00 2803.68
5000.00 3962.00 829.00 9948.00 3581.28
6000.00 4775.00 1010.00 12 120.00 4363.20
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Gross pay
Communal tax
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Increase in the communes own income
Budget income of the Solec Kujawski commune in the years 2003-2006 (in PLN) Budget income of the Solec Kujawski commune in the years 2003-2006 (in PLN) Budget income of the Solec Kujawski commune in the years 2003-2006 (in PLN) Budget income of the Solec Kujawski commune in the years 2003-2006 (in PLN) Budget income of the Solec Kujawski commune in the years 2003-2006 (in PLN)
2003 2004 2005 2006
Own income 12 886 164 12 985 634 13 271 694 13 724 404
Share in taxation contributing to national budget income 3 407 831 4 601 746 5 276 911 6 193 839
general subsidies 6 543 432 6 905 708 6 584 171 7 344 717
targeted grants 2 830 672 4 719 030 4 740 859 7 953 070
TOTAL 25 668 099 29 212 118 29 873 635 35 216 030
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• Modernisation and enlargement of communes assets
  
• Complex reinforecement of residential areas
• Sport and Recreation center
• Industrial estate and incubator
• Town buildings modernisation

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Threats to the commune result from the
simultaneous occurence of the following

• economic and job market transformation, decrease
  in the income of inhabitants, companies and the
  commune
• taking up ambitious investment effort to make up
  for past deficiencies and set up basis for future
  development
• investments destined to serve future generations
  are financed from the budgets of the
  transformation period, i.e. the budgets
  overloaded with ever rising expendtiture on
  education and social sector, intended to minimise
  the negative effects of economic restructuring
• commune management system lacking a midterm
  planning instrument coordinating strategy with
  annual budget implementation and integrating
  activities within the scope of different sectors.

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DEVELOPMENT DETERMINANTS AND MAJOR CHANGE FACTORS
IN RECENT YEARS THREATS Solec Kujawski
municipality is too small to manage and further
develop its assets and the scope and quality of
its services counting only on local inhabitants
and businessmen. In the years to come the
increase in communes income due to the sale of
services as well as populations, companies and
asset income may prove insufficient to make up
for rising current and investment expenditure and
the repayment of liabilities.
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COMMUNES FINANCIAL FORECAST BASED ON CURRENT
TRENDS
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• DEVELOPMENT DETERMINANTS AND MAJOR CHANGE
  FACTORS IN RECENT YEARS
• KEY PROBLEMS
• Improvement of the education quality and
  extension of its scope (kindergartens, primary,
  middle and high schools as well as continuing
  education and entrepreneurship). Adjusting the
  education offer to the needs of young and adult
  population of Solec.
• Improvement of internal and external
  communication system, especially a safe level
  crossing over the railway passing through the
  town.
• Turning Solec towards the Vistula river
  revitalisation of the town.
• Integration of the whole cultural-recreational-spo
  rting complex modernisation and expansion of
  buildings (Cultural center, football pitch,
  skating rink).
• Industrial development (Industrial Estate).
• Modernisation of the technical base of public
  services (schools and libraries) setting up a
  platform for electronic services.
• Monitoring economic events in the commune.
• Development of market services (restaurants,
  hotels)

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• DEVELOPMENT DETERMINANTS AND MAJOR CHANGE
  FACTORS IN RECENT YEARS
• OPPORTUNITIES
• attract customers from outside of Solec for
  services with a surplus of supply,
• attract new inhabitants,
• attract new students for local schools,
• create new job positions,
• improve the effectiveness of commune management
  and the use of its assets.

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Attract new inhabitants In the estimation of
increase in income due to this factor the
following assumptions have been made for the
purpose of this forecast Attracting 40
families/year (21 child) with monthly income of
PLN 4000 Attracting 10 families/year (21
child) with monthly income of PLN 8000
Attracting 10 families/year (21 pensioner) with
monthly income of PLN 9000
  2007 2008 2009 2010 2011 2012 2013
The communes total annual share from the personal income tax 171 300 344 313 519 056 695 546 873 802 1 053 840 1 235 679
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Attract new students for local schools
The variant assumes addmission to primary schools
and the middle school in Solec Kujawski of 50
new students annually.
Forecast variant Forecast variant 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14
Students Primary schools 1115 1121 1105 1112 1136 1154 1125 1134
Middle school 687 697 669 650 617 590 588 615
Students total 1802 1818 1774 1762 1753 1744 1713 1749
Divisions Primary schools 45 45 45 45 46 47 46 46
Middle school 28 29 28 27 26 24 24 25
  Divisions total 74 74 72 72 72 71 70 71
Primary school teachers Full-time 82.74 83.18 81.99 82.51 84.29 85.63 83.48 84.14
Part-time 1.68 1.69 1.67 1.68 1.72 1.74 1.70 1.71
Primary schools total 84.42 84.87 83.66 84.19 86.01 87.37 85.18 85.86
Middle school teachers Full-time 54.96 55.76 53.52 52.00 49.36 47.20 47.04 49.20
Part-time 3.08 3.12 3.00 2.91 2.77 2.64 2.64 2.76
Middle school total 58.04 58.88 56.52 54.91 52.13 49.84 49.68 51.96
  Primary middle school total 142.46 143.76 140.18 139.11 138.13 137.22 134.85 137.81
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Attract new students for local schools
Forecast variant 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14
Current expenditure 8731271 8818584 8906770 8995838 9085796 9176654 9268421 9361105
Investment expenditure 0  0 0  0  0  0  0  0 
Subsidy per student 3286 3369 3453 3539 3628 3718 3811 3907
Predicted total subsidy 5921372 6124842 6125622 6235718 6359884 6484192 6528243 6833343
Communes own resources on education 2809899 2693742 2781148 2760120 2725912 2692462 2740177 2527762
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• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• Integration and improvement of commune management
  effectiveness,
• Increase the number of inhabitants,
• Attract recipients of town services from outside
  of Solec
• Increase the competitiveness of companies and
  develop local job market resources,
• Improve asset management and prepare an
  investment program.

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• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• INTEGRATION AND IMPROVEMENT OF COMMUNE MANAGEMENT
  EFFECTIVENESS
• Introduce a midterm, rolling strategy
  implementation plan,
• Introduce project management and assignment of
  responsibilities for the specialists and decision
  makers,
• Implement a system of communes socio-economic
  and financial condition monitoring and
  forecasting.

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• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• INCREASE THE NUMBER OF INHABITANTS
• Annually increase the number of inhabitants by
  100/200/300 more than predicted in the forecast

36

• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• ATTRACT RECIPIENTS OF TOWN SERVICES FROM THE
  NEIGHBOURING COMMUNES
• Attract 25/50/75 students from outside of Solec
  annually,
• Extending the scope of services and attracting
  300/600/900 a day from outside of Solec by the
  Sport and Recreation center,
• Expand the offer of services provided by the
  Cultural center to include profit-making
  activities
• (eg. accommodation, conferences, trainings),
  allowing for the rise in profits by 50/100/150
  annually,
• Develop market services in the town (eg. hotels,
  catering, private accommodation, student rooms
  for rent)

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• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• INCREASE THE COMPETITIVENESS OF COMPANIES AND
  DEVELOP LOCAL JOB MARKET
• Increase the profits of companies by 150/200/250
  of the GDP growth,
• Increase the income of inhabitants by
  120/150/180 of the average national wage growth,

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• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• IMPROVE ASSET MANAGEMENT AND PREPARE AN
  INVESTMENT PROGRAMME
• Increase the profits from communes assets by
  15/30/50 more than predicted in the forecast,
• Reduce grants for the Cultural center and the
  Sport and Recreation center to 50/65/80 of the
  current level,

39

• PRIORITIES AND INDICATIONS OF THEIR
  ACCOMPLISHMENT
• IMPROVE ASSET MANAGEMENT AND PREPARE AN
  INVESTMENT PROGRAMME
• Increase the profits from communes assets by
  15/30/50 more than predicted in the forecast,
• Reduce grants for the Cultural center and the
  Sport and Recreation center to 50/65/80 of the
  current level,

40

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Prepare new areas for residence and apartment
  development,
• Improve the public image of Solec and prepare
  marketing campaigns for the towns offers (eg.
  live in Solec or work in Solec),
• Expand and modernise the Cultural center (hotel,
  conference center, multimedia center),
• Expand the Sport and Recreation center
  cryotherapy and rehabilitation, artificial pitch,
  park modernisation

41

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Program for the improvement of education
  standards in local schools,
• Scholarship program for talented youth,
• New school, kindergarten network, continuing and
  practical education cetre,
• Modernisation of town library network and
  establishment of Public Internet Access Points
  (PIAP),
• Creation of a platform for electronic services in
  the town (Internet network, town web portal,
  thematic portals, Local Operator of the
  Information Society - LOSI, Geographic
  Information System - GIS),

42

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Program for co-financing of the modernisation of
  residential resources and creation of new
  residential areas,
• Property to rent program,

43

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Social Integration center (CIS) and the social
  integration program,
• Service package for sportsmen, post-accident
  rehabilitation, for the permanently handicapped,
  the elderly and for mothers with little children,
• Establishment of a complex program for
  non-governmental organization support (tax
  allowances, technical and financial support,
  provision of places for business activity,
  networking),

44

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Establishment of the Solec development agency,
• Expansion of the industrial estate,
• Expansion of the incubator,
• Development of the Solec business support program
  (tax allowances, technical and financial support,
  provision of places for business activity,
  networking, clusters)
• Implementation of programmes for the development
  of workforce,

45

• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• Safe level crossing,
• Development of public transport,
• Integration of the public transport in Solec with
  that of Bydgoszcz and Torun (common tickets,
  network tickets, reduced-fare tickets).

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• PRIORITY PROJECTS AND THEIR FINANCIAL IMPACT
• BGK PRODUCTS
• Variant No. 1
• Variant No. 2
• Variant No. 3
• Variant No. 4
• Variant No. 5

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MONITORING AND VERIFICATION STRATEGY
IMPLEMENTATION
STEP 1
STEP 2
STEP 3
STEP 4
48
PROJECTS