To stabilise the financial situation, Jelgava Municipality needs a state loan of approximately EUR 2 million, as LETA was told by the municipal council.
The municipality consults with the Ministry of Finance on the possibilities of obtaining a loan for budgetary and financial management. The last conversation about the general financial situation of the municipality took place at the beginning of last week.
Taking into account the difficult financial situation, work is underway to optimise the costs of the municipality – abandoning leased assets, freezing vacancies, monitoring purchases and others – according to the council. But it is clear that it will not be enough.
Current estimates suggest that a loan of approximately EUR 2 million will be necessary to stabilise the situation.
Information on the municipality’s website shows that this April the lease agreement for the use of non-residential premises on Lielā Street 5/7, Jelgava for the needs of the municipality expires, therefore several municipal institutions and structural units are transferred to other premises.
“When planning further work, it has been decided not to continue the lease agreement of the premises, but to transfer the institutions to the premises of Jelgava municipality, thus ensuring both rational use of financial resources, which is important in the current financial situation, and organizing the work of municipal institutions more economically,” the council says.
To date, the first floor of the building at Lielā Street 5/7 has housed both the state and municipal unified customer service centre and the customer service centre of the utility company LLC “Jelgavas novads KU”, while the highest floors have been occupied by the Social Service of Jelgavas novads, the Property Board, as well as the structural units of the central administration of the municipality – the Project Division and the Strategic Planning Division.
The state and municipal unified customer service centre has already been moved from the premises on Lielā Street to the first floor of the municipal administration building at 37 Pasta Street. Employees of the Project Division and the Strategic Planning Division will also work in the Jelgava Municipality Building.
The movement of all affected institutions and offices to new premises is planned to be completed by the 31st of March.
The new leadership of Jelgava municipality had concerns in the autumn of last year about the municipality’s inability to settle obligations to service providers and employees.
The Chairman of the Council Uldis Ainārs (JV) has found that at the end of 2024 the municipality faced challenges caused by the decisions made in 2022 – 2024, namely, the expenditure on ensuring the basic functions of the municipality has been higher than the basic income for a long time.