Districts to face cuts in property revenue
Under a resolution approved by the Centrum Gmina Council in mid-July, districts would have their take of property revenue cut from 75% to 70% of revenue from property sales and rental income. On the other hand, districts would have their take on alcohol licensing fees increased to 80% from the current 50%, but based on fee revenue forecast this year any gains fall far short of losses.
Local officials generally refused to comment on how cuts in property revenue would impact overall budgets and said they had yet to received any official documentation outlining the changes. Districts, however, must sign-off on the changes as part of the groundwork for next year's budget.
Antoni Lewandowski, spokesman for the Wola district, hoped the changes do not indicate a shift in overall policy. "Generally speaking, lowering the financial sources for districts is not a cause for joy, and we hope that it's justified," Lewandowski said.
"We are counting on improving the city or the gmina infrastructures and it is difficult to express any anger because the money will stay in the city," he said.
Gmina authorities took an "all for one, one for all" approach to the resolution to restructure revenue streams. "It is a drop by 5% for districts, but we have to remember that districts get subsidies from the gmina," said Piotr Nogaj, a treasurer at Gmina Centrum. "The drop is not going to affect the districts."
Local officials said it was difficult to forecast the bottom line for lost property revenue for all gminas, but the figure could exceed zl. 16 million ($4.2 million) assuming 20% revenue growth in Gmina Centrum, based on a revenue survey by City Guide Polska. This year's forecasted property revenue is zl. 261 million ($69 million), city officials said. Districts where property accounts for the largest portion of revenue could be the hardest hit. Among the gmina's seven districts, Srodmiescie and Zoliborz top the list, with 39% and 46%, respectively, of overall revenue from property, according to gmina figures.
Any increased revenue from licensing alcohol sales will likely not make up the difference. The resolution calls for changing the current 50-50 split between gmina and district to 20-80 in favor of the district. But Srodmiescie, for example, would gain zl. 240,000 if the changes were to go into effect this year. That's a far cry from the property revenue lost of about zl. 4.5 million ($1.2 million), based on revenue forecasts.
The overall plan calls for reallocating the current 75-25 revenue split on property between districts and Centrum Gmina to 70-20-10, with the gmina slotted to take 20% directly with the remaining 10% earmarked for citywide projects.
The resolution to reapportion revenue must be approved by local officials before being sent back to the gmina, where it will form the framework for next year's budget. Officials are hoping to pass the budget before year's end, although last year the budget was not approved before February 1999.
Local officials generally refused to comment on how cuts in property revenue would impact overall budgets and said they had yet to received any official documentation outlining the changes. Districts, however, must sign-off on the changes as part of the groundwork for next year's budget.
Antoni Lewandowski, spokesman for the Wola district, hoped the changes do not indicate a shift in overall policy. "Generally speaking, lowering the financial sources for districts is not a cause for joy, and we hope that it's justified," Lewandowski said.
"We are counting on improving the city or the gmina infrastructures and it is difficult to express any anger because the money will stay in the city," he said.
Gmina authorities took an "all for one, one for all" approach to the resolution to restructure revenue streams. "It is a drop by 5% for districts, but we have to remember that districts get subsidies from the gmina," said Piotr Nogaj, a treasurer at Gmina Centrum. "The drop is not going to affect the districts."
Local officials said it was difficult to forecast the bottom line for lost property revenue for all gminas, but the figure could exceed zl. 16 million ($4.2 million) assuming 20% revenue growth in Gmina Centrum, based on a revenue survey by City Guide Polska. This year's forecasted property revenue is zl. 261 million ($69 million), city officials said. Districts where property accounts for the largest portion of revenue could be the hardest hit. Among the gmina's seven districts, Srodmiescie and Zoliborz top the list, with 39% and 46%, respectively, of overall revenue from property, according to gmina figures.
Any increased revenue from licensing alcohol sales will likely not make up the difference. The resolution calls for changing the current 50-50 split between gmina and district to 20-80 in favor of the district. But Srodmiescie, for example, would gain zl. 240,000 if the changes were to go into effect this year. That's a far cry from the property revenue lost of about zl. 4.5 million ($1.2 million), based on revenue forecasts.
The overall plan calls for reallocating the current 75-25 revenue split on property between districts and Centrum Gmina to 70-20-10, with the gmina slotted to take 20% directly with the remaining 10% earmarked for citywide projects.
The resolution to reapportion revenue must be approved by local officials before being sent back to the gmina, where it will form the framework for next year's budget. Officials are hoping to pass the budget before year's end, although last year the budget was not approved before February 1999.
