The Split City Council on Friday adopted a budget revision for 2021 considering that the city is in the red by HRK 130 million, which is how much its expenses exceed the planned revenue.

The budget revision was supported by 17 councillors, which is a majority of the total of 31 councillors, of whom 29 attended today’s session, while 12 voted against.

Mayor Ivica Puljak expressed satisfaction that the budget revision was adopted, noting that it meant that the councillors were aware of the situation the city was in.

He resented that the previous city administration had defined the 2021 budget with unrealistic revenues.

City’s liquidity, wages, projects not in danger

“The expenses have been very difficult to curb, hence the deficit of HRK 130 million, however, the city’s liquidity is not at risk and neither are wages and projects,” Puljak told reporters.

He explained that of the HRK 130 million, HRK 40 million referred to the Karepovac landfill and the fact that that amount had to be in this year’s city budget because of public procurement even though it would not be spent.

Another HRK 40 million is a loan that has to be paid back to the state, he said.

“It is a so-called COVID-19 loan and we will try to have it refinanced and paid back in the next few years,” he said, adding that the rest of this year’s city budget deficit would have to be paid back in the next few years and noting that the city’s development would not be brought into question.

City will have to borrow additionally due to deficit

Puljak answered affirmatively when asked if the city would have to borrow again.

“The City will have to borrow again due to the deficit but also very likely due to projects planned for next year.”

“We will plan the next budget realistically because we are not populists and will not make false promises but will make it clear how much revenue we have and what the expenses are. As for the construction of schools, kindergartens and sports halls next year, we will propose taking loans,” he said, adding that that would be long-term borrowing for the city’s development.

Today’s session of the Split City Council was a continuation of last week’s session that was broken off and at which Puljak cancelled cooperation with two Social Democratic Party (SDP) councillors, which led to the break-up of the ruling coalition, leaving Puljak with the minority support of 15 councillors.

Puljak said he was glad the two SDP councillors today voted for the budget revision even though they were no longer part of the ruling coalition.

Councillors of the opposition Croatian Democratic Union (HDZ) resented the SDP councillors’ having voted for the budget revision.