The full functioning of local authorities for the benefit of the population of the municipality is impossible without the accompanying municipal property, because it is it that is the fundamental basis for the economic development of the municipality.
The procedure for the formation of municipal property
Municipal property has a certain independence from the state, therefore it has a public-state character. It is created by municipal authorities, or by the upper echelons of power, by transferring property objects to the disposal of the municipality. The financial component is formed by the local budget, as well as taxes and fees. The legislation also mentions the possibility of commercial acquisition of municipal property, i.e. buying, exchanging or donating. It is also possible to exaggerate municipal property when uniting municipalities, thus, the property of each of them goes into the common property of the newly formed municipal formation.
Principles for the formation of municipal property
1. The principle of obligatory presence in municipal ownership of objects necessary for the implementation of the powers of local self-government bodies for the benefit of the population is fundamental.
2. The size of municipal property tends to fluctuate, sometimes upward, then understatement. It depends on economic changes, as well as innovations in legal regulation, so it is flexible and dynamic.
3. The composition of municipal property should be based on the vital needs of the population. Therefore, it should include institutions that provide the population with water, electricity, heat in the cold season, as well as a sewer network. The principle of social significance works here.
4. The municipal property should include only those objects, financing and ensuring the functioning of which is within the power of the municipality.
Types of municipal property
Municipal property can be distributed and unallocated.
The structure of the distributed municipal property includes those objects that cannot serve for the payment and coverage of debts and loans of the municipality. These include municipal enterprises, organizations and institutions, the management of which is carried out on the basis of operational management or economic management.
Unallocated, i.e., concentrated municipal property is made up of funds from the municipal treasury (budget, taxes and fees), which can be used to pay the debts of the municipality.
Municipal property composition
Are part of the municipal property.
1. Local budget.
2. Non-residential premises, including buildings intended for production, non-production premises, other property complexes.
3. Living quarters, i.e. the entire housing stock.
4. Vehicles and means intended for production support (equipment).
5. Structures of historical and cultural value.
6. Securities, shares, deposits, foreign currency.
