Municipal Budgeting and Finance : Scaling Up Energy Efficiency in Buildings in the Western Balkans
2014
Network of Associations of Local Authorities in South-East Europe
Within the Western Balkans region, a secure and reliable energy supply is critical for sustainable economic growth. Expensive, imported energy and inefficient energy use place a huge burden on municipalities that require affordable and reliable infrastructure services to attract investment and provide services to their citizens. With energy prices projected to rise, service delivery costs will increase, further straining municipal budgets and disproportionally affecting poorer households. The ability of municipalities to adequately budget for and finance reductions in energy use thus will be a critical need in the years ahead. Saving energy can also help cities renew their building and infrastructure stock while helping to create employment opportunities, all paid for through the reductions in their energy bills. The municipal budget is the main financial planning document at the local level. It contains a list of municipal revenues and expenditures for the coming year, the latter of which are divided into operating and capital expenditures. Typically, municipal budgets are for a single year. This guidance note will review current policies and procedures for municipal budgeting and financing in the region, identify shortcomings, and present a 'road map' for improvement based on several proposed 'milestones.' These recommendations can help support capital investments for providing a variety of municipal services, not just those for Energy Efficiency, or EE.
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