In 2024, the municipality committed to transparent land management and already achieved substantial results in the first few months. With neither a powerful business nor significant industrial tax resources at its disposal, Dzhulynka municipality was able to transform its main asset — land — into a significant source of revenue for the budget.
At the beginning of 2024, the budget of Dzhulynka municipality amounted to over UAH 132 million, of which 60 million were transfers. Therefore, the matter of budget revenue generation was crucial. Rising to the challenge, the municipality focused on its most valuable asset, the land.
“Dzhulynka municipality has kept in constant contact with the Regional Office of U-LEAD with Europe in Vinnytsia Oblast, both in terms of effective resource management as means of generating additional revenue for the budget and in terms of building institutional capacity for financial management in general,” says Inna Sviatna, a Policy Advisor for Municipal Finance and Management at the Regional Office of U-LEAD with Europe in Vinnytsia Oblast.
Since the beginning of 2024, Dzhulynka Village Council has held eight open auctions for the sale of land lease rights. The total area of the plots is over 96 hectares, and the geography of the participants reached far beyond the municipality. Both local landowners and businesses from other regions competed for the lease rights.
This brought the municipality an extra UAH 2.69 million in revenue, which is almost eight times more than the starting rent (UAH 383,000). The winner of the auctions was a vegetable, melon and grain producer from Cherkasy Oblast.
Land for commercial use at market price
Another indicative case is the sale of a land plot with an area of only 0.003 hectares for commercial use. With a starting price of UAH 24,000, it was sold for more than UAH 90,000 — four times as much. This approach not only ensures revenue for the budget but also establishes equitable rules for businesses.
“We are a small municipality in the south of Vinnytsia Oblast. Agriculture is the dominant sector in our region, which is why the main source of budget revenue is tax payments from agribusinesses. Following several working meetings with U-LEAD in Vinnytsia Oblast, we reached a consensus that conducting a land inventory and selling lease rights through auctions would be a significant source of revenue for the budget.
The auction, held for the first time with the support of advisors of U-LEAD with Europe in Vinnytsia Oblast, proved its effectiveness in 2024. An auction allows for fair and impartial bidding and maximises the benefits for the municipality’s budget. The additional funds received enable timely and high-quality capital expenditures necessary for municipal development,” says Olena Karpinska, the Head of Financial Department of Dzhulynka Village Council.
Consistency is the key to success
The Village Council’s management team is not resting on its laurels. Land relations experts continue to identify vacant land plots for future auctions. In other words, the municipality is developing a sustainable model for replenishing its budget using internal reserves, without relying on subsidies.
Overall, the additional resources attracted by Dzhulynka municipality through effective resource management amounted to over UAH 3 million.
“Indeed, in wartime and in conditions of the ever-changing legislation, the municipality faces many difficulties. However, working closely with experts of U-LEAD with Europe in Vinnytsia Oblast provides a sense of support and understanding that you are not alone in this world, and that together we can accomplish a great deal. These auctions are a great example of cooperation, but we’re also grateful for the ongoing training and courses for specialists in different areas of local self-government. Experts of U-LEAD with Europe in Vinnytsia Oblast always keep abreast of the latest legislative changes and promptly inform us about them, and we appreciate their cooperation,” says Petro Shvets, the Head of Dzhulynka Village Council.
The case of Dzhulynka municipality is an example of how even a small municipality, with a clear plan and expert support, can grow consistently, build trust in local authorities and make confident plans for the future.
