“We have been cooperating with U-LEAD with Europe almost from the moment the municipality was created. I’ll be honest, I have never encountered such a professional team as the one in Vinnytsia office. When it was necessary to deal with departments, they explained how to merge structures without bloating the staff. When the issue of schools arose, they helped prepare for outreach so that the reorganisation proceeded without conflict. Recently, we have been working primarily with local taxes and fees, and the results are noticeable for all residents,” says the Head of Ivaniv Village Council Mykhailo Kulyk.
Identifying problems and finding solutions
In 2023, the municipality began to cooperate more closely with U-LEAD experts. Inna Sviatna, a Policy Advisor for Municipal Finance and Management at the Regional Office of U-LEAD in Vinnytsia Oblast, was involved in the process and helped analyse local taxes and fees, identify gaps and prepare a new draft solution.
The main problem was that some land users were still operating under old state regulations and were not properly included in the taxation system. In addition, land tax rates differed for different categories of users, which created chaos and was inconsistent with modern approaches.
“Experts reviewed our documents and advised us on how to bring everything into line with the legislation. We discussed each amendment and had several consultations, both online and when the team visited the municipality. It was not a one-day job but a systematic process that took about nine months,” recalls Mykhailo Kulyk.
New land tax decision
In 2024, Ivaniv Village Council adopted a new decision: rates were optimised, and a single rate of 1% of the regulatory monetary valuation was introduced for all legal entities and individuals instead of several rates. For comparison, the rate for commercial agriculture used to be mere 0.3%.
This adjustment helped to streamline the system, making it transparent and fair for everyone. And most importantly, it brought tangible financial results.
Budgetary results
The impact was significant as early as the first year after the changes. In 2024, the municipality received UAH 4.33 million in rent, and in 2025, this amount reached UAH 7.75 million. In addition, about UAH 400,000 were brought by revising rent rates.
“This has been a real breakthrough for us. In 2023, the municipality was in debt and had to postpone salary payments. And in 2025, we started the year without any debt. This is a result felt by all residents, from public sector employees to starostas and entrepreneurs,” says the mayor of the municipality.
Where were the additional funds allocated?
The increased revenue enabled the municipality to finance the most urgent needs:
- UAH 4.57 million: road repair and development. In addition to ensuring comfort for residents, it is an important factor for attracting investors.
- UAH 1.5 million: the construction of a memorial site commemorating fallen soldiers. “We would like this to be not just a memorial site, but a dignified space to honour those who gave their lives for Ukraine,” explains Mykhailo Kulyk.
- Part of the funds were allocated to social benefits, support for the Armed Forces of Ukraine and other important areas.
First returns for the economy
Efforts to address taxation and infrastructure development are already paying off. In Uladivka starosta district of alone, two new businesses have started paying taxes to the budget this year, namely an oil refinery and a food production plant.
“Roads and logistics are important for business. We are committed to creating these conditions, and we can see that it is working. When businesses come and launch operations, the municipality gains new jobs and tax revenue, and people gain confidence in the future,” says the mayor of the municipality.
From gratitude to strategy
Mykhailo Kulyk also underlines that the municipality is grateful to U-LEAD with Europe for its support.
“This is an example of how cooperation with experts helps not only to streamline document management, but also to meaningfully strengthen the financial foundations of the municipality. We learned together, and this work yielded tangible results,” he says.
U-LEAD with Europe further emphasises that the case of Ivaniv municipality is not a one-off, but a sustainable process:
“Our team’s key task is to provide support to municipalities that delivers not only short-term results but also a lasting effect in the long term. One example is the cooperation with Ivaniv municipality. Here I want to commend the willingness of municipal officials to change and make difficult decisions. Working on local tax management took a while, but we can already see how well it’s working today, and we’ll keep seeing it in the future,” says Vitalii Shvets, the Head of the Regional Office of U-LEAD with Europe in Vinnytsia Oblast.
For Ivaniv, this is not just a story about taxes. This is a story about the ability to tap into internal resources, about consistency and about stepping into the future. Today, the municipality is discussing not only roads and memorials, but also the prospects for business development, new jobs and attracting investments.
The municipality of Ivaniv proves that even small rural municipalities can be successful if they set the right priorities, use expert support and boldly change old approaches.
