THE 2021-2030 INTEGRATED URBAN DEVELOPMENT STRATEGY OF THE TÂRGU SECUIESC URBAN AREA ADMINISTRATIVE CAPACITY PROFILE ............................................................................................ 1 The local public administration and the existing associative structures ................................................ 1 The Târgu Secuiesc Municipality..................................................................................................... 1 The Local Council ............................................................................................................................ 2 Local budgets .......................................................................................................................................... 3 Introduction .................................................................................................................................... 3 Budget execution – revenues ......................................................................................................... 3 Budget execution - expenditure ..................................................................................................... 4 Budget revenues for Târgu Secuiesc City........................................................................................ 7 Budget expenditure for Târgu Secuiesc ........................................................................................ 15 Investments........................................................................................................................................... 24 Human and material resources............................................................................................................. 26 Human Resources ......................................................................................................................... 26 Material resources ........................................................................................................................ 30 Digital public services and the relationship with the citizens ............................................................... 33 Romania's digital performances at the level of the European Union ........................................... 33 Digitization actions at national level ............................................................................................. 35 Participatory governance and accountability: concrete measures proposed by the General Secretariat ..................................................................................................................................... 37 The authority that standardizes and unifies the digitization of the public administration in Romania ........................................................................................................................................ 38 Analysis of e-government in Târgu Secuiesc ................................................................................ 39 Diagnostic analysis: challenges and recommendations........................................................................ 55 Local public administration and existing associative structures................................................... 55 Local budgets (budget execution, operational budgets, funds raised) ........................................ 55 Human and material resources..................................................................................................... 55 Digital public services and the relationship with citizens ............................................................. 55 Annex 1. Amendments to the State Budget Law between 2015 and 2019 and how they affected the financing of the local administrations .................................................................................................. 57 Annex 2. Organizational Chart of the Târgu Secuiesc Municipality ...................................................... 63 ADMINISTRATIVE CAPACITY PROFILE THE LOCAL PUBLIC ADMINISTRATION AND THE EXISTING ASSOCIATIVE STRUCTURES The Târgu Secuiesc Municipality According to the Updated Regulation on the organization and functioning of the specialized body of the Mayor of Târgu Secuiesc1, Târgu Secuiesc Municipality is organized and operates according to the provisions of Law no. 215/2001 on the local public administration, republished, with subsequent amendments and supplements and in accordance with the decisions of the Local Council of Târgu Secuiesc regarding the approval of the organizational chart and the number of positions of its own specialized body. The Mayor, the Deputy Mayor, the Secretary of Târgu Secuiesc City, together with its specialized body constitute a functional structure with permanent activity, called the Municipality of Târgu Secuiesc City, which carries out the decisions of the Local Council, as a deliberative authority, and the mayor's orders as an executive authority, and exercises local administrative autonomy only in accordance with the law, by solving current problems within the limits of the material and territorial competence of the city’s collectivity. Târgu Secuiesc City has a mayor and a deputy mayor, elected in accordance with the law for a 4 year period. The mayor represents the executive authority in achieving local autonomy. He/She is responsible for the proper operation of the public administration of Târgu Secuiesc, he/she represents Târgu Secuiesc in the relationship with other public authorities, with Romanian or foreign natural or legal persons, as well as in the courts. Between the Local Council of Târgu Secuiesc, as a deliberative authority and the mayor, as an executive authority, there is no subordination. There is no subordination between the Prefect of Covasna County, as a representative of the Government, the Local Council of Târgu Secuiesc and the mayor. The organizational structure of Târgu Secuiesc Municipality is composed of: • specialized departments • specialized services • specialized offices Institutions subordinated to Târgu Secuiesc Municipality There are 10 entities under the authority of Târgu Secuiesc Municipality, of which nine are educational structures and one is a healthcare structure: 1. The „Gábor �ron� Technology Highschool 2. The “Molnár Józsiás� Secondary School 3. The “Nagy Mózes� Theoretical High School 4. The “Bod Péter� Pedagogical High School 5. The “Apor Péter� Theological High School 6. The Reformed Theological High School 7. The “Petőfi Sándor� Secondary School 8. The “Turóczi Mózes� Secondary School 9. The “Manócska� Kindergarden 10. Târgu Secuiesc Municipal Hospital 1 The Updated Regulation on the Organization and Functioning of Târgu Secuiesc Municipality. Link. 1 The Local Council The Local Council of Târgu Secuiesc was elected in September 2020 for the 2020 –2024 period. The council has 17 members, including the Mayor of Târgu Secuiesc. The Local Council is made up of: • thirteen representatives from the Hungarian Democratic Union (UDMR) • four representatives from the Hungarian Alliance of Transylvania (AMT) The Local Council is strengthened by the four leaders of the villages that are dependent on Târgu Secuiesc from an administrative point of view, namely Lunga, Ruseni, Săsăuși, Tinoasa. These villages do not have the right to vote. Local Council meetings The Local Council meetings2 are published on the website of Târgu Secuiesc Municipality periodically. The last report on a meeting dates from 23 January 20203. Specialized Commissions The composition of the commissions between 2020–2024 is as follows4: • The Economic and Legal Commission • The Commission on Education, Culture, Youth and Sport • The Commission on Health and Social Protection • The Commission for Spatial Planning and Urban Planning 2 Târgu Secuiesc Municipality. Local Council meetings. Link. 3 Information valid for November 2020. 4 Specialized commissions. Link. 2 LOCAL BUDGETS Introduction A strategy maps the medium and long-term development directions, and guides the efforts of several actors. An integrated local urban development strategy is a document belonging not only to the mayor's office, but to the entire community. However, the Municipality is, in most cases, the largest local actor. A municipality not only has the power to impose taxes and regulate locally, but it is usually also the entity with the largest investment budget - far exceeding the economic strength of all other local actors. The way a municipality knows how to use this economic force is largely related to what people generically call administrative capacity. Every year, the Ministry of Development, Public Works and Administration makes public the budget executions of all territorial-administrative units in Romania. This data allows a detailed analysis of the administrative performance of each municipality in the country, and allows the identification of areas where improvements can be made. Next, we will discuss in more detail the performance of Târgu Secuiesc. Budget execution – revenues Municipal revenues come largely from four main sources: (1) transfers allocated from the central government; (2) amounts allocated for balancing local budgets; (3) equalization transfers; and (4) revenues from own sources, through local taxes and levies. Most discretionary revenues of local administrations come from a system of tax distribution, equalization transfers and own revenues. Basically, there are two mechanisms involved in the achievement of equalization: (1) on the basis of a share of the income tax and the VAT; and (2) an additional equalization payment derived from the income tax. In addition, there are various other subsidies allocated to support services for people with disabilities, low-income families, as well as grants from the European Union (EU) to support specific projects. The Administrative Code provides for the legal capacity of municipalities to obtain revenues from a large number of taxes and levies. These include property taxes (on land and buildings) from legal entities and individuals, taxes on motor vehicles, hotel taxes, or taxes on cultural activities (theaters, concerts, etc.). There are also a number of fees associated with the provision of various services, such as kindergartens, notaries, issuing certificates and various licenses, planning permits, building permits, interest and late payment fines, stamp duties and extra-judicial stamp duties. The table below includes a list of typical sources of revenues found in Romanian municipalities. 3 Table 1. Categories of revenue sources of the Romanian municipalities Breakdown of local budgets – Revenue section Income tax rates and amounts Property taxes and levies Property tax Income tax components Land tax Amounts allocated from the income tax components to Land book tax balance the local budgets Judicial stamp duties, notarial stamp duties and other stamp duties Other fees for special activities * both individuals and legal entities VAT rates and amounts and equalization of transfers Vehicle ownership taxes VAT components5 Annual vehicle ownership tax Equalization transfers Fees for issuing registration certificates Other taxes Sanctions, fines and confiscations Fees for specific services Revenues from fines and other sanctions Hotel taxes Other sanctions, fines and confiscations Tax on cultural performances (concerts, theater, etc.) Specific local administration fees Subsidies from the state budget Revenues for projects funded from external sources Subsidies for the thermal rehabilitation of buildings European programs (Regional Fund, European Social Subsidies for social assistance Fund, European Agricultural Fund) Specific subsidies decided by the central government National funding programs Other types of subsidies Other forms of financing As mentioned above, the revenues of the local authorities are affected by an unstable and unpredictable environment , and Târgu Secuiesc is no exception to this rule. Successive legislative changes have an impact on local revenues, such as recent cases of lower income tax and VAT transfers, which have only been followed by short-term budgetary solutions to offset the loss of revenue. Annex 1 provides an overview of how national legislation on sub-national financing has changed in recent years. The main source of revenue for the local authorities – central transfers and equalization transfers – maintains a high degree of dependence on government decisions and impedes local fiscal autonomy. Such transfers also rarely take into account inflation rates, updated standard costs or the cash flow needs of local administrations if they undertake large-scale investment projects. Moreover, municipalities such as Târgu Secuieschave limited areas of intervention when it comes to taxation, with clear national regulations in this regard. This is an impediment to medium- to long-term investment planning that requires co-financing. Budget execution - expenditure In recent years, Romania has witnessed important changes in the relationship between the central and the local authorities, the most recent being the decision to transfer the teachers' salary payments from the local budgets to the central budget, thereby reducing the VAT rate used in the past for this allocation. Municipalities also have key responsibilities in areas such as transportation (including the local road infrastructure), social assistance, the environment – sewage and waste management, education and partly in the healthcare sector. The administration should support, inter alia, local public transport and road maintenance, investment in public buildings, water supply and wastewater treatment, recreational facilities, parks and public gardens. In most cities, spending levels are dominated by staff- 5 The share of the VAT included transfers from the state budget to cover teachers' salaries (until 2017). 4 related and goods and services-related expenditure, which have had a national share of over 50% in the past decade. Table 2. Categories of local budget expenditure Breakdown of local budgets - Expenditure SECTION I - Operating expenditure Staff expenditure6 Goods and services Basic salaries for employees Bonuses for working conditions Water, waste management and sewerage Other types of bonuses Street lighting and heating Delegation allowances Costs related to fuel and spare parts, etc. State contributions (social, health, unemployment and Other goods and services for daily maintenance and accidents insurance, state contributions for allowances) operations Supplies Food allowances, medicines and sanitation Delegation costs (transport, per diem costs) Studies and research Judicial expenditure Other types of expenditure related to goods and services Interest Subsidies Interest rate related to current local internal public debt Subsidies to cover the difference between actual and Interest rate related to current local external public debt determined costs (usually for subsidizing public services, such as local transport, heat, sanitation, etc. Reserve fund Internal transfers between local public administration Discretionary fund available to the local public authority entities Social assistance Other costs Social benefits (cash or in kind) Scholarships Support for associations and foundations (including recreational, religious, etc.) Surplus or deficit SECTION II – Development expenditure Internal transfers between local public administration Costs incurred with projects financed from external entities sources/grants European programs (Regional Fund, European Social Fund, European Agricultural Fund) National funding programs (e.g. NLDP) Other forms of financing Capital expenditure Financial assets Investments from own revenues (e.g. infrastructure Participation in the share capital of companies projects, construction, rehabilitation, etc.) Surplus or deficit The architecture of local budgets favors prudent approaches due to the volatility of revenue streams and of the local ability to manage investments in the medium to long term. Local administrations depend too much on central revenue streams and, at the same time, with small exceptions, do not 6 Staff expenditure includes staff-related costs incurred at the level of each territorial-administrative unit, both for its own staff and for the staff of the subordinate public institutions and services, financed entirely from the local budget. 5 have the administrative and financial capacity to implement large investment schemes that require long-term planning. There are a limited number of cities that have the financial capacity to undertake large-scale investment projects or even to co-finance EU-funded projects. Instead, they focus more on smaller investments or specific infrastructure improvements. Very few entities have the capacity to support an investment entirely from their own funds and continue to rely on nationally funded programs, such as the National Local Development Program (NLDP) or the newly established – and now defunct – Development and Investment Fund. (ISD). 6 Budget revenues for Târgu Secuiesc City In this context, it can be observed that Târgu Secuiesc registered fluctuating municipal revenues between 2009 and 2019, which also happened to most of the territorial-administrative units in Romania. The legislative changes in 2018 led to a significant decrease in local budget revenues – total revenues of RON 38 million, compared to RON 56 million in 2017 (and RON 71 million in 2015) – and Târgu Secuiesc failed to recover these losses. Table 3. Revenue structure at the level of Târgu Secuiesc City between 2009 and 2019 (RON) Amounts Amounts Amounts Amounts Amounts Amounts Amounts allocated deducted from deducted deducted from deducted received related to the Total Total own Income tax from the the VAT to Other Year from the VAT the VAT to from the VAT Subsidies from the 2014-2020 revenues revenues components income tax to finance revenues to balance finance the sports to finance EU/other financial balance local decentralized local budgets infrastructure education donors framework budgets expenditure 2019 38,082,056 30,626,073 13,452,877 0 2,272,310 0 4,552,000 0 411,371 0 49,104 171,198 2018 38,610,685 23,375,500 10,208,109 655,000 4,830,617 414,881 6,198,000 0 3,730,728 0 0 60,959 2017 56,325,022 26,382,062 13,748,911 640,440 28,779,800 0 516,000 0 374,003 0 0 273,157 2016 51,725,185 23,511,152 11,688,074 590,310 23,219,466 0 609,000 0 2,531,339 1,373,839 0 480,389 2015 71,810,806 22,198,271 11,591,034 312,377 23,626,183 0 1,296,720 0 7,243,418 17,438,343 0 7,871 2014 47,937,832 18,902,841 10,546,098 607,682 23,148,397 0 862,067 0 1,967,103 2,865,869 0 191,555 2013 42,373,188 20,459,866 10,259,690 582,699 19,738,002 0 536,000 0 1,513,028 100,992 0 25,300 2012 34,890,239 16,443,397 9,178,366 230,831 16,895,870 0 371,000 0 860,283 7,100 0 67,420 2011 33,701,784 16,468,767 9,006,873 232,150 14,279,262 0 233,000 0 2,137,303 129,792 0 309,360 2010 35,111,705 15,238,052 8,424,485 225,889 17,023,645 0 191,000 0 2,328,840 0 0 272,587 2009 36,911,628 14,854,837 7,836,242 267,662 19,481,625 0 272,000 0 1,941,066 0 0 362,100 TOTAL 487,480,130 228,460,818 115,940,759 4,345,040 193,295,177 414,881 15,636,787 0 25,038,482 21,915,935 49,104 2,221,896 7 Regarding the level of the Târgu Secuiesc functional urban area, we notice that the other localities have a substantial share in the total revenues generated at the FUA level – in 2019 the other localities in the FUA generated approximately 81% of the revenues generated by Târgu Secuiesc – with Sânzieni and Turia generating the highest revenues among the localities bordering Târgu Secuiesc. Fluctuations can be observed at the level of local revenues and in the Târgu Secuiesc FUA, but less pronounced. A gratifying fact is that the local administrations adjacent to Târgu Secuiesc have strongly caught up compared to 2018, since they haven’t been so strongly exposed to the legislative and budgetary changes. Table 4. Evolution of total revenues at the level of the Târgu Secuiesc Functional Urban Area between 2009 and 2019 (RON) Târgu Târgu Secuiesc Functional Urban FUA/Târgu Year Secuiesc Area Secuiesc 2019 38,082,056 30,967,182 0.81 2018 38,610,685 19,948,759 0.52 2017 56,325,022 33,132,629 0.59 2016 51,725,185 28,547,232 0.55 2015 71,810,806 34,565,627 0.48 2014 47,937,832 29,991,096 0.63 2013 42,373,188 28,956,836 0.68 2012 34,890,239 23,283,280 0.67 2011 33,701,784 22,767,730 0.68 2010 35,111,705 21,863,321 0.62 2009 36,911,628 25,356,356 0.69 Total revenues 487,480,130 110,445,923 2009-2019 Population 19.778 Total per capita 24.648 revenues Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ Regarding the total revenues of some cities similar to Târgu Secuiesc, we notice a relatively similar evolution dynamics. Târgu Secuiesc has an average performance compared to these cities. In 2015, it generated higher revenues than Aiud, Borsec, Sebeș, Băilești, Orăștie, Salonta, Gheorgheni or Huși. In 2019, however, Sebeș, Aiud, Orăștie and Huși generated higher revenues. Târgu Secuiesc registered an increase of revenues of only 3% between 2009 and 2019, well below the performance of other cities in the country – Orăștie, for example, had an increase of over 63% in the same period. European funds have represented an important source of income in recent years. In 2018 and 2019, local revenues were supported by substantial amounts deducted from the VAT for the sports infrastructure. 8 Figure 1. Evolution of total revenues at the level of comparative cities between 2009 and 2019 (RON) 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2008 2010 2012 2014 2016 2018 2020 AIUD SEBEȘ SALONTA TÂRGU SECUIESC BĂILEȘTI GHEORGHENI BORSEC ORĂȘTIE HUȘI A significant part of the budget revenues are represented by the income taxes components, increasing annually up to the value of RON 13 million in 2019 – an increase of approximately 72% compared to 2009. The table below shows how the amounts deducted from the VAT to finance decentralized spending have decreased sharply since 2018, since the shares broken down to balance local budgets have increased significantly, but this is due to the legislative changes mentioned above. Table 5. Evolution of revenues in Târgu Secuiesc between 2009 and 2019 (RON) Components for Income tax Own-source Other Year VAT share the balancing of Total components revenues share revenues local budgets 2019 13,452,877 2,272,310 17,173,196 4,552,000 631,673 38,082,056 2018 10,208,109 4,830,617 12,512,391 6,198,000 4,861,568 38,610,685 2017 13,748,911 28,779,800 11,992,711 516,000 1,287,600 56,325,022 2016 11,688,074 23,219,466 11,232,768 609,000 4,975,877 51,725,185 2015 11,591,034 23,626,183 10,294,860 1,296,720 25,002,009 71,810,806 2014 10,546,098 23,148,397 7,749,061 862,067 5,632,209 47,937,832 2013 10,259,690 19,738,002 9,617,477 536,000 2,222,019 42,373,188 2012 9,178,366 16,895,870 7,034,200 371,000 1,410,803 34,890,239 2011 9,006,873 14,279,262 7,229,744 233,000 2,952,905 33,701,784 2010 8,424,485 17,023,645 6,587,678 191,000 2,884,897 35,111,705 2009 7,836,242 19,481,625 6,750,933 272,000 2,570,828 36,911,628 Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 9 The share of own-source revenues experienced a constant annualized increase, with a significant difference for 2019 (RON 17 million compared to RON 12 million in 2018). Figure 2. Percentage evolution of revenues in Târgu Secuiesc between 2009 and 20197 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2008 2010 2012 2014 2016 2018 2020 Cote defalcate din IV Cotă TVA Cotă VSP Cote defalcate pentru balansarea bugetelor locale Alte venituri Source: Romania's Urban Policy. Processing and own calculationsUrban Indicators: https://citadini.ro/baza-de-date-urbane/ Legend: Income tax components VAT share Own-source revenues share Components to balance the local budgets Other revenues Own revenues make the largest contribution of total revenues. Also, in recent years, the second source of income was the amounts deducted from the VAT for the development of the sports infrastructure. In terms of total income per capita in 2019, Târgu Secuiesc registered a value above the national average – RON 24,649 per capita compared to RON 21,159 at national level. 7 Multiannual average For the purpose of the analysis, Târgu Secuiesc was added to that figure. 10 Figure 3. Breakdown of per capita revenues (RON) in Târgu Secuiesc between 2009 and 2019 Venituri totale Venituri proprii Alte venituri Cotă VSP Cotă TVA Cote defalcate din IV 24,648 11,551 2,752 1 5,469 9,773 5,862 - 5,000 10,000 15,000 20,000 25,000 30,000 Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ Legend: Total Own revenues Other Own-source VAT share Income tax revenues revenues revenues share components Compared to a number of similar cities in terms of own-source per capita revenues – the difference between own revenues and income tax components, and the amounts allocated from the income tax components to balance the local budgets, respectively – Târgu Secuiesc has performed rather well. In this case, at a value of RON 5,469 per capita, Târgu Secuiesc is in the middle of the ranking, surpassed only by Borsec, and at a similar level with Sebeș and Salonta. Figure 4. Own-source revenues per capita (RON) for comparative cities between 2009 and 2019 8,000.00 7,593.35 7,000.00 6,000.00 5,727.57 5,679.99 5,469.46 5,000.00 4,689.17 4,617.91 4,000.00 3,154.00 2,991.37 3,000.00 2,545.13 2,000.00 1,000.00 - Venituri sursă proprie / capita (2009-2019) Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Own-source revenues/capita (2009-2019) Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 11 In terms of per capita income tax, we can see that the amounts allocated for balancing the local budgets are at a low level compared to other cities, but Târgu Secuiesc performs well in terms of income tax components (RON 5,862). Figure 5. Per capita income tax (RON) for comparative cities between 2009 and 2019 12,000.00 10,895.71 10,000.00 8,000.00 6,655.27 5,862.11 6,000.00 5,030 3,906.14 4,000.00 3,467.63 3,537.14 2,867 1,952.66 2,000.00 - Aiud Sebeș Salonta Târgu Băilești Gheorgheni Borsec Orăștie Huși Secuiesc Cote defalcate din impozitul pe venit / capita Sume alocate pentru echilibrarea bugetelor locale Income tax components/capita Amounts allocated to balance local budgets Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ The situation is somewhat different for the value added tax, where Târgu Secuiesc has the highest broken down share for the same interval (RON 9,773 lei, compared to RON 5,498 for Sebeș). This difference is due to the amounts deducted from the VAT for the development of the sports infrastructure. Figure 6. Per capita VAT (RON) for comparative cities between 2009 and 2019 12,000.00 9,773.24 10,000.00 8,038.37 8,000.00 6,520.25 6,505.87 6,370 6,000.00 5,498.73 5,184.85 5,462 4,631.68 4,000.00 2,000.00 - Cote defalcate din taxa pe valoare adăugată / capita Sume defalcate pentru echilibrarea bugetelor locale Value added tax components/capita Components allocated to balance local budgets Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 12 In line with most Romanian municipalities, Târgu Secuiesc has the largest share of revenues from taxes and levies at local level through property taxes. For 2019, Târgu Secuiesc collected RON 4 million from the taxes on buildings (with a much higher share from legal entities), and RON 1.1 million from the land tax. The means of transport are another important source of tax collection at local level, where almost RON 1.6 million was brought to the local budget in 2019 (with a total amount of almost RON 1 million from individuals). Figure 7. Detailing the revenues from taxes and levies at local level for the city of Târgu Secuiesc in 2019 Impozit pe mijloace transport (TOTAL) 1,638,656.1 Impozit pe mijloace transport (PJ) 600,183.4 Impozit pe mijloace transport (PF) 1,038,472.7 Impozit pe teren (TOTAL) 1,103,945.0 Impozit pe teren (PJ) 704,710.0 Impozit pe teren (PF) 399,235.0 Impozit pe clădiri (TOTAL) 4,036,172.2 Impozit pe clădiri (PJ) 3,168,272.1 Impozit pe clădiri (PF) 867,900.2 Source: Ministry of Public Finances Legend: Tax on the means of transport (TOTAL) Tax on the means of transport (legal entities) Tax on the means of transport (individuals) Land tax (TOTAL) Land tax (legal entities) Land tax (individuals) Tax on buildings (TOTAL) Tax on buildings (legal entities) Tax on buildings (individuals) The local taxes for the city of Târgu Secuiesc represent approximately 36% of its own revenues in 2019. Sebeș and Salonta had similar shares. The cities of Orăștie, Băilești and Gheorgheni collected a ratio of approximately 40%, with Borsec being at the opposite end of the spectrum, with 21% for 2019. As mentioned in the previous chart, taxes on buildings are an important source of revenue for the local authorities. For example, the city of Sebeș collected no less than 22.39% of its total revenues only through the tax on buildings owned by legal entities. Within the margins imposed by the Fiscal Code, Târgu Secuiesc Municipality can increase the level of the local taxes, in order to collect additional revenues. 13 Table 6. The ratio of local taxes to own revenues at the level of comparative cities in 2019 (RON) Tax on Tax on Tax on the the Total Tax on Land tax buildings Land tax means of means of amount – Locality buildings (legal (legal (individuals) transport transport local (individuals) entities) entities) (individuals) (legal taxes8 entities) Aiud City 9.16%; 11.63%; 3.39%; 2.37%; 6.86%; 2.58%; 35.98%; Sebeș City 4.39%; 22.39%; 1.38%; 2.86%; 3.79%; 3.11%; 37.92%; Salonta City 4.72%; 13.67%; 4.84%; 2.91%; 5.13%; 3.13%; 34.40%; Târgu Secuiesc 4.29%; 15.66%; 1.97%; 3.48%; 5.13%; 2.97%; 33.51%; City Băilești City 9.25%; 13.06%; 7.02%; 2.72%; 6.10%; 1.94%; 40.08%; Gheorgheni 8.77%; 15.61%; 4.29%; 2.39%; 5.99%; 3.05%; 40.10%; City Borsec City 2.54%; 11.29%; 1.98%; 2.12%; 2.22%; 1.19%; 21.34%; Orăștie City 6.12%; 18.46%; 4.33%; 4.10%; 5.23%; 1.96%; 40.21%; 8 Local taxes are related to the own revenues, consisting of all local taxes and the income tax components. 14 Budget expenditure for Târgu Secuiesc The optimal prioritization of the expenditure remains a critical issue for municipalities across the country. There are no clear capital investment plans adopted and complied with at local level, there are no synergies between local and regional public investments, and major infrastructure projects are often financed from own budgetary resources, despite the fact that EU funds are available and the absorption rates remain low. Suboptimal prioritization also affects two key areas that have become a major burden on the budgets of the local authorities, namely subsidizing outdated central heating and local transport systems. In most cities, there is no clear long-term planning for the two and they will continue to be a major expense for the local authorities. EU funds are a solution for their improvement, provided that the local authorities have the capacity to manage such projects. The practice of subsidizing is also common when discussing local public transport. The cost for this service is substantial and, with few exceptions, the revenue from tariffs does not even come close to covering operational costs. Investments in public transport are possible through EU funds and are considered the best possible option, although some county seats have decided to finance such investments from their own budgetary resources. The figure below shows how more than 50% of the expenditure of the county seats between 2009 and 2019 was allocated for staff (26%) and for the purchase of goods and services (25%). Capital expenditure (13%), subsidies (10%) and transfers between public administration units (7%) also played an important part, the rest of the expenditures having marginal percentage values. Figure 8. Breakdown by categories of expenditure incurred by cities that are county seats between 2009 and 2019 (average %) Cheltuieli de personal Bunuri şi servicii Cheltuieli de capital 2% 2% 1% 2% 4% 4% 26% Subvenţii 4% 7% Transferuri între unităţi ale administraţiei publice Asistenţă 10% socială Proiecte cu finanţare din fonduri 25% externe nerambursabile 13% Operatiuni financiare Dobânzi Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 15 Legend: Staff expenditure Goods and services Capital expenditure Subsidies Transfers between public administration units Social assistance Projects funded from non-reimbursable external funds Financial operations Interests 16 The table below shows how the economic model of the ratio of expenditure by headings at national level also applies to the city of Târgu Secuiesc. For the 2009-2019 period, the local authorities allocated 49.3% of the total costs for staff and 27.5% for goods and services. On the other hand, the municipality granted a total of 7.8% for projects financed from non-reimbursable external funds. For the analyzed period, interest rates represented only 0.68% at the municipal level, below the national average of 1.6%, indicating a low desire or a reduced capacity to use loans to finance long-term development. Other reduced costs were for social assistance (1.3%), financial operations (1.8%) and other expenditure (0.35%). Table 7. Structure of the current expenditures of Târgu Secuiesc between 2009 and 2019 Projects financed from Payments Transfers Projects non- made in between financed from reimbursable previous Total Staff Goods and Other Social Other Capital Financial Year Interest Subsidies public non- external funds years and expenditure expenditure services transfers assistance expenditure expenditure operations administration reimbursable related to the recovered units external funds 2014-2020 in the financial current year framework 2019 39,135,494 13,144,672 16,482,916 225,735 - 97,516 2,493,990 - 1,248,670 224,102 446,250 3,798,432 1,356,710 (383,499) 2018 37,114,208 11,590,999 11,946,239 219,357 - - 4,218,928 - 934,368 - 375,896 6,564,321 1,356,709 (92,609) 2017 55,352,988 32,968,703 13,705,330 246,067 - 244,000 2,355,333 - 857,697 - 126,080 3,675,792 1,342,588 (168,602) 2016 51,305,214 26,757,160 14,041,590 382,620 - 2,356,016 856,108 3,588,558 599,144 - 108,975 1,311,221 1,303,822 - 2015 70,440,731 26,326,000 13,218,604 336,161 - 170,000 585,000 26,661,727 371,433 - 99,548 1,921,777 869,393 (118,912) 2014 48,066,758 25,577,257 14,239,482 250,000 - 117,787 284,922 4,701,254 207,758 - 84,772 1,948,935 745,000 (90,409) 2013 41,821,974 21,722,100 12,531,069 390,000 - 659,647 158,972 2,381,279 185,296 - 91,598 2,845,020 880,000 (23,007) 2012 34,930,974 18,976,193 9,673,869 360,000 - 1,891,331 10,000 126,765 376,276 - 99,975 2,610,657 808,500 (2,592) 2011 33,753,258 17,576,092 10,042,551 480,000 - 1,179,227 - 72,146 326,001 - 98,848 3,911,845 70,000 (3,452) 2010 35,085,797 20,476,615 9,070,902 380,000 - 2,005,899 - - 480,943 - 86,931 2,856,375 - (271,868) 2009 36,898,188 23,433,974 8,063,347 - - 821,559 20,000 - 654,178 - 62,426 3,863,396 - (20,692) TOTAL 483,905,584 238,549,765 133,015,899 3,269,940 - 9,542,982 10,983,253 37,531,729 6,241,764 224,102 1,681,299 35,307,771 8,732,722 (1,175,642) % 100.00%; 49.30%; 27.49%; 0.68%; 0.00%; 1.97%; 2.27%; 7.76%; 1.29%; 0.05%; 0.35%; 7.30%; 1.80%; -0.24%; 17 By chapters of expenditure, there were significant amounts for education (45.4%), most of which were reported by 2017. Since 2018, the legislative amendments regarding the change related to education-staff salary payments have reduced this share. The general public services had a share of 10.2% for Târgu Secuiesc between 2009 and 2019, with a constant increase up to RON 6.6 million for the previous year. The expenditure related to culture, recreation and religion had a contribution of 12.36% in the analyzed period, significantly growing in recent years. For example, the value of RON 8.7 million allocated in 2019 represents 22% of the total expenditure. Another important share of the expenditure is represented by transport – 8.7% between 2009 and 2019. These costs fluctuate significantly from year to year. Table 8. Structure of the Târgu Secuiesc City expenditure by chapters, between 2009 and 2019 Defense, Services and General Culture, Insurance Total public order public Environmental Fuels and Other public Education Healthcare recreation and social Transport expenditure and national development, Protection energy expenditure services and religion assistance security housing 2019 39,135,494 6,604,686 859,834 4,678,045 1,485,341 8,689,885 4,278,591 4,842,952 3,089,417 - 4,119,374 487,369 2018 37,114,208 6,077,778 734,487 3,405,459 997,898 8,549,207 3,464,308 6,280,029 2,033,919 - 4,899,379 671,744 2017 55,352,988 5,325,054 507,146 27,448,865 924,786 7,871,635 3,334,639 3,889,520 1,715,367 - 3,882,129 453,847 2016 51,305,214 5,277,607 462,490 25,778,732 2,925,862 5,502,981 2,519,833 2,932,961 1,234,590 - 4,150,649 519,509 2015 70,440,731 4,083,614 389,377 39,062,973 500,432 4,725,223 1,809,118 13,175,462 1,142,427 - 4,913,579 638,526 2014 48,066,758 4,113,440 389,591 23,959,858 421,319 4,469,905 1,804,917 6,261,442 1,506,052 - 5,081,453 58,781 2013 41,821,974 3,404,253 368,004 20,515,727 373,156 3,691,836 1,311,685 4,098,014 2,304,604 - 5,228,827 525,868 2012 34,930,974 3,740,735 292,163 18,280,030 1,282,321 3,838,105 1,162,054 2,653,886 1,332,705 - 2,122,586 226,389 2011 33,753,258 3,826,307 255,368 16,193,638 471,840 4,239,520 1,064,621 1,750,502 2,532,685 - 2,847,878 570,899 2010 35,085,797 3,590,476 157,540 18,216,336 1,346,179 3,956,224 1,326,370 3,634,963 - - 2,495,738 361,971 2009 36,898,188 3,470,427 152,355 21,922,618 190,267 4,257,544 1,287,712 3,086,386 - - 2,205,447 325,432 TOTAL 483,905,584 49,514,377 4,568,355 219,462,281 10,919,401 59,792,065 23,363,848 52,606,117 16,891,766 - 41,947,039 4,840,335 % 100.00%; 10.23%; 0.94%; 45.35%; 2.26%; 12.36%; 4.83%; 10.87%; 3.49%; 0.00%; 8.67%; 1.00%; 18 The figure below shows the main expenditure headings by category at the level of Târgu Secuiesc , selected according to their ratio compared to the total expenditure between 2009 and 2019. As previously mentioned, this chart shows how the ratio of education costs has decreased since 2018 due to legislative changes concerning the breakdown of VAT rates for the payment of teachers' salaries. Also, the fluctuation of transport infrastructure-related expenditure can be better observed in graphical form in the figure below, with a significant contribution in 2015. Cultural, recreational and religious services also cover an increased value in recent years, with a focus on 2019. Figure 9. The structure of the main categories by expenditure headings of Târgu Secuiesc City - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Servicii publice generale Învăţământ Cultură, recreere şi religie Asigurări şi asistenţă socială Servicii şi dezvoltare publică, locuinţe Protectia mediului Transporturi General public services Education Culture, leisure and religion Insurance and social care Public services and development, housing Environmental protection Transports Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ Staff expenditure represents 49.3% of the total budget expenditure at the level of Târgu Secuiesc City between 2009 and 2019, a share frequently encountered among county seats. However, the values have decreased significantly since 2018. Goods and services represent another important current cost for Târgu Secuiesc, representing 27.5% of the total expenditure for the analyzed period. Projects funded by external grants accounted for a total of 7.8% of the total spending, and capital expenditure represents 7.3% of the total expenditure. 19 Figure 10. Structure of the main current expenditures of Târgu Secuiesc between 2009 and 2019 Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ Legend: Staff expenditure Goods and services Interest Subsidies Transfers between public administration units Other transfers Projects funded from non-reimbursable external funds Social assistance Projects funded from non-reimbursable external funds for the 2014-2020 financial framework Other expenditure Compared to a number of similar cities, Târgu Secuiesc recorded a similar share of staff expenditure. But there are also cities where these costs have a much lower share. For example, in Borsec the staff expenditure only accounts for 18.9% of the total expenditure, and in Sebeș it has reached 37.8% - compared to almost 50% in Târgu Secuiesc. 20 Figure 11. Average staff expenditure at the level of comparative cities between 2009 and 2019 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Cheltuieli de personal Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Staff expenditure Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ In terms of spending on goods and services, Târgu Secuiesc has one of the highest shares in the selection of cities analyzed here. The highest expenditures in this chapter were for “heating, lighting and motive power�, “functional materials and services�, “current repairs� and “water, sewerage and sanitation�. Figure 12. Average expenditure related to goods and services at the level of the comparative cities between 2009 and 2019 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Bunuri şi servicii Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Goods and services Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ Regarding the share of European investment expenditure, Târgu Secuiesc has a moderate performance. For example, Borsec, which in this selection of cities had the lowest share of staff 21 expenditure, also has the highest share of European investment in total spending – 16.8%. Băilești and Huși were two other cities with a better performance than Târgu Secuiesc. On the other hand, in Sebeș, only 0.4% of total expenditure went to European investments. Figure 13. Average expenditure related to projects financed from non-reimbursable external funds at the level of comparative cities between 2009 and 2019 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Proiecte cu finanţare din fonduri externe nerambursabile Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Projects funded from non-reimbursable external funds Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ In terms of expenditure related to social assistance, Târgu Secuiesc had a low share between 2009 and 2019 – 1.3%, compared to 4.1% in Orăștie or 3.7% in Salonta. Figure 14. Average expenditure related to social assistance at the level of comparative cities between 2009 and 2019 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Asistenţă socială Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Social assistance Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 22 In terms of capital expenditure, Târgu Secuiesc performs below many of the comparative cities. For example, in Borsec, capital expenditure accounted for 37.8 % of the total expenditure, while in Târgu Secuiesc it amounted to only 7.3%. In Salonta, the share of capital expenditure in the total expenditure was 18.8%, in the same period, and in Orăștie it was 14.6%. Figure 15. Average capital expenditure at the level of comparative cities between 2009 and 2019 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Cheltuieli de capital Aiud Sebeș Salonta Târgu Secuiesc Băilești Gheorgheni Borsec Orăștie Huși Capital expenditure Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date-urbane/ 23 INVESTMENTS Under the Urban Policy, estimates were made regarding a prudent capital investment budget for the 2021-2030 Implementation Period for all urban areas in Romania. The figure below shows the estimated capital investment budget for Târgu Secuiesc and for the other localities in the functional urban area. Thus, it was estimated that for the 2021-2030 period, Târgu Secuiesc should allocate approximately EUR 24 million for capital investments, and the localities that are part of the functional urban area could allocate approximately EUR 16 million – with variations, from an estimated budget of about EUR 4 million for Turia to a budget of less than EUR 2 million for Lemnia or Poian. Obviously, it is possible to incur costs above this amount, especially if European funds are attracted, but it is important to take into account operating and maintenance costs. For example, a new park will have to be maintained periodically, while a parking lot can bring revenue to the Municipality. Such investments also involve social and environmental considerations (a park has greater benefits for citizens than a parking lot), but these considerations must be used in preparing a priority list of investments for 2021-2030, within the estimated capital investment budget. Specifically, Târgu Secuiesc Municipality should prepare a list of priority projects with an approximate value of EUR 24 million, and for any project added over this amount the source of funding must be taken into consideration (with a preference for projects financed through European funds), as well as the operating and maintenance costs (with a preference for revenue-generating projects or projects with low operating and maintenance costs). Figure 16. Comparison of capital investment budgets for the Târgu Secuiesc Funcțional Urban Area between 2021 and 2030 € 15,813,647.08 € 23,743,381.42 Municipiul Târgu Secuiesc Zona Urbană Funcțională City of Târgu Secuiesc Functional Urban Area The relative capacity to undertake capital expenditure is higher in Târgu Secuiesc than in the other localities in the FUA, due to a stronger economic base in Târgu Secuiesc. 24 Figure 17. Comparison of capital investment budgets per capita between 2021 and 2030 € 809.38 € 1,197.71 per capita Zona Urbană Funcțională € 809.38 Municipiul Târgu Secuiesc € 1,197.71 Legend: Functional Urban Area City of Târgu Secuiesc If we compare the relative potential of Târgu Secuiesc to undertake capital expenditure with other similar cities, we see that there are cities such as Borsec and Sebeș, with a much higher capacity. On the other hand, the potential of Târgu Secuiesc is beyond that of the cities of Huși, Gheorgheni, Băilești or Aiud. Figure 18. Comparison of capital investment budgets per capita at the level of comparative cities between 2021 and 2030 € 758.30 € 1,170.68 € 2,171.68 € 855.95 € 713.62 € 1,197.71 € 1,073.41 € 1,384.54 € 791.21 1 HUȘI € 758.30 ORĂȘTIE € 1,170.68 BORSEC € 2,171.68 GHEORGHENI € 855.95 BĂILEȘTI € 713.62 TÂRGU SECUIESC € 1,197.71 SALONTA € 1,073.41 SEBEȘ € 1,384.54 AIUD € 791.21 25 HUMAN AND MATERIAL RESOURCES Human Resources According to the Organization Chart of Târgu Secuiesc Municipality, it has a total of 322 positions, of which: • Two dignitaries • 61 public positions, of which 7 are management positions, 53 executive, and one is specific • 260 people employed as contract staff, of which 5 are in management positions and 255 – in executive positions. The Mayor According to the Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality9, the Mayor of Târgu Secuiesc performs a public authority function. He/She is the head of the local public administration and of the specialized body of the local public administration authority, which he/she leads and controls. The mayor is responsible for the proper functioning of the local public administration, in accordance with the law and represents the city of Târgu Secuiesc in the relationship with other public authorities, with Romanian or foreign natural or legal persons, as well as in the courts. The mayor fulfills the following main duties: 1.) duties exercised as a representative of the state, in accordance with the law, namely: fulfilling the duties of civil status officer and Guardianship authority; ensuring the functioning of the local public services; duties regarding the organization and conduct of elections, referendum and census; fulfilling other duties stipulated by law, according to Article 155 paragraph (2) letter c. of GEO no. 57/2019. 2.) duties regarding the relationship with the Local Council, namely: a) submitting to the Local Council, in the first quarter, an annual report on the economic, social and environmental situation of Târgu Secuiesc; b) presenting other reports and information at the request of the Local Council; c) elaborating the draft strategies regarding the economic, social and environmental status of Târgu Secuiesc and submitting them to the Local Council for approval; participating in the meetings of the Local Council and ordering the necessary measures for their preparation and conduct in good conditions, according to Article 155 paragraph (3) letter b. of GEO no. 57/2019. d) 3.) duties related to the local budget, namely: a. exercising the function of main authorizing officer; b. drawing up the draft local budget and the closing account of the financial year and submitting them for approval to the Local Council; c. initiating, in accordance with the law, negotiations for contracting loans and issuing securities on behalf of Târgu Secuiesc City; submitting to the Local Council periodic information on the budget execution, in accordance with the law and verifying, through the specialized departments, the correct fiscal registration of the taxpayers at the territorial tax body – both the registration of the main registered office and of the place of business, according to Article 155(4)(c) and (e). d. 4.) duties regarding the public services provided to the citizens, namely: 9 The Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality. Link. 26 a. coordinating the public services of local interest, provided through the specialized body or through the bodies providing public services and public utility services of local interest; b. taking measures to prevent and, where appropriate, manage emergencies; taking measures for the organization of the execution and for the concrete execution of the activities in the areas stipulated in Article 36 paragraph 6 letters a-d; taking measures for the organization of the execution and the concrete execution of the activities in the areas stipulated in Article 129 paragraph (6) and (7) of GEO no. 57/2019 regarding the Administrative Code c. �taking measures to ensure the inventory, the statistical evidence, the inspection and control of the provision of public services of local interest stipulated in Article 129 paragraphs (6) and (7) GEO no. 57/2019 regarding the Administrative Code, as well as of the goods from the public and private stock of Târgu Secuiesc�; d. appointing, sanctioning and ordering the suspension, modification and termination of service relations or, as the case may be, of employment relations, in accordance with the law, for the specialized body staff, as well as for the heads of public institutions and services of local interest; e. ensuring the drafting of the urban plans stipulated by law, submitting them to the approval of the Local Council and making sure their provisions are complied with; f. �issuing the approvals, agreements and authorizations falling under his/her responsibility by law and other normative acts, subsequent to the verification and certification by the specialized departments, in terms of regularity, legality and fulfilment of the technical requirements�; g. ensuring the completion of the works and taking the necessary measures to comply with the provisions of the commitments undertaken in the process of European integration in the field of environmental protection and water management for the services provided to the citizens; h. other duties established by law. In the exercise of his/her duties as Guardianship authority and civil status officer, of the tasks incumbent on him/her under the normative acts regarding the census, the organization and conduct of elections, the taking of civil protection measures, as well as other duties established by law, the mayor also acts as a representative of the state. In this capacity, the mayor may request, including through the prefect, in accordance with the law, the support of the heads of decentralized public services of ministries and other specialized bodies of the central public administration, if the tasks cannot be solved through the specialized body. The Deputy Mayor According to the Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality10, the city of Târgu Secuiesc has a deputy mayor. He/She reports to the mayor and is his/her legal substitute. The mayor delegates to the deputy mayor the exercise of his/her duties. The deputy mayor is responsible for the organization of the subordinate departments and for the proper conduct of the activities and/or the fulfilment of the duties delegated to them. The Secretary General of Târgu Secuiesc City According to the Regulation on the Organization and Functioning of Târgu Secuiesc Municipality11, the Secretary of Târgu Secuiesc City is a leading civil servant, with higher legal or administrative education, appointed in accordance with the provisions of the legislation on civil service and civil servants. 10 The Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality. Link. 11 The Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality. Link. 27 The Secretary of Târgu Secuiesc City performs the following duties: 1.) "approving the draft decisions and countersigning for the legality of the mayor’s orders and the Local Council decisions" according to Article 243 paragraph (1) letter a. of GEO no. 57/2019 regarding the Administrative Code; 2.) participating in Local Council meetings; 3.) ensuring the management of the administrative procedures regarding the relationship between the Local Council and the mayor, as well and between them and the prefect; 4.) �ensuring the transparency and communication of the acts provided under paragraph 1 to the authorities, public institutions and interested persons. (i.e. the mayor’s orders and the Local Council decisions) under the conditions laid down by Law no. 544/2001 on free access to information of public interest; 5.) ensuring the procedures for convening the Local Council and carrying out the secretarial work, communicating the agenda, drawing up the minutes of the Local Council meetings and drafting the Local Council decisions; 6.) preparing the works to be debated by the Local Council and its specialized commissions; 7.) other duties stipulated by law or assignments given by the Local Council or the mayor; The Secretary of Târgu Secuiesc City is responsible for the organization of the subordinated departments and for the good conduct of the activities and/or the performance of the duties that have been delegated to him/her by order of the Mayor of Târgu Secuiesc. The duties of the general secretary can be supplemented with the following ones, according to Article 243 paragraph (1) letters h.-o.: 1. he/she may certify, by derogation from the provisions of Government Ordinance no. 26/2000 regarding the associations and foundations, approved with amendments and supplements by Law no. 246/2005, with the subsequent amendments and supplements, the articles of incorporation and the statute of the inter-community development associations to which the territorial-administrative unit within which they operate belongs; 2. he/she may propose to the mayor the inclusion of some problems on the draft agenda of the ordinary meetings of the Local Council; 3. he/she roll-calls and keeps records of the participation of the local councilors in the meetings of the Local Council; 4. he/she counts the votes and records the result of the voting, which he/she presents to the chairperson of the meeting; 5. he/she Informs the chairperson of the meeting of the quorum and majority required for the adoption of each Local Council decision; 6. he/she ensures the drawing up of the meeting files, the binding, the numbering of the pages, their signing and stamping; 7. he/she checks that the local councilors who fall within the scope of Article 228 paragraph (2) of GEO no. 57/2019 regarding the Administrative Code do not take part in the deliberation and adoption of some Local Council decisions; he/she informs the chairperson of the meeting, or, as the case may be, his/her statutory replacement, of such situations and of the sanctions stipulated by law in such cases; 8. he/she certifies the conformity of the copy with the original documents from the archive of Târgu Secuiesc City. 28 The Public Administrator According to the Updated Regulation of Organization and Functioning of the Târgu Secuiesc Municipality12, at the level of communes and cities, the mayor may propose to the Local Council the establishment of the position of public administrator, within the maximum number of approved positions. The mayor appoints and dismisses the public administrator, based on specific criteria, procedures and duties approved by the Local Council. The appointment is made on the basis of a competition. Based on a management contract, concluded for this purpose with the mayor, the public administrator can fulfill the duties of coordinating the specialized body or the public services of local interest. The mayor may delegate to the public administrator, in accordance with the law, the quality of chief authorizing officer. The organizational structure According to the Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality13, the Municipality staff is organized in: • specialized departments • specialized services • specialized offices The specialized body of Târgu Secuiesc City is composed of the following functional departments, subordinated to the mayor: • The Mayor’s Cabinet • Public internal audit department • Directorate for urban planning, land use planning, monuments protection, public and private domain administration, projects • The “Vigadó� House of culture • The “Báró Weselényi Miklós� Municipal Library • The Media and Image Relations Office • The Local Police Directorate • The Projects department • The Economic, budget and accounting service • The Directorate for Social Assistance. Departments and services whose activity is indirectly coordinated by the deputy mayor: • The sports facility administration office • The Service for communal households (public lighting, traffic regulations, playgrounds; public toilets; management of green spaces; management of public spaces and buildings; fleet of vehicles and machinery, service personnel, maintenance; snow removal team; local public transport department) • The Department of urban works and building maintenance, street maintenance and repairs • The tourist information and promotion department • The Deputy Mayor's Cabinet • The Civil protection and administrative office is subordinated to the deputy mayor Within the specialized body of the Târgu Secuiesc Municipality, the following offices subordinated to both the mayor and the deputy mayor are operational: • The Project office – coordinated directly by the mayor • The Civil protection and administrative office - indirectly coordinated by the deputy mayor 12 The Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality. Link. 13 The Updated Regulation on the Organization and Functioning of the Târgu Secuiesc Municipality. Link. 29 Specialized services subordinated to the Mayor: • The Economic service (Accounting, Human resources, commercial control, Taxes and levies) The following services and offices are coordinated by the Secretary of Târgu Secuiesc Municipality: • The Local Public Administration Service (the Public Relations Department and the Agricultural- Forestry Department, Environmental Protection, Cadaster) • The Personal records office • The Legal department • The Department for agriculture and forests, environmental protection, cadaster • The Public Relations Department Material resources Local Budget Details about the local budget are provided in the subchapter “Local budgets (budget execution, operational budgets, attracted funds)�. Participatory budgeting Târgu Secuiesc Municipality has a platform dedicated to participatory budgeting14. In November 2020, the following were submitted for public voting: • A project dedicated to street infrastructure: alleys, sidewalks, squares and pedestrian areas • Three projects dedicated to landscaping, playgrounds and public spaces • A project dedicated to the laying out of public spaces focused on urban furniture • Two projects for the educational infrastructure and culture • A project for the smart city concept and digitalization European funds According to Târgu Secuiesc Municipality, the following operational programmes have been accessed to attract European funds: • Regional Operational Programme 2007-2013 • Regional Operational Programme 2014 - 2020 Regional Operational Programme 2007-2013 The following three projects15 were implemented according to Târgu Secuiesc Municipality: 1.) Development of an industrial site in the city of Târgu Secuiesc by rehabilitating a polluting and abandoned treatment plant 2.) Development of an industrial site in Târgu Secuiesc on the platform of a former wood processing and industrialization factory 3.) Development of a business incubator in Târgu Secuiesc Regional Operational Programme 2014 - 2020 The following eight projects have been implemented or are being implemented according to Târgu Secuiesc Municipality16: 1.) Increasing the energy efficiency of buildings belonging to the city of Târgu Secuiesc – Târgu Secuiesc Hospital, Surgery Section 14 Târgu Secuiesc. Participatory budgeting. Link. 15 ROP 2007 – 2013. Link. 16 Projects financed through the 2014-2020 ROP. Link. 30 The project is being implemented by Târgu Secuiesc City and has a total value of RON 2,899,164.99, of which RON 2,874,912.41 represents non-reimbursable financing (EU contribution – RON 2,394,802.04 and the national contribution – RON 422,612.12). The project is scheduled to run from 01.02.2016 to 31.12.2019. The general objective of the project is to increase energy efficiency and reduce the final energy consumption in the surgery section of the Târgu Secuiesc Municipal Hospital. 2.) Increasing the energy efficiency of buildings belonging to Târgu Secuiesc City - the Kindergarten in Benedek Elek Street The project has a total value of RON 1,956,400.08, of which RON 1,816,931.06 represents non- reimbursable financing. The project is scheduled to run between 03.02.2016 - 31.01.2021. The general objective of the project is to increase energy efficiency and reduce the final energy consumption in the surgery section of the Târgu Secuiesc Municipal Hospital. 3.) Increasing the energy efficiency of buildings belonging to the city of Târgu Secuiesc – the “Turóczi Mózes� School (grades I - VIII) The project has a total value of RON 2,520,059.43, of which RON 2,333,578.44 represents non- reimbursable financing. The project is scheduled to run between 03.02.2016 - 31.01.2020. The general objective of the project is to increase energy efficiency and reduce the final energy consumption in the surgery section of the Târgu Secuiesc Municipal Hospital. 4.) Increasing the energy efficiency of buildings belonging to the city of Târgu Secuiesc – Csipkerózsika Kindergarten The project has a total value of RON 1,090,094.86, of which RON 1,013,944.54 represents non- reimbursable financing. The project is scheduled to run between 03.02.2016 - 31.12.2019. The general objective of the project is to increase energy efficiency and reduce the final energy consumption in the surgery section of the Târgu Secuiesc Municipal Hospital. 5.) Increasing the energy efficiency of buildings belonging to Târgu Secuiesc City – the Jakabos Odön School The project has a total value of RON 1,243,467.06, of which RON 874,305.04 represents non- reimbursable financing. The project is scheduled to run between 01.01.2016 - 31.01.2021. The general objective of the project is to increase energy efficiency and reduce the final energy consumption in the Jakabos Ödön school in Lunga, Târgu Secuiesc City. 6.) Construction and equipping of an educational infrastructure for early preschool education – All-day Kindergarten in the city of Târgu Secuiesc The project is implemented by the Territorial Administrative Unit of Târgu Secuiesc with a total value of RON 3,952,425.42, of which RON 2,813,972.91 represent non-reimbursable financing (RON 2,440.690.80 from the ERDF and RON 373,282.11 from the national budget) and RON 1,138,452.51 represent the contribution of Târgu Secuiesc City (co-financing for the eligible expenditure and the ineligible value of the project). The project is scheduled to run between 18.06.2019 - 31.05.2022. The project proposes to improve the preschool educational infrastructure at the level of Târgu Secuiesc City by building an all-day kindergarten, in order to increase the participation in preschool education. 7.) Development of a Business incubator in Târgu Secuiesc City The project has a total value of RON 2,618,439.49, of which RON 1,485,312.65 represents non- reimbursable financing. The project is scheduled to run from 01.04.2018 - 30.06.2022. The general objective of the project is to set up a business incubator in the area of information and communication technology, by providing support for small and medium-sized enterprises, i.e. by renting the space at a good price and providing the necessary equipment to carry out the activities properly. 8.) Expansion and endowment of the ambulatory infrastructure in Târgu Secuiesc City 31 The project is implemented by the city of Târgu Secuiesc and has a total value of RON 10,678,052.24, of which RON 10,453,923.15 represents non-reimbursable financing. The project is scheduled to run between 20.01.2016 - 31.05.2022. The general objective of the project is the improvement of the medical infrastructure, leading to the increase of the quality of the medical services in the outpatient building of Târgu Secuiesc City. Other funds Information on other external funds accessed could not be found on the website of Târgu Secuiesc Municipality. 32 DIGITAL PUBLIC SERVICES AND THE RELATIONSHIP WITH THE CITIZENS Romania's digital performances at the level of the European Union Figure 19. 2020 Ranking of the Digital Economy and Society Index (DESI) Source: DESI Legend: 1 Connectivity 2 Human capital 3 Use of internet services 4 Integration of digital technology 5 Public Digital Services On June 11th, 2020, the European Commission published the Digital Economy and Society Index (DESI) for 2020, which monitors digital performance in Europe and tracks the progress made by EU countries in digital competitiveness. In the report, Romania ranks 26th out of 28 EU member states. The report was written in 2019, when the UK was still part of the EU bloc, so it is included in the report, along with the other European Member States (EU27). Figure 20. DESI 2020 Figure 23. DESI 2020 Highest scoring country Legend: Public digital services Lowest scoring country Romania EU-28 DESI 1 Connectivity 2 Human capital 3 Use of internet services 4 Integration of digital technology 5 Public digital services 33 Key points taken from the DESI 202017: � 49% of households in Romania are subscribed to very high speed broadband services. Thus, Romania ranks 5th in the EU, from the perspective of the Connectivity indicator. This is due to the high usage of very high speed broadband and the wide availability of very high capacity fixed networks, especially in the urban areas. � One fifth of Romanians have never used the Internet. � Less than a third of Romanians have at least basic digital skills. � 5.6% of Romanian graduates are ICT graduates, while the European average is 3.6%. � When it comes to digital public services and the use of internet services, Romania's performance is the lowest among EU member states. � 82% of internet users in Romania (EU average: 67%) use e-government services, Romania ranking 8th out of 28 in this category. However, the online interaction between the public authorities and the population only involves the submission of online forms. � Due to the pre-filled forms and the completely online public services, Romania ranks 28th, which indicates a problem regarding the quality and the capacity to use the services provided. � There has been no improvement in digital public services for enterprises, Romania ranking last in this regard as well. Figure 21. DESI Ranking for 2018 - 2020 Source: DESI Romania EU DESI 2018 DESI 2019 DESI 2020 DESI 2021 value value value value 5a1 Users of e-government solutions % of internet users who need to submit forms 5a2 Pre-filled forms Score (0-100) 5a3 Exclusively online services Score (0-100) 5a4 Public digital services for businesses Score (0-100) – at national and transnational level 5a5 Open data Not applicable Not applicable % out of the maximum score 17 Source: The European Commission: https://ec.europa.eu/romania/news/20200611_raport_rezilienta_digitala_ro 34 The DESI 2020 index concluded that the main challenges in the provision of digital public services in Romania are: (i) the non-coordination between public institutions with regard to the establishment of such services; (ii) the migration of public sector IT specialists to the private sector or to other countries; and (iii) the general lack of digital skills�. Figure 22. Romania's performances Source: DESI The European Commission's recommendation to improve the interaction between businesses and public authorities was the need to implement a fair and well-developed e-government solution that provides faster and lower-cost services. At the same time, another suggestion for Romania to take a first step towards a better digital public administration is the adoption of the Law on interoperability and its implementation by all public bodies involved. In conclusion, the indicators analyzed in the DESI 2020 index position Romania in the unexploited eGov scenario, which means, according to the report, that it is a country that is still in a process of digitization, but with citizens using e-government services. The biggest problem is observed in back- office and front-office digitization, where it has the lowest level (43%); however, the e-government services offered reach an above average value. Although performance levels have increased, following European trends, the Romanian environment seems to be able to reduce the strength of e- government actions. The report argues that the examination of the relative indicators, the openness of data and information and the development of broadband and its quality are almost in line with the European average, but all other features (digital skills, ICT use, digital quality in the private sector) are underdeveloped. Moreover, the data suggests that users in Romania should improve their digital skills and increase the regular use of the Internet. Digitization actions at national level There is a growing interest in e-government, both centrally and locally. The increasing level of interest influences the development of the institutional and non-institutional framework of social dialogue and public consultation, as well as the infrastructure of the public services for citizens. As a result, various initiatives and specific projects have been launched, in order to implement e-government uniformly and at high standards in all localities in the country. In terms of central-level measures, in 2015, Romania adopted the 2020 National Strategy on the Digital Agenda for Romania, which defines four areas of action, and recently two government decisions have been adopted, impacting the electronic communications sector and the digitization: Government Decision no. 89/2020 of January 28, 2020, stipulating the organization and functioning of a new body, the Authority for the Digitization of Romania and Government Decision no. 90/2020 of 28 January 2020, which dissolves the Ministry of Transport and the Ministry of Communications and Information Society and creates a new entity, the Ministry of Transport, Infrastructure and Communications. 35 In order to increase the transparency of the governance act at central and local level, the General Secretariat of the Government, as beneficiary, and the Ministry of Internal Affairs, as partner, have implemented the project: "Transparent, open and participatory governance – standardization, harmonization, enhanced dialogue – SIPOCA code 35, with national application18. Figure 24. Model for structuring the information published ex officio on the web page of a public institution *Source: The General Secretariat Section Section Section About the Institution/About Information of public interest Decision-making transparency us/Ministry/Presentation Legislation Information request. Legislation Draft laws under public consultation (Organisation and functioning of Form for collecting proposals/opinions/recommendations the institution) (under Law no. 52/2003) Register for the registration and analysis of proposals/opinions/recommendations Management Name and surname of the Law no. 544/2001 Public debates officer Draft laws for which suggestions are no longer admissible Request form according to Law no. 544/2001 Draft laws adopted Public hearings/Announcements/Minutes Law no. 52/2003 implementation reports Name and surname of the civil society relationship officer Register of associations, foundations and federations registered by the institution List of managers and their work Appeal method and the forms for Section agenda administrative complaints (refuse and failure Contact to reply within the statutory deadline) Single Register for Interest List of public interest documents and list of 1. Contact data of the authority: name, headquarters, Transparency documents drafted/managed by the phone/fax numbers, email addresses (+contact form), institution webpage, social media 18 The General Secretariat: https://sgg.gov.ro/new/guvernare-transparenta-deschisa-si-participativa- standardizare-armonizare-dialog-imbunatatit-cod-sipoca-35/ 36 2. Press/mass-media relations: responsible, contact data 3. Institution work hours 4. Appointment schedule, mentioning how to schedule an appointment and the contact data for the registration 5. Petitions: email address to send petitions Organisation Law no. 544/2001 implementation reports Replies given under Law no. 544/2001 Regulation on the Organization Newsletter (Law no. 544/2001) and Functioning Budget from all revenues sources Budget by financial sources (since 2015) Statement of payments (budget execution) The situation of the salary rights established according to the law, as well as other rights established by normative acts Annual statement of non-reimbursable funding for individuals or non-profit entities Organisational chart Balance sheet Public procurement Annual public procurement schedule Summary of public procurement items over EUR 5000 Puclic procuremet contracts over EUR 5000 List and contact data of the Standard forms (mentioning the average institutions subordinated time needed to fill them in) to/coordinated by or under the Asset and interest declarations authority of the institution Career (vacancy notices) Programs and strategies Reports and studies Participatory governance and accountability: concrete measures proposed by the General Secretariat Proactive consultation of the civil Improving decision-making practices Organizing regular meetings between society on their issues of interest in the Local Council (Guide published councilors and citizens. before the debates in the Local by the Ministry of Public Consultation Council. and Social Dialogue)19 Creating a system to take over the Creating a City Report application, Implementing a digital system that citizens’ suggestions/votes related to through which citizens can signal gathers real-time feedback from priority topics for the town/city problems related to public services citizens on the quality of services. and utilities in real time. Organizing programming marathons, Computerizing the local public The annual communication, together where published open data can be administration and providing citizens with the locality budget, of an easy- reused in useful applications for with electronic services (including to-understand narrative form of the citizens. enrolment in such national programs). public budget – A citizens' budget. 19 Source: http://dialogsocial.gov.ro/wp-content/uploads/2016/07/Ghid-52-final_cu-link-uri.pdf 37 Writing reports that are easy for Organizing at least 1 public debate to Implementing the concept of citizens to understand and presenting present the draft budget, together Participatory Budgeting. them at public meetings. with the Citizens' Budget. The authority that standardizes and unifies the digitization of the public administration in Romania In 2020, the Romanian Government created the Romanian Digitization Authority (ADR), in order to achieve the objectives of digital transformation of the Romanian society. As a result, ADR encourages public institutions, and also those in the private sector, to provide fast, secure and efficient services through technologies. Platforms developed so far by the ADR: � Ghișeul.ro: online payment of local taxes and fines, registration of documents addressed to public institutions which do not have their own online registry system. � Electronic Transport Assignment Information System: the electronic allocation of authorizations for international freight transport and the electronic allocation of journeys and routes for domestic passenger transport. � The National Electronic System: the online submission of the "Statement of obligations regarding the payment of social security contributions, income tax and nominal records of the insured persons" � The Electronic Single Point of Contact: the submission of statements, notifications or applications for authorization, including the applications for entry in a register, and any applications for authorization necessary to carry out service activities to the central government and other competent authorities. Some of the projects under development � The Government cloud; � The establishment of the National Electronic Register of Electronic Identities; � The digitization of the adoption process; � The computerization of the system for submitting applications for registration and effective issuance of civil status documents; � The development of a centralized national platform for the collection, storage and distribution of information on people with disabilities (adults and children) to stakeholders; 38 Analysis of e-government in Târgu Secuiesc Figure 23. E-government assessment index Source: FSPAC Legend: City: Contents: Ergonomics: Citizens participation and involvement: Security and protection of personal data: Online services: Final score: In terms of e-government, the score obtained by Târgu Secuiesc in the e-government assessment index of Romanian towns and cities – Front Office, created by researchers from Babeș Bolyai University, is 32.16 points out of 10020. The index has 47 indicators, divided into five categories, each with a certain weight in the final grade: Ergonomics (15%), Content (25%), Online services (25%), Participation and involvement of citizens (20%), Security and protection of personal data (15%). 20 Faculty of Political, Administrative and Communication Sciences: https://fspac.ubbcluj.ro/ro/evenimente/evaluarea-guvernarii-electronice-orasele-din-romania. 39 Transparency and efficiency in governance through the digitization of public services and citizen involvement The main digital tool that supports open, transparent and participatory governance is the website, which is a way to both communicate directly with the citizens and to establish a dialogue between the public administration and other stakeholders. In addition to this tool, it is necessary to develop fully digital public services, mechanisms for their evaluation and decisions of the authorities, as well as digital ways of involving the civil society in the development of the city. Moreover, digital public services need to be integrated, fast, secure and transparent for citizens and businesses, as they significantly reduce the time needed to manage a public service and streamline the process at a low cost. Website content (25%) The score obtained by the website of the Târgu Secuiesc Municipality in this category, based on the indicators in figure 8, is 62.07 out of 100 possible points. In order to streamline public services, it is necessary to develop tools that allow the filling in of online forms and the development of open data sets. Also, in order to increase the citizens’ level of trust in the local administration, it is necessary to fill in all the data regarding the local councilors and the staff of each department, as well as to add the minutes of the Local Council meetings. Figure 24. E-government assessment index ✔ X � It provides location and working hours � There are no minutes of the Local information. Council meetings. � It contains contact information for the main � It does not offer the possibility to access departments. online forms. � It communicates information about the staff � No open datasets have been developed. and the heads of departments; it should at least mention details about who leads the � There is no digitization strategy or departments. chapter (e-gov, smart city). It is � Budget information is available. necessary to include them. � The organization chart is available. � The information about the local councilors contains their name, resume and contact information, but there is no information about the activity performed by each one of them. � The building permits section is available and allows people to consult the lists. � The strategy and development plan of the city can be accessed via the website. � The website is translated in multiple languages. � There are downloadable forms available. � Asset declarations for 2020 are available on the website. � Draft decisions of the Local Council are available on the website. Source: FSPAC 40 Ergonomics (15%) The page design received 3 points out of 4, which suggests that the user experience can be improved, for people to interact with the website more effectively. Generally, the website complies with the rules of ergonomics, and the indicators in this category (Figure 25) made up a score of 47.83 out of 100 points. At the level of graphics, the design, font and color aspects need to be improved, and the website must include a sitemap. Figure 25. - E-government assessment index ✔ X � The page design can be improved, it is � There is no sitemap. analyzed according to how easy it is to browse the information and whether it is user friendly. � The navigation scheme follows the rules of ergonomics. � Fonts and colors are used correctly. � The page has recent and visible updates. � There is an adapted mobile version of the website. � The search button works. � There is a category in the menu dedicated to public services Source: FSPAC Security and protection of personal data (15%) Out of a total of 100 points, in this category the Municipality website obtained 0 points, at the time the research was conducted. However, we noticed that the web page has been improved, for example, it now has valid certification (https). Figure 26. E-government assessment index ✔ X � The website is secure and has a valid � There is no warning message about the use certificate (https). of cookies. � There is no possibility for citizens to log in. � The website does not have a policy for the use of personal data. Source: FSPAC Online services (25%) The website provides the possibility to pay taxes online, through its own platform or the national platform – ghișeul.ro. In addition, requests for information of public interest can be submitted online, according to the researchers from the Faculty of Political, Administrative and Communication Sciences in Cluj-Napoca. Based on the indicators from the digital services assessment index, the score obtained is 5.88. 41 Figure 27. E-government assessment index ✔ X � Online information of public interest (Law � Fines are not paid online. no. 544/2001) – requests for information of � No appointments can be made for various public interest can be submitted online. services. � There are online services for paying taxes � The website does not have an online and levies (kezdi.ro and ghiseul.ro). registry. Thus, citizens cannot track the submitted documents online. � There are no other services offered online, such as marriage announcements, construction permits, taxi permits, etc. � There are no building permits. � There are no mobile applications. � There is no online urban planning certificates database. Source: FSPAC Citizen participation and involvement (20%) Regarding the participation and involvement of the citizens, the researchers from the Faculty of Political, Administrative and Communication Sciences granted 40 points out of 100. The administration did not receive the maximum score, because the citizens cannot publish comments on the draft decisions of the Local Council, the mayor's office does not offer online audiences or the possibility of scheduling them, and there are no polls or videos on the website. However, the administration has implemented the Participatory Budgeting project. Figure 28. E-government assessment index ✔ X � The Municipality also has other active social � The local administration does not offer or media accounts. schedule online audiences. � Citizens can add comments or send � There are no surveys and questionnaires on messages to the mayor’s office via the the website. website. � There are no audio or video recordings. � The Municipality communicates with the � The citizens cannot publish comments on residents through a local newsletter. draft decisions of the Local Council. � The Municipality implemented the participatory budgeting program. � There is webchat app on the website, through which citizens address specific issues (sesizări.kezdi.ro). Source: FSPAC Aside from the standard sections of information on legislation, operating hours, and the possibility to request information, as well as the possibility to pay taxes and levies and the tool through which citizens can report challenges, the local administration, through the website, does not provide fully digital public services. In addition, the new website of the Municipality of Târgu Secuiesc, bp.kezdi.ro, was launched, dedicated to the participatory budgeting program. 42 Project to improve digital public services To this purpose, the local administration aims achieve an integrated e-government system and one- stop shop within the local public administration. The citizens' trust in the Municipality website and the share of the population using the internet The citizens' trust level in the Municipality's website was the same from 2014 to 2018. To build trust, a campaign is needed to educate the population about the use of online public services, the quality of the website needs to be improved and the services offered through it need to be diversified. At the moment, the website attaches little importance to the fully digitized online services offered to citizens or companies, being mainly designed to provide information. Figure 29. Webpage trust level 1.2 1 0.8 0.6 0.4 0.2 0 2014 2015 2016 2017 2018 Value 1 1 1 1 1 Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date- urbane/ Over 40% of people living in Târgu Secuiesc use the internet. Therefore, the local administration must start both education campaigns that will increase this percentage, and actions to provide internet access to each citizen through the development of the infrastructure. 43 Figure 30. Share of the population using the internet 60 50 40 30 20 10 0 Întorsura Sfîntu Gheorghe Baraolt Covasna Târgu Secuiesc Buzăului Internet use 50.73 36.36 41.98 28 46.37 Source: Romania's Urban Policy. Processing of Urban Indicators: https://citadini.ro/baza-de-date- urbane/ Satisfaction of Târgu Secuiesc residents with the efficiency of the administrative services in their city The answers to the question “How satisfied are you with the activity of the local public administration in the field of urban planning? – a comparison�, from the Urban Barometer survey, conducted under the Urban Policy, reflected that 41% of the residents of Târgu Secuiesc are satisfied with the housing quality. The result positions the city below the national average (51%). 44 Figure 31. How satisfied are you with the urban planning activity of the local public administration? - a comparison very satisfied rather satisfied rather dissatisfied very dissatisfied no response ORADEA 47% 35% 15% 0% 3% SINAIA 33% 43% 21% 1% 2% CLUJ NAPOCA 22% 45% 19% 5% 9% VATRA DORNEI 18% 48% 22% 11% 0% SUCEAVA 34% 32% 31% 1% 3% BUZAU 16% 47% 20% 12% 5% CONSTANTA 13% 49% 34% 1% 4% ALBA IULIA 13% 47% 27% 10% 4% TIMISOARA 9% 50% 28% 7% 6% IASI 16% 42% 29% 9% 4% MOLDOVA NOUA 19% 38% 39% 0% 3% SULINA 13% 44% 38% 1% 3% ABRUD 13% 44% 28% 12% 3% RESITA 21% 36% 30% 11% 2% EFORIE 20% 36% 44% 0% SIGHISOARA 17% 38% 28% 11% 7% BICAZ 21% 33% 41% 5%0% BRASOV 12% 41% 20% 18% 9% SIMERIA 13% 39% 39% 4% 6% CARANSEBES 9% 41% 40% 9% 1% SLATINA 11% 38% 42% 6% 3% BAILESTI 14% 35% 44% 6% 2% MIHAILESTI 10% 38% 44% 8% ISACCEA 12% 35% 48% 5% CARACAL 8% 39% 35% 18% 1% BAILE HERCULANE 10% 37% 46% 8% STEFANESTI 6% 40% 41% 11% 2% TG JIU 18% 27% 41% 13% 1% CAREI 5% 39% 50% 0% 5% M O R E N I 3% 41% 45% 9% 2% DROBETA TURNU SEVERIN 4% 40% 40% 13% 4% BOLINTIN VALE 4% 39% 33% 14% 10% PIATRA NEAMT 8% 35% 40% 11% 6% ALEXANDRIA 15% 27% 38% 18% 3% TARGU SECUIESC 6% 35% 33% 14% 12% BUCHAREST 9% 32% 33% 19% 7% CRAIOVA 7% 34% 33% 14% 12% BEIUS 6% 34% 33% 28% PLOIESTI 4% 36% 26% 18% 18% BUHUSI 7% 33% 46% 13% 2% TASNAD 14% 25% 57% 4% Source: Romania's Urban Policy, Quality of Life Barometer, 2020 45 The citizens' satisfaction with the efficiency of administrative services in their city The efficiency of the administrative services in Romanian cities, from the citizens’ perspective, was analyzed by the question “To what extent do you agree with the following statement: ‘The administrative services in (my city) effectively help people’ - a comparison� in the Urban Barometer survey. Thus, according to the barometer, 52% of the urban population say they agree with the statement "in general, you can rely on the public administration in my city." In this respect, Târgu Secuiesc (58%) is above the national average. Figure 32. To what extent do you agree with the following statement: "The administrative services of (my city) help people effectively" totally agree somewhat agree somewhat disagree totally disagree no response ORADEA 45% 38% 13% 2% 1% CLUJ NAPOCA 12% 57% 23% 6%2% SIMERIA 18% 50% 19% 3% 10% RESITA 23% 45% 15% 14% 4% IASI 30% 38% 23% 8% 1% ALBA IULIA 19% 47% 23% 8% 3% SINAIA 31% 34% 29% 1%4% CONSTANTA 14% 51% 33% 0% 2% SIGHISOARA 22% 43% 26% 7% 3% SULINA 23% 41% 36% TARGU SECUIESC 12% 46% 31% 8% 3% VATRA DORNEI 11% 48% 24% 16% 2% TIMISOARA 9% 50% 30% 9% 3% BEIUS 17% 41% 20% 17% 6% BICAZ 21% 36% 41% 2% SLATINA 19% 38% 40% 3%1% C A R A C A L 4% 52% 27% 17% 1% BUZAU 10% 46% 30% 12% 2% SUCEAVA 38% 17% 38% 7%1% B O L I N T I N V A L E 5% 50% 26% 12% 7% CARANSEBES 12% 42% 37% 8% 1% B A I L E S T I 5% 48% 35% 11% 1% ABRUD 16% 36% 29% 18% 1% D R O B E T A T U R N U S E V E R I N 6% 46% 37% 11% 0% EFORIE 13% 38% 49% MORENI 20% 30% 42% 7%1% MOLDOVA NOUA 17% 33% 44% 5% P L O I E S T I 7% 43% 30% 13% 8% TASNAD 19% 30% 49% 3% CRAIOVA 8% 36% 41% 11% 3% PIATRA NEAMT 10% 35% 43% 10% 4% BUCHAREST 8% 36% 30% 22% 4% ALEXANDRIA 12% 31% 37% 18% 1% BRASOV 14% 30% 38% 15% 4% ISACCEA 16% 25% 58% 0% B A I L E H E R C U L A N E 4% 36% 51% 9% TG JIU 12% 27% 47% 14% 0% M I H A I L E S T I 6% 33% 49% 12% S T E F A N E S T I 4% 30% 42% 18% 6% C A R E I 5% 28% 63% 3%1% B U H U S I 1% 28% 45% 26% 1% Source: Romania's Urban Policy, Quality of Life Barometer, 2020 46 Informing and involving the citizens in administrative decisions The Urban Barometer survey asked citizens if they were informed about the provisions of the General Urban Plan (PUG) and the Local Development Strategy (SDL), if they were involved/consulted in the drafting of the PUG and the SDL and if they knew about the urban development projects that will be implemented by the local public administration. 7% of the people living in Târgu Secuiesc know the PUG and the SDL, 3% were consulted in their drafting and 9% know the projects of the Municipality. 3% of the interviewees at national level stated that they were involved/consulted in the drafting of the PUG and SDL, which positions Târgu Secuiesc as one of the cities where citizen involvement is below the national average. At national level, the survey concluded that informing and involving the citizens in administrative decisions has a direct effect on the trust in the local administration: � +8% trust in the administration for those who know the PUG and the SDL; � +11% trust in the administration for those who know the development projects that will be implemented; � +13% trust in the administration for those who were involved in the implementation of the PUG and the SDL. Therefore, in order to increase the level of trust and satisfaction among the citizens towards the services offered by the local public administration in Târgu Secuiesc, it is necessary to have a greater degree of involvement and awareness of the citizens regarding the development and implementation of the General Urban Plan and the Local Development Strategy, as well as of the projects to be implemented. 47 Figure 33. Informing and involving citizens in administrative decisions know the PUG, SDL were consulted know the Municipality projects SINAIA 20% 8% 32% 25% 7% 25% BRASOV 20% 6% 21% 15% 6% 15% ORADEA 21% 6% 30% 13% 5% 10% TG JIU 16% 4% 20% 13% 3% 11% STEFANESTI 10% 3% 6% 16% 3% 17% BUCHAREST 15% 3% 16% 9% 3% 15% CLUJ NAPOCA 15% 3% 23% 11% 3% 9% TARGU SECUIESC 7% 3% 9% 16% 2% 13% ISACCEA 22% 2% 23% 14% 2% 7% BAILESTI 16% 2% 15% 7% 2% 9% TIMISOARA 10% 2% 10% 19% 2% 35% SULINA 12% 2% 10% 20% 1% 19% SLATINA 7% 1% 8% 17% 1% 15% PIATRA NEAMT 13% 1% 14% 10% 1% 7% BEIUS 11% 1% 9% 10% 1% 12% MORENI 5% 1% 10% 6% 1% 20% BUHUSI 4% 1% 7% 6% 1% 5% CARACAL 4% 5% 7% 8% EFORIE 18% 19% 10% 10% MOLDOVA NOUA 12% 22% 6% 8% VATRA DORNEI 36% 34% Source: Romania's Urban Policy, Quality of Life Barometer, 2020 48 The respondents in the Urban Barometer study stated that there is a mechanism for permanent involvement and collaboration with the citizens in administrative decision-making at the local government level in Târgu Secuiesc, but did not provide any examples. At the same time, the assessment index of e-government in Romanian towns and cities - Front Office, created by the Faculty of Political, Administrative and Communication Sciences, did not provide a maximum score to the authorities in this regard. Average assessment of administrative performance indicators The opinion poll conducted under Romania’s Urban Policy contains the following values for the average of the assessment of Târgu Secuiesc’s administrative performance indicators: the way public money is spent (4.70), the city’s pace of development (4.59); the level of the local taxes (4.56) and the citizens’ relationship with the local authorities (5.04). The scores obtained are from a total of 10 possible points. At national level, the average of the four indicators of administrative performance is 5.4. Taken together, these indicators explain about 65% of the dynamics of trust in the local administration. At the same time, the citizens’ relationship with the local authorities had the highest average score, 5.71 points out of 10, and the way public money is spent scored the lowest: 5.19 points. Thus, all 4 indicators in Târgu Secuiesc are below the national average. 49 Figure 34. Average assessment of administrative performance indicators average assessment of the way public money is spent average assessment of the city development pace average assessment of the local taxes amount average assessment of the relationship with the citizens CLUJ NAPOCA (R_NV) 6.87 7.34 6.37 6.79 ORADEA (R_NV) 6.72 7.57 5.15 7.18 SINAIA (O_M) 6.70 6.99 6.75 7.18 CONSTANTA (R_SE) 6.39 6.24 7.13 6.43 BEIUS (M_NV) 6.22 6.16 6.23 6.62 IASI (R_NE) 6.05 6.62 6.12 6.82 MOLDOVA NOUA (O_V) 6.00 6.54 7.01 6.98 SULINA (O_SE) 5.81 5.84 5.84 6.08 ISACCEA (O_SE) 5.79 5.92 5.92 6.32 BICAZ (O_NE) 5.72 5.92 5.74 6.49 SLATINA (R_O) 5.71 6.64 6.35 6.61 VATRA DORNEI (M_NE) 5.70 5.87 6.06 5.98 CAREI (M_NV) 5.67 5.68 5.83 5.84 TIMISOARA (R_V) 5.64 6.75 5.63 6.51 RESITA (M_V) 5.55 6.1 4.86 6.07 SIGHISOARA (M_C) 5.54 5.71 5.63 5.92 BRASOV (R_C) 5.53 4.87 4.39 5.39 SUCEAVA (R_NE) 5.43 5.63 5.33 5.7 DROBETA TURNU SEVERIN (R_O) 5.38 5.42 5.08 5.38 EFORIE (O_SE) 5.31 5.6 6.34 6.79 ALBA IULIA (R_C) 5.23 5.32 4.85 6.23 STEFANESTI (O_M) 5.19 5.32 4.93 5.29 MORENI (M_M) 5.08 4.95 5.16 5.37 BAILE HERCULANE (O_V) 5.05 4.91 4.83 5.13 MIHAILESTI (O_M) 5.03 5.01 5.09 5.32 CRAIOVA (R_O) 4.95 5.37 4.96 5.21 TG JIU (R_O) 4.91 5.06 4.8 5.22 BUCURESTI (R_BI) 4.91 5.71 5.37 5.37 CARANSEBES (M_V) 4.76 4.99 5.07 6.15 CARACAL (M_O) 4.71 4.74 4.97 5.13 TARGU SECUIESC (M_C) 4.70 4.59 4.56 5.04 ABRUD (O_C) 4.66 5.06 5.3 5.62 SIMERIA (O_V) 4.58 4.92 5.31 5.43 ALEXANDRIA (R_M) 4.39 4.3 4.49 5.43 TASNAD (O_NV) 4.30 4.01 4.22 4.62 BAILESTI (M_O) 4.28 4.17 4.03 4.59 PIATRA NEAMT (R_NE) 4.26 4.41 4.26 4.97 BUZAU (R_M) 4.15 4.39 3.93 4.77 BOLINTIN VALE (O_M) 4.08 4.3 4.36 4.93 PLOIESTI (R_M) 3.82 4.23 4.04 4.74 BUHUSI (O_NE) 3.05 3.1 3.39 3.91 Source: Romania's Urban Policy, Quality of Life Barometer, 2020 50 Case study – Sector 3 Municipality Digital Services offered by Sector 3 Municipality: Through the Non-Stop Municipality project21 Sector 3 residents can benefit from the following online public services: � Online payment of local taxes and levies. � Submitting online applications and documentation to request a parking space; � Obtaining Urban Planning Certificates online; � Submitting online notifications and tracking them; � The "I love S3" application allows people to view the map of complaints received from citizens, as well as their resolution status; � Online scheduling for marriages, transcription of civil status certificates/extracts; � Online issuance of authorizations, agreements and notices of commercial operation, through the platform http://edirect.e-guvernare.ro.22; � Online issuance of tax clearance certificates; � Exclusively online enrollment in Sector 3 nurseries; � A section that allows citizens to assess the activity of the institution. � Owners' associations can send the association's documents online. 23 � According to the online services assessment index, developed by the Faculty of Political, Administrative and Communication Sciences, Sector 3 Municipality ranks 8th in terms of e- government in Romania, with a score of 79.92 out of 100. Case study: Oradea Digital services at the level of local public institutions and local public service operators: the structure of the IT infrastructure contains24: � At the level of Oradea Municipality: ○ Impotax - local taxes and levies ○ The City Report application that allows citizens to send various notifications and incidents to Oradea Municipality and local public service operators ○ Ecub - Accounting and budget ○ Invest - investments ○ Cid - the internal circuit of documents 21 Source: Sector 3 Municipality https://www.primarie3.ro/index.php/presa/comunicat/servicii-publice-online-pentru-ceteni-oferite-de- primria-sectorului-3 22 Smart City Association: https://romaniansmartcity.ro/primaria-sector3-digitalizare-activitate/ 23 Source: Sector 3 Municipality https://www.primarie3.ro/index.php/presa/comunicat/in-premiera-nationala-documentele-asociatiilor-de- proprietari-pot-fi-transmise-online-la-primaria-sectorului-3 24 Source: Oradea Municipality website: http://www.oradea.ro/fisiere/module_fisiere/23644/caiet%20de%20sarcini%20strategie%20informatizare%2 0MO.pdf 51 ○ Agroregis - the agricultural register ○ Resum - human resources, salaries ○ Audiențe - audience management ○ Taxi - taxi authorization management ○ Evidence of court cases ○ Registry Archive ○ Mobile applications ○ SIGMA – integrated data management system ○ A GIS application ○ According to the online services assessment index, developed by the Faculty of Political, Administrative and Communication Sciences, Oradea ranks 5th in Romania in terms of e- government, with a score of 77.13 out of 100. � The Building Stock Administration, the Community Social Administration, the Day Center and the Municipal Sports Club have financial and accounting applications. � The Building Stock Administration: the activity of surveyors [MapSys (maps) and TopoSys (measurement processing)], SIGMI – economic assessment, drafting and calculation of estimates, bidding and monitoring of construction and installation works and a software for estimates and project management in constructions and installations, public parking management activity: control application – for controllers who give fines (with phone license). � Oradea Transport Local has its own data center, E-Ticketing application, financial and accounting application, management, payroll, daily activity file tracking, fuel supply tracking, video surveillance system. � Compania de Apă Oradea: 22 Servers and a Hardware Firewall – Fortinet 200D. Case Study: Cluj-Napoca Digital services provided by Cluj-Napoca Municipality 25 � The platform that allows the online payment of local taxes and levies (local taxes, concession fees, rental fees). � Online wedding scheduling. � Online scheduling for submitting applications for transcription of civil status certificates/extracts/multilingual extracts of civil status documents of citizens who have acquired/regained Romanian citizenship. � Submission and online tracking of over 90 forms/applications. � The online payment of traffic fines and of fines given by the local police, the payment of other no- debit taxes (fee for issuing identity cards, divorce tax, urban planning certificate, extension of urban planning certificate or building permit, archaeological site, outside of built-up areas/within the built- up areas, etc.) and the payment of the free pass fee. � Online payment of fines under forced execution; the service is used by several companies. 25 Source: Cluj-Napoca Municipality Website: https://primariaclujnapoca.ro/taxe-si-impozite-locale/ 52 � Online services implemented through the European project "An integrated IT system for online services offered in Cluj-Napoca": Request for the placement of billboards and banners; Request for the organization of manifestations/public events, Parking permit management service, Reporting abandoned cars, Reporting community dogs, Reporting beggars, Reporting clandestine ramps, Reporting problems related to taxes and levies, Reporting problems related to green spaces, Reporting problems related to Social Assistance, Reporting problems related to streets, alleys, roads, bridges, Reporting problems related to road signs. � Cluj-Napoca Municipality has also joined the national portal ghișeul.ro, allowing citizens to have access to e-services provided by the system. � Online scheduling for discussions with the administration staff by requesting a blue ticket. � It presents the delineation and neighbors of the administrative territory. � According to the online services assessment index, developed by the Faculty of Political, Administrative and Communication Sciences, Cluj-Napoca ranks first in Romania in terms of e- government, with a score of 92.58 out of 100. The city of Târgu Secuiesc is in a process of developing its identity and digital services in accordance with European standards. Its scenario is based on connectivity that needs improvement (over 40% of the population has access to the internet), in terms of internet infrastructure, digital front and back office services under development (currently the website offers the possibility to access information and pay taxes and levies online, but it does not provide fully digitized public services), human capital requiring soft and hard digital skills and insufficiently digitally literate citizens. At national level, the digital public services for enterprises are almost non-existent or underdeveloped. Regarding this indicator, Târgu Secuiesc is in line with the national standard and has not developed services dedicated to the private sector. The Sector 3 Municipality took a step in this direction by issuing online authorizations, agreements and permits for commercial operation through a dedicated platform; the Cluj-Napoca Municipality did something similar by creating a platform for businesses. Other good practices observed within the Sector 3 Municipality are the exclusively online registration with Sector 3 nurseries or the possibility for the block administrators to submit the documents online. Regarding online payments, Cluj-Napoca offers a service for online payment of fines under forced execution, which is used by several companies. At the same time, the Cluj-Napoca administration made the following services available to the citizens, through European funds: request for the placement of billboards and banners; request for the organization of manifestations/public events, parking permit management service and an interactive virtual space dedicated to notifications (abandoned cars, community dogs, beggars, clandestine ramps, tax issues, problems related to green spaces, problems related to social assistance, problems related to streets, alleys, roads, bridges, problems related to road signs, etc.). Also, Sector 3 Municipality has developed a special application that allows citizens to view the map of notifications and track their status, and Oradea has an application that allows the communication of problems to the Municipality and local public services operators. The participation and involvement of Târgu Secuiesc residents through e-government had a low score in the index that evaluates the digitization in Romanian cities, conducted by the Faculty of Political, Administrative and Communication Sciences. The fact that a maximum score wasn’t achieved is due to the fact that the residents cannot publish their comments to the Local Council draft decisions, there are no surveys, questionnaires, audio or video recordings. The score obtained in the digital services section, under the e-government assessment index, created by the Faculty of Political, Administrative and Communication Sciences, is 5.88 out of 100 points. Therefore, it is necessary to develop the website, to digitize public services, to set up programs to involve citizens and to educate residents to learn digital skills. To this purpose, the local administration 53 aims to achieve an integrated e-government system and one-stop shop within the local public administration. 54 DIAGNOSTIC ANALYSIS: CHALLENGES AND RECOMMENDATIONS Local public administration and existing associative structures Challenges • Lack of coordination pertaining to the development of administrative capacity between the localities within the Functional Urban Area • The need to develop human capital resources within the local public administration, mainly in terms of the transition to a smart city Recommendations • Know-how transfer sessions and good practices procedures at the level of the Functional Urban Area in regards to public consultations with the population and stakeholders • Attracting EU funds from the 2021-2027 programming period to increase the efficiency of administrative flows related to smart governance. Local budgets (budget execution, operational budgets, funds raised) Challenges • Low absorption capacity of the EU funds that will become available for urban areas in Romania. • The own-source revenues generated by the municipality are low. • Low ability to attract foreign investment. Recommendations • Strengthening the capacity to attract European funds - both internal (i.e. number of EU funds experts and better staff training programs on European project management) and external (strategic partnerships with companies specializing in project writing or preparation of technical documentation). • Increasing local taxes and identifying new sources of revenue for the local budget. • Establishment of an investment promotion unit or department.. Human and material resources Challenges • Limited potential to attract skilled labor and specialists at the level of local public administration, mainly due to low salaries Recommendations • Collaboration with the private environment, citizens and civil society to identify and implement projects that may have an impact at the local level in attracting human and material resources, as well as in streamlining administrative flows Digital public services and the relationship with citizens Challenges • No fully digitized services have been developed, the online interaction between public authorities and the population includes access to information of public interest, through the website. • Lack of a department dedicated to the digitization process. • There are no basic tools for citizen participation and involvement. 55 Recommendations • Târgu Secuiesc is in the process of developing its identity and digital services at European standards. Its current scenario is based on connectivity that needs to be improved (over 40% of the population has access to the internet), in terms of internet infrastructure, digital front and back office services under development (currently the site offers the possibility only to access information, but does not provide fully digitized public services), human capital that requires soft and hard digital skills and insufficiently literate citizens. • Improving the internet infrastructure in the area (Connectivity). • Establishment of an entity dedicated to the process of digitalization of public services and intelligent transformation of the city. • Citizens and human capital with digital skills (Digital skills). • Establishing and assuming an integrated vision of all public services offered to citizens and developing strong collaboration with both central and regional authorities. • Digitization of all public services and increasing their utilization rate. • Increasing the involvement of citizens in the development process of the city through the continuous development of the concept of participatory budgeting and the development of a more efficient and transparent online dialogue, through various digital tools. • Access European and national funds allocated for the development of administrative capacity and digitization of public services. 56 ANNEX 1. AMENDMENTS TO THE STATE BUDGET LAW BETWEEN 2015 AND 2019 AND HOW THEY AFFECTED THE FINANCING OF THE LOCAL ADMINISTRATIONS The Romanian state budget law stipulates the amounts of money collected available to the state, their origin and uses. However, there are recurring derogations from this law when it comes to adopting the annual public budget, generating a significant impact on local budgets. In Romania, according to Law no. 273/2006 on local public finance, republished26, the share of the income tax is distributed as follows: • 41.75% to the local budgets of the communes, towns and cities; • 11.25% to the local budget of the county; • 18.5% in a separate account for balancing the local budgets. Out of the share of 18.5%, 27% is allocated to the county's own budget, and 73% is distributed between the local budgets of the communes, towns and cities. The following tables reflect the volatility of allocations and exemptions adopted by the central government with an impact on the local budgets, in particular due to changes in allocations and the taxation of personal income (TPI) and value added tax (VAT). The evolution of the share of the personal income tax distributed locally Year The amount distributed from the income tax By way of derogation from the Law on Public Finance, the income tax is distributed as follows: • 15% to the local budget of the county 201927 • 60% to the local budgets of the communes, towns and cities • 17.5% in a separate account for balancing the local budgets • By way of derogation from the Law on Public Finance, the income tax is distributed as follows: • 11.25% to the local budget of the county 201828 • 43% to the local budgets of the communes, towns and cities • 17.25% in a separate account for balancing the local budgets • • By way of derogation, the amounts deducted from the value added tax, approved by the state budget law, and from the share of 18.5% of the income tax for balancing the local 201729 budgets shall be distributed as follows: 27% for the county budget and 73% for balancing the local budgets of the communes, towns and cities. • By way of derogation, the amounts deducted from the value added tax, approved by the state budget law, and from the share of 18.5% of the income tax for balancing the local 201630 budgets shall be distributed as follows: 27% for the county budget and 73% for balancing the local budgets of the communes, towns and cities. 26 http://www.dpfbl.mdrap.ro/legislatie/Legea_273_din_2006.pdf 27 https://static.anaf.ro/static/10/Anaf/legislatie/L_50_2019.pdf 28 https://static.anaf.ro/static/10/Anaf/legislatie/L_2_2018.pdf 29 https://static.anaf.ro/static/10/Anaf/legislatie/L_6_2017.pdf 30 https://static.anaf.ro/static/10/Anaf/legislatie/L_339_2015.pdf 57 Evolution of the VAT share allocated to local budgets (RON) The VAT amount allocated to the local The VAT amount for balancing the local Year budgets budgets 2019 RON 14,792.3 billion RON 11,409.9 billion 2018 RON 13,340.6 billion RON 5,290.4 billion 2017 RON 22,190.5 billion RON 2,469.5 billion 2016 RON 18,693.9 billion RON 2,228.1 billion Evolution of the personal income tax and VAT rates in Romania (%) Year VAT Personal income tax 2019 19%; 10%; 2018 19%; 10%; 2017 19%; 16%; 2016 20%; 16%; 2015 24%; 16%; Evolution of the income tax and VAT components at county seat level (RON) Personal income tax Year VAT components Total revenues components 2012 3,195,328,442 2,924,615,531 11,024,162,100 2013 3,406,214,660 3,375,624,547 11,613,820,336 2014 3,456,224,669 4,072,314,472 12,351,928,465 2015 4,050,401,198 4,298,938,605 13,639,192,032 2016 4,199,961,006 4,298,164,978 13,057,161,580 2017 4,728,928,933 5,245,036,534 13,977,798,229 2018 3,866,818,538 1,189,261,952 10,038,903,807 This data is valid for county seats and is presented here for illustrative purposes. For Bucharest and its sectors, section 2 of Chapter 1 contains a complete description of the changes in the distribution formula over the years. 58 To prepare a list of priority projects, the starting point is the long list of projects, which will include all unimplemented projects or projects not started from the 2016-2020 Târgu Secuiesc IUDS (see the table below), and adding projects collected from the local administration and from the citizens and relevant actors in the area. The World Bank has developed a methodology for prioritizing projects for local development strategies. This methodology can be consulted here: http://documents1.worldbank.org/curated/en/427191468179668911/pdf/97813-WP-ROMANIAN-P151596-Box391484B-PUBLIC.pdf A similar approach can be used in preparing a portfolio of priority projects in Târgu Secuiesc. Table 9. Degree of implementation of the projects in the 2016-2020 Târgu Secuiesc IUDS Possible Estimated Implementation Strategy/Plan Project Beneficiaries sources of Project status (September 2020) budget in EUR period funds Tg. Secuiesc IUDS Construction of a bicycle lane network City ROP € 321,909.14 2017-2020 FS drawn up in 2016 financing application submitted to Rehabilitation and modernization of the public lighting Tg. Secuiesc AFM for the replacement of 607 IUDS system in Târgu Secuiesc City City ROP €257,527.31 2018-2020 pieces of lighting fixtures Using renewable energy sources for the energy supply Tg. Secuiesc FS submitted to AFM for 6 buildings in IUDS of the public institutions in the city City LI OP, ROP €2,146,060.91 2018-2021 2014 Reducing CO2 emissions and energy consumption by Tg. Secuiesc Works on 3 projects started, and for 2 IUDS thermal insulation of public buildings in the city City ROP €1,609,545.68 2017-2021 – procurement of works in progress. Refurbishment of the buildings of the former thermal Tg. Secuiesc IUDS power plants for social centers City ROP €858,424.36 2018-2020 concept phase Rehabilitation and repurposing of degraded and Tg. Secuiesc Laying out of recreational space. IUDS unused spaces in Târgu Secuiesc City ROP €214,606.09 2017-2018 Evaluation of the design phase. In progress. Financing through the Rehabilitation and extension of water and sewer Tg. Secuiesc NLDP program and the local budget. IUDS systems of the courtyards around the historical center City LIOP €536,515.23 2017-2018 Completion deadline - 2021. 59 Possible Estimated Implementation Strategy/Plan Project Beneficiaries sources of Project status (September 2020) budget in EUR period funds Building the drinking water supply and domestic Tg. Secuiesc IUDS sewerage in Lunga City LIOP €2,146,060.91 2016-2018 Completed in 2019. Rehabilitation and modernization of the road Contained in the budget rectification infrastructure in the city to reduce CO2 and noise Tg. Secuiesc of September 2020, in order to start IUDS pollution City ROP €4,292,121.81 2017-2021 the SUMP, The technical expertise has been Rehabilitation and extension of the “Molnár Józsias� Tg. Secuiesc conducted, resulting in the IUDS secondary school (grades I - VIII) in Târgu Secuiesc City ROP €551,259.74 2017-2018 consolidation of the building. Tg. Secuiesc Obtaining approvals based on the IUDS Kindergarten laying out in Târgu Secuiesc City City ROP €96,572.74 2017-2018 Urban Planning Certificate. Revitalizing the Târgu Secuiesc Historical Center by upgrading public spaces and improving the aesthetics Tg. Secuiesc FS and approvals obtained. No funding IUDS of the built environment City ROP €2,735,231.88 2017-2019 source. Strengthening public safety by installing surveillance Tg. Secuiesc Local IUDS cameras in the city’s historical center City Budget €200,000.00 2017-2019 Permanently expanding system. Rehabilitation and repurposing of the spaces located in Tg. Secuiesc, no. 10 Kanta Str. - The Order of Friars Tg. Secuiesc Works in progress. Completion in IUDS Minor Conventual City ROP €2,146,060.91 2017-2020 2021. Creation of an integrated e-government system and Started in 2019. The components of one-stop shop within the city’s local public Tg. Secuiesc the e-government system need to be IUDS administration City COP €107,303.05 2017-2018 defined and clarified. €18,219,199.73 60 Possible Estimated Implementation Strategy/Plan Project Beneficiaries sources of Project status (September 2020) budget in EUR period funds Construction of a ring road between Tg. Secuiesc and Focșani for heavy traffic and transit on DN11 from These projects are in the form of Municipality Sfântu Gheorghe to Focșani Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Construction of a ring road between Tg. Secuiesc and These projects are in the form of Municipality Sânzieni Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Construction of a multifunctional swimming pool These projects are in the form of Municipality Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Renovation of the recreational and treatment unit at These projects are in the form of Municipality Fortyogó/swimming pool Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Modernization of the road network, creation of a bicycle lane network, including the construction of such These projects are in the form of Municipality lanes to the neighboring localities Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Extension of the natural gas distribution network in Tg. Secuiesc/Ruseni and the village of Lunga, dependent on These projects are in the form of Municipality the city of Tg. Secuiesc Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Modernization of Fabricii Street, 1 Decembrie 1918 and Ady Endre – national road DN 11 and DN11B under the These projects are in the form of Municipality administration of Tg. Secuiesc City Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Development of the housing fund (apartment block for young people to rent, apartment block for the These projects are in the form of Municipality specialists in healthcare and education) Tg. Secuiesc concepts/ideas, there is no study proposal City drafted 61 Possible Estimated Implementation Strategy/Plan Project Beneficiaries sources of Project status (September 2020) budget in EUR period funds Construction of social center – shelter for homeless These projects are in the form of Municipality people Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Modernization of the streets in the localities These projects are in the form of Municipality dependent on the city of Tg. Secuiesc, Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Landscaping, parks, playgrounds These projects are in the form of Municipality Tg. Secuiesc concepts/ideas, there is no study proposal City drafted Replacement of classic above-ground containers with underground platforms for household waste on the These projects are in the form of territory of Tg. Secuiesc Municipality Tg. Secuiesc concepts/ideas, there is no study proposal City drafted 62 ANNEX 2. ORGANIZATIONAL CHART OF THE TÂRGU SECUIESC MUNICIPALITY Source: Târgu Secuiesc Municipality (https://www.kezdi.ro/ro/organigrama/ 63