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Drohobych City Council: Budget Changes and Support

Today, October 14, an extraordinary session of the Drohobych City Council took place.

The council gathered for an extraordinary meeting to swiftly make necessary financial decisions – to amend the budget and approve the Program “Contributions to the authorized capital of KM ‘Drohobychvodokanal’.

This concerns the support of the enterprise in terms of obligations under the sub-lending agreement.

The financial condition of the enterprise depends on the income it receives from providing centralized water supply and sewage services, and the tariffs for these services are set by the National Commission for State Regulation of Energy and Public Utilities (NKREKP).

Economically justified tariffs for 2025 were approved by NKREKP resolution No. 2319 dated December 24, 2024. This same resolution established that tariffs for centralized water supply and sewage for the population will be applied at the level of tariffs effective as of February 24, 2022. Therefore, the enterprise has been experiencing financial losses for several consecutive years.

Sometimes we face political accusations regarding management work. But we have to work within the realities we are in. Not just us. The mismatch of the tariff with economically justified standards annually generates about 72 million UAH in debt. In Lviv, half a billion UAH were allocated to support the water utility. This is not a benchmark for comparison, since we have different budgets, but it is evidence that everyone is working under difficult conditions now

– noted the director of the enterprise, Roman Shagala.

According to the approved program, 7 million UAH were allocated from the budget to support the enterprise for obligations under the sub-lending agreement.

Drohobych City Council