Interest income graph. /Photo = Kim Je-si
[스마트에프엔=윤종술 기자] As the city of Gimje, Jeollabuk-do, is on alert for local finances due to a decrease in local allocation taxes due to the largest tax revenue deficit in history, ▲secure maximum interest income through strategic fund management to efficiently expand local revenue ▲organize and manage cash other than revenue and expenditure. We are concentrating all our capabilities on increasing tax revenue, such as increasing interest income through ▲ actively promoting the sale of unusable items.
According to the city on the 29th, this year, in order to secure independent financial resources, it plans to achieve interest income of 8 billion won (7.7 billion won in general accounting and 300 million won in special accounting) by the end of the year through the use of the global cash exclusive system and strategic deposit of time deposits. This is a 17% increase compared to the previous year’s interest income and is the highest ever.
Major achievements this year include: ▲Establishing a limit account conversion system that allows allocating and disbursing funds using only data to enable transparent expenditure management, including preventing simple transfer errors and execution balances.
▲According to interest rate fluctuations, we implemented strategic deposits of term deposits, including short-term and long-term diversification of surplus funds.
In addition, an affiliate card fund transfer ceremony was held early this year, and work is being carried out to ensure that no funds are missed, such as managing affiliate card points and accumulating fuel purchase card points.
Next year, Gimje City will also do its best to increase interest income through systematic fund management, including thoroughly managing fund operation and expenditure and strengthening the comprehensive fund plan in detail so that it can secure ample independent financial resources and actively utilize them as financial resources to improve the welfare of local residents. I plan to do everything.
According to Article 34, Paragraph 3 of the Local Finance Act and Article 40 of the Enforcement Decree of the same law, amounts temporarily stored by local governments, such as contract deposits, defect repair deposits, and expenses necessary for office management, can be treated as other than revenue and expenditures.
Accordingly, Gimje City is conducting a general reorganization every year to efficiently manage cash reserves other than revenue and expenditure. Deposits that have expired after the return period are returned immediately after checking the relevant details to guarantee the rights of creditors, while deposits that can be treated as revenue are immediately returned, thereby contributing to increasing revenue.
In particular, this year, among the city’s own deposits, rather than bonds, long-term deposits were separately classified and converted into data to analyze the funds available for deposit, and the funds were deposited in high-interest term deposits.
Previously, interest was paid by operating funds only through MMDA (money deposit/withdrawal accounts), but by actively reflecting the revision of related enforcement ordinances, the basis for operating funds as high-interest term deposits was established and work was promoted.
As a result of these efforts, we secured interest income of approximately 150 million won from this year to February next year. This is the highest ever for cash interest income other than tax revenue and expenditure, and is a 4.7 times increase from the previous year’s interest income.
We plan to continue to strive to prevent funds from being wasted and contribute to increasing city revenue by simultaneously managing cash other than revenue and expenditure and operating funds.
In addition, the city strengthened its comprehensive management plan for public properties such as land and buildings to systematically manage city property this year.
Major progress includes: ▲Discovering properties unsuitable for preservation and continuously promoting the sale of public property ▲Thorough imposition and collection of rental fees for public property ▲Prevention of unauthorized occupation and discovery of idle property through regular management and fact-finding of public property ▲Operation through thorough inspection of managed items These include understanding the actual situation and thoroughly managing supply and demand.
In particular, this year, the company contributed greatly to increasing tax revenue through the active sale of unusable items. This year, the number of cases of sale of unusable items was 12, and the sale and scrap price was approximately 99 million won. This is an increase of 82 million won compared to the previous year, or an increase of more than five times.
Next year, to protect Gimje City’s property, we plan to do our best to manage public property more thoroughly and to discover and expand tax sources.
Lastly, the LED display board installation project, a project to strengthen internal and external promotional media for communication and empathy, promoted as a policy project in 2024, was successfully completed.
In the past, installation costs and manpower were wasted by frequently attaching and detaching placards whenever there was a promotional item. However, by installing an LED display board on the main building and the canopy of the council, the cost of placard attachment and detachment was greatly reduced, and at the same time, it was eco-friendly by reducing the generation of waste such as discarded banners. It also has advantages.
Above all, it was possible to create a sophisticated exterior of the office building and improve the efficiency of promoting city and legislative affairs more actively through an ever-changing electronic display board.
Next year, we plan to actively strive to reach out to civil servants and Gimje citizens who visit the building by installing kiosks inside the building.
Mayor Jeong Seong-ju of Gimje said, “We will continue to increase interest income through efficient fund management in 2025, and we will do our best to secure independent financial resources, such as discovering idle properties and selling public properties that are unsuitable for preservation, and take a step forward toward administration for citizens.” “I will,” he said.
Reporter Jongsul Yoon yjs9127@nate.com
