The Exchange 5 Programme supported local self-governments (LSG) in the Republic of Serbia in the areas of efficient property management (Component 1) and in strategic planning and programme budgeting (Component 2). The Programme was funded by the European Union from IPA 2014 funds, and the main beneficiary of the Programme at the national level was the Ministry of Public Administration and Local Self-Government (MPALSG), while the Ministry of Finance (MFIN) also played a significant role, given that the content of the support and topics represented a major part of the MFIN portfolio. MFIN also had the role of the Contracting Authority, given that Department for Contracting and Financing of EU funded Programmes (CFCU) approved and signed contracts for the implementation of town/municipal grant scheme projects. The Ministry of European Integration monitored the Programme implementation through participation in the steering committee and in the reporting process, and the EU Delegation also had a role in issuing prior approval for certain steps in the implementation of the Programme (ex ante control). As in previous phases of the Exchange Programme, the SCTM was positioned as an implementing partner, implying that the SCTM directly provided all forms of technical assistance to LSGs, as well as support in the implementation of grant scheme projects.
The essential beneficiaries of the Program were towns and municipalities, employees in their administrations, institutions, and organizations founded by LSGs, but also a wider circle of beneficiaries in local communities. The main modalities of support were technical, expert assistance and allocation of financial resources for the implementation of grant projects. Some Programme activities were designed to cover all LS in Serbia, while others included a limited number of LS (according to the competition for specific support).
The total budget of the Programme was 4.75 million EUR (4.45 million EUR from EU contribution), and lasted from April 2017 to July 2021.
Component 1: Support to local self-governments for property management
The Programme supported LSGs in the process of inventory and registration of public property, as well as for establishing sustainable property management units, improving databases for keeping real estate records, financed geodetic surveys of aboveground and underground structures/facilities and networks, as well as studies for preparation of cadastral and topographic plans/maps and calculation of real estate values.
In the scope of the Programme, the implementation of 18 projects in the field of property management at the local level was approved. The projects covered 48 cities and municipalities (18 coordinators and 30 partners) as well as several other beneficiaries (PUCs, development agencies, CSOs). The total value of contracted projects is more than 3.5 million EUR (3,528,954.72), of which the European Union donation was approximately 3 million EUR (2,973,371.54), and the rest is co-financing by beneficiaries (555,582.19). LGSs involved in the implementation of the supported projects have improved their internal organisation and capacities for property management by drafting new and amending existing acts, through delivery of various types of training for the staff and decision- makers, software and equipment for property management, etc. In all supported LSGs, the number of property units orderly entered in local records was significantly increased, same as in the central public property register, compared to the initially planned values. Over 200,000 property units were entered in the local registers, while 130,000 units were recorded in the central public property register. Likewise, bookkeeping value was determined for nearly 30,000 property units and over 400 km of utility networks, same as market value for 899 property units. In addition to this, a large number of geodetic surveys of aboveground and underground structures/facilities and networks were undertaken, project- technical documentation was prepared same as geodetic studies for legalisation of 222 facilities and over 800 km of utility networks, geospatial data management on municipal property was improved by linking GIS system with local property databases, etc.
In addition to project grants, 20 local self-governments received support for the improvement of municipal property management services in the form of expert technical assistance (support packages), which is specifically tailored to LSGs that are less developed or less advanced in the field of property management, given that the intention was to make a step forward within the Programme with such LSG units to establish at least the basic preconditions for the property management system. Situation analyses in the field of property management have been prepared for each beneficiary LSG, and regional workshops on public property management, consolidation and keeping records on real estate in public ownership have been organized for all users of the support packages. Part of the trainings was dedicated to practical instruction for keeping the Register of real estate in public ownership, with a cross-section of the current situation at each beneficiary LSG. Via support packages, beneficiary LSGs have entered in the Public Property Register maintained by the Republic Property Directorate (RPD) in total ca. 13,000 real estates and determined factual situation for ca. 2,000 real estates in public ownership or used by LSGs.
To raise capacity and awareness of the importance and prospects of effective management of public property for local development, three sets of regional trainings were organized for LSG employees (in 2017, then in 2020, and 2021). Within the Program, a Model Decision on acquisition, disposal, and management of real estate in public ownership of local self-government was developed, as well as a model of the Instruction/decision on coordination of work of all local self-government services in the field of property management, and a Model Decision on construction land in JLS. The models were available to all local self-government units in Serbia through the SCTM Network for Property Management and Property Legal Affairs and in the process of implementing accredited trainings, and they are also available within the Manual for Local Property Management developed within the Programme.
Component 2: Support for local planning and programme budgeting
Yearslong work with LSGs in improving planning and budgeting processes was continued within the Exchange 5 Programme. The focus was on the implementation of programme budgeting as a modality in budget planning enabling improved public administration performance management, increased accountability of budget beneficiaries, establishing stronger links between annual budget, prioritising expenditures and public policy implementation, same as improved transparency of spending.
Within the Programme, support was delivered to LSGs in all stages of the budget cycle in each year of implementation, in line with the Budget System Law and methodologies defined by the MFIN, with the SCTM being in charge of coordination, improvement and support provided to Serbian towns and municipalities.
At the annual level during the implementation of the Program, reviews and analyzes of Budget Decisions of all (170) LSGs related to the implementation of program budgeting were prepared and sectoral workshops were organised to improve the program budget of local self-government in specific areas (e.g. utilities, housing, and urbanism, local economic, agricultural, tourist development, environmental protection and energy efficiency, social and health protection, development of culture and information, sports and youth). Moreover, packages of supporting documents and models were prepared for the LSG Budget Decision drafting, and during the budget elaboration phase, all LSGs in Serbia were supported through annual regional seminars. These included, besides the programme budget preparation and performance reporting, topics pertaining to gender responsive budgeting, capital planning and promotion of drafting citizens' guides to budget. Starting from 2018, these seminars included a segment on the new concept of development and strategic planning, budgeting, and drafting planning documents at the local level in accordance with the Law on Planning System. The development and promotion of the citizens' guide to LSG budget within the Exchange 5 Programme in 2018, directly contributed to the increase in number of LSGs publishing these simplified, illustrative presentations of one of the most important local acts (Budget Decision). Thus, in comparison to the baseline when only ca. 10% of LSGs had these citizens' guides, the percentage was increased to ca. 37% in 2019, and to ca. 44% in 2020.
Regional seminars for all LSGs in Serbia were, in the initial three years of the Programme implementation (2017- 2019) implemented in cycles of 12 regional events, whereas in September 2020 due to the Coronavirus pandemic, this activity was delivered in the form of four webinars (online training). The turnout of LSG representatives was significant (from 60- 80% of LSGs) given that the seminars were delivered in the autumn part of the budget cycle and that on such occasions recommendations and models for direct improvement of the budgeting quality for the coming year were presented.
According to the latest data and measurement within the Programme for 2021, programme information was stated by 87% of LSGs in Serbia, which is an almost twofold better result compared to the baseline for budgets in 2015 (ca. 45% of LSGs). Such progress can largely be assigned to activities undertaken in cooperation with MFIN in the past several years, primarily under the Exchange Programme.
Direct technical (expert) assistance (one-on-one) in planning and programme budgeting within the Exchange 5 Programme was provided to 12 LSGs selected based on the public calls. The main form of technical assistance pertained to support in improving the process of Budget Decision drafting, and part of the support was also aimed at improving the process of planning capital projects in accordance with the applicable legal framework. To round up the support in programme budgeting improvement, one segment of the activities was dedicated to support in drafting reports on the programme performance. A line of activities in this segment og support under Programme Component 2 in cooperation with LSG representatives - was related to piloting the broadened programme structure within the LSG Budget Decision and identification of potential new programmes and programme activities in line with the local government competences. By exercising direct technical support with selected LSGs, the Programme tested the improved packages of documents for programme budgeting and enabled drafting of recommendations for all LSGs in Serbia based on the work with this specific LSG sample.