Mykolayiv City Hall will cut up to 20% of its staff — Sienkevych says that some people may transfer to the newly created ASC

Oleksandr Sienkevych, Mayor of Mykolaiv, photo: NikVesti

About 20% of the staff of the Mykolaiv City Council is planned to be reduced as a result of optimization. In particular, this will involve the unification of some departments.

The mayor of Mykolaiv, Oleksandr Sienkevych, stated this on Tuesday, May 21, during a briefing, NikVesti reports.

The mayor said that the company «Ernst & Young», which is engaged in optimizing the structure of the city hall, has already held two strategic sessions. According to the developed audit, the reduction will primarily concern departments.

— Our management levels are very extensive. Mayor, deputy mayor, head of department, deputy head of department, department, head of sector and so on. This will be precisely a decrease due to the unification of management levels, leaving the statuses of some departments, reducing the cleaning of sectors, and so on. Also, a large number of our main managers will be deprived of this status. That is, the organizations that are engaged in procurement, buy only furniture, paper, something like that for themselves, but perform administrative functions, will not be the main managers, and the functions of the main manager will remain with the executive committee of the Mykolaiv City Council. This will reduce the number of accountants and so on. This 100% will not apply to the education administration, because they have centralized accounting, they work with a large number of educational entities, schools, kindergartens, school education, extracurricular education. Therefore, they will remain with the status of the main routine. We will liquidate the others, this will allow us to reduce accounting, said Oleksandr Sienkevych.

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The process, according to the mayor, will take place in stages — until the new year and after. This is necessary in order not to paralyze the work. At the same time, reductions will not mean layoffs in all cases, because some personnel may move to work in new centers for the provision of administrative services in the Ship and Factory districts.

«During my work in the city council, I realized that the system that is working cannot change itself. If you propose changes to people internally, then these people who work internally, they will only propose simple changes that are not global and actually do not affect the work of the city council so much. All work should be divided into three parts. These are front office, middle office and back office. This concept was developed and presented by Ernst & Young. One of the important elements of this work is the increase in the number of administrative services. I would like to remind you that in July, the repair and expansion of the Administrative Services Centres (ASC) of the Korabelnyi district will be completed. And we also found partners who are ready to help us create the ASC in Zavodskyi District. A certain number of people can be transferred there to provide services to the people of Mykolaiv,» he added.

The mayor added that it is currently unclear what kind of savings the reduction of budget officials will bring.

According to this principle, in April of this year, deputies of the Mykolaiv City Council reorganized the Department of Land Resources, attaching it to the Department of Architecture and Urban Planning.

Such a reorganization will save 2 million hryvnias of Mykolaiv's budget per year and will allow procedural issues to be resolved more quickly, the chief architect of the city, Yevhen Poliakov, said earlier.

Reduction of Mykolayiv City Council officials

Earlier, the mayor of Mykolaiv, Oleksandr Sienkovych, announced that the city council will reduce the number of employees due to the reduction of the city's budget by almost two times.

This is due to the fact that within the framework of the law «On the state budget for 2024», the Cabinet of Ministers planned to direct all revenues from the personal income tax of military personnel, 64% of which currently remain in local budgets, to the state budget. The Association of Cities of Ukraine believes that these funds will most likely be dissolved in the state budget, as well as 36% of the current personal income tax, which is administered by the Ministry of Finance. We are talking about 25.8 billion hryvnias this year and 93.7 billion hryvnias next year, Prime Minister Denys Shmyhal clarified earlier.

The Verkhovna Rada of Ukraine can allocate over 517 million hryvnias to the communities of the Mykolaiv region to compensate for the loss of personal income tax from military income.

And on October 6, 2023, it was reported that the Budget Committee of the Verkhovna Rada reviewed the decision on the draft law on personal income tax from the military and made amendments: from October 1 to December 31, 2023, the «military» personal income tax is directed to the state budget in the ratio of 50% to 50%. One part of 13 billion hryvnias will go to the State Service for Special Communications and Information Protection of Ukraine for drones, and the second part, also 13 billion hryvnias, will be directed to the Ministry of Defense for the purchase of artillery systems.

Earlier, the mayor of the city Oleksandr Sienkevych said that the military personal income tax withdrawn from the budget of Mykolaiv will be directed to the manufacture of weapons, in particular, drones for the Armed Forces of Ukraine.