Financial Services, Latvia, Legislation, Markets and Companies

International Internet Magazine. Baltic States news & analytics Friday, 26.04.2024, 01:22

Riga Zoo in financial trouble due to reduced subsidies

BC, Riga, 03.07.2013.Print version
Due to reduced state subsidies and rising electricity and heating prices, the municipal Riga Zoo has gotten into financial trouble, LETA learned from the Riga City Council.

While the zoo could attract more visitors by new exhibitions and displays, organizing such exhibitions and displays is impossible currently due to limited funds, the Riga Zoo Director Rolands Greizins writes in a letter to Riga City Council's Housing and Environment Committee.

 

Taking into consideration the zoo's limited abilities to increase incomes necessary to cover the zoo's regular spending, the zoo has turned to the Riga City Council, informing that the zoo requires an additional LVL 256,000, but the minimum amount necessary so the zoo could continue operations is at least LVL 38,000. Without this, the zoo will be unable to continue to function as per normal, notes Greizins, reminding in the letter about Riga's status of the European capital of culture next year.

 

55.2% of the Riga Zoo budget is made up of income from tickets and commercial operations. Riga City Council's subsidies make up 35.8% of the Riga Zoo budget, state subsidies – 9%. Riga City Council's subsidies for the zoo have remained unchanged since 2009, while state subsidies have been cut by LVL 92,800. The zoo, however, has been able to partly compensate for this by higher incomes, the proportion of which in the Riga Zoo budget has increased to 55.2% from 47.2% in 2009 or by LVL 176,300.

 

However, this is not enough, given that the Riga Zoo spending on animal fodder, electricity, natural gas and fuel has increased significantly. The minimum monthly wage and relevant social contributions have also increased.

 

The letter also informs about the cost of modernization measures carried out at the zoo in order to improve animal safety.

 

Greizins says that the current funding amount is only enough for the zoo to pay wages to workers, pay utility bills and buy animal feed. However, maintenance of the zoo's animal collections and infrastructure and further improving animal welfare is no longer possible.

 

Riga City Council's Housing and Environment Committee will review the Riga Zoo request for increased funding on Thursday, July 4, but the final decision will be taken by the Riga City Council members.






Search site