Developing the system of municipal property management of the city of Irkutsk : using the mechanisms of municipal-private partnership

The authors have performed economic and statistical analysis of dynamics of income from the use and sale of municipal property in the city of Irkutsk in the structure of non-tax revenue of local budget, and identified key problems impeding effective management and disposal of municipal property in Irkutsk. They proposed perspective directions of solution of the identified issues, including expanding of sphere and practice of use of mechanisms of municipal-private partnerships in the management of municipal property. The major issues impeding implementation and development of mechanisms of municipal-private partnership on the concession terms on the territory of Irkutsk have been identified, and prospective directions of their development suggested. Necessity of work to be carried out by local bodies on development of methodological materials containing basic requirements and practical tools on preparation and implementation of projects of municipal-private partnership on the concession terms is justified in the paper, including a legal model, a technical model, and a financial and economic (financial) model. The authors proposed using indicators of socio-economic effectiveness of implementation in the framework of financial and economic model of concession projects.


Introduction
The terms "municipal property" and "municipal property management" have recently appeared in the theory and practice of the Russian economics.It happened in course of the reform of relationship and forms of property in 1990s.In contemporary economic conditions, management of the municipal property objects, and implementation of measures focused on increasing effectiveness of such management are the important tasks of local self-governing bodies in any municipality.
Municipal property management is executed in the interests of population of the municipality and in the context of strategic priorities of its development.It should be focused on the achievement of the following purposes: − Creation of the optimal structure of municipal property; − Ensuring economic basis of local self-governing; − Creation of holistic and effective system of management of the municipal property objects; − Increased revenues for the local budget; − Increased competitiveness and investment attraction of the municipality providing attraction of investments into economics of the municipality, creation of additional workplaces, and development of the municipal infrastructure.
Effective municipal property management provides for high and sustainably increasing quality of life of the population in the municipality through maximum satisfaction of its interests and demands, and promotes creation of favorable social environment.

Materials and methods
Performance reports data of the city of Irkutsk budget for 2010 -2016 and information on performance of the city budget as on 01.01.2018 (for 2017) displayed on the official website of the Irkutsk municipality have become the basis for economic and statistical analysis of the dynamics of income from the use and sales of municipal property in the city of Irkutsk.The data collection has been done with the use of reporting and statistical methods.
Theoretical studies of the patterns of have been performed with the use of mathematical statistics.According to the data of the official website of the Irkutsk municipality and reports on the city budget performance, diagrams have been developed and approximated that reflected trends in change of revenues in the local budget.Polynomial approximation has been used for the analysis of data, which represented a set of alternately increasing and decreasing values.

Results
Ensuring effective use of municipal property and lands in the city of Irkutsk aimed at solving local issues is an important strategic purpose of the municipal policy in the city in the sphere of municipal property management.The achievement of this purpose is envisaged in the framework of implementation of the municipal program "Increasing quality of municipal property management in the city of Irkutsk, and land plots on the territory of the city of Irkutsk for 2013-2020" (the Program) [2].
In current circumstances, sustainability of economics of Irkutsk and opportunities for its stable development are determined by the level of development of the land and property relations.According to the Program, effective municipal property management includes the following: − Provision for preservation, functioning and development of the municipal property objects; − Utilization of all municipal property objects in the interests of the municipality and population of the city; − Replenishment of the local budget revenues with the purpose of the most complete implementation of plans of development of municipal education and powers to address local issues.
Strict compliance of structure of municipal property to powers of local authorities and provision of effectiveness of the municipal property use with the optimal level of expenses for management are the basic principles of municipal property management.In this connection, a number of issues impeding effective management of the municipal property objects in the city of Irkutsk should be outlined: − The presence in the municipal property of the city of Irkutsk the property that does not intend for solution of issues of local value, or not demanded by local administration bodies; − Insufficient level of provision of object of municipal property with actual technical documentation and title documents; − The need to carry out works of identification, certification and subsequent registration of ownerless real estate (usually the objects on engineering infrastructure) to the municipal ownership; − A threat of loss and destruction of the objects of municipal property due to a high degree of their depletion; − Lack of demand for the municipal property objects on the real estate market due to their poor technical state, low level of consumer qualities, remote location from the central areas and highways of the city, and lack of technical opportunities to connect them to the engineering networks; − Insufficient level of formation of the fund of municipal lands; − Absence of timely implemented geodetic surveys and expertise of the actual use of lands by individuals and legal entities, and, as a consequence, insufficient evidentiary basis for the protection of property interests of the municipality in case of adjudication of disputes; − Incomplete works on formation of land plots under municipal property, and a lack of monitoring system for the formed and allocated land plots; For the solution of these issues, the Program envisaged implementation of the complex of measures in the framework of the three subprograms with different targets: − «Improvement of management and the order of municipal property in the city of Irkutsk»; − «Improvement of the efficiency of land use in Irkutsk»; − «Capital repairs and reconstruction of the non-residential fund of municipal property».
As mentioned above, replenishment of the local budget revenues is one of the indicators of quality of the existing system of municipal property management.Let us consider the dynamics of income of the use and sales of municipal property in the city of Irkutsk in the structure of non-tax revenue of the local budget in 2010-2017 (Table 1).According to the information about the city of Irkutsk budget performance on 01.01.2018 (for the year 2017), displayed at the official website of the Irkutsk municipality, actual income of non-tax revenues in 2017 amounted to 1 178 158.0 thousand RUB, which is below the level of 2010 on 408 912.6 thousand RUB (25.8%).
The basic amount of non-tax revenues (more than 56%) is stably consists of that of the use of municipal property.The share of income of sale of tangible and intangible assets in the structure of non-tax revenue during the analyzed period varied from 27.2% (in 2011) to 14.1 % (in 2016).
According to the data of the statistical table, the approximated diagrams reflecting trends of changes of replenishment to the local budget have been developed (Figure 1).
As a result of the analyses, we have to point out the decreasing trend of the non-tax income in the revenues of local budget in 2015-2017.In 2017, the amount on non-tax income decreased on 669 519.1 thousand RUB, as compared with 2014 in absolute figures, or by 36.2 % in relative terms.It is connected, in particular, with the decreased level of revenues from the use of municipal property, and revenues from the sales of tangible and intangible assets that continued in 2015-2017.
For the analysis of data, that is the set of alternately increasing and decreasing values, polynomial approximation has been used, the parameters of equations of statistical dependence of the considered indicators have been determined, and trend lines constructed, on the basis of which further decrease in the level of income from the use and sale of municipal property in the city of Irkutsk has been predicted.Lack of demand for the municipal property objects on the real estate market and difficulties with their involvement in the economic turn-over is seen as one of the reasons for this situation.In 2014 -2017, there was a stable trend to decreasing of quantity and total area of the municipal property objects, in respect of which lease agreements were concluded.Auctions for the sale of the right to conclude a lease were recognized invalid due to low economic activity of the business entities and lack of applications.Low consumer qualities, remote location from the central areas and highways of the city impeded their effective use by the lease agreements.
In addition to that, the decreased level of income of the use of municipal property is impacted by the growing rent arrears on the lease agreements concluded for the nonresidential municipal fund objects, and termination of existing contracts for the use of municipal property.
Privatization of the municipal property objects cannot be referred as the most effective method of the municipal property management, since it leads to the decreased incomes to the municipal budget in the long-term prospective being, as a rule, a short-term source of income.Considering the stated above, the activity of local self-governing bodies of the city of Irkutsk in the sphere of municipal property management, it is necessary to concentrate on the following most effective directions: − Improving consumer qualities of the municipal property objects in the city of Irkutsk; − Ensuring preservation of municipal properties; − Proper registration of ownership and timely inventory of the municipal real estates and plots of land; − Optimization of the process of exhibition of the objects of the municipal non-residential fund of the city of Irkutsk for the actions on sale of the right to conclude lease agreements; − Intensification of work on debt collection for the objects of the municipal non-residential fund of the city of Irkutsk under lease; − Expanding the sphere and practice of use of the mechanisms of public-private partnership in municipal property management.

Discussion
Municipal-private partnership is one of the most effective tools for development of public infrastructure based on long-term interaction of the municipality and business and sharing risks between the public and private partners.The analysis of the Russian and foreign experience indicates that the attraction of private capital to financing and management of municipal property based on the concession agreements is one of the most widely used methods of economic and organizational provision for the processes of development and effective use of municipal property [11][12][13][14][15].
The administration of the city of Irkutsk is carrying out work on attraction of private investments into the municipal economics by concluding concession agreements related to the municipal property objects.By this date, four concession agreements have been concluded and are being implemented, and one more is at the preparatory stage for signing and implementation.
Along with the provisions of federal and regional legislation, the activity of municipal bodies in the city of Irkutsk in the framework of preparation and implementation of projects of municipal-private partnership on the terms of concession for the municipal property objects in the city is regulated by the Order of the Irkutsk municipal administration № 031-06-256/7 signed 28.03.2017.This regulatory act defines the following [3]: 1. Basic provisions of the activity of workforces authorized by the Mayor of the city of Irkutsk to accept decisions on possibility to conclude concession agreements; 2. The order of acceptance of decisions on possibility (impossibility) to conclude concession agreement on the basis of complex analysis of information by the workforces.
However, the Order has not determined the subsequent procedure for concluding the concession agreements: according to this regulatory document, it is implemented in accordance with the Federal law "On concession agreements".Due to the lack of detailed methodology of preparation of concessional projects and signing concessional agreements elaborated at the municipal level, unification of legal, financial and management mechanisms in this sphere, expanding practice of the use of concessional mechanisms on the territory of the municipal entity is seen as difficult.Development and implementation of each of the concession agreements requires substantial labor and time resources, since activity of local self-government bodies in this sphere is not duly regulated.
Taking into account formulated above, we can outline the major issues impeding implementation and development of mechanisms of municipal-private partnership on the terms of concession agreements on the territory of the city of Irkutsk: − Imperfection of legal framework for implementation of the concession projects; − Lack of methodological developments and materials defining basic practical tools for preparation, signing and implementation of concession agreements on the territory of municipality; − Lengthy character of decision-making by local self-administration bodies on possibility (impossibility) to conclude concessional agreements; (investors) to the implementation of the project (Ip), and the amount of the budget investments (Ib).C = Ip + Ib. (2) The proposed indicator fully takes into account the extensive and intensive factors of the concession project implementation, which reflect attraction of needed resources to the project, and also the socio-economic effect received in case of their effective use.

Fig. 1
Fig. 1 Dynamics of incomes of the use and sales of municipal property of the city of Irkutsk in the structure of non-tax revenues of the local budget in 2010-2017.

Table 1
Income of the use and sales of municipal property in the city of Irkutsk in the structure of non-tax revenue of the local budget in 2010-2017.