Wykorzystanie modeli optymalizacyjnych do wspomagania wieloletniego planowania finansowego w sektorze samorządowym
Long-term financial planning by local government: optimization model implementation

Summary/Abstract: The article presents a model of finance long-term optimization of a local government budget with additional conditions, for example imposed on debt. A budget financial flows scheme and their accruals regarding debt and deficit are shown. Using computer supported model, maximum investment expenditure as well as secure debt level in each year, of for example 8 year period, are determined. Budget liquidity of a local government unit as well as compatibility of debt ratios and current expenditure with law are ensured for each year. The paper presents ex-post analysis and long-term model solutions – finance forecasts for a given community. It shows two scenarios of the model solution for different levels of the European Union funds – exogenous variables. The model makes the analysis of implementation of different financial policies possible. The paper also shows that the limitation of the debt service cost in relation to revenue, formulated in the Public Finance Act, is neither effective, norefficient tool of local government debt limit.

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