Guri-si, Abolition of Sewerage Project Revolving Fund Ordinance

Funding for Guri Sewage Treatment Facility Modernization Project
Managed by the Integrated Fiscal Stabilization Fund

Guri City, Gyeonggi Province (Mayor Baek Kyung-hyun) announced on the 29th that it has abolished the Guri City Sewerage Business Revolving Fund Ordinance following the decision to change and operate the financial resources required for investment projects such as the sewage treatment facility reconstruction project through the Integrated Financial Stabilization Fund (integrated account).

Abolition of the Guri City Sewerage Project Revolving Fund Ordinance. Provided by Guri City

In order to systematically secure future investment funds for the sewerage business, the city enacted the "Guri City Sewerage Business Revolving Fund Establishment and Operation Ordinance" in December 2019 and formed a Fund Operation Deliberation Committee (2 public officials, 3 private experts) to review and operate annual operation plans and performance analyses.

However, in November 2023, with the announcement of Topyeong-dong, Guri City as a new candidate site for housing development, changes in local environmental conditions occurred, necessitating a re-evaluation of the sewage treatment facility capacity. This caused delays in the promotion of the sewage treatment facility reconstruction project. Consequently, according to the "Local Government Fund Operation Performance Analysis," the Ministry of the Interior and Safety recommended the fund's reorganization and abolition due to low project budget allocation rates over three years (fiscal years 2021?2023).

Accordingly, as the duration of the "Guri City Sewerage Business Revolving Fund Establishment and Operation Ordinance" expires on December 31, the city decided to abolish the Guri City Sewerage Business Revolving Fund and accumulate and operate funds in the Integrated Financial Stabilization Fund integrated account managed by the general account to streamline administrative tasks and improve fund operation efficiency, pursuant to Article 15 of the "Local Government Fund Management Basic Act."

The general account Integrated Financial Stabilization Fund was established nine months after the enactment of the Guri City Sewerage Business Revolving Fund Ordinance. It shares the same purpose and function as the sewerage business revolving fund and has the advantage of enhancing fund operation efficiency by managing surplus funds for each project in the general account in an integrated manner.

Mayor Baek Kyung-hyun stated, “When large-scale regional development projects such as the Guri Topyeong 2 District project and the Sanodong E-commerce New Growth Advanced City Development Project become concrete, we plan to immediately promote the Guri sewage treatment facility reconstruction project by reflecting it in the basic sewerage maintenance plan. The funds deposited in the Integrated Financial Stabilization Fund (integrated account) will be recovered into the special sewerage business account in line with the timing of large-scale sewerage projects and utilized as project funds.”