Municipality Expenditure
Current18,095,741,716 HRK
Suggested16,800,492,662 HRK 
Difference1,295,249,054 HRK 
Salaries2,054,670,002 HRK 
Councils155,742,391 HRK 
Assistance 2,572,181,449 HRK 
227,792,020 (9%) 
244,574,985 (10%) 
M&E68,727,525 HRK 

Municipalities
Current556 
Suggested126 
Difference430 
Municipality Expenditure
Current18,095,741,716 HRK 
Suggested16,800,492,662 HRK 
Difference1,295,249,054 HRK 
Salaries2,054,670,002 HRK 
Councils155,742,391 HRK 
Assistance 2,572,181,449 HRK 
227,792,020 (9%) 
244,574,985 (10%) 
M&E68,727,525 HRK 

Municipalities
Current556 
Suggested126 
Difference430 
Frequently asked questions (FAQ)

Merging methodology
In each county of Croatia, municipalities that are financially self-sustainable were defined using the basic formula of "income - assistance - expense = sufficit or deficit". This resulted in the minimal number of municipalities within a group, whereby county's have several groups. Non-sustainable municipalities are those which have a budget deficit for at least 2 years in a row. Using the center of a self-sustainable municipality as a starting point, distance by road to nearby municipalities was calculated (and those bordering them). At this point using a simple preliminary sufficit/deficit formula more advanced budget computations were possible and multiple variations were computed with the goal of achieving larger sufficit of the whole group. These computations took many indicators into account, some of which are described in this FAQ below. Merging wasn't always chosen from the computation result, some were modified manually.

Calculation methodology
Incomes of all municipalities and the expense totals of the starting self-sustainable municipality of a group weren't modified and were forwarded into the computation in their entirety. Expense totals of merged municipalities were modified. Based on many indicators approx. 35-40% of the original *total* amount was carried over. Following the logic that the citizens must not feel a difference in services provided to their communitiese, the *complete* amounts of assistance to citizens, students, energy (such as public lighting), communal waste management (such as community lawn upkeep, solid waste etc.) was added. Savings were possible by having a more efficient expenses of procurement, upkeep, information and marketing, staff oranizational structure, efficient and faster cadaster/land-registry, permit issuance. The new budget resulted in lower cost per citizen (CPC) allowing for lower municipal tax.

Why do some groups only consist of financially self-sustainable municipalities?
Incomes of capital and national EU budgets for each municipality were taken into account during the computational models. County and national assistance (ministries and institutions) were taken into account as well. This resulted in groups having 75 million HRK sufficit allowing for entry to larger EU grants, projects and programmes. A group with such a sufficit has more resources (both human and financial) for capital investment projects, making it's region more attractive. (sufficit group example Samobor, Sveta Nedelja, Stupnik)

Data sources
Ministry of finance: Income/Expense municipal statements and reports, data.gov.hr, EuroGeographics NUTS EuroGlobalMap

Special thanks
UGP: Vuk Vuković & Dražen Oreščanin, Angela Baker (EuroGeographics ), Google, data.gov.hr, Ministarstvo Financija