Municipalities are responsible for providing a large variety of services to their residents, which should adequately satisfy their needs. The basis for efficient functioning of municipalities is a suitable financing system with adequate number of financial sources and the right to use them independently. The financial system for efficient functioning of municipalities must also ensure sufficient amount of own sources of financing.
The purpose of the thesis is to present the budget of the Črnomelj municipality in detail and analyze their use of financial sources in the 2015–2017 period, as well as indicate how the residents and the mayor are satisfied with the efficiency of operations. In order to achieve the indicated purpose, the empirical part uses mainly descriptive methods, while a questionnaire was used in the empirical part in order to obtain the residents' opinions, while an interview was conducted with the mayor. The analysis of the budgets of the Črnomelj municipalities indicates that the income and the expenses increase annually. The analysis also shows that the municipality is successfully managing municipality borrowing. The results from the questionnaire indicate that the residents are not satisfied with the functioning of the municipality since they are not provided with the goods to satisfy all of their needs, while the results from the interview and the mayor's opinion indicate efficient and successful operations of the municipality.
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