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The Local Government Reform of 1970

The Local Government Reform of 1970. Background changing family structure migration to urban areas growth in public expenditure Objectives creation of large, more efficient, and financially more self-sufficient units decentralising public administration

stephen-ochoa
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The Local Government Reform of 1970

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  1. The Local Government Reform of 1970 • Background • changing family structure • migration to urban areas • growth in public expenditure • Objectives • creation of large, more efficient, and financially more self-sufficient units • decentralising public administration • increasing the number of local government tasks • greater citizen participation

  2. Reasons for the Danish Local Government Reform in 1970 • Municipalities wanted more independence • Economic and demographic changes • Increased demand for public services • Need for a more rational financial system • The Parliament wanted to decentralise

  3. Specific problems before 1970 • Cities had no room for geographical expansion • Complex territorial structure • Many small municipalities (95% had less than 5,000 inhabitants) • Small and weak administration in rural municipalities (50% had no staff at all) • Weak financial basis in municipalities and counties • Little influence for local politicians (limited decentralisation) • Unsatisfactory school system

  4. The change in local government structure 1958 Number of local governments 1,388 275 (2000) Average area in square km 31 157 (2000) Average number of voters 1,996 14,305 (1995) Number of local politicians 11,529 4,773 (1995) Number of counties 24 14 (2000)

  5. Process of Local government Territorial Reform in Denmark • Establishment of local government Reform Secretariat in MOI 1962/63 • First investigations in selected municipalities (pilot areas) • Legislation with basic principles for formation of new municipalities • Establishment of an Implementation Committee with representation from Parliament, Local government Associations and MOI • Comprehensive investigations by the Reform Secretariat of municipalities and counties, with recommendations of formation of new municipalities • Dialogue with municipalities, recommended for amalgamation • Decision on amalgamation by Minister of the Interior • Reform completed with local government elections in 1970

  6. Frederiksberg København Denmark - Counties

  7. Denmark - Local Authorities

  8. Amalgamation of 1 county +5 municipalities on Bornholm • Why amalgamation on Bornholm? • Negative economic development forces new solutions • Efficiency of the LG administration not optimal and laws and regulations from EU and Danish Gov. demand more administrative expertise than is currently available to be effectively implemented • Increasing demands from the population puts municipalities under pressure • The 5 municipalities have a limited ability to take unpopular, but necessary decisions (eg. schools)

  9. Bornholm, 59,000 ha (“The Danish Hiiumaa”)

  10. Amalgamation of 1 county +5 municipalities on Bornholm • Current structure • Bornholm county: 44,300 inhabitants • Rønne Municipality: 15,000 inhabitants • Nexø Municipality: 8,500 inhabitants • Allinge-Gudhjem Municipality: 7,600 inhabitants • Aakirkeby: 6,600 inhabitants • Hasle Municipality: 6,400 inhabitants

  11. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • Year 2000: Investigation of development potentials in existing LG structure within the following areas: public schools, care taking of the elderly, protection of the environment, use of IT in administration, tax administration, and collection of taxes and loans • Development of various scenario (through use of intermunicipal cooperation, extended use of contracting out of LG services, extended use of IT) • Conclusion: 5 municipalities decide that a new administrative-territorial structure needed (Jan 01)

  12. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • Establishment of a Bornholm negotiation committee, with a secretariat, to clarify and negotiate with MIA/MOF about economic and other conditions in connection with the amalgamation • The County of Bornholm agree with the 5 municipalities to form one future county/municipality (during Fall 2001) - future name: “Bornholm Municipality” • Advisory referendum in 5 municipalities 29 May 01 (agreed by county + 5 municipalities) • The population in all 5 municipalities vote in favour!! (totally 73.9% in favour)

  13. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • County + 5 municipalities request Min. of the Interior to draft a law on amalgamation as of 1 January 03, Ministry agrees but cannot do this in time to suspend the ordinary election in November 2001 • 8 administrative working groups are established to make an overview of areas to decide upon in short and longer terms, covering finances, salary/personnel matters, IT, secretarial functions, children/youth/culture, social area/hospitals, technical matters/environment/utilities, tax/debt collection • Establishment of 1 information group to issue amalgamation newsletter, website, and manage contact with the press

  14. Amalgamation of 1 county +5 municipalities on Bornholm • Process: • Ordinary election to the existing 5 municipalities and 1 county is held in November 2001. The councils will sit until 31 December 2002. • Preparation of political-administrative models by 2 consultancy companies (Spring 2002) • Election of the new Bornholm Municipal Council will take place 29 May 2002 (27 members) • Bornholm Municipal Council will function as “Amalgamation Commission” 1 July – 31 Dec 2002 and as “Ordinary Council” 1 Jan 2003 – 31 Dec 2005 • “Amalgamation Commission” will decide on amalgamation conditions during Fall 2002

  15. Amalgamation of 1 county +5 municipalities on Bornholm • Major Problems: • Decide on political-administrative structure, employment conditions and make administrative systems operational before 1 January 2003 • Decision making vacuum 29 May 01 – 29 May 02 • Drafting of budget for 2002 and also budget 2003 • Change all intermunicipal cooperations before 1 January 2003 • Curb spending until new Council takes over 1 January 2003 • Splitting of political power among individual LG politicians of which most will have to find new roles

  16. Amalgamation on Bornholm: Financial Conditions • Equalisation and state grants • Future Bornholm Municipality will be part of equalisation systems for both counties and municipalities, hence no changes expected • Future Bornholm Municipality will receive the basic state grant for the former 5 municipalities (“administration grant” – 7.5 mill DKK per year per municipality) in a period of 8 years • Bornholm will maintain access to Grants to Municipalities in Especially Different Conditions

  17. Amalgamation on Bornholm: Administrative Structures • Model 1: Geographic model • One sector administration (education, social area, infrastructure and planning, etc.) in each of the 5 former municipalities • Overall administrative department either placed centrally or split in the 5 former municipalities • One-stop-shops in each of the 5 former municipalities • Political institutions either placed centrally or split in the 5 former municipalities

  18. Amalgamation on Bornholm: Administrative Structures • Model 2: Centralized model • The administrative departments are placed centrally in one place • The political institutions are centralized in one place • Decentralized local government service delivery will take place through service centres in each of the 5 former municipalities, incl. one-stop-shops

  19. Amalgamation on Bornholm: Administrative Structures • Model 3: Model with emphasis on contracting out • As many services as possible are contracted out externally (usual model) or internally (“contract management”) • Use of extended internal decentralisation to the local government institutions (schools, kindergartens, homes for elderly, etc.) • Political and administrative structure and management can follow both model 1 or model 2

  20. Amalgamation on Bornholm: Political-Administrative Models • Model 4: Concern model • Centralized political management • Extended use of internal decentralisation where LG institutions and administrations may become a form of “daughter companies” – this can be made operational by use of “management by goals”

  21. Admin.-Territorial Reform in Latvia • 1992-2003 Voluntary process • 1992-93 First investigations of LG infrastructure • 1993-95 Preparation of new local government legal, organisational and financial foundations • 1995-96 Pilot investigations in selected clusters of municipalities • 1996-7 First voluntary amalgamation around Kandava town (3 municipalities) • 1998 Law on Administrative-Territorial Reform

  22. Admin.-Territorial Reform in Latvia • Law on Administrative-Territorial Reform 1998 • Defines overall time plan (Voluntary process until 31 Dec. 2003, “Administrative” (forced) process 1 Jan-30 Nov 2004, election to new councils in 2005 • Presents 7 very vaguely formulated criteria (long-term development potential, financial base, necessary infrastructure, number of inhabitants, history, access to services, other conditions) • Financial support to amalgamating municipalities (1-5% of total sum of amalgamated budgets)

  23. Number of local authority units

  24. Local authorities according to number of inhabitans

  25. Admin.-Territorial Reform in Latvia • Law on Administrative-Territorial Reform 1998 • Sets procedures for investigations and preparation of amalgamation projects • Establishes a Council of Administrative-Territorial Reform (8 Local Government – 8 State representatives, Ministry as secretary) • Coordinates the ATR process • Confirms the ATR investigation methodology • Evaluates investigation results and recommendations • Drafts normative acts on ATR

  26. Admin.-Territorial Reform in Latvia • Local Government Territorial Reform Secretariat • 1997-1998: 4 persons, supported by EU • 1998-2000: 5 persons, supported by EU • 2000- : Secretariat integrated in the Ministry’s Territorial Reform Department (“Ministry of Special Assignment for State Administration Reform”) • ATR Investigations • 1997-2001: 17 regional investigations supported by EU, 9 regions financed by Latvia • Many small scale investigations and amalgamation projects financed by Latvia

  27. Admin.-Territorial Reform in Latvia • Results today: • 34 municipalities (out of approx. 585) amalgamated into 14 new municipalities • Council on Administrative-Territorial Reform has approved 4 basic criteria for new municipalities: • Min. population 5,000 inhabitants • One town – one municipality • Road system must have functional standard • Max. 30 km from the periphery to the center

  28. Admin.-Territorial Reform in Latvia • Results today: • Two national projects have been through a 2 months public hearing in Summer 2001 • 33 new municipalities (= 26 regions + 7 towns, “Lithuanian variant”) • 102 new municipalities

  29. Admin.-Territorial Reform in Latvia • State support to ATR • In 2002 160,000 Lats provided to finance small scale projects on cooperation and amalgamation and 240,000 Lats provided for ministerial activities to support ATR • 40% of ministerial funds go to information • TV spots twice a month about topical themes of ATR • 2 films about ATR developed • Inputs delivered to regional radio stations on ATR • A booklet for citizens on ATR is in printing, 350,000 copies (contains basic information, aims, goals, process of ATR and information about the possible role of the citizens themselves) • Ministry has ATR department with 6 employees

  30. Standard Amalgamation Agreement (Check-List) • Partners and territory of the local government amalgamation • The name and the status of the new municipality • Name • Status • The date of the establishment of the new municipality

  31. Standard Amalgamation Agreement (cont.) • The Amalgamation Commission • Tasks and competences of the Amalgamation Commission • Composition of the Amalgamation Commission • Selection/Election of the Amalgamation Commission Representatives and its Chairman • Decision-making Mechanism in the Amalgamation Commission • Secretariat of the Amalgamation Commission

  32. Standard Amalgamation Agreement (cont.) • Statutes and Regulations for New Municipality • Transfer of Legal Rights and Duties • Transformation of Inter-municipal Cooperation • Licences and permits • Decision on Political and Administrative Structure • Procedures for employment of LG Employees

  33. Standard Amalgamation Agreement (cont.) • Finances • Methods of transfer of Assets and Liabilities, Right to collect Taxes and Fees, Right to Issues Licences and Permits etc. • How to determine the Budget for the First Year after Amalgamation? • How to undertake Financial Obligations Affecting the New Local Government and Transgressing the Budget? • Who should make Accounting Reports for the municipalities that seize to exist?

  34. Standard Amalgamation Agreement (cont.) • Concept Issues of: • Municipal Infrastructure • Education policy • Social Security • Health Protection • Maintance of public order • Culture policy • Development and physical planning • Public Transportation

  35. Standard Amalgamation Agreement (cont.) • Industry and Tourism Development • Environmental protection • How to settle disagreements • How to provide information to the inhabitants about the amalgamation process • Date of Effect of the Amalgamation Agreement • Information • Signatures of Representatives of Amalgamated Local Local Governments, Stamps

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