Administrative Administrative Territorial Reform in Territorial Reform in

LatviaLatvia

The Ministry of Regional Development and Local Government

At the moment there are two types of municipalities in

Latvia 525 local governments:

52 district towns and 7 cities36 amalgamated municipalities, including their

territorial units430 rural municipalities

26 district municipalities

Objective of the Administrative Objective of the Administrative Territorial Territorial Reform

Pursuant to the provisions of the Law on Administrative Territorial Reform the administrative-territorial reform of local governments shall be implemented by the local government elections of 2009 and its purpose is to establish administrative territories with local governments capable of economic development

Reform is being implemented: Through amalgamation of local (rural) municipalities Through reorganisation of district municipalities

On 04/09/2007 the Cabinet of Ministers approved a map of 96 municipalities and 9 cities

State funding for implementation of the reform (M, LVL)

4,29

32,41

55,49

15,29

0

10

20

30

40

50

60

2005/2006 2007 2008 2009

State funding for development of infrastructure of municipalities which have amalgamated or taken the decision to amalgamate in 2009 is LVL 200,000 for each municipality

At the moment 94% of the total number of municipalities have made the decision to amalgamate

Impact of the Administrative Territorial Impact of the Administrative Territorial reform on the regulatory framework of reform on the regulatory framework of

LatviaLatvia

As a result of the Administrative Territorial Reform it is necessary to make amendments to approximately 100 legislative acts out of which significant amendments will be necessary in 30 laws currently reviewed in the Saeima

Regulatory framework for reorganisation of district

municipalities The Ministry of Regional Development and Local

Government has prepared a Draft Law on Reorganisation of District Municipalities which was reviewed in the Saeima on 19 June 2008 in the third reading

Pursuant to the law, the plan for reorganisation of district municipalities and other legislative acts during the reorganisation local governments and planning regions shall take over functions, institutions, assets, financial resources, rights and liabilities of municipality of the respective district to ensure continuity and succession of municipal work.

Regulatory framework for reorganisation of district

municipalities In line with the provisions of the Draft Law

on Reorganisation of District Municipalities the Cabinet of Ministers shall issue regulation on district reorganisation plans

Reorganisation of District Councils shall be supervised by District Council Reorganisation Monitoring Commission, which shall consist of representatives delegated by municipalities in that particular district - 1 from each municipality.

Timeframe for reorganisation of district municipalities

2008 2009

Q3 Q4 Q1 Q2 Q3 Q4

District municipality drafts a reorganisation plan

MoRDLG and MoF evaluate the drafted reorganisation plans

Implementation of the reorganisation plans

As a result of district municipality reorganisation 1 amalgamated

municipality is established

Districtmunicipality

Amalgamatedmunicipality

The amalgamated municipality shall take over from the district municipality

its functions, institutions, assets, financial resources, rights and liabilities

As a result of district municipality reorganisation several amalgamated

municipalities are established

Districtmunicipality

Amalgamatedmunicipality

Amalgamatedmunicipality

Amalgamatedmunicipality

The assets, financial resources, rights and liabilities of the district municipality shall be

taken over by the amalgamated

municipality in the territorial unit of which

the infrastructure set up and/or equipment

purchased from the foreign financial

support is located

Inheriting liabilities from district municipalities

Liabilities and assets obtained through implementation of agreements signed on allocation of funding from the European Union and other foreign financial mechanisms shall not be separated

The liabilities and assets obtained through implementation of agreements signed on allocation of funding or co-funding from the European Union shall be taken over by the amalgamated municipality or the city municipality in the territory of which the agreement implementation site is located

If there are several sites for implementation of the agreement, the liabilities and assets shall be taken over by the amalgamated municipality or newly established city municipality in the territory of which a larger part of funding has been invested

Inheriting liabilities from district municipalities

If the district municipality reorganisation plan includes transfer of liabilities and assets related to implementation projects and measures under the European Union policy instruments or other foreign financial mechanisms, the Ministry of Regional Development and Local Governments shall coordinate the reorganisation plan with the Managing Authority of the EU funds or the senior sectoral advisor of the EU financial instrument PHARE programme and Transition Facility

The EU Funds Managing Authority or the senior sectoral advisor shall evaluate, whether the transfer of the said liabilities and assets is in line with regulatory acts on implementation of European Union policy instruments and other foreign financial mechanisms

Thank you for your attention!

Contact information:Baiba Bāne

Deputy State Secretary 67770468

baiba.bane@raplm.gov.lv