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Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

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Page 1: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Local government in Iceland

Vilhjalmur Th. Vilhjalmssonchairman

The Association of Local Authorities in Iceland

Page 2: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Some historical facts

The history of local authorities in Iceland dates back to the beginning of the tenth century - soon after the settlement of Iceland in 874.

In the beginning the local authorities had certain social responsibilities.

They enjoyed a right of self-government and had independent source of income.

Under foreign rule, from 1262, the power of local authorities was greatly reduced.

At the beginning of the 19th century, the ancient form of local self-government no longer existed.

Page 3: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Some historical facts

Local government restored in 1872 by the Royal Danish Decree on Local Government Act.

The municipal boundaries established by law was based on the ancient communes and did not change much for the next 120 years.

Page 4: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Nordic structure of local government

The structure of local government in Iceland is of Nordic origin and in many fundamental ways similiar to the present structure in the other Nordic countries.

The main difference is that in Iceland there is only one level of local government and due to that and to the number of many small municipalities the local government in Iceland are responsible for lesser percentage of the public sector than in the other Nordic countries.

Page 5: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Part in public expenditure

75%

69%

61%56%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Denmark Sweden Norway Finland Iceland

Page 6: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The responsibilities of local government

Social services Basic social and financial assistance. Daycare for children. Child welfare.

Education, culture, sports and recreation Primary schools (6-15 years) Music-schools Sportfacilities, culture centers, museums

and libraries Support to arts, theatre groups,

sportclubs, volunteer groups etc.

Page 7: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The responsibilities of local government

Infrastructure Building, maintenance, and operation of

streets, sewage, water and electricity works, as well as district heatings.

Municipal planning and building inspection. Public parks and open areas. Surveillance of public and enviromental

health. Fire services. Public transport. Waste management and collection. Harbours.

Page 8: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Municipal Finances

The tax base is defined as taxes and payments from The Local Government Equalizations fund. 63% of municipal revenues are from

the local income tax 17% are from service income 11% taxes on real properties 8% is from The Municipal

Equalizations Fund. 1% others

Page 9: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

Operating Costs

47%

14%

12%

11%

11%

4%

1%

0% 10% 20% 30% 40% 50%

Education

Infrastructure

Social services

Mutual Costs

Youth leisure andsports

Culture

Other

Page 10: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The number of municipalities

In 1990 Iceland was divided into 204 municipalities.

In 2005 Iceland is divides into 101 municipalities.

The municipalities are in the midst of an amalgamation process.

Page 11: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The number of municipalities

172

203 212229 228 226 223

204

101

0

50

100

150

200

250

1872 1911 1931 1950 1961 1971 1981 1990 2005

Page 12: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

104 municipalities in 2004

Page 13: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

46 municipalities in 2006 ??

Page 14: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The Association of Local Authorities

The Association of Local Authorities in Iceland is the forum for co-operation between the local authorities.

It was established in 1945 by 52 local authorities.

Since 1973 all local authorities in Iceland have been members of the association.

The Association provides various services and information to the local authorities.

The Association takes responsibility for common tasks such as collective bargaining with unions of municipal employees.

Page 15: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The Association of Local Authorities

According to the Local Government Act The Association of Local Authorities in Iceland is responsible for safeguarding the common interest of the Icelandic local governments.

The Association has colloboration contract with the State and the Government of Iceland.

The State is obliged by law to consult the Association on the affairs of the local governments.

Page 16: Local government in Iceland Vilhjalmur Th. Vilhjalmsson chairman The Association of Local Authorities in Iceland

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

The organisation of the Association

BOARD

Generalassembly

Executive director

Finance and statistic

2 employees

Legalaffairs

2 employees

Negotiation with trade

unions

4 employees

Development and

international affairs

1 employee

Secretaritat and

publishing

11 employees

EU Committee

Development Committee

Wage Commission

Emergency Relief Fund

The Municipal Harbour Association

Municipality Credit Iceland