MUNICIPAL COUNCILS IN THE G20 COUNTRIES MARCH 2018
CITING THIS REPORT Please cite this report as: Center for Local Governance (2018). Municipal Councils in the G20 Countries. CLG: Riyadh, Saudi Arabia
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Municipal Councils in the G20 Countries
TABLE OF CONTENTS
Acknowledgments 02 Introduction 06 Quick facts
10
Argentina 11 Australia 15 Brazil 20 Canada 24 China 28 France 32 Germany 37 India 42 Indonesia 47 Italy
52
Japan 56 Republic of Korea
61
Mexico 65 Russia 70 Saudi Arabia
75
South Africa
80
Turkey 86 United Kingdom
92
United States of America
98
Conclusions 104 Useful sources
107
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Municipal Councils in the G20 Countries
A C K N O W L E D G M E N T S
Researcher BILAL SAGHIR, Research Associate Research Supervisor MARIE ZWEYNERT, Research Director
CANADA
UNITED STATES OF AMERICA
MEXICO
BRAZIL
ARGENTINA
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COUNTRY PROFILE REVIEWERS: We would like to extend our sincere gratitude and obligation to all those local government researchers, public officials, consultants and members of associations from the G20 countries, who provided us with a great deal of support and advice in reviewing and validating our findings and adding indispensable local information.
RUSSIA UNITED KINGDOM GERMANY FRANCE ITALY
JAPAN
TURKEY CHINA
REPUBLIC OF KOREA
SAUDI ARABIA INDIA
INDONESIA
SOUTH AFRICA
AUSTRALIA
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Municipal Councils in the G20 Countries A C K N O W L E D G M E N T S
COUNTRY PROFILE REVIEWERS: ARGENTINA Prof. Dr. Daniel Cravacuore • Director de la Unidad de Gobiernos Locales Universidad Nacional de Quilmes • Distinguished Senior Research Scholar Institute for Public Management and Community Service (IPMCS), Florida International University
CHINA Yang Zhong • Professor, Department of Political Science University of Tennessee, USA
FRANCE Alain Faure • Grenoble Institute of Political Studies • Research Director at National Center for Scientific Research, CNRS France
GERMANY Hellmut Wollmann Social Science Institute, Humboldt University, Berlin, Germany
INDIA AUSTRALIA Roberta Ryan Director, Institute for Public Policy and Governance (UTS:IPPG) and the Centre for Local Government (UTS:CLG) University of Technology Sydney
BRAZIL Christine R. Martell Associate Professor, School of Public Affairs University of Colorado Denver
CANADA David Johnstone • City Manager of Candiac, Quebec, greater Montreal, Canada • President of International City/County Management Association (ICMA) Canada Rod Gould Former city manager for multiple cities throughout California, USA over a 29-year career Carol-Lynn Chambers Adjunct Faculty Member, Political Science Department (Local Government Program) Western University, Canada
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Alok V.N Associate Professor of Public Finance Indian Institute of Public Administration Ravikant Joshi Adviser for Urban Practices to CRISIL Risk and Infrastructure Solutions Ltd. – Mumbai India
INDONESIA Blane D. Lewis Senior Research Fellow Head of Indonesia Project Editor Bulletin of Indonesian Economic Studies Crawford School of Public Policy The Australian National University
ITALY Franca Faccioli Professor Faculty of Political Science, Sociology, and Communication Science The Sapienza University of Rome Francesco Palermo Director - Institute for Comparative Federalism EURAC research
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Municipal Councils in the G20 Countries
JAPAN
SOUTH AFRICA
Purnendra Jain Professor Asian Studies University of Adelaide, Australia
Thomas Koelble Graduate School of Business University of Cape Town
Andrew Stevens Senior Researcher Japan Local Government Center, UK
Andrew Siddle Independent consultant to national and local governments, parastatals, advisory firms, NGO’s, international organisations and advisory firms
Yusaku Horiuchi Professor of Government and Mitsui Professor of Japanese Studies Dartmouth College, USA
TURKEY
REPUBLIC OF KOREA Keun Namkoong Professor/ Former President Seoul National Univ. of Science and Technology Sayel Cortes • PhD candidate at the Environmental Policy Group Wageningen University, working on part of a broader research on “Joined-up Governance for Low-Carbon Cities.” • Collaborating with Innovation in Public Policy and Innovation Institute Mexico Carlos Lozano Martinez President Innovación en Política Pública y Desarrollo, A.C. (IPPD)
MEXICO Ilyana Albarran PhD Public Affairs CEO, Alba Research & Consulting LLC Dr. Oliver Meza Research Professor Public Administration Division CIDE SNI I
RUSSIA Dr. Galina Kurlyandskaya Director General Center for Fiscal Policy, Russia
Prof. Dr. Hüseyin GÜL Public Administration Department, Süleyman Demirel University, Turkey
UNITED KINGDOM Mark Sandford Senior Research Analyst House of Commons Library London, UK Tom Entwistle Professor of Public Policy and Management Cardiff Business School Cardiff University
UNITED STATES Allan Rosenbaum • Professor, Public Administration and Director, Institute for Public Management and Center for Democracy and Good Governance, Florida International University • Vice Chairperson, United Nations Committee of Experts on Public Administration • Chairperson, International Commission on the Accreditation of Public Administration Education and Training Programs – IASIA Tina Nabatchi Associate Professor, Public Administration and International Affairs Maxwell School of Citizenship and Public Affairs Syracuse University, New York
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Municipal Councils in the G20 Countries
I N T R O D U C T I O N
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Municipal Councils in the G20 Countries
A municipal council is a fundamental unit of local governance. Municipal Councils, in general, are responsible for policy-making, setting municipal priorities and providing a legislative base for a broad range of functions related to urban planning, economic development, roads and infrastructure, housing, environment, recreation and community well-being. Municipal councils through local representatives provide for processes of grass-root politics and community-led decision making. Their institutional role is indispensable not only for effective communication and fulfillment of community’s aspirations but also in achieving national visions and political agendas through translating them into supportive programs and strategies at the local level. But how municipal councils are positioned to achieve the above ambitions? Today, the world has increasingly come to realize that the highly effective models of governance must be characterized by meaningful inclusion of citizens in local decision-making processes. This stands true across all types of government structures and constitutional forms whether are federal, unitary or constitutional monarchies.
As municipal councils are at the forefront of dealing with community challenges, identifying what municipal projects best serve local aspirations and seeking local opinions in the development process; they have increasingly become a subject of study and research.
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Municipal Councils in the G20 Countries I N T R O D U C T I O N
Although municipal councils are equally significant institutions in all socio-political systems, they vary in their forms when seen in crossborder contexts. This leads to discussion about why municipal councils in some countries are – in general – more efficient and effective than others. And how such institutions differ in their mandates, structures, roles, autonomy, and unique practices under centralized and decentralized political systems. Relating this with the Saudi context is equally significant and interesting. Saudi local governance is at crossroads having witnessed several unprecedented reforms over the past 12 years. Since their inception in the Kingdom in 2005, municipal councils have earned increased autonomy, larger electoral representation and women’s inclusion in the local elections. However, besides such reforms, Saudi municipal councils are still young and shaping institutions and therefore it is important to learn how similar local bodies are steered in other parts of the world. In addition, as learned through some recent local studies, there exists a significant demand by the local public representatives for understanding their institutional roles from both local and international perspectives.
In this spirit, the Center for Local Governance - the first Saudi think tank in the field of local governance and public policy - is pleased to present this descriptive report that aims at highlighting the basic functions of municipal councils in the G20 countries (excluding the European Union). The study is the first of its kind and was drafted with the intention to serve as a useful resource for researchers and practitioners, enabling them to compare municipal councils in different countries and draw lessons for their own unique local context. Given that this report is descriptive in nature and does not compare the effectiveness of these councils, the report is also intended to serve as a basis for further research.
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THE STUDY SPANS ACROSS ALL G-20 NATIONS AND INVESTIGATES MUNICIPAL COUNCILS IN EACH COUNTRY USING FOLLOWING INDICATORS FRAMING THIS STUDY
Legislative Basis
Core Structure
Council Size
Electoral or Appointment SystemÂ
In addition to describing basic features of municipal councils of different countries, where applicable the study also provides notable insights from recent institutional reforms, special features, initiatives, innovative efforts, as well as performance management systems adopted by municipal councils.
Employment Status and Compensation
Mandates and Authorities
Local Revenue
Citizen Engagement Mechanisms
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Municipal Councils in the G20 Countries
Q U I C K
F A C T S
COUNCILORS’ TENURE
HIGHEST IN:
Japan
3 France 6 MINIMUM IN:
Mexico YEARS
MAXIMUM IN:
ANNUAL and
2
down to
HIGHEST IN:
MEMBERS
270 South Africa
up to
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MEMBERS
LARGEST IN:
India
LOCALLY RAISED MUNICIPAL REVENUE
COUNCIL SIZE
Italy
Germany
REMUNERATION OF COUNCILORS
YEARS
SMALLEST IN:
LOWEST IN:
Australia LOWEST IN:
Mexico
and
Indonesia
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ARGENTINA CONSTITUTIONAL FORM: FEDERAL REPUBLIC
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Municipal Councils in the G20 Countries A R G E N T I N A
The Republic of Argentina is a federal state with three administrative subdivisions: provinces (provincias), departments (departamentos) and municipalities (Municipios). Municipalities are administrative geographies for cities, towns and townships, and are further divided into communes and neighborhoods. Like other countries, the political composition of municipal governments in Argentina mainly consists of an executive branch headed by a mayor (intendente) and a legislative branch (concejo deliberante) made up of locally elected officials. In 15 of the 23 provinces, there are two or more types of local governments: municipalities and other types of local governments of different denominations (Comunas, Juntas de Gobierno, Comisiones). These governments may have, or not have, division of powers. Some may have only one individual local authority; others may have a collegial structure.
regulate the municipal systems in each province (Régimen Municipal), by a municipality law (Ley de Municipalidades). In some provinces, the most populated municipalities can sanction their own Municipal Charter (Carta Orgánica Municipal). ELECTORAL OR APPOINTMENT SYSTEM
Mayors and councillors are directly elected for a period of four years. EMPLOYMENT STATUS AND COMPENSATION 1
The mayors of Greater Buenos Aires earn an annual salary of between 672,000 pesos (139,656 SAR) and 1,656,000 pesos (344,160 SAR): the mayor of San Miguel, for example, earns a total of 1,188,000 pesos (246,888 SAR) and the mayor of Quilmes around 1,347,624 pesos (280,068 SAR) per year. Similar variations exist across municipalities in different states; as a general indication, the average annual salary of municipal councillors can amount to 348,000 pesos (72,312 SAR). The salaries of mayors and councilors are much smaller in other Argentinean provinces. MANDATES AND AUTHORITIES
LEGISLATIVE BASIS
Argentina’s constitution and organic law of municipalities provides for autonomy for the municipalities, with their respective deliberative bodies constituted through direct elections. Argentina´s Constitution only guarantees municipal autonomy (article 123). The provincial Constitutions 12 CENTER FOR LOCAL GOVERNANCE
The following are some of the functions carried out by municipal councils: • Setting municipal regulations and bylaws • Approving the municipality’s budget and setting guidelines to deal with public works and services • Managing the municipality’s budget and levying certain taxes
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• Constituting special commissions to engage with social affairs such as health, education, youth affairs etc. • Establishing monitoring programs and defining frameworks for municipal sectors such as urban strategic planning and transportation or event celebrations • Developing joint councils with citizens’ groups CORE STRUCTURE
COUNCIL SIZE
There is not a general rule for the number of councilors according to the population: each municipality law (Ley de Municipalidades) regulates the number for each province. Some municipalities, in use of their autonomy, can establish the number of councilors. POPULATION SIZE AND NUMBER OF COUNCIL SEATS
Mayor: Executive leader of the municipality; represents municipal constituents. Assisted by secretaries for different sub-departments
POPULATION
NUMBER OF COUNCILORS
5000
6
Deputy Mayor (Viceintendente): Supports the mayor in municipal affairs and provides leadership in the mayor’s absence
5000 to 10,000
10
President of the Municipal Council: Heads the municipal council; the council also nominates second and third presidents in most cases
10,000 to 20,000
12
20,000 to 30,000
14
30,000 to 40,000
16
Standing Committees: Led by the councillors to work in specialized municipal areas such as economy, finance, tourism, legislation, works and planning etc.
40,000 to 80,000
18
80,000 to 200,000
20
Special Representations: Involves formal institutions to represent different stakeholders, such as councils or committees for parks, young adults or people with disabilities as well as committees/units on important municipal affairs such as strategic planning, transport monitoring, cultural preservation etc.
More than 200,000
24
2
Councillors: Elected members of municipal councils
Municipal Administration: An organizational entity to implement council’s decisions. It consists of multiple secretariats such as for urban planning, transportation etc.
1
Please note that the stated figures are indicative only and subject to large variations
2
It is a rare figure in municipalities, exixting in a few provinces only
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Municipal Councils in the G20 Countries A R G E N T I N A
LOCAL REVENUE
Municipalities can charge taxes on municipal services, businesses and environmental effects. Most taxes such as on property, vehicle registration and usage, stamp duties, gifts etc are levied and collected by the provincial governments. Only the municipalities of some provinces (i.e. Cordoba, Corrientes, Chubut, Chaco, Formosa, NeuquĂŠn, Salta, Santa Cruz, Tierra del Fuego) are entitled to raise taxes. Municipalities raise revenue through other means such as rental properties, business licenses, and usage fees for services such as lighting, road maintenance, waste management, inspections, safety and hygiene, offices etc. Moreover, municipalities receive subsidies and provincial transfers, which constitute a substantial share of local revenue. Each province decides the composition and distribution of provincial transfers.
REVENUE BY THE MUNICIPAL GOVERNMENTS (2013)
REVENUE SOURCE
% OF GDP
% OF LOCAL REVENUE
Taxation
0.9
49.8
Grants (provincial transfers)
0.4
18.7
Others
0.6
30.6
TOTAL
1.9
100
SOURCE: OECD 2016
CITIZEN ENGAGEMENT MECHANISMS
At the municipal level, councils have various tools for citizen engagement. Among them, stakeholder councils and commissions are established within the council, some of which also enter joint collaborations with the council. These allow segments of community including young adults, people with disabilities, senior citizens, and organizations to use the council’s platform to voice their concerns and suggestions.
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AUSTRALIA CONSTITUTIONAL FORM: A FEDERAL COUNTRY WITH CONSTITUTIONAL MONARCHY
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Municipal Councils in the G20 Countries A U S T R A L I A
ELECTORAL OR APPOINTMENT SYSTEM
Unlike many other countries including the United States and Canada, in Australia after the federal and state levels there is only one tier of government across the country’s six states and Northern Territory. Although names can vary across states and territory (i.e. city, shire, municipality, or town), this level of government is also generally termed as “local government” and shares more or less similar structures and administrative functions countrywide.
The electoral system for each local government system varies across states and territories and often the capital city of each jurisdiction operates a different system of election. In some states, e.g. New South Wales, Victoria and Queensland, voting is compulsory, whereas others (South Australia, Tasmania, and Western Australia) have a voluntary voting system. Different institutional arrangements for voting include proportional representation, first past the post, and preferential or single transferable voting systems. Local Governments are elected for the term of four years. Mayors are elected by local voters or by the council for a term of between one to four years. EMPLOYMENT STATUS AND COMPENSATION
LEGISLATIVE BASIS
Federal government has no jurisdiction over local government and each state and territory has its own legislation: • Local Government Act 1989 of Victoria • Local Government Act 1993 of New South Wales • Local Government Act 1995 of Western Australia • Local Government Act 2009 of Queensland • Local Government Act 2011 of Northern Territory • Local Government Act 1999 of South Australia • Local Government Act 1993 of Tasmania
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Local councillors in Australia are viewed as working on a near-voluntary/part-time basis and are remunerated accordingly – they are paid in the form of fees and allowances to acknowledge their contribution. Some large municipalities such as Queensland employ mayors and councillors full-time and accordingly they are remunerated at a higher level. The allowance criteria differ from state to state. Some are paid as per their council’s sitting fees and committee meetings, or may receive an annually fixed amount such as in West Australia. For councilors’ allowances, councils are divided into three categories based on their population. In the first category, members of councils such as Alpine Shire, Ararat, Benalla, Buloke Shire earn between $8,490 (25,000 SAR) and $20,231 (59,477 SAR) a year. For second category councils like Bass Coast Shire, Baw Baw Shire, Bayside city, Campaspe Shire, councilors are paid between $10,490 (30,840 SAR) and $25,225 (74,160 SAR). Councilors from the third category
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including Ballarat, Banyule, Boroondara, Brimbank, Casey earn $12,614 (37,084 SAR) to $30,223 (88,852 SAR). Mayors from the first category can earn up to $60,442 (177,693 SAR), $78,051 (229,462 SAR) for the second category, and $96,534 (283,800 SAR) for the third category. MANDATES AND AUTHORITIES
Local councils in Australia assume both legislative and executive functions. Local legislations in each state and territory provides for stuatory functions and powers of local councils. In general, they are responsible for: • Advocating and promoting proposals which are in the best interests of the local community; • Planning for and providing services and facilities as per local needs and state local government legislation • Setting municipal regulations and bylaws • Providing and maintaining community infrastructure • Undertaking strategic and land use planning • Raising revenue to enable the Council to perform its functions • Making and enforcing local laws;
Municipal MunicipalCouncils Councilsin inthe theG20 G20Countries Countries
iii.
Delivery programs
iv.
Operational plans
v.
Resourcing strategy
vi.
Policy for asset management
vii. Strategy for workforce management viii. Annual budget ix.
Strategic resource plan
x.
Best practice guidance documents
xi.
Asset management plans and manuals
xii. Long-term financial forecasting xiii. Local government forecast model Councils can also enter into agreements to establish formal partnerships, joint government acitivties e.g. Queensland or joint authorities e.g. Tasmania which include carrying out new schemes, providing services, operating services etc. COUNCIL SIZE
There are about 6,600 elected councillors in Australia with an average of just under 10 councillors per council.
• Providing services related to recreation, engineering, building control, community services, planning approvals, administration, culture, education and health, water and sewerage utilities • Establishing or supporting organisations or programs that benefit local community In addition, councils are required by state guidelines and regulations to formulate policies and programs and plans for their territories such as: i.
Community participation strategy
ii.
Community strategic plan
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Municipal Councils in the G20 Countries A U S T R A L I A
CORE STRUCTURE
All councils consist of an elected arm and an operational or administrative arm. The former is a body of elected council members whereas the latter consists of municipal employees and is responsible for implementing council decisions. The council appoints a general manager (GM) or chief executive officer (CEO), who sets council policies and oversees its operations at the direction of the elected arm. Mayor: The council’s spokesperson for the community on economic issues. Deputy Mayor: Assists in governance and provide leadership in the mayor’s absence General Manager/Chief Executive Officer: Responsible for managing, appointing, directing and dismissing council staff and for all other staff-related issues Councillors: Elected members responsible for developing local policies, defining priorities and service standards and supervising the municipality Council’s Committees: Most municipal councils form committees to control and direct public services in different areas, e.g. transportation, urban land use, environment, community development etc. Administration: An organizational entity that supports and makes suggestions to the council for its day-to-day activities LOCAL REVENUE
Local councils in 2014-15 raised nearly 90% of their own revenue from taxation, sales of goods and services and interest on municipal properties. A small amount of support from the central government (around 10.3% of municipal revenue) was sought in terms of grants and subsidies. However, the ability of individual councils to generate local revenue varies mainly due to differences between urban and remote councils, population size and the autonomy to levy charges. LOCAL REVENUE BREAKDOWN (2014-15)
REVENUE SOURCE Taxation
38.2
Sales of goods and services
27.1
Interests
2.1
Others
22.3
Own-Source Revenue
89.7
Grants and Subsidies
10.3
SOURCE: LOCAL GOVERNMENT NATIONAL REPORT 2014
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TOTAL %
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CITIZEN ENGAGEMENT MECHANISMS
Councils are required by their state government legislation to consult with their communities and seek local opinions on all important matters; although to varying degrees. In New South Wales, councils are required to seek public opinions regarding service provision and development of the councils’ long-term strategic plans. In Victoria, the legislation encourages community members to submit their views on a myriad of council affairs including the council budget and development plan.
Reforms and Initiatives
Performance Management
Several efforts to introduce multiple reforms in the Australian local government sector have been made in recent years. For instance:
The performance monitoring of local councils in Australia is carried out by the respective states according to their set objectives and indicators. Some states publish comparative performance reports of councils to help local governments learn from others’ experiences and establish new mechanisms to improve service delivery.
Enhancing councils’ effectiveness: In New South Wales, councils were asked to systematically conduct a performance assessment and plan to improve their outlook. To introduce better practices in procurement and shared services, 79 councils in Victoria are working collaboratively through a Regional Procurement Excellence Network that promotes collaboration and best practices in procurement processes. Bringing Accountability: In Victoria, the 2015 local governance amendment bill was approved to strengthen councils’ integrity and deal with councillors’ misbehavior. Training Programs: South Australia initiated a statewide councillor induction training program. The program drew participation from 35 councils across the state and resulted in a successful completion of the training requirement by 310 councillors. The program earned a great deal of success and was later published online as well.
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Municipal Councils in the G20 Countries
BRAZIL
CONSTITUTIONAL FORM: FEDERAL REPUBLIC
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The Federal Republic of Brazil is politically subdivided into three main tiers: federal states (estados) and districts (Distrito Federal), municipalities (Municípios) and administrative regions (região administrativa), and districts and neighborhoods1. A unique aspect of decentralization in Brazil is that the municipal governments are created as equal jurisdictions to states and the federal government by the 1988 Constitution. They have their own autonomy, and are not a creation of the higher level government. They are guaranteed a share of the centrally collected tax revenues. All municipalities enjoy the same legal status and are comprised of an executive branch headed by the mayor, and a legislative body or city council (Câmara municipal).
LEGISLATIVE BASIS
The Brazilian Constitution of 1988 (article 29) provides for a legislative body that supervises the mayor. The constitution also defines which roles and functions the municipalities and councils play in municipal development and service delivery. ELECTORAL OR APPOINTMENT SYSTEM
Both the mayor and the members of the city council are directly elected for a term of four years. All councillors are elected thorough open-list proportional representation. The mayor can be re-elected once. EMPLOYMENT STATUS AND COMPENSATION2
The salaries of mayoral and councillor positions vary widely across municipalities in line with the size of cities. In general mayors can earn between R$216,000 (242,520SAR) and R$360,000 (404,208SAR) per year. Deputy mayors can make up to R$144,000 (161,676 SAR) to R$240,000 (269,472SAR) every year. Council members earn on average R$180,000 (202,104 SAR) per year. In addition, the allowances of mayors, deputy mayors and municipal secretaries are determined under the federal constitution. MANDATES AND AUTHORITIES
Most local functions are shared between municipalities and federal and state governments. Municipal administration is charged with primary education, primary healthcare, cultural preservation, land use and transportation. Councils are entitled to handle affairs such as: • Approving the mayor’s budgetary proposal or preparing municipal budgets
• Setting municipal development standards • Following up and monitoring municipal projects • Holding public forums and meetings The mayor determines municipal priorities, carries out urban development, and provides essential services. The mayor’s office is also responsible for collecting fees and taxes, determining the cost of works and coordinating with the state and federal governments.
• Establishing municipal bylaws, tax regulations, acts, resolutions • Controlling finance and budgetary matters
1
Federal states are divided into municipalities, and federal districts (such as Brasilia, the capital) into administrative regions
2
Please note that the stated figures are indicative and subject to large variations CENTER FOR LOCAL GOVERNANCE 21
Municipal Councils in the G20 Countries B R A Z I L
CORE STRUCTURE
Mayor: The executive head of the municipality Deputy Mayor: Supports the mayor and provides leadership in Mayor’s absence Councillors: Elected members of municipal councils Municipal Secretaries: Support the mayor in carrying out municipal functions in specific areas Municipal Commissions: The municipal councils exercise their functions of legislating and supervising through commissions which address issues such as municipal contracts, economic development, health and technology etc. Municipal Administration: An organizational entity under the mayor that implements mayoral and council decisions and is responsible for municipal service delivery COUNCIL SIZE
The council size is proportional to the municipal population such as: POPULATION SIZE AND NUMBER OF COUNCIL SEATS
POPULATION
COUNCIL MEMBERS
Up to 1 million inhabitants
9 to 21
Up to 5 million inhabitants
33 to 41
More than 5 million inhabitants
42 to 55
LOCAL REVENUE
Brazilian municipalities largely depend for their finance on federal and state transfers, which account for almost three-fourths of their total local revenues. The percentage varies across fiscal contexts and local revenue generation profile. Despite reforms, little has been achieved in terms of increasing financial autonomy and reducing reliance on constitutional transfers. Municipal revenue sources mainly include taxes, i.e. property taxation (urban properties, property transfers and frontage), sales tax and royalties etc.
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FEDERAL AND STATE TRANSFERS AND LOCAL REVENUES OF BRAZILIAN MUNICIPALITIES 3
FEDERAL TRANSFERS
STATE TRANSFERS
REVENUE SOURCES
Income tax (22.5%)
Value-added tax (25%)
Service tax
Industrial products tax (25%)
Vehicle registration tax (50%)
Urban property tax
Rural property tax (50%)
Frontage tax
Tax on gold and financial operations (70%)
Property transfer tax
SOURCE: THE BR AZILIAN INSTITUTE OF GEOGR APHY AND STATISTICS (2007)
Percentages in this table indicate percentages of the federal and state collected taxes transfered to local governments CITIZEN ENGAGEMENT MECHANISMS
The 1988 constitution laid out several mechanisms for citizen participation in decision-making and overseeing public matters, among them the community councils and participatory budgeting (PB). The role of community councillors is to make decisions about resource allocation and mainly to control the use of resources. PB, on the contrary, is not the result of federal or multilateral organization-induced policy, but an initiative taken by local governments. PB has been praised both nationally and internationally as an example of “good” local governance. For instance, in Porto Alegre, budget allocations for public welfare works are only made after the consideration and approval of citizens’ recommendations by the city council. This practice has led to significant improvements in local community facilities in Porto Alegre.
3
Performance Management The 2012 Access to Information Act (LAI) provided more transparency in all public domains and made it easier to follow up on municipal targets and achievements by local leaders. Citizens have substantial access to information regarding how public money is being spent by the city council and city hall, and may attend public hearings. Citizens can also bring online platforms into use to publicize any mismanagements by the mayor or councillors against public, historical-cultural, or environmental heritage.
The stated figures stand for the percentage of collected revenues in each category that go to the municipalities
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Municipal Councils in the G20 Countries
CANADA
CONSTITUTIONAL FORM: A FEDERAL COUNTRY WITH CONSTITUTIONAL MONARCHY
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The constitution of Canada distributes administrative powers among the national government, ten provinces, and three territories. Though the Canadian federal government is large and powerful, and the country is vast, the Canadian Constitution gives many significant political powers to lower levels of government closer to the citizens. The provincial governments enjoy significant autonomy to legislate the local government structure and municipal authorities. Local government in Canada differs greatly across provinces. The generally used terms for local government areas are city, village, town, county (urban or rural) and metropolitan municipality, all varying in their functions as per provincial legislations.
LEGISLATIVE BASIS
Canada’s Constitution Act, 1867 (Section 92-8) provides for all provinces to legislate for the municipal government. Each provincial government and territory has its own act. ELECTORAL OR APPOINTMENT SYSTEM
Councillors along with schools trustees and other officials, e.g. park representatives, are elected by direct universal suffrage. Mayors are elected by the council members except in some cases where they are directly elected. The council tenure is three to four years as defined under the provincial legislation. EMPLOYMENT STATUS AND COMPENSATION1
Most of the council members work part-time; they are paid for their service and are allowed to work at other jobs. Councils are free to determine their members remuneration. The remuneration of municipal councillors differs across cities, but could roughly be estimated at around a minimum of 30,000 CAD (88,189 SAR) up to 115,000 CAD (338,059 SAR) per annum. MANDATES AND AUTHORITIES
Municipal councils assume both legislative and administrative powers and perform duties related to:
procedures are in place to implement the council’s decisions
• Governing municipalities and deciding on municipal services and financing
• Ensuring the transparency and accountability of municipal operations and the senior management
• Representing the local public and considering the interests and wellbeing of the municipality
• Carrying out municipal strategic planning
• Developing and evaluating municipal policies and programs • Determining which services the municipality provides • Ensuring that administrative practices, policies and
1
Please note that the stated figures are indicative only and subject to large variations
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Municipal Councils in the G20 Countries C A N A D A
CORE STRUCTURE
Mayor: Provides executive leadership and heads the municipal council Deputy Mayor: Provides leadership in the absence of the mayor Councillors: Elected members who participate in local legislative functions Municipal Committees: Control municipal functions and deal with issues in different areas ranging from transportation to finances to policies Supporting Staff: Councils may also include a few employees such as a clerk, treasurer, deputy treasurer and collector Administration (Municipality): An organizational entity headed by a chief administrative officer (CAO)2 responsible for implementing the council’s decisions COUNCIL SIZE
Although, the number of councillors varies across provinces, the following gives a general number indication: POPULATION SIZE AND NUMBER OF COUNCIL SEAT
POPULATION
NUMBER OF COUNCILORS
Municipality or district of over 50,000
Mayor and eight councillors
Municipality or district of less than 50,000
Mayor and six councillors
Town or village
Mayor and four councillors
LOCAL REVENUE
Local revenue in Canada is generated from taxation, sale of goods and services, investments and government transfers. Property taxes comprise almost half of the total revenue followed by sales of goods and services, which contributes nearly a quarter. The central government funding is distributed as specific-purpose transfers which flow through the provinces and territories to the municipal level. The municipal government in Canada raised more than three quarters of its own revenue compared to almost 22% in federal and provincial government support3.
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Municipal Councils in the G20 Countries
AGGREGATE LOCAL REVENUE (2008)
REVENUE SOURCE
TOTAL %
Property and related taxes
50.3
Other taxes
1.4
Sales of goods and services
22.1
Investment income
4.4
Own-Source Revenue
78.2
Provincial general-purpose transfer
3.4
Federal government specific-purpose transfers
1.6
Provincial government specific-purpose transfers
16.8
Government Transfers
21.8
SOURCE: COMMONWEALTH LOCAL GOVERNMENT FORUM REPORT (2015)
CITIZEN ENGAGEMENT MECHANISMS
By law, council meetings across all provinces and territories of Canada must be open to the public. In some councils, such meetings are aired via webcast. Citizens can also participate in councils’ standing or advisory committees. Citizens in Prince Edward Island have voting rights to approve, reject or ask for amendments to the annual municipal budget. Similarly, following the provincial legislation, local bylaws and zoning regulations by Quebec local councils may be subject to local referendum. INSTITUTIONAL REFORMS
Municipal councils in Canada have earned increased autonomy as a result of legislative reforms over the years. Many provinces and territories have promulgated legislative amendments to enhance the general competence of local authorities to decide how to provide services that best serve local needs in every municipal domain. For instance, municipal councils in Alberta can now levy taxes on gasoline, entertainment, and bicycle sales amongst others. The reformed process was seen in many provinces, though the outcomes differ in each province.
2
The CAO may be known as the city administrator, municipal manager or city commissioner and is the administrative head of the municipality, responsible for municipal service delivery and accountable to the council
3
There are significant differences in local revenue generation across the country. The local governments in Northwest Territories, Nunavut and Yukon are highly dependent on transfers, with transfers accounting for between 41.5% and 59% of total local government revenues in 2004
Performance Management Councils are highly accountable to municipal boards and commissions established by the provincial government to assess certain aspects such as public borrowing, community planning, capital expenditure, and bylaws. Should a council fail to discharge its assigned duties, provincial and territorial governments have powers to investigate, hold it accountable and dismiss the council.
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Municipal Councils in the G20 Countries
CHINA
CONSTITUTIONAL FORM: UNITARY REPUBLIC
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Municipal Councils in the G20 Countries
On a hierarchal scale these are sub-divided into (i) prefecture level; (ii) county level and (iii) township level. i.
Prefecture Level: includes prefecture-level cities, rural prefectures, autonomous prefectures
ii.
County Level: includes counties, county-level cities, autonomous counties, districts
iii.
Townships Level: includes townships, autonomous townships, towns, autonomous towns, sub-districts offices
China’s administrative setup is characterized by a high degree of complexity and democratic centralism. Under the current constitutional framework, the provincial units consist of four parallel types of administration: provinces, central municipalities (directly under the central government)1 , minority autonomous regions, and special administrative regions (including Hong Kong and Macau).
LEGISLATIVE BASIS
In 1979, the National People’s Congress enacted the Organic Law of the Local People’s Congresses and Local People’s Governments of the People’s Republic of China. The National People’s Congress (NPC) assumes legislative functions at the national level, Local People Congresses (LPCs) – elected legislative branches at the local level – were established across municipal governments at provincial, prefecture, and county levels.
regions, central municipalities, and cities that are divided into districts are elected for a term of five years. For chief governmental officials for counties, autonomous counties, cities that are not divided into districts, municipal districts, townships, ethnic townships and towns, the office term is three years.
The legislation gives powers to the LPCs to legislate on matters relating to the localities and draft local regulations for the implementation of National People’s Congress (NPC) laws. Like the NPC, the LPCs are required to adopt internal procedures for drafting and discussing legislation. ELECTORAL OR APPOINTMENT SYSTEM2
Deputies of LPCs at the county and township levels are directly elected by the population, and deputies to LPCs at the provincial and prefecture levels are indirectly elected. Mayors/vice mayors at all levels and district heads/deputy district heads are elected by corresponding local people’s congress. Chief government officials for provinces, autonomous 1
A higher level of city which is directly under the Chinese government, with status equal to that of the provinces. In practice, their political status are higher than common provinces
2
Please note that the stated figures are indicative only and subject to large variations CENTER FOR LOCAL GOVERNANCE 29
Municipal Councils in the G20 Countries
C H I N A
MANDATES AND AUTHORITIES
According to the Chinese constitution, the LPCs at all levels are the key source of legislative power. Their responsibilities include: • Electing chief officials in each administrative area, recalling elected officials when required and debating and approving policies • Ensuring the implementation of the Chinese constitution, laws, and rules and regulations in administrative areas • Adopting and issuing resolutions and drafting regulations with detailed implementation rules (as do state councils) • Reviewing and deciding on local development plans and public services • Ensuring the safety and protection of residents and public assets, and the maintenance of law and order At and above county level: At and above the county level, LPCs are mainly responsible for review and approval of (i) plans for socioeconomic development; (ii) budgets of their respective administrative areas and (iii) reports regarding their implementation. Township level (including townships, ethnic townships and towns): The functions and powers of the LPCs at this level mainly include deciding on: • Planning for local economic development, cultural activities and public awareness • Reviewing and approving local budget and expenditure reports • Implementing plans for infrastructure development in their own constituencies • Reviewing work reports of the township administration, with the right to reject their decisions and decrees • Removing or recalling officials representing the township administration CORE STRUCTURE
Mayor or District Head: Chief executive officer of municipal or district government Vice-Mayor or Deputy District Head: Provides leadership in the mayor’s absence Congress Members (deputies): Elected members of the LPCs at local levels Standing Committee of LPCs: Deliberating LPC affairs when LPCs are not in session Local Peoples’ Government: The administrative arm to implement decisions of the LPCs
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COUNCIL SIZE
Varies by state LOCAL REVENUE
Local revenue in China comes largely from local taxes (including real estate tax, agriculture tax, collective enterprise income) and shared taxes (such as product and business, individual income, and joint venture enterprise taxes), and from other sources (e.g. bonds and credits, set quotas). The provincial finance department oversees financial affairs in general, but the LPCs are autonomous in deciding their own budgets and financial tools. In addition to local revenue, the local government also receives grants from the central government. LOCAL REVENUE BREAKDOWN 2013
TYPE OF REVENUE
TOTAL %
Direct tax revenue (Corporate income tax, Personal income tax)
63
Indirect tax revenue (VAT and consumption, businesses, other consumption taxes, city maintenance tax, vehicle purchase tax, construction tax, land appreciation, tariff)
22
Nontax revenue (special programs receipts, penalty receipts, charge on administrative units, other)
15
SOURCE: ADB STAFF ESTIMATES, BASED ON MINISTRY OF FINANCE (2014)
Institutional Reforms The Shanghai local municipal congress has moved forward in the direction of legal reforms and engaged the Shanghai Bar Association to seek its views and support in its legislative functions. The congress is also extending its support to academics and lawyers by offering them financial grants in exchange for their contribution in drafting legislation.
CITIZEN ENGAGEMENT MECHANISMS
Citizen participation is limited because of the weak political involvement and function of both local people’s congresses and social organizations in national policies. China is undertaking efforts in this regard to engage local citizens in achieving sustainable development. However, such engagement tools need more decentralized approaches led by the LPCs. In the most recent decade, LPCs have experienced several changes as a result of legislative reformation process in China. The reforms has earned an increased interest of public in becoming a part of legislative process. Many LPCs have viewed public participation and accountability as an opportunity to earn legitimacy for their legislation.
Some LPCs are moving towards diversification of local revenue sources through the establishment of independent corporations for investment in sectors such as utilities and construction. Local reform attempts have considerably devolved decision-making process to the provincial and local levels. However, despite such efforts local government in China has always been predominated by the principle of centralism which is embedded in its constitution. Therefore, local authorities including local people’s congresses are largely subject to changes and decisions originating at the uppermost tier of government.
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Municipal Councils in the G20 Countries
FRANCE
CONSTITUTIONAL FORM: UNITARY REPUBLIC
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
There are three sub-levels of governance in France: (i) regions (régions), (ii) departments (départements), and (iii) municipalities (communes). However, there exists no hierarchal relationship between regional, intermediate and local governments. The municipal system is a two-tier setup. In the country’s three largest cities, Paris, Lyon and Marseille, the communes are divided into municipal districts (arrondissements). In other cities, the communes consist of a municipality and elected councils. They are further divided into borough councils, which are elected for the same tenure and under the same principles as in communes.
Besides the Constitution of 1958, the General Code on Local Authorities states the functions of the regions, departments and municipalities. The distribution of these functions at different tiers is further explained in other laws. Additionally, the 1982 Paris decentralization law also describes the balance of power between state and local authorities. ELECTORAL OR APPOINTMENT SYSTEM
The municipal council consists of councillors directly elected for a term of six years, and can be re-elected. The Mayor and deputies represent the municipal branch. The mayor is elected from and by the respective council for a term of six years. Mayoral responsibility is to oversee municipal administration with the assistance of deputies. In municipalities with populations of more than 3,500 (including Paris), municipal elections take place at district scale and form district councils. These councils elect district mayors. The highest ranking councilors with the most votes in each district sit on the city council, which elects the mayor of Paris. EMPLOYMENT STATUS AND COMPENSATION1
Municipal councillors and mayors assume their roles as voluntary duties for their constituents and neither hold fulltime nor part-time positions. Councillors are entitled to reimbursement of expenses in performing their activities such as travelling, training, assistance to other officials etc. Legislation provides for additional benefits, varying from free travel in the municipal transport system, coverage in cases of diseases, cash benefits for education and research and a retirement gratuity.
municipality. For villages, it ranges between € 7,755 (35,706 SAR) to €14,141 (65,112 SAR). In cities with populations between 1,000 and 49,000, the lowest and highest remunerations are €19,615 (90,315 SAR) and €41,055 (189,033 SAR) respectively. Mayors of the big cities earn €50,179 (231,041 SAR) to €66,145 (304,554 SAR). In other main cities like Paris, Marseille and Lyon it averages around €99,600 (458,588 SAR) per year. Municipal councillors in towns with less than 100,000 inhabitants do not receive remuneration. Those in towns with larger populations receive annual remuneration of €2737 (12,572 SAR) – much lower compared to those in the aforementioned three cities: €57,691 (264,995 SAR) in Paris, €22,272 (102,303 SAR) in Marseille and €15660 (71,931 SAR) in Lyon.
Mayors’ annual remuneration and allowances vary across the country, depending on the population size of the 1
Please note that the stated figures are indicative only and subject to large variations CENTER FOR LOCAL GOVERNANCE 33
Municipal Councils in the G20 Countries F R A N C E
MANDATES AND AUTHORITIES
Municipal councils in general approve municipal budgets, define guidelines for municipal policy, manage municipal properties, particularly primary school infrastructure, and guide the operation of the municipal administration. The functions include: • Approving the budget prepared by the mayor • Approving proposals for municipal planning and services • Approving municipal accounts at the end of each year • Deciding which municipal works are to be carried out
CORE STRUCTURE
Mayor 2 : The chief executive responsible for implementing councils’ decisions Deputy Mayors: Elected by the municipal councillors to replace the mayor in absence or carry out specific functions, e.g. roads, housing, culture, environment etc. Councillors: Elected members of the deliberative assembly of the commune or district Deputy Councilors: Elected along with councillors; provide assistance to councilors in specialized areas
• Supporting the economic development of the city
Municipality: An organizational entity consisting of civil servants, contract staff and workers to implement councils’ decisions; responsible for municipal service delivery
Implementing the above policies is among the duties of the mayor. However, in some cities the elected municipal councils implement policies on their own, mostly those related to decisions on staff hiring, awarding contracts, granting exemptions from planning regulations and implementing budget estimates and municipal regulations.
As for intercommunilaties (see the last section), they are administered by a similar municipal council whose members come from each of the member municipalities. They are chaired by the council chairman who is assisted by an office, composed mainly of vice-presidents, which may receive certain powers from the council.
• Managing community heritage
2
Mayors also have a few discretionary powers, particularly related to public health and safety
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Municipal Councils in the G20 Countries
COUNCIL SIZE POPULATION SIZE AND NUMBER OF COUNCIL SEATS
POPULATION SIZE
NUMBER OF COUNCILORS
POPULATION SIZE
NUMBER OF COUNCILORS
Less than 100
7
40,000 to 50,000
43
100 to 500
11
50,000 to 60,000
45
500 to 1500
15
60,000 to 80,000
49
1500 to 2500
19
80,000 to 100,000
53
2500 to 3500
23
100,000 to 150,000
55
3500 to 5000
27
150,000 to 200,000
59
5000 to 10,000
29
200,000 to 250,000
61
10,000 to 20,000
33
250,000 to 300,000
65
20,000 to 30,000
35
Above 300,000
69
30,000 to 40,000
39
Councils in three major cities Paris, Lyon and Marseille comprise of 163, 73, and 101 members respectively. LOCAL REVENUE
Local taxes dominate the total revenue raised by municipal authorities, amounting to 44.6% of the total. The second major source is government transfers and other sources, whereas a small share is comprised of social contributions 3 as well. LOCAL REVENUE DISTRIBUTION
REVENUE SOURCE
TOTAL %
Taxation (Payroll, Property, Excise, Others)
44.6
Social Contributions
0.2
Other
26.1
Own-Source Revenue
70.9
State Allocation
29.1
SOURCE: GUIDE TO MUNICIPAL FINANCE (2009) BY UN-HABITAT.
3
Contributions from employers and employees entitled to social benefits. It could be voluntary or compulsory
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Municipal Councils in the G20 Countries F R A N C E
CITIZEN ENGAGEMENT MECHANISMS
Local democracy is an important component of municipal governance in France. In this spirit, the municipal council can decide to call a public referendum for its projects within the municipality. Several formal engagement mechanisms are in place that allow French citizens to take part in local planning processes by seeking consultations. The municipal councils may also seek formal consultations with local communities. Such consultations cover various municipal affairs, such as sanitation projects, maintenance of religious buildings and sustainable development. In cities like Grenoble, citizen councils were established to develop participatory processes and seek citizen-centric solutions to deliver municipal services in a threestep process of information, consultation, and participation of citizens.
Special Features and Reforms Promulgated in 2015, the law on the New Territorial Organization of the Republic entrusts new powers to the regions and clearly redefines the competences attributed to each territorial collectivity. This reform gave territorial governments the authority to decide on local initiatives such as to create and merge municipalities and amalgamate local departments accordingly. An additional aspect of French local government is the existence of intercommunal governments (intercommunalitĂŠ). These refer to the different forms of cooperation between municipalities for the joint management of certain local public services (garbage collection, urban transport, economy, culture etc.) or the construction of local facilities, in order to better distribute costs and benefit from economies of scale. Municipalities delegate elected representatives and it is at this level that strategic decisions are made. The electoral system remains municipal and there is no clear separation between the executive and the legislature.
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GERMANY
CONSTITUTIONAL FORM: FEDERAL REPUBLIC COUNTRY
CENTER FOR LOCAL GOVERNANCE 37
Municipal Councils in the G20 Countries G E R M A N Y
Germany is a federal republic with national, state (Länder), district and municipal levels of government. Local government includes two tiers of administration – districts (Landkreise) and municipalities (Gemeinden) – as constitutional elements of state government. A municipality can be a village or a city/town. With the exception of bigger cities, municipalities are organized with districts. In addition, the cities of Berlin, Hamburg and Bremen are governed as both a state and municipality. Municipal councils exist across all states in Germany under different terms such as Gemeinderat, Stadtrat, and Gemeindevertretung. Districts in turn are governed by a district council (Kreistag).
LEGISLATIVE BASIS
Local autonomy of municipalities is provided for in Article 28 of the Basic Law of Germany, which further mandates that municipalities and districts have a local representative body. Article 30(I) provides for the municipal council as the main electoral wing of municipal administration. It decides upon matters not falling under the mayoral domain. Since 1945 the states are by law responsible for regulating municipalities within their territory through their own municipal constitutions (Kommunalverfassungen). As a result, there are variances in the council system between 1
the states, even though the South German municipal constitution (elected council along with directly elected mayor) has, since the 1990s, become the dominant one, with some exceptions such as the state of Hessen, which still uses the magistrate system. ELECTORAL OR APPOINTMENT SYSTEM
The electoral system differs by state. The municipal council is elected through universal suffrage for a term varying from four to six years. The mayor heads the council and is elected directly through universal suffrage for six years. EMPLOYMENT STATUS AND COMPENSATION
Mayors work as full-time executives and cannot own businesses or hold occupations. The Länder governments set salaries and allowances, in general averaging 96,000 EUR (434,016 SAR), for the mayors of their cities; however, mayors in large cities receive larger salaries, which range from 118,800 EUR (537,096 SAR) to 151,200 EUR (683,580 SAR) annually. This varies for mayors who work as honorary executives and earn less. The office of municipal councillor is a voluntary position. Councillors are not paid salaries and get remunerated per meeting at an average rate of around 60 EUR (271.26 SAR), although rates vary by city. MANDATES AND AUTHORITIES
Districts and municipalities enjoy full powers of selfadministration. Local government’s tasks are divided between the districts and municipalities. Some services that exceed the capacities of municipalities are provided by the higher-level districts, which may include services such as public transport, social assistance, health care,
Please note that the stated figures are indicative only and subject to large variations
38 CENTER FOR LOCAL GOVERNANCE
1
July 2018
environmental protection and emergency management. However, there is no hierarchy between districts and municipalities; rather they work in close partnership. Municipalities essentially have two types of tasks. The first one are “genuine” local government matters which they conduct either “voluntarily” (local sport, recreation, cultural etc. facilities) but also a wide range of public services (“Daseinsvorsorge”), such as provision of water, sewage, public transport etc., or which they are obliged by federal or State legislation to carry out such as provision of personal social services and kindergardens The other type are so called “delegated” matters which are public functions transferred to them by the State (basically related to public order and safety, such as issuance of building permits, drivers licence, passports etc). By legislation, the municipal council is responsible for all matters that have not been transferred to the mayor. The authority of the mayor varies by state. The municipal council embraces several municipal roles related to: • Strategic decision-making such as for urban planning, transportation, environment etc.
Municipal MunicipalCouncils Councilsin inthe theG20 G20Countries Countries
CORE STRUCTURE
Mayor: The executive head of the municipality; chairs the municipal council and heads the municipal administration Deputy Mayor: Unlike the mayor, not elected by the municipality’s population but by the municipal council Councillors: Elected members of municipal councils Professional Council Members: Municipalities with populations exceeding 10,000 can elect professional council members, who advise on matters of their own area of responsibility Municipal Committees: Constituted by councils to perform specialized roles in different municipal areas; can be either advisory or decision-making in nature Town Board: Headed by the mayor and consisting of professionals to support town council decisions relating to the budgetary plan, bylaws, personnel affairs, financial planning, urban development planning, renovation of the town, etc. Municipal Administration: Implements the councils’ decisions
• Local taxation • Law and order • Budgetary and financial affairs, bylaws, personnel affairs, financial planning, urban development, renovation of the town, etc. • Civil service and employment law • Local audits of municipal accounts • Inspection of the municipal administration and implementation of its decisions
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Municipal Councils in the G20 Countries G E R M A N Y
COUNCIL SIZE
The number of municipal council members depends on the population size of the municipality. POPULATION SIZE AND NUMBER OF COUNCIL SEATS
POPULATION
NUMBER OF COUNCIL MEMBERS
Up to 1,000
8
1,000 to 2,000
12
2,000 to 3,000
14
3,000 to 5,000
16
5,000 to 10,000
20
10,000 to 20,000
24
20,000 to 30,000
30
30,000 to 50,000
40
LOCAL REVENUE
The main sources of revenue of German municipal authorities include taxes and fees, loans and central government transfers. A substantial part (38.7%) is comprised of taxation revenue such as business tax, real estate tax, income tax and road vehicle and land tax. Besides local revenue, which amounts to more than half of the total, municipal authorities receive allocations particularly from state government as “earmarked” contributions or as fiscal equalization assignents.
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Municipal Councils in the G20 Countries
LOCAL REVENUE BREAKDOWN
REVENUE SOURCE
2005
2015
Taxes
37.0
38.7
Sales
18.6
16.5
Others
10.7
7.5
Own Revenue
66.3
62.6
Government Transfers
33.7
37.4
SOURCE: FEDER AL STATISTICAL OFFICE, NATIONAL ACCOUNTS, 2016
CITIZEN ENGAGEMENT MECHANISMS
Local authorities in Germany implement citizen engagement practices in municipal affairs, such as participatory budgeting (e. g. Rheinstetten, Hilden, Emsdetten), community meetings, and citizens’ groups amongst others. Some of these practices date back to the nineteenth century following an increased institutionalization of engaging public opinions in local issues. Advisory boards and council commissions provide formal participation opportunities on issues such as resource management, organizational competence etc. Citizens in all states have the right to request for an issue to be put under municipal discussion provided that a certain amount of inhabitants (around five to ten percent) signed the petition. Moreover, they can request for the issue to be decided by popular referendum (for which ten to 15 percent of signatories are required). Some local councils appoint citizen experts to work with the council and its committees on a voluntary basis.
Reforms and Innovation
Performance Management
Successive reforms and organizational developments have led to improvements in municipalities’ administrative domain, procurement systems and innovations in areas such as clean energy and local entrepreneurship. The municipal council for the city of Iserlohn, for example, provided intelligent car charging facilities to minimize the carbon footprint of urban traffic. The city of Schwabisch Hall relies on renewable sources to generate 26 percent of its electricity and sells energy beyond its constituents, then reinvests the revenue in municipal development programs.
In Germany, the local level of governance is supervised by the state. Municipalities are accountable to the municipal council and are required by legislation to report to the council regarding their accrual based accounting and municipal projects. The municipal council acts as a collective local authority and can oversee the administration, either by requiring a report from the mayor or by involving a committee or a reporter.
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Municipal Councils in the G20 Countries
INDIA
CONSTITUTIONAL FORM: FEDERAL REPUBLIC
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
The constitutional amendments (73rd and 74th) in 1992 (later became acts in 1993 after ratification from states) gave protection and recognition to rural and urban local governments, respectively. Each state has its own legislative basis for local government. Municipal acts are enacted by each state for both ULBs and the panchayat system, e.g.:
India is a federal republic with central (union), state and local spheres of government. The local government system allows the establishment of both urban and rural local bodies which assume both legislative and executive functions.
Gujrat
Urban local bodies (ULBs) total 4,583 under the 74th Constitutional Amendment Act and include three types of municipalities1: municipal corporations (Mahanagar nigam) for big cities; municipalities (Nagar palika) for small cities; and sub-urban government bodies (nagar panchayat) for semi-urban areas. The rural configuration consisting of 254,305 councils differs from urban settings and features a three-tier panchayati raj system2, including district, intermediate and village panchayats.
• Panchayati Act 1993 • Municipalities Act 1963 Haryana • Haryana Panchayati Act 1994 Kerala • Panchayati Act 1994 • Decentralization of Powers Act 2000
ELECTORAL OR APPOINTMENT SYSTEM
The executive/administrative wing of the Municipal Corporation is headed by a commissioner who is an appointed head by the state government. The council is led by an elected mayor either directly by the people or from among the elected members of the municipal corporation. The municipal council consists of the directly elected representatives of all wards falling under the municipality for a term of usually five years. The members elect the president who presides over meetings and oversee the executive and financial affairs of the municipality. The executive functions are carried out through some stateappointed civil service officials including a chief officer along with other officers (for health, education, sanitary) to control administrative affairs of the municipality.
In addition to elected members, the state legislature may also provide for representation of members of state legislative assembly, members of state councils, and members of state legislative council in the municipal council.
1
Municipal corporation and municipality constitutes the most institutes of the local governance in India
2
Refers to a traditional system of governance in rural areas in most South Asian countries where decision making is mostly done by an assembly of local community, principally headed by its chosen members
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Municipal Councils in the G20 Countries I N D I A
EMPLOYMENT STATUS AND COMPENSATION 3
People elected as councillors serve as part-time officials and are not paid salaries; instead they get allowances such as for meetings, phone reimbursement, medical care or fuel which varies from state to state. Councillors in most states are now demanding to receive salaries and increases in allowances given their concerns that the remuneration is not sufficient for work-related expenses such as for travelling, visits etc. MANDATES AND AUTHORITIES
The roles and powers are almost similar for both municipal corporations and municipalities. Their members include elected councillors who have statutory powers to establish a wide range of sub-committees. Councils are policy making, budget approving, and tender (expenditure approval) bodies. Among their powers are: • Developing and approving the municipal budget • Regulating land use and building construction • Planning for social and economic development • Raising municipal loans if required • Deciding the type and proportion of taxes, duties etc to be imposed
• Providing and maintaining infrastructure and utility services e.g. water supply, public health, fire services, urban forestry and environmental protections • Protecting interests of weaker segments of society • Alleviating urban poverty • Upgrading and improving slums • Providing public and urban amenities such as parks, playgrounds, street lighting, bus stops, parking lots and public conveniences etc • Promoting cultural and aesthetical aspects COUNCIL SIZE
The number of municipal council members is determined by the state government (under municipal acts) in proportion to the population size of that municipality. CORE STRUCTURE
The nominated positions vary for municipal corporations and municipalities; however, the following describes them in a general way. Mayor, President, Chairman: In municipal corporations, the head of the council is called the mayor whereas for municipalities the head is called the president or
• Preparing municipal development plans • Defining bylaws and standards relating to building construction, water supply, public markets, use of public streets, slaughterhouses etc 44 CENTER FOR LOCAL GOVERNANCE
3
Please note that the stated figures are indicative only and subject to large varaitions
July 2018
Municipal Councils in the G20 Countries
chairman. The council’s head presides over the council meetings, enjoys powers of inspection, and can direct any implementation decisions
Appointments of higher level officers need approval of municipal council and in some cases of the State Government as prescribed in the municipal act
Deputy Mayor, Vice President or Vice Chairman: Leads the council in the absence of the council’s head
Municipal Administration: Works directly under the commissioner or Chief or Executive Officer to carry out municipal projects and maintain service delivery
Councillors: Directly elected by the public with the mandate to perform legislative functions Standing Committees: Facilitate the work of the council on fields such as public works, finance, education, health, water supply, taxation, sanitation etc. These are the executive committees and have powers of their own as prescribed in the municipal act Subject Committees: Besides standing committees, a municipal council can create subject committees like finance, health, education, women, public works, etc. which are deliberative bodies and even such committees can hold certain powers granted by the municipal council Commissioner, Chief Officer or Executive Officer (CO or CEO): The municipal commissioner (in municipal corporations) or the chief executive officer (in municipalities) is the chief executive authority appointed by the state government; he or she implements the decisions taken by the council and its standing committees and administers municipal activities. The commissioner also holds power to appoint municipal staff and officers to some extent.
LOCAL FUNDING
The financial resources of urban local bodies are limited, therefore there is a substantial dependency on the two upper tiers of government. Urban local bodies raise their revenue from multiple sources which include: 1. Tax revenues: property tax, vacant land tax, advertisements tax etc. 2. Non-tax revenues: municipal fees, lease amounts, sales and user charges 3. Shared revenues4: motor vehicles tax, entertainment tax, surcharge duty etc. 4. Borrowings: loans for capital works from banks and other institutions 5. Others: fines and forfeitures, law charges etc. 6. Government grants: planned grants in aid by the state and federal government The councils are empowered to levy house and land taxes and borrow a limited amount of money.
MUNICIPAL REVENUE BREAKDOWN (2007-08)
REVENUE SOURCE
TOTAL %
Own tax revenue
34.4
Own non-tax revenue
18.6
Others
6.34
Assignments and devolution
20.6
Grants-in-aid from state government
12.7
Transfers from central government
5.3
Finance Commission transfers
1.9
Source: Thirteenth Financial Commission 2007 5
4
Differs from state to state based on the recommendations of state finance commissions
5
In order to periodically review the balance of functions and finances between the states and local governments (Rural and Urban) the Constitution provides for the establishment of State Finance Commissions (SFCs) every five years (Article 243-I as per the 73rd Amendment for Rural and Article 243-Y as per the 74th Amendment for urban) CENTER FOR LOCAL GOVERNANCE 45
Municipal Councils in the G20 Countries I N D I A
Recently the government decided to grant development funds to urban local bodies including basic grants consisting 80 percent of the total fund while the remaining 20 percent is linked with municipal performance which includes improvements in locally raised revenue, service delivery and audit results. CITIZEN ENGAGEMENT MECHANISMS
The recent constitutional amendments (73rd and 74th) have led to increases in citizen participation and awareness at the local level. Public participation at the local level was conceptualized through institutions such as technical advisory groups, city advisory groups and city volunteer technical corporations (CVTC). These assumed a guiding and supporting role towards municipalities to ensure accountability and transparency. These were formed in seven areas: urban planning, engineering, urban poverty, urban heritage, urban governance, urban environment and financial services. Social media surveys are also among the participation tools at the municipal level. Mobile apps such as the Swachhata App allow local residents to connect with their councils, identify municipal issues and participate in the local surveys. Citizens can communicate their complaints about municipal mismanagement such as waste collection by taking pictures and posting them through the application. In addition, the elected local councillors participate in sub-neighborhood meetings and arrange joint meetings with locals and the concerned departments to share the citizens’ concerns.
Institutional Reforms India has introduced certain reforms to improve the performance of urban local bodies in municipal finance, accountability and transparency mechanisms, and capacity building of elected women councillors. Due to the realization that solely relying on public funds for municipal expenditures would not be sustainable, new approaches have been adopted such as market-based funds, land-based sources and public-private partnerships (PPP).Â
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Municipal Councils in the G20 Countries
INDONESIA CONSTITUTIONAL FORM: UNITARY STATE
CENTER FOR LOCAL GOVERNANCE 47
Municipal Councils in the G20 Countries I N D O N E S I A
The political organization of the Republic of Indonesia has officially three levels of government: central; provincial; and districts (kabupaten/kota). Sub-districts (kecamatan) are deconcentrated administrative units of districts and do not comprise an autonomous level of government. Villages (desa) have some autonomy (villages heads are elected, for example, and villages have their own proper budgets) but they are not an official level of government. Provinces are administered by an elected governor with an elected assembly of representatives called the Regional People’s Representative Council (Dewan Perwakilan Rakyat Daerah - DPRD). Similar legislative bodies exist at the district level as well headed by a mayor. The Ministry of Interior oversees local governments throughout the country.
LEGISLATIVE BASIS
Law no. 32/2004 authorizes local governments to assume wide-ranging responsibilities such as for public works, education, health, transportation, communication, environment, land, trading and manufacturing, capital investment, labor affairs, cooperatives, and infrastructure provision. However, Law 32 2004 has been amended by Law 23 2014. On intergovernmental fiscal relations, Law 25 1999 was amended by Law 33 2004. The latter law is currently being revised again, and draft revisions are now under review by the national parliament (DPR).
48 CENTER FOR LOCAL GOVERNANCE
ELECTORAL OR APPOINTMENT SYSTEM
Prior to 1999, sub-national government executives were appointed and sub-national legislatures (Dewan Perwakilan Rakyat Daerah, DPRD) or local councils were formed by the central government. In 1999, the popular election of DPRD representatives was introduced. Starting in that year, DPRDs also began to appoint sub-national government heads, as central-appointed executives’ terms expired. Indonesia initiated direct elections of sub-national government heads in 2005. Direct elections have since been implemented in a gradual manner, as indirectly-elected (DPRD-appointed) executives’ terms expired. Members of local councils are elected through universal suffrage for a term of five years, which can be renewed once. EMPLOYMENT STATUS AND COMPENSATION1
The administrative heads and deputies at the province, city, and district levels are full-time state officials whose salaries and benefits are stipulated in the legislation. The remuneration of local officials varies across provinces. On average, mayors receive a basic salary of Rp 25.2 million (6972 SAR) and job allowance of Rp 45.36 million (12550 SAR) per year. The deputy mayor receives a basic salary of Rp 21.6 million (5976 SAR) plus an allowance of Rp 38.88 million (10,757 SAR) per year. The chairman of the local council gets the equivalent of the basic salary of the mayor. MANDATES AND AUTHORITIES
The local councils act as both decision-making and supervisory body. They are mandated to prepare budgets, conduct supervision, and draft local regulations pertaining to education, healthcare, labor, public works, spatial planning, youth and sport, telecommunication, housing, transport etc.
July July2018 2018
The main functions of local councils include:
Municipal Councils in the G20 Countries
CORE STRUCTURE
• Establishing municipal regulations in discussion with mayors
Mayor/Regent: In districts, the mayor or regent is the executive head of the municipality
• Discussing and approving the municipal budget and revenues and expenditures submitted by mayors
Deputy-Mayor/Vice Regent: Supports the mayor/regent and provides leadership in mayor’s absence
• Supervising the implementation of regulations and budget revenues and expenditures of municipalities • Proposing the appointment and dismissal of the mayor and/or deputy mayor to the Minister of Interior through the governor • Electing a deputy mayor in the event of a vacancy • Providing opinions and considerations to municipal governments • Ensuring the accountability of the mayor in the implementation of municipal functions
Council Chairman: Elected by and heads the council Vice Chairmen: Two vice chairmen are elected in councils of around 20 persons, and three vice-chairmen in councils of around 45 persons 2 Councillors: Elected members of districts and sub-district councils. Municipal Administration: An organizational entity responsible for municipal service delivery
• Approving plans of cooperation with other governments or with third parties • Exercise its authority and other duties stipulated in the provisions of legislation Local councils are required by law to spend at least 20 percent of their budgets on education and 5 percent of their budgets on health. Furthermore, districts are obliged to allocate an additional 10 percent of their intergovernmental and own-source revenues to villages within their jurisdictions.
1
2
Please note that the stated figures are indicative only and subject to large variations Both chairman and vice-chairmen are members of the council as well CENTER FOR LOCAL GOVERNANCE 49
Municipal Councils in the G20 Countries I N D O N E S I A
COUNCIL SIZE
The size of the local legislature is based on the population size of sub-districts. See the table below for the current structure of local (district-level) council. POPULATION SIZE AND NUMBER OF COUNCIL SEATS (SINCE 2009)
POPULATION THRESHOLDS
NUMBER OF SEATS
1
Less than 100,000
20
2
100,000 to 200,000
25
3
200,000 to 300,000
30
4
300,000 to 400,000
35
5
400,000 to 500,000
40
6
500,000 to 1,000,000
45
7
Above 1,000,000
50
SOURCE: GENER AL ELECTIONS COMMISSION (KPU)
LOCAL REVENUE
Municipal finance in cities and regencies largely relies on central and provincial transfers, which average nearly three-fourths of their total revenue. However, even this high proportion marks an improvement as municipal governments have been somewhat successful in leveraging local revenue and reducing their reliance on central and provincial support. Nevertheless, a significant need persists for more financial autonomy at the local level. Local revenue sources mostly include user charges, profit from governmentowned companies, and taxes, such as on hotels and restaurants, advertisements, public lighting, non-metal and stone minerals, parking, land and buildings, land and building acquisition etc. Table A illustrates own source and government transfers in Indonesia, whereas table B breaks down different sources of own-generated revenue, for years 2001 and 2003. A: SOURCES OF MUNICIPAL REVENUE (2001 AND 2013)
REVENUE SOURCE
TOTAL % (2001)
TOTAL % (2013)
Own-source revenue
7
11
Inter-governmental transfer
90
72
Adjustment and special autonomy fund
0
9
Other revenue
3
8
SOURCE: DIRECTOR ATE GENER AL FOR FISCAL BAL ANCES, THE MINISTRY OF FINANCE. REPORTS ON SUBNATIONAL BUDGETS (LAPOR AN ANALISIS REALISASI APBD)
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Municipal Councils in the G20 Countries
B: BREAKDOWN OF OWN-SOURCE REVENUE OF LOCAL GOVERNMENTS (2001 AND 2013)
OWN-SOURCE REVENUE
TOTAL % (2001)
TOTAL % (2013)
Taxes
43
51
User charges
33
15
Profit of governmentowned companies
2
5
Other
21
29
SOURCE: DIRECTOR ATE GENER AL FOR FISCAL BALANCES, THE MINISTRY OF FINANCE. REPORTS ON SUBNATIONAL BUDGETS (LAPOR AN ANALISIS REALISASI APBD)
CITIZEN ENGAGEMENT MECHANISMS
Local councils are formalizing ways to seek input from local communities. In some cases, this has been legalized under local policies. Councils seek suggestions from civil society organizations through institutionalizing their involvement in legislative processes such as drafting local laws. Many local councils have approved regulations that establish a degree of transparency and citizens’ consultation in the policymaking process. In the city of Enrekang, the councils formed working groups comprised of their elected members and community representatives to draft policies for citizen engagement. In Boyolali city in Central Java, all regulations were required to be prepared in public hearings. Some councils even extend this partnership by seeking citizens’ concerns and suggestions over the local budgetary process through, for instance, talk radio.
Performance Management Since the 1990s performance management implementation has been an important aspect of local governance across Indonesia. In 2008, formal guidelines and standards were issued under government regulations. The initiative was led locally by the respective mayors, regents, and governors. At present, some districts have integrated performance management tools at both the individual and organizational level. Such initiatives are mostly driven by the new regulation by the central government that allows performance-based funding to local institutions across Indonesia. Some municipal authorities have set in place performance management practices such as performance contract, review and evaluation by the Yogyakarta municipal government, which has been in place since 2004. Other local governments have such management systems in place, although their successful implementation remains a challenge that requires assistance from the upper tiers of administration.
Institutional Reforms Indonesia has considerably moved from a highly centralized to a more devolved political structure in a series of legislative efforts to promote coordination between governments. Local councils are more authoritative and have actively been planning for social and economic development. However, some of the previous authorities of the local council were slashed as well, for instance, their right to impeach government mayors/regents as a result of the legislative changes in 2004. Later in 2005, with the direct election of mayors and regents, local councils also lost their previous functions of electing local government heads.
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Municipal Councils in the G20 Countries
ITALY
CONSTITUTIONAL FORM: CONSTITUTIONAL REPUBLIC
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
Italy is a constitutional republic comprised of 20 regions (regioni), 80 provinces (provincia), 14 metropolitan cities (città metropolitana) and 7960 municipalities (comuni). The municipality is the third tier of Italian government and consists of three authorities: council, city board, and mayor.
The legislative texts related to local governments in Italy have been promulgated over the years particularly since the 1990s. The law conferring autonomy on local bodies was enacted in 1990. It was followed by a series of reforms mostly aimed at improving financial autonomy, electoral systems, and administration. Amongst those, the legislative decree of 1997 was of most significance in that it gave all administrative functions to provincial and local bodies except for those exclusive to the state. In 2000, the first unified text of local government legislation was introduced. A new law related to the institution of metropolitan cities was introduced in 2014.
In metropolitan cities, the metropolitan council (consiglio comunale) is represented by the selected councillors of all municipalities which fall under its jurisdiction. The metropolitan cities can be viewed as largest cities of the provinces . In 5 regions of home rule status (namely Sardinia, Sicily, Trentino-Alto Adige/ Südtirol, Aosta Valley and Friuli-Venezia Giulia) local government is regulated by the regions. In other with ordinary statute, most regulation is national. Consequently, local governments in most regions are not accountable to the regional government.
ELECTORAL OR APPOINTMENT SYSTEM
The mayor is elected by the citizens for the period of five years. The municipal council is directly elected for the same term. In the metropolitan cities, the municipal councillors and mayors are chosen from their respective councils as delegates to the provincial and metropolitan councils as well. The metropolitan mayor is by rights the mayor of the region’s capital city. EMPLOYMENT STATUS AND COMPENSATION
The roles of mayor and councillor are part-time positions in Italy. Mayors are not paid salaries; they are only entitled to allowances (indennità di funzione). Councillors are entitled to allowances up to 45% of that of the mayor. As an estimate, metropolitan city mayors’ salaries are closer to those of senior managers in the private sector.
• Approving the annual and multi-year municipal budget • Managing the municipal accounts • Approving of the “planning guidelines” of the municipality • Developing the plan of public works and policies related to urban planning, local economic development, public services, land development, environment, culture etc to be implemented by the municipality
MANDATES AND AUTHORITIES
The municipal or metropolitan council assumes the following functions: • Developing municipal bylaws and regulations • Determining municipal taxes, fees and user charges
1
The organization of the governance between metropolitan cities and municipalities is still being in progress. CENTER FOR LOCAL GOVERNANCE 53
Municipal Councils in the G20 Countries I T A L Y
The mayor is the executive head of the municipality and delegates some competences to the executive committee. Italy being a unitary state, most powers of political organization in provinces and towns are vested in the central and regional governments. Local councils enjoy limited autonomy and dictate on minor rules only. CORE STRUCTURE
Mayor: The chief executive and policy leader who can exercise a number of powers, such as representation, nomination of municipal officials, designation and administration President of the Municipal Council: Manage the activities of the council City Boards or Board Commissions: The executive wings of the municipality; implements councils’ decisions. Its members are assigned by the mayor to different administrative branches 2 Councillors: Elected representatives responsible for deciding on municipal policy areas, planning and governance affairs Administration: Support implementation of municipal decisions COUNCIL SIZE
Population size and number of council seats POPULATION
NUMBER OF COUNCILORS
up to 3,000
2
3,000 to 10,000
4
10,000 to 30,000
5
30,000 to 250,000
7
250,000 to 500,000
10
500,000 to 1,000,000
11
above 1,000,000 inhabitants
12
LOCAL REVENUE
Municipal revenue consists of both locally raised revenues by the municipalities and tax revenues transferred from the central government. Municipal revenues (tax and non-tax) constitute more than half of the total, a proportion that has increased since the 1970s. Municipal authorities are free to set taxes, tariffs, service fees and charges such as on municipal properties and waste management and collect tourism fees as well. State transfers at the other end are distributed sector-wise e.g. transportation, healthcare etc.
2
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In metropolitan cities they consist of a metropolitan mayor, as chair, and mayors of the municipalities within the metropolitan city as members
July 2018
CITIZEN ENGAGEMENT MECHANISMS
Italian local governments are actively recognizing opportunities for citizen partnership to promote local democratic practices. For instance, Tuscany has adopted a regional law dedicated to promoting engagement through public debates on important community affairs ranging from environmental topics to social issues. The Municipality of Bologna is experimenting with the model of collaborative administration. It is an interesting mode of application of public engagement that is based on projects for the valorisation of common goods that are proposed by citizens and groups of citizens and realized before the signing a pact of collaboration with the Municipality Relevant stakeholders also contribute to the process of strategic planning and deciding on development priorities. Citizens also enter into associations, collective action groups and committees to achieve more effective results.
Municipal Councils in the G20 Countries
Institutional Reforms Italy has introduced multiple electoral reforms to address the challenges of its fragmented political landscape. Some reforms have had a positive effect while others are still in progress. The development of metropolitan cities in the year 2014 was a landmark reform in local administration whereby metropolitan cities absorbed nearby towns seeking for better communication of local affairs. It provided for enhancing the authority of cities and mayors within the political realm in Italy.
Performance Management Municipal councils in Italy are entrusted by law to follow performance management practices in response to a widespread demand for accountability and efficiency in service delivery. Local authorities under law 42 of 1990 have been striving to adopt performance management tools and prepare indicators for local assessment. Such results are published every three years in a local authorities’ comparative report by the Ministry of Interior.
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Municipal Councils in the G20 Countries
JAPAN
CONSTITUTIONAL FORM: UNITARY STATE
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LEGISLATIVE BASIS
Under the postwar constitution, the Local Autonomy Law was established in 1947 which is the core legislation dealing with local government organization and management. It mainly deals with elected assemblies, executive bodies and community affairs. ELECTORAL OR APPOINTMENT SYSTEM
The municipal assembly is elected for a four-year term. Members are not allowed to hold other public office or to work as a local civil servant. Prefectural governors and municipal mayors are directly elected by citizens for a fouryear tenure and cannot serve as assembly members. EMPLOYMENT STATUS AND COMPENSATION
The members of municipal assembly work as either parttime or full-time officials. In smaller municipalities, members serve on part-time basis and receive little compensation compared to the top 53 big cities which pay more than 7.5 million Japanese yen to their members. MANDATES AND AUTHORITIES
The unicameral municipal assembly is the legislative branch of the local government in Japan. The assembly elects a president or chairperson and a deputy as well. The assembly is mainly responsible for enacting local legislation, setting municipal budgets, and deciding on policies. Its functions include: • Developing or changing bylaws
Municipal Councils in the G20 Countries
Local government in Japan is a two-tier system comprising 47 prefectures (to, do, fu, or ken) at the regional level and serving wider areas, and 1,741 (as of October 2016) municipalities (shi, ku, cho, or son) for directly providing local services. Both exhibit large variations in terms of area and population. Municipalities can be wards (in Tokyo Metropolitan Government), cities, towns, and villages with large differences in their responsibilities except 23 special wards in Tokyo and 20 special cities designated by ordinance. The legislative wing of prefectures and municipalities includes the elected municipal assemblies for local representation.
• Acquisitioning and disposing of various types of property and monetary instruments • Accepting donations within the legal framework • Dealing with the renunciation of rights • Ensuring the provision of public facilities • Dealing with local departments’ demands, dissatisfactions, negotiated settlements, proposed lawsuits, mediation and arbitration • Deciding the compensation amount for damages suffered in respect of a legal obligation
• Approving municipal account statements • Performing duties related to imposition or collection of local taxes • Establishing external contracts • Dealing with property transfers
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Municipal Councils in the G20 Countries J A P A N
The executive branch of the local government implements decisions made by its municipal assembly. Mayors are directly elected by the municipal residents and serve as the chief executive of the municipality. The mayor has discretionary powers to dissolve the local assembly or veto its resolutions. The mayor is supported by a deputy who carries out most of the executive functions along with a treasurer and a number of departments responsible for assigned duties. COUNCIL SIZE
The municipal assembly size vary in relation to its population such as1: POPULATION SIZE AND NUMBER OF COUNCIL SEATS
CITIES Municipal Population
TOWNS AND VILLAGES Members
Municipal Population
Members
Up to 50,000
26
Up to 2000
12
50,000 to 100,000
30
2000 to 5000
14
100,000 to 200,000
34
5000 to 10,000
18
200,000 to 300,000
38
10,000 to 20,000
22
300,000 to 500,000
46
Above 20,000
26
500,000 to 900,000
55
–
–
56-96
–
–
Above 900,000 1
After 2011, the upper limit, which was previously stipulated by the Local Autonomy Law, was removed.
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Municipal Councils in the G20 Countries
CORE STRUCTURE
Mayor: The executive head of the municipality Deputy Mayor: Appointed by the mayor to assist in executive functions Chair of the Assembly: Provides leadership to the local assembly Vice-Chair2: Supports the chair and provides leadership in President’s absence Assembly Members: Guide local policies, define service standards and development priorities, and monitor organizational performance Secretariat: Supports the assembly in administrative affairs Municipal Committees: Established by the assembly for specialized study and discussion Administrative Committees: Responsible for the managing their respective functions, such as, for example, boards of education, agricultural, public safety, and election committees LOCAL REVENUE
Revenue for the municipal governments in Japan is largely raised from taxes and national disbursements to local authorities. Local transfer tax (0.7%) is raised by the national government and transferred to the municipal authorities. As financial support for local governments, the local allocation tax system (14.5%) and special local grants (0.1%) deliver a portion of national revenue to each local government to ensure all municipalities in Japan provide almost same level of public services. National and prefecture disbursements constitutes an obligatory share to municipalities by the higher governments (16.6%). Finally, local bonds and other revenue sources comprise 8.8% and 16.3% of the municipal revenue. COMPOSITION OF MUNICIPAL REVENUE (2015)
REVENUE SOURCE
TOTAL %
General Revenue
52.9
a
Local taxes
32.3
b
Local transfer tax
0.7
c
Special local grants
0.1
d
Land allocation tax
14.5
e
Other general revenue sourcesw
5.3
National Treasury Disbursements
15.3
Local Bonds
8.8
a
3.1
Bonds for the extraordinary financial measures
Prefectural Disbursements
6.7
Other Revenue Sources
16.3
SOURCE: MINISTRY OF FINANCE STATEMENT FOR FY2015
2
An acting chair can be elected by the assembly in the absence of both chairperson and vice-chairperson CENTER FOR LOCAL GOVERNANCE 59
Municipal Councils in the G20 Countries J A P A N
CITIZEN ENGAGEMENT MECHANISMS
Major reforms have been set in place in a bid to promote participation of citizens in local governance. These include legislative reforms to the Local Autonomy Law, which enables local communities to participate directly or indirectly in public affairs. Important matters such as amending bylaws and demanding audits require signatures from two percent of persons listed on the electoral register. Likewise, at least one-third of the community members must sign in order to dissolve the local assembly or dismiss a member, head or public service personnel. Access to information is a right of each citizen. Currently, almost all local governments have bylaws and general guidelines for information disclosure. Among the roles and responsibilities of the assembly, it is stated in law that “the assembly shall make every effort to solicit views and opinions from the town population broadly, and that “the assembly is obliged to provide explanations of its decisions and of the processes involved in reaching those decisions to the residents as the holders of sovereignty in the municipality.”
Reforms and Innovation Several efforts were introduced in Japan to bring reforms to the local government sector. Two attempts were made (in 1995 and in 2006) to decentralize the system and give more autonomy to local institutions. In addition, the “trinity reforms” to the local finance system were set in place to enhance local governments’ freedom to decide on their revenue and expenditures. In Japan, multiple attempts were made in order to merge municipalities to improve efficiency in public administration and reduce budget deficits. It led to decrease in the number of municipalities to around 1,800 in 2006 from more than 3,200 in 2000. The first wave of the major municipal mergers was initiated in 1888-9 when small village clusters were grouped into around 15,800 municipalities. In a second attempt in 1953 to 1961 the number was further decreased to about 3,400. The latest efforts were distinct in way that the Japanese government offered incentives to those municipalities which would sign the municipal merger contracts by the mid-2016. However, such attempts were seen to be resulted in increased centralization without achieving much of the anticipated objectives.
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Municipal Councils in the G20 Countries
REPUBLIC OF KOREA CONSTITUTIONAL FORM: UNITARY REPUBLIC
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Municipal Councils in the G20 Countries K O R E A
The government of the Republic of Korea is a three-tier setup. The upper tier comprises six metropolitan cities, one special city (Seoul), one special selfgoverning city (Sejong), eight provinces and one special self-governing province, Jeju. All top administrative divisions are administered by an elected governor. The lower two tiers constitute the municipal system. The upper scale consists of 226 local governments which includes city (si), county (gun) and district (gu). The second scale or sub-municipal divisions include town (eup), township (myeon), neighborhood (dong) and village (ri). The local government is a semiautonomous institution in Korea and consists of executive and legislative bodies, administered by the Ministry of the Interior and Safety. The mayors head metropolitan cities and municipalities whereas the governors lead provinces.
ELECTORAL OR APPOINTMENT SYSTEM
The heads of local government including mayors, governors, and councillors are elected for a term of four years. The mayor can be re-elected for a maximum of three terms; there is no limit on how many times local councillors can run for office. Elections are made by their residents in a direct election with secret vote. EMPLOYMENT STATUS AND COMPENSATION1
Council members and Mayors are full-time positions in Korea’s local governments and their salaries vary widely. The average salary of mayors is estimated at around 75 million won (263,373 SAR) per annum. They also receive allowances such as for family, schooling of children, and residence amongst others. Councillors’ salaries range between 41 million won (143,977 SAR) to 61 million won (214,210 SAR) every year. In addition, council members, like mayors, are entitled to defined allowances and compensations. The monthly allowance is determined by the number of people per capita and the financial strength index of the municipality. MANDATES AND AUTHORITIES
LEGISLATIVE BASIS
Article 118 of the constitution establishes the local legislative bodies (local councils) in South Korea. Article 117 defines its functions as “shall deal with administrative matters pertaining to the welfare of local residents, manage properties, and may enact provisions relating to local autonomy”. The details of this are defined in the Local Autonomy Act enacted in 1949; however, the autonomous system was effectively adopted in 1995. 62 CENTER FOR LOCAL GOVERNANCE
Local government in Korea demonstrates strong mayoral and relatively weak council powers. The mayor’s position comes with larger powers and shares some responsibilities with local councillors, such as budgeting, policy-making functions and legislating. Local councils manage public facilities and properties; determine and collect local services fees and taxes; perform oversight and representative functions; ensure provision of services to the local
1
Please note that the stated figures are indicative only and subject to large variations
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community and manage administrative affairs. The mayor, however, is more authoritative; he or she carries out local appointments at large, submits the budget and can veto local council resolutions whereas councils do not hold powers to impeach the mayor. The councils, given their limited financial capacity and expertise, remain less effective and inefficient in policy initiatives, which are largely assumed by the local bureaucracy under the mayor. Some councillors, considering the limited authority of their institution, try to seek particularistic exchange relationships with the mayor, who can dispense local resources. CORE STRUCTURE
Mayor: The chief executive or administrative head of the local government system, holds wider power compared to councils Vice-Mayor: One of generally two deputies who provide leadership in the mayor’s absence Deputies: (i) The deputy for political affairs, selected by the mayor, and (ii) the deputy for administrative affairs, appointed by the central government (usually a high-ranking bureaucrat)
Municipal Councils in the G20 Countries
COUNCIL SIZE
Seoul Metropolitan Council
20 to 25 members
Municipalities
25 to 70 members
Cities and districts
15 to 25 members
Counties
10 to 20 members
LOCAL REVENUE
Municipal revenue mainly consists of tax and non-tax revenues, local shared subsidies, and loans and bonds. The central government also extends fiscal support to local governments through state transfers. The breakdown of local fiscal revenue in Korea explains that local taxes constitute the largest share (35.3%), followed by non-tax revenues (21%), shared revenue (19.4%), government transfers (21.7%) and borrowing (2.6%). However, the fiscal revenue trend since 1995 has shown a decline in tax revenue and increased reliance on subsidies.
Council Chairman: Head of the council, provides leadership Councillors: Elected members of municipal councils in both metropolitan and non-metropolitan provinces Municipal Administration: An organizational entity consisting of civil servants, contract staff and workers to implement councils’ decisions. The mayor supervises the administration and can delegate part of its affairs to the administration
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Municipal Councils in the G20 Countries J A P A N
BREAKDOWN OF MUNICIPAL REVENUE (2011)
REVENUE SOURCE
TOTAL %
Taxation
35.3
Non-Taxation
21.0
Revenue sharing
19.4
Government Transfers
21.7
Borrowing
2.6
SOURCE: BUDGET SUMMARY OF KOREAN LOCAL GOVERNMENTS, 2011
CITIZEN ENGAGEMENT MECHANISMS
Korean citizens have increasingly earned powers to hold their representatives accountable. They can request disclosure of public information from local authorities, submit petitions to reconsider local bylaws and ordinances and oust incompetent local administrators. In addition, the concept of neighborhood councils was also introduced as a step towards meaningful participation. There are also formal institutions such as intellectual public groups to represent common citizens in public discussions, symposiums, deliberations on decentralization policies, and beyond that to contribute in local publications and policy reports discussing technical matters. Although it is hard to determine to what extent participation has improved through these systems, citizens have at least access to formal channels to voice their concerns, opinions, and preferences at the local level. Despite much control still being vested in the central government over most local issues, such new opportunities have increased the influence of civil society and organizations on local decision making.
Institutional Reforms Korean local government has undergone successive reforms aimed at achieving improved decentralization and local democracy. In 1991, legislation by the central administration strengthened the powers of local government bodies. Later, in 2005, the government promulgated the Local Referendum Act, which delegated powers to local councils to hold referendums. It was supplemented by the Local Recall System which allows citizens to remove elected councillors and mayors from office.
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Municipal Councils in the G20 Countries
MEXICO
CONSTITUTIONAL FORM: FEDERAL COUNTRY
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Municipal Councils in the G20 Countries M E X I C O
The federation of Mexico is composed of 31 states (Estados) and the capital, Mexico City (CDMX, formally the DF), which operates as an autonomous entity with similar powers and responsibilities of a state, and which is further subdivided into 16 boroughs (delegaciones) acting as its municipalities. The country’s states, subdivided into autonomous municipalities (municipios), that constitute the base of the political and administrative organization of the states, and is considered as a legal entity ruled by the Town Hall (Ayuntamiento). Executive functions are carried out by the mayor or the municipal president (presidente municipal) who heads the municipal council (cabildo) which acts as the local regulatory power, which is formally an administrative function, but materially legislative body, and is comprised of elected public representatives.
LEGISLATIVE BASIS
The autonomy, structure, and powers of local governments were established during the constitutional reforms of 1983 (article 115 of Mexican Constitution) and 1999. In addition to the federal constitution, other legal texts establish the basis of municipal government, including the federal planning law, state constitutions, the state planning law, and the municipal organic law.
66 CENTER FOR LOCAL GOVERNANCE
ELECTORAL OR APPOINTMENT SYSTEM
The municipal president and council members, trustees, are directly elected for a non-renewable three or four-year term (depending on the state). However, since 2018 municipal presidents can call for re-election however only under the same party as before. Council seats are allocated as per both relative majority1 and in proportion to the votes each party received, thus ensuring the representation of the main opposition as well. A group of states allow almost a pure majority rule to the party list that wins the election. The majority of seats are assigned to them including President, Syndicates and listed Regidores.The remaining seats are assigned to the rest of the contending parties. However other states widely apply a proportional representation (PR) rule. In such cases, the winning party automatically get the seats allocated for the president and for syndicates, whereas the remaining seats are allocated as per the PR rule. EMPLOYMENT STATUS AND COMPENSATION 2
According to article 127, section II of the Political Constitution of the United Mexican States, no public servant can receive remuneration, including benefits and items, for service or employment, more than that established for the president of the Republic. However, Article 115 of the Constitution grants municipalities the authority to administer their own budget and set salaries. Thus, the salary of municipal presidents, their municipal council, and administrators vary from state to state. Salaries for municipal presidents range from approximately 40,000 (150,020 SAR) to 118,000 (442,559) US dollars a 1
With the majority election system, only one member is to be elected per constituency
July 2018
year. For example, in Monterrey, capital of the State of Nuevo Leon, the president earns 100,180 USD (376,866 SAR) per annum and a council member earns 40,000 USD (150,746 SAR) per annum. Whereas, the majority (approximately 76%) of public administrators earn less than 7,000 US (26,253 SAR) dollars a year. MANDATES AND AUTHORITIES
The municipal council supervises the municipality and ensures that the administration fulfills citizens’ needs and aspirations. It is responsible for setting the municipality’s regulations, bylaws, governmental agreements, urban development plans and operational working programs, and evaluating municipal policies and programs for its constituency. The main functions of the municipal council are to: • Organize the functions and structure of the municipal administration • Submit public account details to the state congress. • Develop agreements with federal and state agencies for the provision of public services and infrastructure development • Approve urban plans and development programs, as well as develop partnership agreements with other municipalities to implement coordinated urban policies. • Implement laws and decrees by the state legislature regarding urban and municipal matters • Analyze and approve the municipal budget • Draft income law proposals for approval by the state legislative CORE STRUCTURE
Municipal President/Mayor (Presidente Municipal): The 2
Municipal Councils in the G20 Countries
municipal president heads the municipal council, is responsible for publishing the annual review of municipal accounts; removes and appoints employees and civil servants and supervises the implementation of municipal development plans and programs. The municipal president, the syndic and councilmen comprise the Ayuntamiento. Municipal Secretariat (Secretario del H. Ayuntamiento): Coordinates, facilitates, and implements all the activities the mayor proposes to accomplish during the year. Syndic (Síndico): The syndic acts as the equivalent of the City Manager of a Municipality in the United States of America, providing legal representation and advice to the council. He/or she defends municipal interests in the case of lawsuits. Named or elected, the syndic cannot serve for two consecutive terms. Municipal Council: The municipal council is composed of a group of trustees, councilmen (regidores) elected by the mayors’ party slate, with a small fraction of members being selected from the highest vote-getting parties that lost the mayoral seat during the election. They are elected for a non-renewable three-year term and in certain cases oversee various commissions. Municipal Committees/Commissions: The council distributes responsibilities to committees in specific areas such as public safety and transport, municipal treasury, public health and social security, public works, education, recreation, urban development and commerce and markets. Municipal Administration: A public administration that works as the council’s bureaucracy, responsible for implementing the council’s decisions.
Please note that the stated figures are indicative only and subject to large variations CENTER FOR LOCAL GOVERNANCE 67
Municipal Councils in the G20 Countries M E X I C O
COUNCIL SIZE 3
The municipal council’s composition varies in accordance with the population. The following describes the council size with respect to the population in the state of Mexico: POPULATION SIZE AND COUNCIL SEATS
POPULATION
COMBINATION
Less than 150,000
1 President, 1 Syndic, 10 Trustees/ Councilmen (relative majority: 6, and proportional representation: 4)
150,000 to 500,000
1 President, 1 Syndic, 13 Trustees/ Councilmen (relative majority: 7, and proportional representation: 6)
500,000 to 10,00,000
1 President, 2 Syndic, 16 Trustees/ Councilmen (relative majority: 9, and proportional representation: 7)
More than 10,00,000
1 President, 2 Syndic, 19 Trustees/ Councilmen (relative majority: 11, and proportional representation: 8)
LOCAL REVENUE
The Fiscal Coordination Law (Ley de Coordinación Fiscal, or LCF) coordinates federal fiscal transfers to state, and municipal governments, and grants the powers and functions to respective administrative bodies. Municipal governments tend to have three sources of revenue—self-revenue (which is money collected from their exclusive authority over property taxes, collection of fees for local public services (e.g., granting building permits, licenses, etc.) and bank loans (a right granted during the 1997 reforms to Article 9 of the LCF), revenue-sharing funds (participaciones), and direct grants from the central government (aportaciones) that bypass the state government.
3
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The council size varies between States
July 2018
Municipal Councils in the G20 Countries
Municipal revenue in Mexico largely derives from central government transfers, which constitute around 86% of their total revenue. Municipal councils approve their own budget, but the state councils determine the amount of federal income to be distributed to the municipalities annually though participations. Even though the municipal government is authorized to collect taxes and user fees, the revenue proportion of each is not more than 13% and 0.7% respectively. Lack of resources, insufficient collection capacity and limited autonomy are among the major hindrances to revenue generation. Municipal taxes are mainly (around 73%) generated from property taxes, with rates thereof determined by the state congress. Their contribution in GDP is 0.2%, which is one of the lowest levels of the OECD. MUNICIPAL REVENUE BREAKDOWN
REVENUE SOURCE
% GDP
TOTAL %
Taxation
0.2
13
Grants and subsidies
1.6
86.2
0
0.7
1.9
100
Other revenues TOTAL REVENUES SOURCE: OECD REPORT 2016
CITIZEN ENGAGEMENT MECHANISMS
No single law regulates citizen participation in the country, and mechanisms for engagement vary from state to state. Engagement initiatives in Mexican municipalities showcase innovation to achieve increased public participation at the local level. According to the laws regulating Section 33 of the Fiscal Coordination Law (LCF, Spanish acronym), municipalities, in order to receive specific social infrastructure funds, have to prove that there was citizen participation in the processes of planning, prioritizing, monitoring, controlling and evaluating the projects to be implemented with these funds (ORIFIS 2013). Each municipality has its own unique method for dealing with this requirement. In Tenango del Aire, for instance, participation occurs through Citizen Committees of Control and Vigilance (COCICOVIs) whereas Public Works Committees (Comites de Obra) operate in San Andrés Cholula. In addition, municipalities vary in their methods of encouraging general citizen participation. For example, in the city of Puebla, the local administration initiated once-a-week citizen engagement mechanism. A city hall was set up every Wednesday inviting people to a fairground to discuss their needs, issues, and suggestions on municipal programs.
The Xico municipal government in the state of Veracruz took a different approach to reduce the public-governance gap using a popular tradition of community gatherings and hearings called “faena”. The faenas were used as a tool to administer public works, planning, finances, and supervision of public interaction with the local government. In Mexico city, the participation tools are even more institutionalized through nonpartisan citizens’ advisory councils, comprised of citizens who are directly elected for a term of three years. The citizens’ advisory councils supervise administrative affairs and suggest, appraise and in some cases approve development programs in different areas of the federal district. Nevertheless, this participation practice has been criticized for its corporatist character and political patronage.
Reforms and Challenges The most recent municipal reform to increased the service tenure of councillors to three or four years, allowed consecutive re-election of counilors, reduced administrative difficulties, and expanded the powers of municipal councils One of the most important problems facing Mexico is that 367 municipalities are considered metropolitan, corresponding to 59 metropolitan areas where 57% of the total population of the country is concentrated (63.8 million inhabitants). In these cases there are coordination problems in the planning and decision making with significant impacts on the life quality of the population.
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Municipal MunicipalCouncils Councilsininthe theG20 G20Countries Countries
RUSSIA
CONSTITUTIONAL FORM: FEDERAL COUNTRY
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
Local government in the Russian Federation is a complex patchwork with a high degree of fragmentation, with the country split into several federal states or regions. Since 2005, in each of the 82 regions (with the exception of federal cities) local governments operate in a two-tier setup. The upper layer comprises municipal districts (municipal raion) – and cities (city okrugs). The lower tier mainly consists of urban and rural settlements in addition to intra-urban districts within bigger cities and cities of federal significance. Federal cities (Moscow, Saint Petrsburg and Sevastopol) are not considered to be local governments but Russian Federation constituents.
The first Federal Law on Local Governance of 1995 (no longer in force) designated local government organization in Russia as “local self-government.” The new 2003 Law (Article 34-39) details the authorities and mandates of elected local councils and administrations. ELECTORAL SYSTEM
Local government bodies consist of a representative body (local council), a mayor and a local administration. Local councils are generally elected through universal direct suffrage. Municipal district and city okrugs (districts) may choose to form their councils out of mayors or deputies of lower tier councils within their jurisdiction. The term of the local council and as well as the eligibility criteria for the mayor have to be established in the municipal charter. The council term cannot be shorter than two years or longer than five years. The municipal charter can establish one of the following variants of leadership and institutional arrangements: 1. A mayor elected through universal suffrage who presides over the council 2. A mayor elected through universal suffrage who leads the local administration 3. A mayor elected by the respective municipal council out of its members who presides over the council 4. An elected person who heads the council without any own decision-making powers, along with a hired head of the municipal administration 5. In small towns and rural settlements (less than 3000 inhabitants), the mayor can combine the position of the council chair and the head of administration.
EMPLOYMENT STATUS AND COMPENSATION1
Both employment status and level of remuneration differ in municipalities in different regions. Municipal authorities are free to define the amount of remuneration within the limits established by national legislation. To give an idea, in the city of Novokuznetsk, the council chairman earns around 1.5 million rubles (98,016 SAR) a year. The head of the municipal administration earns around 1.46 million rubles (94,944 SAR) a year. In contrast, the Moscow mayor can earn more than 3 million rubles a year. Deputy mayors of the city of Bratsk earn between 1.7 million rubles (110,991 SAR) and 3.9 million rubles (254,628 SAR) a year. In Khabarovsk, the salary for the same position averages around 2.5 million rubles (163,223 SAR), whereas a mayor earns around 5.6 million rubles (375,504 SAR). 1
Only 10 percent of councilors are permitted to work full-time as councilors which implies that in cities with 20,000–500,000 inhabitants there will only be two full-time deputies, and in those with over 500,000 inhabitants, just three. CENTER FOR LOCAL GOVERNANCE 71
Municipal Councils in the G20 Countries R U S S I A
Councillors (deputies) in most cases do not receive a salary. They are only entitled allowances since they work on parttime basis. Only a chairman or deputy chairman of a council can receive a salary, the amount of which depends on the number of inhabitants and the available budget and thus can vary widely across different localities. MANDATES AND AUTHORITIES
The municipal councils fulfill the following functions: 1. Adopting the municipal charter 2. Drafting and approving local budgets 3. Deciding on taxes and user levies 4. Setting the socioeconomic development priorities of the municipality 5. Setting regulations on management and disposal of municipal property 6. Setting the procedures of municipal enterprises management, as well as establishing tariffs for the services of municipal enterprises and institutions 7. Making decisions on inter-municipal cooperation
CORE STRUCTURE
Mayor/Head of municipality: The executive head of the municipality Deputy Mayor: Supports the mayor in specific domains, i.e. urban planning, transportation etc Chairman/Head of the Council: Heads the councils and represents the local legislative body; may also be accompanied by a deputy chairman Councillors: Elected members of local councils; their number varies according to the population size of the municipality Council Committees: Comprised of local council members to function in specialized municipal areas Head of Municipal Administration (Executive Manager): Appointed through a special selection committee2 to preside over the municipal administration Municipal Administration: An organizational entity responsible for implementing legislative or executive decisions through municipal service delivery
8. Executing control over local self-government bodies and officials In Russia, local councils are weaker than executives. For instance, mayors and heads of the municipal administration can veto legislation adopted by local councils, and vetoes can only be overturned with a two-thirds majority. 72 CENTER FOR LOCAL GOVERNANCE
2
The committee consists of members, half of which are chosen by regional administrations and half by local councils
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Municipal Councils in the G20 Countries
COUNCIL SIZE
The number of members in settlement councils and city okrugs varies according to the population size such as: POPULATION SIZE AND COUNCIL SEATS
POPULATION SIZE
NUMBER OF COUNCILORS
Less than 1,000
7
1000 to 10,000
10
10,000 to 30,000
15
30,000 to 100,000
20
100,000 to 500,000
25
Above 500,000
35
LOCAL REVENUE
Considering the wide-ranging functions assigned to municipal government, the actual amount of revenue generated locally is not sufficient for the majority of municipalities. Local authorities largely rely on regional transfers for fiscal equalization. Local financing of municipalities comes from local taxes, fees and levies, municipal privatization, and lease income. Local revenues mainly proceed from property and land tax, taxes on SMEs, a share of the federal personal income tax as established by the National Budget Code. Regional governments can additionally share their taxes with municipal governments by establishing sharing rates in regional legislation.
In 2013 the Russian Federation government decided to centralize all municipal hospitals and transfer them to subordination of regional governments. Funding of kindergartens was also transferred to regional level. Consequently, municipal revenues were reduced by means of reducing grants and subsidies as well as reducing the rate of shared personal income tax. CITIZEN ENGAGEMENT PRACTICES
Citizen engagement is among the principal legislative components of Russian local governance. It allows communities to decide and choose the model of organization for their territories considering cultural, political and geographical factors. In the Gatchina Rayon, for example, the municipality has appointed local citizens to provide suggestions on municipal issues. Under the law, municipal jurisdictions cannot be changed without seeking consent and approval from the local communities. They also decide independently on issues such as establishing, merging, and transforming municipalities. In some Russian cities, the municipal government organizes budget roundtables involving expert members of the local community to deliberate on the municipality’s budget and other affairs. Citizens can decide to contribute additional cash resources to municipal budgets out of their own pocket to provide funding for the issues they consider of special importance. These additional revenues are managed through municipal accounts. The practice has become more and more popular during the last years.
General purpose or equalization transfers are allocated to local governments in accordance with the rules established by the National Budget Code and specified by regional legislation on a long term basis. According to fiscal equalization rules, local governments cannot be deprived of revenues collected in excess of budgeted revenues. MUNICIPAL GOVERNMENTS REVENUE
REVENUE SOURCE
% OF GDP
% OF LOCAL REVENUE
Taxation
1.2%
29.2%
Grants and Subsidies
2.7%
63.8%
Other
0.3%
7.0%
TOTAL
4.2%
100%
SOURCE: MINISTRY OF FINANCE REPORT, 2017
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Municipal Councils in the G20 Countries R U S S I A
Often regional governments provide matching grants to support these citizens’ initiatives. Using additional funds, municipal governments carry out small projects in the field of local landscape improvement, installment of sports facilities, cultural events and roads improvement. As an example, in Nijniy Novgorid oblast participatory budgeting involves 358 small towns and villages as well as 8 city okrugs.
Institutional Reforms Municipal Leadership: In a recent set of reforms, the council chair cannot hold the position of head of administration. This implies that a municipality will have two heads, one of the council, the other of the municipal administration (also known as the executive manager) Institutional Decentralization: A municipal reform aimed at institutional decentralization between 2003 and 2005 resulted in an increase in the number of municipalities from around 12,000 in 2002 to about 20,000 today.
Performance Management The evaluation of performance management indicators was introduced in 2008, targeting 30 municipal indicators. The annual results are communicated through heads of districts to state authorities for comparison. Such evaluation is based on socioeconomic development and public feedback through opinion polls. At the end of the year, the ranking of municipalities is carried out and the evaluation methodology is formed. Examples from Krasnoyarsk territory are distinguished in this regard; it carries out evaluation taking into account socioeconomic development and the geographical characteristics of its municipalities.
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Municipal Councils in the G20 Countries
SAUDI ARABIA
CONSTITUTIONAL FORM: CONSTITUTIONAL MONARCHY
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Municipal Councils in the G20 Countries S A U D I A R A B I A
The Kingdom of Saudi Arabia is divided into a three-tier political system comprising of national, regional, and municipal scales of governance. The local governance system in the Kingdom is mostly influenced by Ministry of Interior (MOI) and Ministry of Municipal and Rural Affairs (MOMRA), where the former is responsible for the regional sector of the local governance system and the latter for the municipal sector. Under MOMRA, there exist 285 municipalities across the Kingdom. Out of these, 16 are regional municipalities (Amanat) in the Kingdom – at least one per region plus three secondary Amanat spread across two regions (Makkah and Eastern Province). The regional municipality functions in large metropolitan areas and oversees other smaller municipalities (Baladiyat) in the region simultaneously. The regional municipality is sub-divided into districts or sub-municipalities (Fariya). Both regional and smaller municipalities have executive bodies and councils. The executive leadership of the municipality is provided by the mayor1. The work of the municipal administration is overseen by a partially elected municipal council headed by a chairman selected by its members.
LEGISLATIVE BASIS
The Law of Municipalities and Villages 1977 and the Regulations of Municipal Councils from 2015 describe the municipal systems, institutional responsibilities and administrative functions at the local level. ELECTORAL OR APPOINTMENT SYSTEM
Municipal councils in Saudi Arabia consist of both elected and appointed members. Two-thirds of the members are directly elected by the population while the remaining third are appointed by the minister of MOMRA. Mayors are appointed by royal decree 2. The councils’ term lasts for a period of four years and in exceptional cases may be extended by no more than two years. EMPLOYMENT STATUS AND COMPENSATION
The mayoral position in Saudi Arabia is a full-time responsibility unlike the municipal councillors who work on a part-time basis. The monthly remuneration paid to the councillors is relevant to their council size. The Financial Regulations indicate that the monthly remuneration of the heads of the councils and their members shall be as follows: 1. Eight thousand (8000) riyals in the councils with 30 members. 2. Seven thousand (7000) riyals in the councils with 21 to 24 members
1
2
76 CENTER FOR LOCAL GOVERNANCE
Locally known as “Ameen” in the case of the regional municipality and the “Raees Baladiya” for small municipalities Officially, the MOMRA minister chooses the mayor, but unofficially it is done in close coordination with the Emirs and often only after their approval. They are then appointed by royal order.
July March 2018 2018
3. Six thousand (6000) riyals in the councils with 15 to 18 members 4. Five thousand (5000) riyals in the councils with 9 to 12 members MANDATES AND AUTHORITIES
The municipal council oversees the municipal administration and performs the following duties: • Preparing the municipal budget
Municipal Councils in the G20 Countries
• Suggesting expropriation of land for public benefit • Contracting loans from the relevant government institutions and accepting donations if they are consistent with Islamic law and the public benefit • Determining the prices of services and materials provided by the municipality directly or indirectly • Providing feedback on the issues presented to the council COUNCIL STRUCTURE
• Approving the final cost of projects prior to submission to the relevant authorities
Mayor: The executive head of the municipality and member of the municipal council
• Preparing the organizational chart for the municipality in conjunction with the relevant authorities so it can be approved by the Minister of Municipal and Rural Affairs
Deputy-Mayor: Provides leadership in the mayor’s absence
• Developing planning, organizational, and technical regulations to be available in urban areas
Deputy Chairman: Provides the council’s leadership in the chairman’s absence
• Proposing construction projects in the town
Secretary General: Responsible for all administrative tasks within the council and supervising and managing the council’s secretariat
• Developing regulations needed for the municipality to exercise its responsibilities • Determining fees and fines as long as they do not exceed 100 riyal • Suggesting the amount of fees and fines when it necessitates increasing them to above 100 riyal • Monitoring revenues and expenses and managing municipal funds in accordance with the rules and regulations that are enforced • Monitoring municipal activities and working to enhance their efficiency and effectiveness
Council Chairman: Heads the municipal council
Councillors: Elected and appointed3 members of the municipal councils. Municipal Committees: Led by the councillors to work in specialized municipal domains Municipality: An organizational entity consisting of civil servants, contract staff and workers for municipal service delivery.
3
The members are appointed by the Minister of MOMRA which also include one senior official of the regional municipality (Amanah) as well as the head of the municipality
CENTER FOR LOCAL GOVERNANCE 77
Municipal Councils in the G20 Countries S A U D I A R A B I A
LOCAL REVENUE
Saudi municipal councils in general lack both a sufficient budget to perform their functions as well as control over it. The councils largely rely on the budget received from MOMRA and lack significant means for local revenue generation. Most municipal services are provided at no charge to citizens or those who benefit from them. In addition, municipalities do not levy tax and their revenue mainly comes from letting of public properties, charges on advert signs and posts, and collection of penalty charges. However, financial resources are mostly controlled by the Ministry of Finance (MoF) and as such the collected revenue from any municipality will not be controlled by the council except in that they approve the municipal budgets. Municipalities own revenue derives from fees on building permits, advertising signage and commercial licenses etc which are collected by the MoF and returned to municipalities4. The Saudi formula allocates only development grants, while taking into account general needs (measured by population and area) and infrastructure needs (measured by cost of and gap in infrastructure). The government of Saudi Arabia introduced a transfer formula for distributing development grants in 2009. The adopted formula allocates funds from the development pool such that the grant is based 35 percent on population, 20 percent on area, 10 percent on the Index of Construction Costs, and 35 percent on infrastructure deficit (gap).
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Municipal Councils in the G20 Countries
COUNCIL SIZE
The Minister of MOMRA decides the municipal council size as per the provisions of municipal council regulations. The number of council seats varies from region to region: REGION
COUNCIL SEATS
REGIONAL MUNICIPALITIES Riyadh, Makkah, Madinah, Jeddah, Eastern Province
30
Taif, Al Ahsa
24
Qassim, Aseer, Hail, Tabuk, Jazan, Abha, Najran, Aljouf, Northern Borders
21
SMALLER MUNICIPALITIES Municipalities of Category A (except for the regions of Jeddah, Hail, Albaha, Tabuk, Jazan, Najran, Aljouf, Northern Borders, Taif, Al Ahsa)
18
Municipalities of Category B (except for the regions of Hail, Najran, Northern Borders, Taif, Al Ahsa)
15
Municipalities of Category C (except for Al Ahsa region)
12
Municipalities of Category D (except for Tabuk region)
9
Municipalities of Category E
9
CITIZEN ENGAGEMENT MECHANISMS
The increased local participation since the 2015 regulations for municipal councils has set an unprecedented path towards inclusive decision-making in Saudi Arabia. These regulations require each municipal council to conduct regular workshops and community meetings every four months to invite community concerns and feedback. However, there has been an increasing demand for municipal councils to create more inclusive mechanisms for setting citizen-centric priorities in their constituencies. At present, municipal councils in the Kingdom face some constraints such as the lack of resources and full capacity which hinders a fully activated engagement process at the municipal level. Nonetheless, municipal councils in some cases embrace some informal engagement practices such as through social media (largely Twitter) that allow local communities to submit their concerns and feedback on municipal initiatives.
4
Institutional Reforms Change in Council’s Composition: The representation of elected members in the recent municipal council elections (2015) was increased from half to twothirds of the council’s seats. Women Representation: Unlike the elections of 2005 and 2011, the elections of 2015 also allowed women to participate in the electoral process, which set a new precedent for the future of local governance in the Kingdom. Administrative Decentralization: In 2009, as part of the government’s decentralization efforts and improving geographical coverage of municipal services, the classification of municipalities was increased from four to five categories A, B, C, D and E. Villages were upgraded to municipality status (D and E) resulting in increased number of municipalities i.e. 178 in 2005 to 284 in 2017
Except for the regions of Riyadh, Makkah, and Madina which have separate budgets and are relatively autonomous in finance
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Municipal Councils in the G20 Countries
SOUTH AFRICA
CONSTITUTIONAL FORM: REPUBLIC WITH BOTH UNITARY AND FEDERAL FEATURES
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The Constitution provides for three categories of municipalities, as follows: Metropolitan Municipality (Category A municipality) There are 8 metropolitan municipalities in South Africa. They were established in the major urban areas of the country. The distinguishing feature of a metropolitan municipality is that it is authorised to perform the full range of powers and functions allocated by the Constitution to local governments, whilst (as is described below) in other areas of the country, powers and functions are shared between local and district municipalities. Local Municipality (Category B municipality) There are 205 local municipalities in South Africa. They are authorised in terms of the Constitution and other legislation to exercise certain of the powers and functions allocated to the local sphere of government. A local municipality is sub-divided into smaller geographical areas for administrative and electoral purposes called “wards”. District Municipality (Category C municipality) There are 44 district municipalities in South Africa. Typically, 4 or 5 local municipalities are located within the same geographical area as a district municipality. The district municipality will exercise the powers and functions that are not performed by the local municipalities – usually, these are functions which require greater concentrations of resources and which provide opportunities for economies of scale. A district municipality is not superior to a local municipality; rather, it has concurrent geographical jurisdiction with the local municipalities in the same geographical area, and complementary functional jurisdiction with those local municipalities. The result is that in any given district, the district municipality and the local municipalities will between them perform all of the powers and functions allocated to the local government sphere.
Municipal Councils in the G20 Countries
Local government in South Africa is one of three spheres of government in the country, the others being the national and provincial spheres. The Constitution of South Africa allocates specific powers and functions to each of the three spheres. The local sphere consists of 257 separate municipalities with councils as their legislative and policy making wing, and the municipal administration responsible for implementing the councils’ plans and programs.
LEGISLATIVE BASIS
Local government is established under the 1996 constitution. Some important legislative texts include: • Local Government: Municipal Structures Act 1998 (Act No. 117 of 1998) • Local Government: Municipal Systems Act 2000 ( Act No.32 of 2000) • Traditional Leadership and Governance Framework Act 2003 (Act No. 41 of 2003) • Local Government: Municipal Finance Management Act 2003 ( Act no 56 of 2003) • Intergovernmental Relations Framework Act 2005 (Act No. 13 of 2005)
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Municipal Councils in the G20 Countries
S O U T H A F R I C A
ELECTORAL OR APPOINTMENT SYSTEM
The local government system in South Africa is also characterized by a dual local electoral system. It consists of both proportional elections (based on party lists) and ward elections (for individual councillors)1. Councils are elected for a term of five years. In the case of metropolitan and local councils, individual ward councillors make up half of the local council size, while the other half are elected through proportional representation as party representatives. District councils are represented by the councilors designated by local municipalities with main task of representing local municipality interests at the district level. EMPLOYMENT STATUS AND COMPENSATION 2
The Municipal Structures Act of 1998 (Section 18(4)) provides that councillors may, in terms of a policy framework determined by the Minister responsible for local government, be designated as full time councillors. The current framework provides that councillors who hold specific positions (such as executive mayor, speaker, member of executive committee) may be designated as full-time councillors. Unless approved by the municipal council, no
1
Multiple wards (in some metropolitan and local municipalities) cluster together to form a sub-council. Sub-councils play an advisory role to metropolitan and local council
82 CENTER FOR LOCAL GOVERNANCE
full-time councilor may not undertake other paid work. Councillors who are not so designated serve in a part-time capacity. A councillor is paid a salary within the framework of the Public Office Bearers Act, 1998. The minister responsible for local government may, according to the Act, determine the upper limits of the remuneration that may be paid to councillors. The upper limit depends on the category and size of the municipality, whether the councillor is employed on a part-time or full-time basis, and the nature of the councillor’s position ( for example, the mayor). MANDATES AND AUTHORITIES
Section 156 of the Constitution provides that a municipality has executive authority in respect of, and the right to administer, the local government matters listed in Part B of Schedule 4 and Part B of Schedule 5 to the Constitution. These matters cover a wide range, and include air pollution, building regulations, electricity reticulation, firefighting services, municipal public transport, water and sanitation services, beaches, cemeteries, cleansing, fencing, sports facilities, markets, refuse removal, traffic and parking (to mention just a few). As was indicated above, metropolitan municipalities are authorised to perform all of these
2
Please note that the stated figures are only indicative and subject to large variations
July 2018
Municipal Councils in the G20 Countries
functions, whilst in non-metropolitan areas, these functions are shared between local and district municipalities. In addition, the Constitution provides that municipal councils may pass local bylaws and regulations regarding their mandated functions. Other functions which municipal councils are authorised to perform in terms of the Constitution or other legislation include the following: • Approving annual municipal budgets proposed by the mayor
CORE STRUCTURE
The Councils assume the following structure: Mayor: Heads the council (in an executive position or in a ceremonial role) Deputy Mayor: Substitutes for the mayor in his or her absence Executive or Mayoral Committee: Headed by the mayor; coordinates with and make recommendations to the municipal council
• Approving municipal development plans such as the Integrated Development Plan (IDP), which serves as a guiding framework for all planning and development to take place in the municipal area
Speaker: Chairs council meetings
• Levying municipal taxes such as the property tax
Committees: Established to oversee and guide specific functions; report and recommend to full council
• Charging fees on municipal services e.g. water, electricity, libraries etc • Imposing penalties on violation of municipal laws or regulations such as traffic or littering fines etc • Borrowing money for municipal development projects and using the municipal assets as surety • Ensuring citizen engagement in local decision-making processes • Directing the administration and ensuring performance management COUNCIL SIZE
The number of councillors of a municipal council is determined according to a formula, subject to the following: COUNCIL TYPE AND NUMBER OF SEATS
Metropolitan councils
up to 270 councillors
District and local councils
3 to 90 councillors
Councillors: Elected representatives of the community; may hold leadership roles in the council
Municipal Administration: Comprised of a manager, officials and staff employed by the council; responsible for ensuring municipal service delivery in all municipal areas ranging from infrastructure and utility services to transportation projects and local tourism There are three types of executive arrangements for councils: 1. Executive Mayoral system The executive mayoral system is the most common type in councils across the country. The council elects the executive mayor, who may appoint a mayoral committee for support in making proposals, decisions, and plans which are subject to council approval. Under this system, primary executive responsibility lies with the mayor. 2. Collective Executive system The collective executive system is the other main type of executive system. Under this system, primary executive responsibility lies with an executive committee. The committee is elected by the council, and its membership should proportionately reflect the representation of the parties in the council. In this system, the role of the mayor (who is also elected by the council) is to preside over meetings of the executive committee and to perform ceremonial functions. 3. Plenary executive system This system exists in only small municipalities, where the council elects the mayor who chairs its meetings and the council as a whole makes plans and decisions without any executive or speaker.
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Municipal Councils in the G20 Countries
S O U T H A F R I C A
LOCAL REVENUE
Municipalities in South Africa derive their funding either from local sources or from transfers or grants made by the national government in terms of a comprehensive inter-governmental finance system. The principal local sources of revenue are property taxes (called “rates” in South Africa) and service charges (for example, for the provision of water and electricity). Other forms of local revenue may include fines and penalties and investments. Transfers or grants made by national government may be conditional or unconditional. Unconditional grants (known as “the equitable share” in South Africa) may be used for general operations of the municipality, whilst conditional grants must be used for specific purposes (mostly, but not only, for infrastructure development) and are conditional in the sense that if they are not used for the specified purpose, they must be returned to the national government. Whilst the bulk of local government revenue is, overall, derived from local sources, the extent to which individual municipalities depend on their own revenues or national government transfers varies enormously. The metropolitan municipalities and the larger local municipalities (which together are responsible for a very large proportion of total local government expenditure) fund most of their expenditure from locally raised revenues, but are nonetheless dependant to some extent on national government grants. The smaller local municipalities, particularly in the rural areas (which have very weak local revenue bases) and the district municipalities (which have no property tax bases and limited opportunities to impose service charges) are dependant to a far greater extent on national government grants; in some cases, they are almost entirely dependant on such grants. Municipalities are responsible for the remuneration of councillors and personnel and spend about 30% of the total municipal operating budget in the form of remuneration, although this level is often exceeded in some individual municipalities. The following tables show the sources of revenue, excluding capital transfers and capital funds, respectively, for local government for the financial year ending 30 June 2017.
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A: SOURCES OF LOCAL REVENUE (EXCLUDING CAPITAL TRANSFERS), 2017
SOURCE
PERCENTAGE
Property Rates
17.5
Service Charges
51.4
Investments
1.6
Transfers
20.3
Other
9.2
TOTAL
100.0
B: SOURCES OF LOCAL REVENUE (CAPITAL FUNDS), 2017
SOURCE OF CAPITAL FUNDS
PERCENTAGE
Transfers
58.4
Public contributions and donations
3.6
Borrowing
14.9
Internally generated funds
23.1
TOTAL
100.0
Source: National Treasury, Consolidated statement of financial performance for local government, year ended 30 June 2017
Performance Management
CITIZEN ENGAGEMENT MECHANISMS
The Municipal Systems Act of 2000 requires local governments to promote local consultation and community involvement regarding the level, range, quality, and impact of municipal services provided by the municipality. In addition, ward committees are established across the country as tools of public participation.
The Municipal Systems Act provides that every municipality must develop a performance management system (PMS) that will improve organizational effectiveness, audit the use of municipal resources, and show performance results. PMS contracts are signed senior municipal government employees to hold them accountable for results against a set of key performance indicators in the contract. The individual performances are linked to the municipal goals defined in the integrated development plan.
One of the common means of engagement set by the municipal government is the forum of integrated development planning (IDP) which serves as a participatory platform for the local community in the development and review of the municipality’s integrated development plan.
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Municipal MunicipalCouncils Councilsininthe theG20 G20Countries Countries
TURKEY
CONSTITUTIONAL FORM: UNITARY REPUBLIC
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
The Turkish constitution of 1982 provides for the establishment of the municipal institutions. The constitution mandates that councils be set up as elected decisionmaking bodies which assume mainly administrative functions and serve for five years. Law No. 5018 on Public Fiscal Administration and Control also covers municipalities and the procedures for preparing and implementing their budgets, as well as other fiscal administration matters.
Different parts of Turkey’s administrative organization reflect two distinct principles: central administration and decentralization. The country is divided into 81 provinces (vilayetlar), headed by centrally appointed sub-governors under the supervision of the respective governor, and 957 districts (kazalar), headed by directly elected mayors (belediye reisi).
Other relevant legislative texts include the following: • Act 657 Public Servants Act
Metropolitan Municipal System
• Act 5302 Special Provincial Administration Act
Of the 81 provinces, the local government in 30 of them is characterized by a twotier metropolitan municipal system: metropolitan municipalities1 at the provincial level (first tier) and 519 district municipalities (second tier).
• Act 5216 Metropolitan Municipality Act • Act 5393 Act of Municipality • Act 6360 The Act that amends Act 5216 creating new metropolitan municipalities and enlarging their jurisdiction and financial resources.
Non-Metropolitan Municipal System In the remaining 51 provinces a single-tier municipal system exists, with municipalities covering urban areas and special provincial administrations providing services in all over a province, mainly rural areas. The municipal arrangement in these provinces can be divided into three distinct categories with no hierarchal relationship between them: provincial municipalities (51), district municipalities (400) and town municipalities (396) for areas of a mostly rural nature.
ELECTORAL OR APPOINTMENT SYSTEM
Mayors and municipal councillors are elected by direct popular vote for five-year terms. There is no separate election for metropolitan councils; their members consist of one fifth of municipal councillors according to their party affiliations and the size of the party groups in the city council. District mayors are also members of the metropolitan council. EMPLOYMENT STATUS AND COMPENSATION
Mayoral positions in Turkey are a full-time responsibility (on average requiring more than nine hours a day); municipal councillors work part-time (on average up to four hours a day). 1
Metropolitan municipalities are now in charge of rural administration in addition to urban administration CENTER FOR LOCAL GOVERNANCE 87
Municipal Councils in the G20 Countries T U R K E Y
Mayors receive both salaries and allowances established by law on the basis of city population: on average around 271,080 TRY (265,320 SAR) in salary per year, with additional allowances of between 5,424 and 27,108 TRY (437 to 26,532 SAR) in accordance with their working days. Councillors receive a daily honorarium set by the city council that varies between 60 TRY (58 SAR) and 196 TRY (192 SAR) based on the municipal population.
• Approving the municipality’s revenues and expenditures and its annual report
In addition, they are paid around 135 TRY (132 SAR) per meeting, held once a month, and reimbursed costs of travel, accommodation (partly), and for training and education.
• Setting fees for municipal services
MANDATES AND AUTHORITIES
The municipal council – in general for both metropolitan and non-metropolitan municipal systems – acts as decisionmaking and supervisory body. Its functions include the following: • Approving the strategic plan of the municipality, the municipal budget and investment programs 88 CENTER FOR LOCAL GOVERNANCE
• Approving plans for land development • Deciding on granting concessions, establishing enterprises and companies, and allowing sales of companies • Permitting the municipality to purchase, borrow or sell property • Determining the municipality’s administrative structure • Establishing and modifying boundaries of neighborhoods subject to approval by the governor The municipal executive committee, consisting of the elected representatives of the city council and the department heads determined by the mayor, is responsible for the review of strategic plans, annual programs, and budget; appraisal of revenues and expenditures presented to the municipal council; imposition of penalties; holding of tenders; and expropriation decisions. The mayor holds
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Municipal Councils in the G20 Countries
strong administrative powers and executes the municipal budget and appoints and manages the staff. He can appoint and remove all municipal administrators and employees except the secretary general and the directors general of affiliated entities (who are appointed by the Minister of Interior by recommendation from the respective mayor). CORE STRUCTURE
Mayor: A member, chairperson of the municipal executive committee, and the speaker of the municipal council Vice-Mayor: For non-metropolitan municipalities, the mayor may appoint vice-mayors from among councillors or municipal administrators First and Second Vice-Chairman: The council elects the first vice-chairman or second vice-chairman under the chairmanship of the mayor Councillors: Elected members of municipal councils in both metropolitan and non-metropolitan provinces Municipal Executive Committee: A commission headed by the mayor to implement the council’s resolutions. One-half members of this committee include administrators from municipalities (appointed by the mayor), with their number varying as per the municipal population; the other half are councillors elected by the municipal council.
LOCAL REVENUE
Municipal revenue consists of both revenues raised locally by the municipalities and tax revenues transferred from the central government. Nearly 12% of central tax revenues are allocated to municipalities and account generally for more than 50 % of total municipal revenue. The distribution of that total largely depends on the population size of each municipality, with other criteria including financial equalization for municipalities with low revenues. Local revenues come from taxes, charges, contribution to investment expenditures2, fees and enterprise revenues, and collectively account for around 50% of the municipal budget in general. Taxes are collected on properties, sanitation, advertisements, electricity and gas consumption, entertainment and communication. In addition, charges are collected against certain municipal services such as construction, various department operations, business licenses, and occupation and spring water. The municipality can also borrow for large-scale projects subject to the approval of the municipal council (except for projects approved by the central government). BREAKDOWN OF MUNICIPAL REVENUE (2012/13)
REVENUE SOURCE
Municipality: An organizational entity (defined under the pertaining municipality laws) consisting of civil servants, contract staff and workers to implement the councils’ decisions and responsible for municipal service delivery. The main units are for clerical affairs, technical affairs, financial services and municipal police. COUNCIL SIZE
POPULATION SIZE
NUMBER OF COUNCILLORS
Up to 10,000
9
10,001 to 20,000
11
%
Taxation
22.36
Charges
9.16
Investment expenditures and service fees
2.48
Other (such as enterprise and property revenues)
14.8
Own-Source Revenue
48.8
State allocation
51.2
SOURCE: UNION OF MUNICIPALITIES OF TURKEY
20,001 to 50,000
15
50,001 to 100,000
25
100,001 to 250,000
31
250,001 to 500,000
37
500,001 to 1,000,000
45
Above 1,000,000
55
2
Municipalities charge property owners up to 0.2% of the value of their respective property as a contribution to investment expenditures incurred by municipalities for construction of roads, water and sewer etc. infrastructure. CENTER FOR LOCAL GOVERNANCE 89
Municipal Councils in the G20 Countries T U R K E Y
CITIZEN ENGAGEMENT MECHANISMS
Citizen engagement is an important component of municipal governance in Turkey. To ensure citizens are fully informed of council plans and decisions, council meetings are open to the general public, media and professional organizations. The proceedings are accessible to the public and anyone can receive a printed copy. Another form of meaningful engagement comes from citizens’ assemblies. Such assemblies represent civil society, public organizations and trade unions. Such assemblies include commissions to voice concerns of all sectors of society including women and youth to environmental activists and associations for people with special needs whose contribution is imperative to urban development. Moreover, Act 5393 allows municipalities to establish an advisory urban council (or city council) made up of the representatives of public, private, civic organizations and some social and occupational groups along with voluntary participation by the local citizen. Municipal councils take up opinions formed under citizens’ assemblies or in urban councils and reflect upon them in their meetings. Besides communicating public opinions and needs to municipal councils, citizen assemblies serve an important function for community awareness and municipal government alike. Citizens tend to be more aware of their rights and their critical role of protecting the local environment and contributing to local sustainable development.
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Reforms and Innovation To promote democratization, Turkey initiated the Local Agenda 21 (LA-21) National Program in 1997. This framework aimed at institutionalizing youth participation in local development. In this context, voluntary youth assemblies were established under the umbrella of municipal councils to enable direct participation of youth and give them a say in local governance. In addition, a few attempts were made to enlarge the remit of the municipality beyond providing conventional municipal services. Legislative reforms over the years have seen municipal roles expand to include further social services to disadvantaged groups, economic development and urban regeneration. In fact, 14 new metropolitan municipalities were established under Law no. 6360 in 2012 in addition to the existing 16 metropolitan municipalities. The Law also expanded the borders of the 30 metropolitan municipalities to the limits of their respective provinces, making them responsible for providing municipal services all over their respective provinces. Moreover, the new 2012 Act no. 6360 abolished all the town municipalities, villages and special provincial administrations in these 30 metropolitan provinces.
Municipal Councils in the G20 Countries
Over the years, municipal councils in Turkey have also earned increased autonomy over some important affairs related to human resource management. The councils now determine the staff structure in local institutions as per standards set jointly by the Ministry of Interior and the State Personnel Department. The meetings of municipal councils have been increased from three times a year to monthly in order to improve local decision-making processes. Besides, the tutelage powers of the central administration and governors on the local administrations are limited to only judicial control, and their discretionary powers to control the municipalities have been curbed to a great extent. However, despite emphasis put upon participation and governance, it could not be argued that effective public engagement and democratic governance practices are realized to a large extent yet. Citizen engagement seems to stay mostly limited to the participation of effective groups. Similarly, the present functioning of the newly structured advisory city councils is largely ineffective since they are financially dependent on the funds and support of the municipalities. Yet, there are several examples of the advisory city councils with successful practices of local initiatives and direct public participation.
Performance Management Municipalities are accountable for their functions and performance to the municipal council and are required by legislation to report to the council on their accounting and projects. This is partially done by the municipal executive committee, which reviews the municipal functions including strategic plans, annual programs, and appraisals of revenue and expenditures. Law no. 5393 and Law No. 5018 on Public Fiscal Administration and Control require municipalities to prepare their five-year strategic plans with a participatory manner to set their goals, missions and tasks, and follow up to what extent these goals, missions and tasks are met or achieved.
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Municipal Councils in the G20 Countries
UNITED KINGDOM
CONSTITUTIONAL FORM: UNITARY STATE WITH CONSTITUTIONAL MONARCHY
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LEGISLATIVE BASIS
Each country in the United Kingdom has its own legislative texts for local government. England, for example has the following: • Local Government Acts 1992, 1999, 2000, 2003, 2010 • Greater London Authority Acts 1999, 2007 • Local Government and Public Involvement in Health Act 2007 • Local Democracy, Economic Development and Construction Act 2009 • Local Government Finance Act 2012 • Localism Act 2011 ELECTORAL OR APPOINTMENT SYSTEM
Councillors are elected for four years representing their respective wards at district or borough level. Mayors are directly elected for the same fixed term of four years. Most councils have a ceremonial or civic mayor who is the chair of the council. Ceremonial mayors chair council meetings and carry out ceremonial duties but do not have executive powers or authority to make decision about council businesses. Whereas some cities have directly elected mayors (for a fixed term of three to four years) who lead the executive of the council and are responsible for the day-to-day running of local services. EMPLOYMENT STATUS AND COMPENSATION
The majority of councillors work part-time and are entitled to a basic allowance. A special responsibility allowance is also given to those assuming additional roles. The council sets the allowances based on the recommendation of an independent remuneration panel. Councils may also cover the cost of childcare or dependent care, along with travel and subsistence.
There is no single pattern of local government in the United Kingdom. Wales, Northern Ireland and Scotland have a singletier system, whereas England has a mixed structural arrangement including: 1.Two-tier system comprised of (i) county councils and (ii) district councils 2.Single-tier system including unitary authorities, London boroughs and metropolitan district responsible for providing all local services. 3.In some areas, Town, Parish and Community Councils (in Scotland and Wales) are the lowest tiers of the government.
MANDATES AND AUTHORITIES
Councils have around 1,200 statutory duties. The mix of structural arrangements of UK local governments (including both single- and two-tier systems) makes its comparison with other countries a challenge. At a general scale, however, all aforementioned types of councils (except for counties) with different jurisdictions carry most municipal mandates and thus can be equated with the municipal councils in most other countries. Two-Tier System County councils (27) are responsible for providing countywide services such as health, education, social care etc.
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Municipal Councils in the G20 Countries
U N I T E D K I N G D O M
District councils (201) are smaller jurisdictions and have localized functions with responsibility for policy making in diverse areas and service provision related to waste collection, environmental health, community safety, recycling, tax collections, parks and leisure services, housing, local planning, licensing and building control.
1. A leader and a cabinet: The council elects a leader from the house who appoints and chairs the cabinet. Each of its members has a specific area of responsibility such as schools, housing or finance
Single-Tier System
3. Arrangements with a directly elected mayor: The mayor takes on an equivalent role to a leader and proposes the municipal budget, policy framework and appoints the cabinet
Unitary Authorities (56), London Boroughs (32) and Metropolitan Districts Councils (37) perform all local functions including the above-mentioned as well as education, planning, transport, social care, fire and safety, libraries, commercial standards, and waste management. Unitary authorities may cover a whole county or part of a county. In the Greater London administrative area, each London borough has it own borough council. Town, Parish and Community Councils are responsible for maintaining local amenities such as footpaths, recreational areas, and cemeteries. They are also consulted by upper tiers on large-scale development projects such as highways and planning applications. Executive Arrangements Both single and two-tier councils perform their executive governance functions through one of the following institutional arrangements: 94 CENTER FOR LOCAL GOVERNANCE
2. A committee system: The council from its members form a number of committees each with a specific area of responsibility
CORE STRUCTURE
Mayor: Executive head of the municipality and may or may not be a member of majority party in the council Deputy Mayor: In some councils, the deputy mayor is responsible for providing leadership in the mayor’s absence Leader of the Council: Chairs the council and performs ceremonial duties Council members: Responsible for monitoring performance within each of their portfolios (from transport to strategic planning to social care) and have overall responsibility to contribute in providing local leadership; budget and policy framework.
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Municipal Councils in the G20 Countries
A councillor may serve on more than one tier, for example, a county councillor can also be a district or parish councillor. Council Cabinet: Appointed by the council leader or mayor with each member given responsibility in a specific domain Councils’ Committees: Can be constituted by councils, each with a number of members to direct and control public services in different areas
Management Team: A politically-neutral workforce supporting the whole council. Besides a large workforce, every council by law should appoint three key officers: (i) A chief executive or Managing Director to advise council on legislation, policy and procedures; (ii) A monitoring officer to give advice to councillors regarding their legal and operational framework; and (iii) a section 151 officer or finance officer to manage the financial affairs.
COUNCIL SIZE COUNCIL SIZE IN THE UK VARIES ACROSS PRINCIPLE TERRITORIES SUCH AS:
ADMINISTRATIVE UNIT
NUMBER OF UNITS
RANGE OF NUMBER OF COUNCILLORS
London Borough
32
46-70
Metropolitan District
36
48-120
County
27
45-84
Unitary County
6
39-123
District
201
24-62
Unitary District
49
26-82
Total England
351
24-123
Scottish Unitary
32
21-79
Welsh Unitary
22
33-75
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U N I T E D K I N G D O M
LOCAL REVENUE
Local governments have long received substantial grant funding from their respective central governments. The provision of central funding has largely followed individual central decisions. Some important components of central funding for local governments include settlement funding assessment; police funding; dedicated school grants; and other grants. LOCAL GOVERNMENT NON-SCHOOLS REVENUE IN ENGLAND (2013/14)1
REVENUE SOURCE
TOTAL %
Taxation
34.7
Retained income from Rate Retention Scheme2
16.0
Specific and Special Grants
15.5
Revenue Support Grant
22.5
It is worth mentioning that local councils in England are undergoing substantial transitions in their funding mechanisms as the government has reduced their core funding by nearly 40 percent with plans to continue shrinking up to 77 percent by 2020. Such significant cuts in the central funding have led councils to look into alternative options to maintain fiscal balances, including increases in taxes. CHANGES IN LOCAL GOVERNMENT REVENUES 3
REVENUES
1
2
3
96 CENTER FOR LOCAL GOVERNANCE
2009 – 10
2014 – 15
PERCENTAGE CHANGE
Total excluding housing benefit grant, education, public health, fire and police grants
60,869
48,754
-19.9
Central government grants
36,071
22,975
- 36.3
Council tax
24,733
25,524
+3.2
English local government finance: issues and options, RESEARCH PAPER 14/43 1 September 2014 The scheme introduced in 2013-14, permits local authorities to keep a proportion of the increase in business rates from 2013-14, from a baseline based on their revenue between 2010 and 2012. Central Cuts, Local Decision-Making: Changes in Local Government Spending and Revenues in England, 2009-10 to 2014-15. There will have been considerable changes to these figures since 2013-14
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Municipal Councils in the G20 Countries
CITIZEN ENGAGEMENT MECHANISMS
The Local Government Act 1999 requires councils in England and Wales to carry out consultations with residents for the continuous improvement of service provision. Councils throughout the UK are experimenting with ways to enhance citizen participation in the democratic decision-making process. In England and Wales, councils have consulted their citizens during the preparation of their annual budgets using a range of techniques including travelling roadshows, referenda, citizen panels and/or business consultations.
Other Features
Performance Management
Combined Authorities (CAs) : A Combined Authority is a legal body constituted under the national legislation that allows two or more local councils to come together and make one single authority and take collective decisions across their boundaries. Approved by the parliament, CAs are initiated locally and legally recognized as one body. Such arrangement allows councils to collectively decide on matters affecting the local community such as transport linkages between different communities, or ways to encourage businesses and jobs besides getting greater control over local funds. CAs doesn’t replace one council but tends to bring it in a more collaborative environment.
Most councils across the UK have been implementing management frameworks to ensure efficiency and transparency in their domains. For instance, in Boston, a handbook on performance management allows councillors to understand their strategic roles for managing performance using certain indicators. Similarly, most councils have formulated their performance management strategies such as those of Scotland’s North Ayrshire Council or England’s Rother District Council which describe self-assessment and evaluation criteria; whereas Councils like Northumberland County are using digital programs such as performancePlus to ensure that priorities and resources have been implemented correctly.
Combined authorities configure with their directly elected mayors who serve as the chairs of the authority. The CAs Mayors and CAs take unanimous decisions such as on spatial strategies and spending plans for combined councils. The Mayor has the power to take on the role of police and crime commissioner.
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Municipal Councils in the G20 Countries
UNITED STATES OF AMERICA CONSTITUTIONAL FORM: REPUBLIC STATE
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Municipal Councils in the G20 Countries
LEGISLATIVE BASIS
The United States Constitution does not make any mention of local governments. The US local government after the tenth amendment in the constitution is mainly a state rather than a federal affair. The 10th Amendment in the US Constitution helps to shape the concept of federalism, or the relationship between Federal and State governments in the United States. The essence of the 10th Amendment is that any power that is not given to the federal government in the Constitution is given to the states. In turn, each state has a constitution that is used to configure the laws and institutions that govern counties and municipalities.
Local government in the United States is a two-tier system. The upper tier consists of counties – also called boroughs or parishes in some states. The lower tier is comprised of municipalities – also termed townships, villages, boroughs, towns, or cities. Those jurisdictions which are not covered by either counties or municipalities are administered as separate special-purpose governments, i.e., school districts and special districts1. School districts are type of special-purpose government in some U.S. states for primary and secondary education, which operates as an entity that is independent and separate from any municipality, county, or state
A state’s constitution and/or legislative code sets forth the powers of cities and counties organized under the laws of that state. Most counties and municipalities also have some type of charter, which defines their terms of existence. The charter is the city or county’s “constitution,” and the starting point for all other regulations. ELECTORAL OR APPOINTMENT SYSTEM
Mayors, local councillors, town boards and other governing bodies such as prosecutors, local judges, and sheriffs are in most cases directly elected by the local community. In some communities, mayors are not directly elected by citizens but rather elected by members of the municipal council. In addition to local elected officials, many local councils have appointed positions for citizens to engage them in local government affairs. These appointed citizens are involved in various boards and committees which in some cases have decision making powers as well such as on deciding local expenditures.
1
In many cases special districts overlap with both municipal and county governments. A person can live in a community in which they are directly impacted and taxed by a municipal government, a county government and a variety of special districts some of which might be limited to a particular section of their municipality and others of which encompass multiple municipalities and even multiple counties
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Municipal Councils in the G20 Countries
U N I T E D S T A T E S O F A M E R I C A
EMPLOYMENT STATUS AND COMPENSATION2
Mayors’ salaries exhibit large variations across US states. For instance, as per 2015 statistics from 25 largest cities of US, the New York Mayor earns around $225,000 compared to Nashville Mayor who gets $136,500 per year. In contrast, city managers in Council-Manager form of government are paid relatively higher, such as between $245,000 in Charlotte and $400,000 in San Antonio and Dallas cities. In small towns and districts where this position is not a full-time commitment, mayors either receive far less or no salary. Councilor position can be a full time or part time responsibility in different cities. In town boards, elected public representatives may entitled to little or no salary and serve on voluntary basis.
MANDATES AND AUTHORITIES
The council in general acts similarly to a parliament or congress. It proposes bills, develops plans and approves local laws for municipal governance. In addition, it determines what local services will be provided and engage in some measure of oversight regarding their provision. The following are general functions of the elected councils: • Appraising and ratifying the annual municipal budget • Defining short-term and long-term priorities and decisions • Supervising performance of the municipal staff and officials • Supervising program effectiveness • Setting tax rates • Establishing legal contracts • Borrowing funds for municipal development • Passing municipal resolutions and ordinances • Developing municipal strategic and development plans • Developing zoning laws to regulate urban land use • Defining regulations and licensing for commercial activities • Regulating public health • Communicating municipal programs and projects to the local community • Fulfilling citizen needs and responding to complaints • Representing local voices in the upper level of government
2
100 CENTER FOR LOCAL GOVERNANCE
Please note that the stated figures are indicative only and subject to large variations
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Municipal Councils in the G20 Countries
CORE STRUCTURE
The local legislature and executive relationship can be classified under two distinct categories: (i) mayoral form, that is, a council form in which the executive powers belong to the mayor and legislative functions to the councils; and (ii) council-manager form, where executive powers lie with an appointed managerial position3. There is an increasing number of variations on the strong mayor form including trying to combine a relatively strong mayor with a relatively strong city manager Mayor or Manager: Provides leadership for municipal executive functions; can be the chairman and voting member of the council (weak mayor), or in some cities, a city’s independent chief executive (strong mayor) with powers to veto council legislation. In almost all cases, the municipal administration is almost always directly overseen by either the Mayor or the manager Vice-Mayor: Supports the mayor and provide leadership in Mayor’s absence Councillors: Elected members of city councils, also known as aldermen, councilmembers, selectmen, trustees, or freeholders Committees: Groups of council members that work on specialized municipal domains such as transport, urban planning, environment, etc. Municipal Administration: The municipal agencies, which report to the Mayor or the city manager, consisting of civil servants, contract staff and workers to implement councils’ decisions; responsible for municipal service delivery.
3
There has also been a commission form of municipal government, in which the legislative and executive decisions and policy processes are carried out by an elected board of commissioners. However, there is a definite decline in use of such form of government and was never hugely popular
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U N I T E D S T A T E S O F A M E R I C A
COUNCIL SIZE
Almost all local governments in the US elect between 5 and 15 councilors and/or executive officers, whereas some may go up to 50 to 60 members. LOCAL REVENUE
Municipal and county governments as well and special districts possess very substantial degrees of freedom when it comes to both raising and spending revenue. Sources of revenue for US local governments mainly include taxation, i.e. property tax, sales tax, individual income and other taxes; charges and service fees; and grants from the state and county governments. Taxation is the largest source of revenue of local governments in the US, with property taxes bringing in around 30% of the total. Revenue from sales tax accounts for 7%, followed by individual income tax at 2%, and other taxes slightly over 2%. BREAKDOWN OF LOCAL GOVERNMENT REVENUE IN THE US (2014)
REVENUE SOURCE Property taxes
29.8
Sales tax
6.9
Individual income taxes
2.0
Other taxes (such as stadium taxes and business license taxes)
2.4
Municipal fee and service charges
22.6
Own-Source Revenue
62.7
Government Transfers
36.3
SOURCE: TAX POLICY CENTER OF USA
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TOTAL %
July 2018
CITIZEN ENGAGEMENT MECHANISMS
Citizen engagement in the US takes myriad forms at the local level. Although the extent of participation and its impact on local decision-making varies across states, councils adopt different mechanisms seeking public involvement in municipal affairs. These include local public forums and public consultation through e-government platforms, participation in the city council meetings and virtual forums established by the city administration to allow local constituents to take part in discussions. Other engagement modes include citizen advisory boards, focus groups, participatory budgeting and community visioning processes in strategic planning. Establishment of advisory boards is one of the most common modes of citizen engagement in US local governments. Through engagement in citizen boards local councils also develop partnerships with local business leaders for economic development programs. In many cases, the goal is the local business development which since recent decades has become of the leading source of encouraging job creations.
Municipal Councils in the G20 Countries
Performance Management The local performance management system at large links to the city councils’ medium- to long-term goals in different priority areas. For instance, in Kirkland, Washington, such practices enable the council to keep track of how the city is performing in ten service areas. The results are made public in the city’s annual performance report. Besides the initiatives led by the city councils to ensure performance management, some councils seek citizens’ contributions in such processes as well. In the city of Albuquerque, New Mexico, the mayor and city council appoint citizen volunteer groups to involve citizens in the process of developing city goals, measuring results, and expressing desired conditions. In addition, many cities in various states have developed online performance tracking dashboards so users can track the city administration’s performance in achieving strategic goals and development targets. The information is presented in an easy-access format, with performance metrics, department and agency performance reviews, strategic plans, and other resource.
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This study brings attention to how different forms of municipal councils exercise their statutory mandates in various parts of the world. In countries like Saudi Arabia where the municipal sector has been transforming significantly over the years, the study
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Among the core elements deciding the rules of the game is the country’s constitutional form which shapes the overall governance framework. It outlines the extent of delegated administrative and fiscal powers to councils for undertaking municipal functions and legislative duties. A high degree of the central government’s control to ensure local compliance with the national policy, e.g. in China, minimize the council’s scope of autonomy and promotes centrally steered administration. Conversely, in countries where municipal councils are relatively independent of central influence, they are better positioned to devise local policies and meaningful local participation.
serves as an important learning resource consolidating diverse insights from G20 countries. Governments today have largely come to rely on municipal bodies to ensure that cities are governed in a way that best satisfies citizens’ expectations. By bringing evidences from the selected countries, it is easy to generalize some factors which decide the nature of municipal council’s roles, structures, autonomy and tools for service delivery.
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The importance of inter-relationship of executive and legislative branches is another implication of this study. This relationship takes multiple forms. For instance, an elected mayor from within the council who forms an executive branch and works with the local bureaucracy to implement laws. Whereas, countries like Brazil, Italy, Japan, Turkey, and Korea rely on the executive mayoral system in which mayor’s office in most cases enjoys greater discretionary powers and control over the legislature. By contrast, in countries like India, Australia, Mexico and Canada, a councilmanager setup is more common under which the appointed professionals run the municipal affairs and elected officials concentrate on the big picture of policy development and minimize their administrative roles. Although none of these must be seen from a one-size-fitsall perspective, possibilities for most appropriate structural arrangements in relation to local context should remain open. Councils traditionally assumed an array of legislative duties ranging from promulgating laws and regulations to controlling budgets and programs. However, the perception regarding their roles has transformed as municipal think tanks and policy units fostering innovation to benefit communities. In Australia, besides the mainstream functions councils also devise useful strategies for resource management, develop best practices guides, and assessment models such as for local government forecasting etc.
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In addition, effective working collaboration and formal partnerships among councils help to improve quality of service delivery. Various collaborative arrangements in the form of joint government initiatives in Australia and inter-communal governments resulted in municipal cost savings as witnessed in the cases of UK and France. Given the fact that local policies cannot succeed without meaningful citizen engagement, councils employ a variety of engagement tools in decision making processes. Some featured practices from Canada, Germany, and Brazil include participatory budgeting, joint councils with citizens, citizens’ advisory groups and rights to approve or reject municipal budgets and local byelaws. Moreover, citizens gain access to measure how efficiently their councils are performing which is also crucial to bring transparency, informed citizenship and improve service delivery. Some US municipalities use online dashboards which enable municipal residents to access the council’s performance and progress in terms of achieving strategic goals. In essence, besides fulfilling traditional roles, there is a clear trend for municipal councils across G20 states to adopt innovative tools to achieve inclusive agendas for building sustainable cities and communities. In order to achieve better results, it is imperative to transform councils and empower them in a way that best serves community aspirations.
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A ARGENTINA
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C CANADA
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Ministry of Municipal Affairs and Housing. (2014). The municipal councilor’s guide
Australian Center for Local Government (2017). The Role of Local Government in Local and Regional Economic Development.
Athabasca University (2012). The status of municipalities in Canada.
B BRAZIL
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CHINA
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F FRANCE
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G GERMANY
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INDONESIA
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Vesperini, G. (2009). Regional and Local government in Italy: an overview. Andrew S. (2008). Local Government in Italy. City Mayors [online] Available at: http://www.citymayors.com/ government/italy_government.html Council of European Municipalities and Regions. Italy. [online] Available at: http://www.ccre.org/pays/view/23
Australian Department of Infrastructure and Regional Development (2014). Special report on the local government in the Federal Republic of Germany
Montesinos, V., Brusca, I., Rossi, F. M., & Aversano, N. (2013). The usefulness of performance reporting in local government: comparing Italy and Spain. Public Money & Management, 33(3), 171-176.
Wollmann, H.2008 Reformen in Kommunalpolitik und – verwaltung. England, Schweden, Deutschland und Frankreich im Vergleich. VS Verlag
European Institute for public participation. (2009). Public Participation in Europe An international perspective
I INDIA
Commonwealth Local Government Forum (2018). The local government system in India. CLGF.
Bartoletti R,, Faccioli F. (2016) Public Engagement, Local Policies and Citizens’ Participation: An Italian Case Study of Civic Collaboration, Social Media + Society July-December, 1-11 Arena G. (2017), Un nuevo derecho para la administración compartida, de los bienes comunes. La experiencia italiana, Revista de Administracíon Pública, 203
National Council of Educational Research and Training (2015). Local Governments in India. NCERT. Pakistan Institute of Legislative Development and Transparency (2015). Local Government System in India. PILDAT.
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J JAPAN
Horiuchi, Y. (2009). Understanding Japanese Politics from a Local Perspective. International Political Science Review, 30(5), 565-573. Horiuchi, Y, Saito J, & Yamada, K. (2015). Removing Boundaries, Losing Connections: Electoral Consequences of Local Government Reform in Japan. Journal of East Asian Studies, 15(1), 99-125. Saito, J., & Yamada, K. Local Government in Japan. In Routledge Handbook of Japanese Politics. Hirota, H., & Yunoue, H. (2014). Municipal mergers and special provisions of local council members in Japan. The Japanese Political Economy, 40(3-4), 96-116. Council of Local Authorities for International Relations (2010). An Outline of Local Government in Japan Institute for Comparative Studies in Local Governance, and National Graduate Institute for Policy Studies (2008), Local Assemblies in Japan Ministry of Internal Affairs and Communication (2017), White Paper on Local Public Finance 2017, FY2015 settlement SASAKI, A. (2014). Local Self-Government in Japan.
M MEXICO
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Albarran, Ilyana. (2015). “Decentralization and Citizen Participation in Mexico”. FIU Electronic Theses and Dissertations. 2223 ORIFIS Organo de Fiscalizacion Superior (2013) http://www. orfis.gob.mx/guias2013/guia3.pdf Rowland, Allison M. (2001). Population as a Determinant of Local Outcomes under Decentralization: Illustrations from Small Municipalities in Bolivia and México. World Development, Vol. 29, No. 8, pp. 1373-1389. ALCALDES (2016). Remuneration of officials http://www. alcaldesdemexico.com/expediente-abierto/remuneracionesde-funcionarios-sin-sustento/ El Instituto Mexicano para la Competitividad (IMCO): https:// imco.org.mx/home/ Perez Torres, Daniel (2013). Las zonas metropolitanas de México. Estructuración urbana, gobierno y gobernanza, UAM
R REPUBLIC OF KOREA
Chong-Min, P. (2006). Local governance and community power in Korea. Korea Journal, 46(4), 9-32. Hermanns, H. (2009). The Reorganisation of Local Administration in South Korea: The Debate on Democracy and Efficiency in Local Governance. In Proceedings of the Sixth Biennial Conference Korean Studies Association of Australasia (pp. 217-229). Government of Korea. Local Governments. Korea.net [online] Available at: http://www.korea.net/Government/ Constitution-and-Government/Local-Governments Bae, Y. (2009, July). Decentralization and Transformation of Central State in South Korea: The Role of Local and Civil Society. In paper delivered at the Korean Studies Association in Australia Bi-Annual Conference (pp. 465-477). Bae, Y., & Kim, S. (2013). Civil society and local activism in South Korea’s local democratization. Democratization, 20(2), 260-286. Korean Constitution http://www.moleg.go.kr/english/ korLawEng?pstSeq=54794
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Local Autonomy Act: http://elaw.klri.re.kr/eng_mobile/ viewer.do?hseq=22082&type=part&key=10 Korea Development Institute. Kim, Soonhee (editor). Participatory Governance and Policy Diffusion in Local Governments in Korea: Implementation of Participatory Budgeting. Research Monograph, 2016-01. ISBN 979-115932-106-1 https://www.kdi.re.kr/kdi_eng/publication/ publication_view.jsp?pub_no=14685 RUSSIA
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T TURKEY
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Maykova, E. Y., & Simonova, E. V. (2015). The Participation of Russian Citizens in Local Self-Government: Potential and Real-Life Social Practices. International Journal of Economics and Financial Issues, 5(3S).
Congress of Local and Regional Authorities. (2017). Financial compensation of local and regional elected representatives and public officials in the exercise of their office.
Cameron, R. (2007). Municipal reform in the Russian Federation and Putin’s” electoral vertical”. Demokratizatsiya, 15(2), 191.
Gökçe-Kızılkaya, S., & Onursal-Beşgül, Ö. (2017). Youth participation in local politics: city councils and youth assemblies in Turkey. Southeast European and Black Sea Studies, 17(1), 97-112.
S SAUDI ARABIA
Farvacque-Vitkovic, C. D., & Kopanyi, M. (Eds.). (2014). Municipal finances: A handbook for local governments. World Bank Publications. United Cities, & Local Governments (Eds.). (2014). Basic services for all in an urbanizing world. Routledge. Waleed A.A. (2012). Municipal Councils in Saudi Arabia: Context and Organization. Journal of King Abdulaziz University: Environmental Design Sciences, 6, 3-29. SOUTH AFRICA
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DEMIRKAYA, Y. (2015). Strategic planning in the Turkish public sector. Transylvanian Review of Administrative Sciences, 11(SI), 15-29. Marcou, G. (2006). Local administration reform in Turkey: A legal appraisal based on European principles and standards. Special Report. Kartal, N., Tuncel, G., & Göktolga, O. (2015). Local Governments and Government of Cities in Turkey. Journal of Public Administration and Governance, 5(1), 1-22. Gül, H., Kiriş, H. M., Negiz, N., & Gökdayı, İ. (2014). Local Administrations and Local Politics in Turkey, (in Turkish) Detay, Ankara, Turkey. Gül, H. (2016). Local, metropolitan and regional administration reforms in Turkey, in New Public Management in Turkey: Local Government Reform, ed. Y. Demirkaya, Routledge, New York, pp. 332-363.
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U UNITED KINGDOM
Barnett, N., Sweeting, D., & Park, B. (2013). Is UK local government really so big. In Policy & Politics conference. Council of European Municipalities and Regions (CEMR). Local and Regional Government in Europe – structure and competencies. Commonwealth Local Government Forum (2015). The local government system in United Kingdom. CLGF. Sandford, M. (2014). English local government finance: issues and options. Economic Indicators, 1, 14. The government of the United Kingdom. Understand how your council works. [online] Available at: https://www.gov.uk/ understand-how-your-council-works The government of the United Kingdom. Local government structure and elections. [online] Available at: https://www. gov.uk/guidance/local-government-structure-and-elections Innes, D., & Tetlow, G. (2015). Central cuts, local decisionmaking: Changes in local government spending and revenues in England, 2009-10 to 2014-15. IFS Briefing Note BN166.
Government Innovators Network. (2017). Innovations in American Government Awards Bright Ideas. Harvard Kennedy School for democratic governance and innovation. [online] Available at: https://www.innovations.harvard. edu/2017-innovations-american-government-awards-brightideas National Performance Management Advisory Commission. (2010). A performance management framework for state and local government: From measurement and reporting to management and improving. Chicago, IL: NPMAC. MRSC Local Government Success. Performance Measurement. [online] Available at: http://mrsc.org/getdoc/ bafdf54c-b9e3-457d-aa4e-7e8840a77b5c/PerformanceMeasurement.aspx Center, T. P. (2016). The Tax Policy Center’s Briefing Book: A Citizen’s Guide to the Fascinating (Though Often Complex) Elements of the Federal Tax System. Accessed Nov, 21, 2016. Rosenbaum, A. (2015). Local Government as a source of political and economic development: What Can We Learn from past experience in Latin America and elsewhere?. Hemisphere, 4, 7-15.
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Center for Local Governance (CLG) www.ksclg.org
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King Salman Center for Local Governance (KSCLG) Rafha St, Salah Ad Din P.O. Box 66833 Riyadh 11586 Kingdom of Saudi Arabia www.ksclg.org