WORKING GROUP ON LOCAL GOVERNMENT
19 July 2004

Framework for the Reform of Local Self-Government in Kosovo

Prepared by the Working Group on Local Government

I. Introduction

The Working Group on Local Government, co-chaired by UNMIK and the Provisional Institutions of Self-Government and composed of the Ministry of Public Services, UNMIK, the Office of the Prime Minister, the Ministry of Economy and Finance, Community representatives, the Association of Kosovo Municipalities and international experts from the Council of Europe, OSCE and USAID, was established in order to prepare a framework for the reform of local self-government. The Working Group was set up in the context of the request made in the Presidential Statement of the Security Council of 30 April 2004 for “more effective local government through devolution of central non-reserved responsibilities to local authorities”, and the invitation to the interested parties in Kosovo to develop concrete proposals for the reform.

This reform seeks to contribute to ensuring sustainable government and living conditions for the inhabitants of Kosovo. It will offer benefits to all communities, address their needs for security and protection, and contribute to the integration of all communities into the democratic structures in Kosovo.

The local government reform process is based on a firm commitment by all parties to a multi-ethnic Kosovo, where all, regardless of ethnic background, race or religion, are free to live, work and travel without fear, hostility or danger, and where there is tolerance, justice and peace for everyone, as set out in the Standards for Kosovo document.

The reform of local government is an important contribution to set up and consolidate functioning democratic institutions in Kosovo, one of the Standards for Kosovo. Local government reform is therefore a key contribution to achieve progress in the attainment of Standards.

Local government reform is, as demonstrated by experience in European countries, a long term process. It requires a genuine and thorough commitment of public authorities, and full engagement of stakeholders at all levels, including the civil society. This Framework Concept marks the beginning of the political process of local government reform in Kosovo. It outlines key elements of reform, that have to be implemented and further developed in the future.

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II. Main Recommendations

The Working Group recommends the adoption of two main new legislative acts:

• A new Law on Local Self-Government to be adopted on the basis of this Framework supplementing and complementing existing legislation;
• A new Law on Local Finance with respect to which only basic principles are provided in the present Framework and which should be further developed concurrently with the Law on Local Self-Government and adopted as soon as possible thereafter.

A number of existing Regulations and Laws will have to be amended or reviewed and new laws will have to be adopted. A provisional list of such laws is provided in the Appendix to the present report.

Furthermore, with a view to commencing the reform process as early as possible, the Working Group recommends the implementation of a number of pilot projects for the setting up of new units of local self-government as well as for the application of the new rules in existing units.

III. General considerations and definition of the legal nature of Municipalities

The guiding principle of the reform of local self-government reflects the wish to improve security and living conditions of all communities in Kosovo. In view of this, the Working Group was established to strengthen the local government, pursuant to the Presidential Statement of the Security Council, in order to “allow more effective local government through devolution”.

All inhabitants of Kosovo are determined to advance on the path of European integration. The Working Group was therefore guided by the provisions of the European Charter of Local Self-Government as its main reference when drafting its recommendations.

This approach coincides with the conviction that democratic local self-government is the basis for the functioning of any democratic system and that the establishment of strong local self-government will be a sustainable and important contribution to the objective of building a democratic and multiethnic Kosovo.

This democratic approach has to be reflected in the definition of municipalities as units of self-government made up of a community of inhabitants. The Working Group accordingly recommends the following definition of Municipality to be included in the future Law:

“The Municipality is the basic unit of local self-government in Kosovo, made up of a community of the inhabitants of a specific territory determined by law.”

This definition clearly shows that Municipalities have their own legitimacy, derived from their inhabitants, and are not merely administrative units exercising powers delegated by the central government.

Moreover, to underline the European orientation of the Law, the Working Group recommends including in its text the following provision:

“This Law is based on the principles of the European Charter of Local Self-Government and its provisions shall be interpreted in conformity with the said Charter.”

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IV. Competencies of the Municipalities

1. General considerations

In its recommendations for the competencies of Municipalities the Working Group was guided by the principle of subsidiarity set forth in the European Charter of Local Self-Government. This principle provides that public affairs should be dealt with as closely as possible to the inhabitants by the lowest level of government, which is able to provide public services efficiently.

In addition, the definition of the Municipality as a community of inhabitants implies that the bulk of municipal competencies must be exercised by Municipalities under their own responsibility in accordance with policies determined by the Municipalities themselves, in full respect of the law.

Other competencies may however be delegated by the central authorities to the municipalities. Municipalities carry out such competencies under the supervision of the central authorities and central bodies may give instructions to the Municipalities on how to carry them out. Competences delegated by the central authorities must in all cases be accompanied by the funding necessary to fulfill the delegated functions.

This distinction will also be reflected in the recommendations on supervision under X. below.

On the basis of these principles the Working Group recommends to define the competencies of the Municipalities as follows, it being understood that some competencies may be delegated to sub-municipal units:

2. Own Competencies

2.1 Regulatory competencies of the municipalities

Municipalities may adopt regulations, i.e. legal acts of a general nature but with their scope limited to the territory of the Municipality as listed below:

a) Within the framework of the Spatial Plan of Kosovo and the Spatial Plans for Special Areas and in accordance with applicable laws, Municipalities shall draw up general and specific spatial plans for urban and rural areas including as regards
• Housing
• Use for economic purposes including tourism
• Environment protection
• Areas for public use and public facilities
• Municipal roads.
• Public transportation

These plans shall be subject to review by the Ministry of Environment and Spatial Planning, which shall examine whether these plans are in conformity with all relevant laws, compatible with the Spatial Plan of Kosovo and the Spatial Plans for Special Areas and consistent with agreed government policy.

b) Municipalities shall, in accordance with applicable laws, regulate traffic movements, parking, construction and maintenance standards on municipal roads and walkways.

c) Municipalities shall, in accordance with applicable laws, establish rates and conditions of access for the use of municipal services and facilities, having regard to the principle of non-discrimination among inhabitants. These Municipal regulations shall be subject to review by the Ministry of Finance and Economy and other competent Ministries.

d) Municipalities shall, in accordance with applicable laws, adopt Municipal Regulations defining local tax rates, the manner of their collection and the persons and entities obliged to pay these taxes. These Regulations shall be subject to review by the Ministry of Finance and Economy for their conformity with Kosovo wide standards.

e) Municipalities shall, in accordance with applicable laws, adopt regulations for maintaining public order at the local level and for the use of public spaces. These regulations shall be subject to review by the competent bodies.

f) Municipalities shall adopt their Statute, by-laws and other legal instruments required for the functioning of the organs of the Municipality in accordance with applicable laws.

The Statute of the Municipality shall make provision for public consultation before the adoption and publication of municipal regulations and plans.

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2.2 Other own responsibilities

Municipalities shall, under their own responsibility but while fully respecting applicable laws, be competent to
• determine local economic development priorities;
• take measures to promote the economic development of the municipality including the organization of trade fairs and markets;
• co-operate with local or locally represented business;
• promote the Municipality to attract business and tourism;
• collect local taxes as determined by applicable law;
• identify features of natural, historic and environmental interest on their territory, ensure their protection and try to obtain funding including from international sources;
• identify monuments of historic, artistic, religious or cultural significance on their territory, ensure their protection, where appropriate in co-operation with the owners, and try to obtain funding including from international sources;
• grant building permits in conformity with spatial plans and undertake enforcement measures against non-compliance;
• establish and operate facilities for the social welfare of the people including orphanages, homes for single mothers and the elderly and disabled, shelters for the homeless, childcare facilities;
• establish and operate social housing for persons eligible according to rules established at the central level, including the setting of the levels of rent;
• establish and operate public utilities in particular with respect to drinking water, sewage, canalisation, water treatment, drainage, waste collection and disposal, and heating;
• operate local bus services or grant licenses for the operation of such services following calls for tender;
• licensing of taxi services
• provide other public services such as street lighting;
• build and maintain buildings for pre-primary, primary and secondary education, provide nursery education and employ the teaching and technical staff of schools including the director , the latter being selected by the Municipal Assembly from a shortlist provided by the Ministry of Education, Science and Technology;
• establish and operate public areas such as parks, green areas and recreational spaces, playgrounds, public parking areas;
• establish and operate facilities in the area of sports and culture such as theatres, libraries, municipal cinemas, sports stadia, to organise cultural and sports events and to provide support for cultural and sports associations;
• establish and operate primary and, in the framework of inter-municipal co-operation, also secondary health care facilities and promote health education;
• establish and operate other facilities such as cemeteries, crematoria, burial services;
• establish and maintain a fire fighting service and develop other emergency response facilities in co-operation with the Department of Emergency Management;
• name and rename municipal roads, streets and other public places following appropriate consultation;
• maintain river beds on their territory;
• carry out any other public tasks of a local nature not assigned by law to other public bodies.

In carrying out their own competences, Municipalities shall, as appropriate, consult the public.

3. Tasks to be implemented by the Municipalities as delegated by the central authorities

As provided for by law Municipalities shall carry out the following tasks delegated by the central authorities provided that commensurate resources are made available to the Municipality:
• civil registration and providing civil documents;
• business registration;
• granting business licenses;
• providing social assistance payments to the inhabitants of the municipality;
• allocating financial means to schools and supervising their spending;
• controlling standards of construction;
• taking measures for the protection of water, soil, air and other resources against pollution;
• managing the forests situated on the municipal territory within the authority delegated by the central authority, including the granting of licenses for the felling of trees on the basis of rules adopted by the Government;
• granting other licenses for the use of natural resources such as quarries;
• other tasks delegated by the central authorities

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4. Special arrangements

The Government may transfer additional tasks to all municipalities or to a limited number of larger Municipalities, consortia or Municipalities having specific characteristics and/or means, provided that commensurate resources are made available to the Municipalities concerned.

V. The Units of Local Self-Government and their Territorial Limits

At present there are 30 Municipalities in Kosovo for a population of about two million people. These Municipalities are large by European standards while their size corresponds to the model of former Yugoslavia. The size of larger municipalities may make it difficult for the inhabitants to participate in the democratic life of their Municipality and especially remoter parts of the municipal territory risk being neglected at the municipal level. From the point of view of local democracy, smaller Municipalities clearly would be desirable. This could also facilitate the access of inhabitants to municipal services since at present the distance to the seat of the Municipality may be considerable. Moreover, the creation of smaller Municipalities would also facilitate addressing the needs of all Communities.

Another, alternative solution to the setting up of new Municipalities would be the establishment of Sub-Municipal Units within the existing Municipalities.

Any new units of local government would have to be based on criteria in accordance with the European Charter on Local Self-Government. The basis for drawing territorial boundaries in rural areas should be clusters of villages with some geographical features, where citizens are connected by common needs and interests, cultural traditions, and language. In the larger towns, the boundaries could be based on historic divisions, main roads, rivers, railways, etc. Any permanent changes to Municipal borders should be undertaken in conformity with Article 5 of the European Charter.

The difficulties of implementing a comprehensive reform cannot be overlooked. Current structures of local self-government are recent and still in a period of consolidation. Kosovo is in a difficult economic and political situation and resources available for municipal reform are limited. The setting up of new structures may not only be costly but also difficult to implement.

The Working Group therefore considers it wise to refrain from proposing an immediate comprehensive reform of municipal territorial structures without having gained previous practical experience with such steps in Kosovo.

The Working Group recommends to first gain practical experience with the restructuring of municipalities through pilot projects. There should be a limited number of pilot projects, some of which would correspond to the setting up of new Municipalities with the full range of powers of a Municipality, others would correspond to the setting up of a new type of Sub-Municipal Unit with reduced powers as proposed by the Council of Europe.

The proposals of the Working Group in respect of the pilot projects are set forth in more detail in Appendix II to this Framework.

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VI. The Legal Status of the Inhabitants of Municipalities and their rights at the Municipal and Sub-Municipal Level

1. Definition of inhabitant

The Working Group suggests the following definition of inhabitant to be included in the future law:

“Inhabitants are persons who
• either are permanently resident in the respective Municipality,
• or were living on the territory of the Municipality prior to 1 January 1998 and are at present outside Kosovo but fulfil the criteria to be eligible to vote in Kosovo irrespective of the minimum age to vote.”

2. Strengthening local democracy at the municipal level

The democratic participation of all inhabitants in the municipalities has to be strengthened.

As a first step the Working Group recommends changing the electoral system for future elections to the Municipal Assembly and moving from a system of closed lists as set forth in Regulation 2002/11 On the Municipal Elections in Kosovo to a system of open lists. This would give more influence to the inhabitants in deciding who actually represents them in the Municipal Assembly.

Moreover, in order to ensure the representation of the whole territory of the Municipality in the Municipal Assembly, the Working Group recommends examining whether it is feasible to introduce a territorial element into the elections to the Municipal Assembly. This would create a linkage between the Municipal elected representatives and the areas of the territory they represent. Members of the Municipal Assembly could be elected in districts, villages or neighbourhoods. At present this may be difficult to implement in the absence of a census. Nevertheless the idea should be further pursued.

As the second step a balance has to be established between direct and representative democracy at the municipal level. Current legislation already provides for the possibility of public meetings at the municipal level. In addition, the introduction of municipal referendums could be envisaged and a law on municipal referendums prepared. Careful consideration will however have to be given when drafting the law to ensure that the rights of communities in the minority in the Municipality are fully safeguarded also in case of a referendum.

Finally, Municipalities are encouraged to pursue more informal ways of involving inhabitants in municipal affairs. For example, theme groups bringing together representatives of the Municipality and inhabitants with a special interest in a subject within the competence of the Municipality could be established. Such theme groups could deal with areas such as sports, youth, gender issues, environment, culture or the elderly.

Municipalities are also encouraged to establish links of co-operation with local businesses or chambers of commerce.

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3. Strengthening participation of and at the sub-municipal level

Current legislation already provides that Municipalities shall make arrangements with villages, settlements and urban quarters to ensure that the needs of all inhabitants in the Municipality are met. However, many Municipalities have not delegated real responsibilities to these sub-units and on the whole the situation leaves room for improvement.

It is not easy to remedy this situation through legislative measures at the central level since there can be no uniform solutions. However, some steps could be taken:
• As suggested above, the introduction of a territorial element into the electoral system should be considered;
• The election of village and urban quarter councils should be provided for in the new Law. This would create a real interlocutor for the municipal level and others who could negotiate arrangements with these councils;
• Public meetings at the village or urban quarter level should be provided for in the new Law.

VII. Municipal Facilities and Property

In order to exercise their competencies as provided for above, Municipalities need property and control over the facilities providing the services for which they are responsible.

The right of Municipalities as legal persons to possess and administer property in accordance with applicable laws is indisputable and set forth already in Regulation 2000/45. Under European standards as set forth in the European Charter of Local Self-Government and for reasons of efficiency, Municipalities should have the possibility to own and control the facilities providing municipal services. In Kosovo this raises specific legal issues due to the fact that the administration of socially and publicly owned property is a reserved power of the SRSG and that the administration of property belonging to a SOE or POE is vested in the Kosovo Trust Agency. The Working Group recommends that, as a first step and without prejudice to the authority vested in the Kosovo Trust Agency, specific arrangements should be made between the Kosovo Trust Agency and Municipalities with respect to the administration of such facilities and that Municipalities should participate and play an active role if privatisation of facilities is envisaged.

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VIII. Municipal Organs

Regulation 2000/45 introduced a completely new system of local government in Kosovo. It would be unwise to again completely reshape the system after a very short period of time. Often it is the full implementation of the Regulation which is still lacking.

The Working Group therefore recommends maintaining the existing overall system of organs of local government while introducing the modifications set forth below.

1. Municipal Assembly

The number of seats in the Municipal Assembly should be reviewed in accordance with the following schedule:

Inhabitants Assembly Members
Up to 10.000 15
From 10.001 to 20.000 19
From 20.001 to 30.000 21
From 30.001 to 50.000 27
From 50.001 to 70.000 31
From 70.001 to 100.000 35
Above 100.000 41

A number of rules concerning the sessions of the Municipal Assembly should be amended or clarified:

• The number of members of the Municipal Assembly required in order to call a session of the Municipal Assembly should be increased to one third; at the same time it should be clarified in the future Law that their right to call a session also includes the right that all items proposed by them for the agenda of the session have to be dealt with by the Municipal Assembly. One third of the members of the Municipal Assembly also has the right to put an item on the agenda of a regular session of the Municipal Assembly.

• It should be provided that the oldest member of the Municipal Assembly may call the first inaugural session if the President does not do so within 15 days from the certification of the election results. If the oldest member does not do so within 15 days, the Municipal Assembly shall be constituted with the initiative of the majority of its members.

• The agenda of sessions of the Municipal Assembly called in accordance with the procedure in cases of emergency may not be changed.

• Unless otherwise explicitly provided for in the Law, decisions of the Municipal Assembly shall be adopted by the majority of those present and voting, abstentions shall not be taken into account.

• The Municipal Assembly should have the right of deciding to vote by secret ballot.

The mandate of members of the Municipal Assembly who have failed without valid reason throughout a period of three (and not six) consecutive months to attend any meeting of the Assembly (not including committee sessions) shall cease.

Members of the Municipal Assembly should be immune from all civil and criminal proceedings with regard to words spoken or other acts performed in their capacity as members of the Assembly.

The dissolution of the Municipal Assembly is at present reserved to the SRSG. The Working Group recommends giving this power to the Government. However, such measure will have to be taken in coordination with the SRSG. Since such decision would have to be based on legal grounds it would be inappropriate to give this power to the Assembly of Kosovo as a political body.

The legal grounds for the dissolution would have to be spelt out explicitly in the new Law and the right to an appeal against the dissolution should be provided, possibly directly to the Special Chamber of the Supreme Court on Constitutional Matters. The proposed wording appears under X below.

The committees of the Municipal Assembly shall, using the d’Hondt system, reflect the proportion of seats held by the political parties and coalitions in the Municipal Assembly.

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2. Protection of Communities

The Working Group notes that the present system of protecting Communities not in the majority in the Assembly through two standing committees, the Communities Committee and the Mediation Committee, has not functioned satisfactorily in many Municipalities. The Working Group recommends not to abolish the Mediation Committee. This would indeed send the wrong signal at the present stage.

On the contrary, Community protection remains as topical as when Regulation 2000/45 was adopted, and should, if anything, be strengthened. On the other hand, the blocking of decision-making by minorities also has to be avoided.

Based on these considerations, the Working Group recommends reducing the number of members on the Communities Committee coming from the Community that is in the majority in the Municipality to one fourth. The Communities Committee has a watchdog and not a decision-making function and it should therefore reflect the views of the Communities in the minority and not be representative of the population of the Municipality as a whole. This change in composition should make a more frequent use of the protection mechanism possible.

The future Law should take into consideration the issue of introducing a threshold for establishing the Communities Committee.

The Working Group believes that the system of Municipal Community Offices and additional Vice-Presidents for the Communities should be continued. The issue of introducing a threshold for electing additional Vice-Presidents on behalf of the Communities should be considered.

3. The President and Deputy Presidents

The Working Group recommends changing the title of the Deputy President(s) to Vice-President(s) to underline the importance of their role.

The supervisory powers of the President should be defined more clearly in the new Law.

As provided for in current legislation, the Municipal Assembly needs to have the possibility to remove the President. The new Law should address the issue of what happens if the new President is not elected within 30 days.

4. The Chief Executive Officer

With respect to the Chief Executive Officer, the senior civil servant in the Municipality, the Working Group recommends that he or she should be selected by a selection committee the composition of which is to be approved by the Municipal Assembly. The post has to be advertised throughout Kosovo. Candidates would have to fulfil the standards required for senior civil servants and need to have at least five years of administrative experience in the civil service at municipal or PISG level. The beginning and end of their formal term of office would not normally coincide with the term of the Municipal Assembly.

Chief Executive Officers would perform their duties in accordance with the Civil Service Law and be accountable in accordance with the rules established in this law.

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IX. Municipal Finances

The Working Group recommends the adoption, as soon as possible, of a comprehensive law on Local Government Finance. The new Law should be prepared if possible concurrently with the Law on Local Self-Government or as soon as possible thereafter. It should contain or be based on the following principles:

• Municipalities should have the authority to manage their own budgets;
• All municipal services should be financed through municipal budgets which include own source revenues, central to local budgetary transfers, and extra budgetary funds;
• The authority to set rates and exemptions for local taxes, fees, tariffs and fines should be guaranteed as a municipal prerogative although central authorities may set allowable rate ranges;
• Criteria that determine allocation of grants to municipalities should be set by law;
• Municipal grant calculations should include measures to mitigate disparities among municipalities;
• A mandatory and consistent format for municipal budgets should be set by law;
• Municipalities should have the right to borrow in internal and external capital markets in conformity with the law on Public Financial Management and Accountability;
• Ensure that there is regular and structured consultation between local and central government on municipal finance issues; legislation should designate a forum in which local government representatives and central ministries will meet expressly to discuss these issues.

X. Supervision of Municipalities

1. The supervisory authority

In the present context reference is made to the “ordinary” supervision by the Provisional Institutions of Self-Government. The powers of the SRSG are addressed below under XIV.

Supervision by the Government could be envisaged as follows:
• Supervision by one Ministry; this would mean in the case of Kosovo the Ministry of Public Services;
• Supervisory tasks are distributed among the Ministries competent for the respective fields.

While general supervision of Municipal activities can be entrusted to the Ministry of Public Services, areas such as education, health and spatial planning, which require technical expertise should be allocated to respective Ministries.

2. The scope of supervision

In Part IV above of the present Framework a distinction is established between competencies of Municipalities carried out under their own responsibility and competencies carried out on behalf of the central authorities.

With respect to the first group of competencies, the Municipality, while respecting the law, may in its discretion decide on how to carry them out in the best way. It is not subject to any instructions by the central authority. Therefore supervision can only mean supervision of legality, i.e. the central authority may quash any municipal decision which is illegal. If the central authority considers that the decision is legal but that another decision would be more advisable, it cannot interfere but has to respect the will of the Municipality.

By contrast, with respect to the second group of competencies delegated by central authorities, the central authorities can exercise full supervision including as to the whether the decision is reasonable, practicable, effective and in accordance with Government policy. In this group of cases the competent Ministry can replace the decision of the Municipality by the decision it considers the most advisable.

In conclusion, the Working Group recommends that, with respect to the powers of Municipalities appearing under IV.3, the competent Ministries exercise a control of legality only. With respect of the powers of Municipalities listed under IV.4, the competent Ministries should exercise full supervision and be able to replace the decision of the Municipality by the decision considered best by the Ministry.

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3. The mechanism of supervision

In order to be able to exercise its powers effectively, the competent Ministry has to know what is going on in the Municipality. It therefore needs rights of information and intervention. A precise wording is proposed below.

4. Resolution of legal disputes

There may be differences of opinion between a Municipality and the supervisory authority as to the scope of the rights of the supervisory authority and as to whether a decision of the supervisory authority had a sufficient legal basis or whether a Municipality correctly carried out its tasks.

These disputes have to be decided by a Court. The Working Group recommends entrusting the Special Chamber of the Supreme Court on Constitutional Matters with resolving such disputes.

Moreover, the question of supervision has a bearing if private individuals contest a decision by a Municipality. If an administrative appeal against a decision by a Municipality in the field of delegated competences is introduced, under the draft Code of Administrative Procedures it would have the form of a request for review by the supervisory authority. If an administrative appeal against a decision by a Municipality acting under its own responsibility is introduced, it would have the form of a request for reconsideration by the Municipality. If the Municipality does not act on the request for reconsideration, it would have to transfer the case under the draft Code of Administrative Procedures to the supervisory authority. The supervisory authority in this case would be limited to examining the legality of the decision.

5. Proposed wording to be included in the Law

In conclusion, the Working Group recommends the following elements for inclusion in the Law on Local Self-Government to be adopted:

“Objective of Supervision
1. Supervisory authorities shall provide guidance through advice, support, and assistance.
2. Purpose of the supervision is the strengthening of the ability of the institutions of Local Self-Government to fulfil their responsibilities and the implementation of the rule of law.

Supervisory authority
1. Responsibility for administrative supervision of Municipalities is vested in the Ministry of Public Services. This Ministry exercises supervision unless it is assigned with respect to a specific field by law or Government Instruction to the Ministry responsible for the field.
2. UNMIK exercises administrative oversight on municipal activities within the field of reserved powers.

Types and Ways of Performing Supervision
1. Supervision over the operation of municipal organs acting under their own responsibility shall be limited to supervision of the legality of actions and auditing.
2. Supervision over the operation of municipal organs in the area of delegated competences shall include supervision of the legality of actions and supervision of the use of discretion with regard to efficiency, practicability and the implementation of policy guidelines.
3. The municipal organs shall be obliged to cooperate with the supervisory authority.

Rights of the supervisory authority
The supervisory authority has:
1. The right to receive and obtain full information on all matters concerned, including the right to visit the municipal office and municipal facilities and the right to request to study municipal documents;
2. The right to annul any illegal decision of the Municipality if the Municipality fails to take timely remedial action;
3. With respect to decisions taken by the Municipality in the area of delegated competences, the right to give instructions to the Municipality and the right to issue a decision replacing the decision taken by the Municipality;
4. The right to act instead of the Municipality if the Municipality fails to take legally required action;
5. The right to empower the Municipal President to administer the Municipality in cases when the Municipal Assembly is not able of making decisions or refuses to follow legally binding instructions of the supervisory authority until the non-functioning of the municipality is overcome. If the Municipal President is not able or refuses to act, the supervisory authority would empower the Deputy Presidents in their order. Are there no more Deputies or are they also not able or refuse to act, the supervisory authority can send an official who will act on behalf of the Municipality.
6. If the non-functioning of the Municipal Assembly cannot be overcome in any other way, the Government in close cooperation with the SRSG can dissolve the Municipal Assembly. New elections will be held. The Municipal Assembly can appeal this decision of the Government to the Special Chamber on constitutional matters of the Supreme Court.

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XI. Modalities and Mechanisms for Co-operation between Units of Local Self-Government and central authorities/ Ministries

Decisions of Ministries have an important impact on Municipalities. In conformity with the European Charter on Local Self-Government, Municipalities should be consulted before decisions likely to affect them are taken. This is also in the interest of Ministries since Municipalities are closer to the realities on the ground and can provide valuable input into decisions.

Due to the great variety of situations it is difficult to be very specific in the legislation on local self-government and to provide more than a general rule. Specific rules in the various sectoral laws will be required while it should be underlined that consultation can and should take place even in the absence of precise legal rules. The Working Group recommends putting a general rule in the text of the future Law on Local Self-Government worded along the following lines:

“Municipalities or their associations shall be consulted in time and in an appropriate manner during planning and decision-making procedures on issues affecting them.
Laws on the respective fields may determine the manner of the consultation in more detail.
Municipalities also have the right to submit proposals”
Going beyond consultation, a provision on mutual co-operation is also recommended which could be worded as follows:

“The Government shall co-operate with the Municipalities and their associations on issues of joint interest.”

An efficient way of co-operation would be to establish a central/ local partnership. The Government and the municipal associations should agree, that there must be full and effective consultation between central and local government, on all areas of common concern. The meetings of such a partnership should be chaired by a senior member of the government. All members of the cabinet should also attend, as appropriate, when the agenda contains items relevant to their ministry. Representatives from local government should be appointed by the relevant associations of Municipalities, with a particular emphasis for representatives to have skills in the areas under discussion.

In specific laws additional and more precise rules could be included.

As regards matters of public safety, units of local self-government should be provided with an institutional framework facilitating the support to and cooperation with KPS. Current practices in Municipalities show that there are benefits being obtained in municipal cooperation with the KPS. Cooperation between units of local government and KPS shall also be conducted with a view to improve the enforcement of decisions taken by the Municipal Assembly. In addition, safety concerns of Communities shall be fully taken into account. In this respect, local authorities shall consult and coordinate through Public Safety Councils chaired by the President of the Municipal Assembly to be established at the local level. This would involve agencies providing public services, including KPS.

XII. Involvement of Municipalities in the legislative process with respect to laws affecting them

Legislation very often affects the interests of Municipalities and, in accordance with the principles of the European Charter of Local Self-Government, Municipalities should be heard by the Assembly before legislation affecting them is adopted.

To ensure that such consultation takes place the Working Group recommends the following measures:
• The Assembly should establish a functional committee on local self-government. The establishment of such a committee would provide Municipalities with a stable interlocutor within the Assembly and would create a kind of lobby for the interests of local self-government within the Assembly.
• The Assembly should amend its Rules of Procedure to provide for a hearing of the association(s) of municipalities from Kosovo by the appropriate functional committee, whenever draft legislation affecting the interests of municipalities is considered.
• The Ministry of Public Services/ Department of Local Administration should circulate the official PISG Legislation Plan to all Municipalities. This would ensure that municipalities are informed in time both about proposed legislation.

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XIII. Associations of Municipalities and inter-Municipal Co-operation

1. Associations of Municipalities

In order to defend their interests effectively, Municipalities have to be able to form associations. Based on the European Charter of Local Self-Government, the Working Group recommends putting a provision into the text of the future law, which could be worded as follows:

“Municipalities may form and belong to associations that operate in conformity with the law for the protection and promotion of their common interests and join and belong to international associations of local authorities.”

2. Inter-Municipal Co-operation

In many cases it may be more effective if municipalities co-operate to provide public services jointly.

This co-operation may assume forms such as:
• The Municipalities concerned may agree to set up joint working groups in specific fields;
• The Municipalities concerned may agree to jointly administer specific municipal responsibilities. A specific municipal service such as drinking water could either be jointly provided by the Municipalities concerned or certain Municipalities could entrust one Municipality to operate it on their behalf in a manner to be agreed.
• Municipalities may establish a legal person, a consortium, to provide a municipal service on their behalf. For example, several municipalities could set up such a consortium to provide collective heating on their territory.

In the opinion of the Working Group inter-municipal co-operation should be encouraged since it allows for the efficient provision of public services and makes the delegation of competencies to municipalities possible.

A legislative provision based on the European Charter of Local Self-Government could be worded as follows:

“Municipalities shall be entitled, in exercising their competencies, to co-operate with other Municipalities and to form consortia with other Municipalities in order to carry out tasks of common interest.”

3. Co-operation with Municipalities outside Kosovo

Co-operation between Municipalities from different countries has become commonplace, in particular but not limited to transborder co-operation. In the case of Kosovo coordination of such activities with the SRSG is necessary. A legal provision could be worded as follows:

“Municipalities shall be entitled to co-operate, in co-ordination with the SRSG and the PISG, with local authorities outside Kosovo.”

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XIV. Powers and responsibilities reserved to the SRSG

Under Art. 8.1 of the Constitutional Framework the SRSG has the “Responsibility to ensure that the system of local municipal administration functions effectively based on internationally recognized and accepted principles”.
The powers and responsibilities of the SRSG under UN Security Council Resolution 1244, the Constitutional Framework, and other applicable legislation in particular to ensure the full protection of the rights and interests of all Communities, would not be affected by the adoption of the new Law.

Appendix I

PROVISIONAL LIST
LEGISLATION TO BE REVIEWED BASED ON THE FRAMEWORK DOCUMENT AGREED UPON BY THE WGLG.

Regulation No. 1999/14 21 October 1999 - On the Appointment of Regional and Municipal Administrators.
Regulation No. 2000/8 29 February 2000 - On the Provisional Registration of Businesses in Kosovo.
Regulation No. 2000/43 27 July 2000 - On the Number, Names and Boundaries of Municipalities.
Regulation No. 2000/45 11 August 2000 - On Self-Government of Municipalities in Kosovo.
Regulation No. 2001/19 13 September 2001- On the Executive Branch of the Provisional Institutions of Self-Government in Kosovo.
Regulation No. 2001/23 29 September 2001 - On the Pilot Program for the Imposition of Taxes on Immovable Property in Kosovo.
Regulation No. 2001/36 22 December 2001- On the Kosovo Civil Service.
Regulation No. 2002/11 10 June 2002 - On the Municipal Elections in Kosovo.
Regulation No. 2002/12 13 June 2002 - On the Establishment of the Kosovo Trust Agency.
Regulation No. 2002/19 31 October 2002 - On the Promulgation of a Law adopted by the Assembly of Kosovo on Primary and Secondary Education in Kosovo
Regulation No. 2002/22 20 December 2002 - On the Promulgation of the Law Adopted by the Assembly of Kosovo on the Establishment of an Immovable Property Rights Register.
Regulation No. 2003/6 20 March 2003 - On the Promulgation of the Law adoped by the Assembly of Kosovo on Forests in Kosovo.
Regulation No. 2003/9 15 April 2003 - On the Promulgation of the Law adopted by the Assembly of Kosovo on Environmental Protection.
Regulation No. 2003/11 17 April 2003 - Amending UNMIK Regulation No. 1999/14 on the Appointment of Regional and Municipal Administrators.
Regulation No. 2003/19 23 June 2003 - On the Promulgation of a Law adopted by the Assembly of Kosovo on Libraries.
Regulation No. 2003/24 27 June 2003 - On the Promulgation of the Law adopted by the Assembly of Kosovo on Roads.
Regulation No. 2003/29 5 September 2003 - On Taxes on Immovable Property in Kosovo.
Regulation No. 2003/30 10 September 2003 - On the Promulgation of the Law adopted by the Assembly of Kosovo on Spatial Planning.
Regulation No. 2004/4 18 February 2004 - On the Promulgation of the Law on Cadastre adopted by the Assembly of Kosovo

Rules of Procedure of the Assembly of Kosovo
A number of Administrative Directions have to be reviewed as well.
POSSIBLE NEW LEGISLATION TO BE CONSIDERED
1. Law on culture
2. Law on sport
3. Law on theatres
4. Law on museums
5. Law on emergency preparedness
6. Law on fire-fighting 7. Law on tourism
8. Law on healthcare
9. Law on local financing
10. Law on local referendums
11. Law on waste management
12. Law on social welfare

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