Administrative Territorial Reform in Latvia

1. Administrative Territorial Reform in Latvia The Ministry of Regional Development and Local Government

2. At the moment there are two types of municipalities in Latvia 525 local governments: 52 district towns and 7 cities 36 amalgamated municipalities, including their territorial units 430 rural municipalities 26 district municipalities

3. Objective of the Administrative Territorial Reform Pursuant to the provisions of the Law on Administrative Territorial Reform the administrative-territorial reform of local governments shall be implemented by the local government elections of 2009 and its purpose is to establish administrative territories with local governments capable of economic development Reform is being implemented: Through amalgamation of local (rural) municipalities Through reorganisation of district municipalities

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

5. State funding for implementation of the reform (M, LVL) • State funding for development of infrastructure of municipalities which have amalgamated or taken the decision to amalgamate in 2009 is LVL 200,000 for each municipality • At the moment 94% of the total number of municipalities have made the decision to amalgamate

6. Impact of the Administrative Territorial reform on the regulatory framework of Latvia As a result of the Administrative Territorial Reform it is necessary to make amendments to approximately 100 legislative acts out of which significant amendments will be necessary in 30 laws currently reviewed in the Saeima

7. Regulatory framework for reorganisation of district municipalities The Ministry of Regional Development and Local Government has prepared a Draft Law on Reorganisation of District Municipalities which was reviewed in the Saeima on 19 June 2008 in the third reading Pursuant to the law, the plan for reorganisation of district municipalities and other legislative acts during the reorganisation local governments and planning regionsshall take over functions, institutions, assets, financial resources, rights and liabilities of municipality of the respective district to ensure continuity and succession of municipal work.

8. Regulatory framework for reorganisation of district municipalities In line with the provisions of the Draft Law on Reorganisation of District Municipalities the Cabinet of Ministers shall issue regulation on district reorganisation plans Reorganisation of District Councils shall be supervised by District Council Reorganisation Monitoring Commission, which shall consist of representatives delegated by municipalities in that particular district - 1 from each municipality.

9. Timeframe for reorganisation of district municipalities

10. As a result of district municipality reorganisation 1 amalgamated municipality is established The amalgamated municipality shall take over from the district municipality its functions, institutions, assets, financial resources, rights and liabilities District municipality Amalgamated municipality

11. As a result of district municipality reorganisation several amalgamated municipalities are established The assets, financial resources, rights and liabilities of the district municipality shall be taken over by the amalgamated municipality in the territorial unit of which the infrastructure set up and/or equipment purchased from the foreign financial support is located District municipality Amalgamated municipality Amalgamated municipality Amalgamated municipality

12. Inheriting liabilities from district municipalities Liabilities and assets obtained through implementation of agreements signed on allocation of funding from the European Union and other foreign financial mechanisms shall not be separated The liabilities and assets obtained through implementation of agreements signed on allocation of funding or co-funding from the European Union shall be taken over by the amalgamated municipality or the city municipality in the territory of which the agreement implementation site is located If there are several sites for implementation of the agreement, the liabilities and assets shall be taken over by the amalgamated municipality or newly established city municipality in the territory of which a larger part of funding has been invested

13. Inheriting liabilities from district municipalities If the district municipality reorganisation plan includes transfer of liabilities and assets related to implementation projects and measures under the European Union policy instruments or other foreign financial mechanisms, the Ministry of Regional Development and Local Governments shall coordinate the reorganisation plan with the Managing Authority of the EU funds or the senior sectoral advisor of the EU financial instrument PHARE programme and Transition Facility The EU Funds Managing Authority or the senior sectoral advisor shall evaluate, whether the transfer of the said liabilities and assets is in line with regulatory acts on implementation of European Union policy instruments and other foreign financial mechanisms

14. Thank you for your attention!Contact information:Baiba BāneDeputy State Secretary 67770468baiba.bane@raplm.gov.lv