Amalgamation of 1 county + 5 municipalities on Bornholm

1. Amalgamation of 1 county +5 municipalities on Bornholm • Why amalgamation on Bornholm? • Negative economic development forces new solutions • Efficiency of the LG administration not optimal and laws and regulations from EU and Danish Gov. demand more administrative expertise than is currently available to be effectively implemented • Increasing demands from the population puts municipalities under pressure • The 5 municipalities have a limited ability to take unpopular, but necessary decisions (eg. schools)

2. Amalgamation of 1 county +5 municipalities on Bornholm • Current structure • Bornholm county: 44,300 inhabitants • Rønne Municipality: 15,000 inhabitants • Nexø Municipality: 8,500 inhabitants • Allinge-Gudhjem Municipality: 7,600 inhabitants • Aakirkeby: 6,600 inhabitants • Hasle Municipality: 6,400 inhabitants

3. Bornholm, 59,000 ha

4. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • Year 2000: Investigation of development potentials in existing LG structure within the following areas: public schools, care taking of the elderly, protection of the environment, use of IT in administration, tax administration, and collection of taxes and loans • Development of various scenario (through use of intermunicipal cooperation, extended use of contracting out of LG services, extended use of IT) • Conclusion: 5 municipalities decide that a new administrative-territorial structure needed (Jan 01)

5. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • Establishment of a Bornholm negotiation committee, with a secretariat, to clarify and negotiate with MIA/MOF about economic and other conditions in connection with the amalgamation • The County of Bornholm agree with the 5 municipalities to form one future county/municipality (during Fall 2001) - future name: “Bornholm Municipality” • Advisory referendum in 5 municipalities 29 May 01 (agreed by county + 5 municipalities) • The population in all 5 municipalities vote in favour!! (totally 73.9% in favour)

6. Amalgamation of 1 county +5 municipalities on Bornholm • The process: • County + 5 municipalities request Min. of the Interior to draft a law on amalgamation as of 1 January 03, Ministry agrees but cannot do this in time to suspend the ordinary election in November 2001 • 8 administrative working groups are established to make an overview of areas to decide upon in short and longer terms, covering finances, salary/personnel matters, IT, secretarial functions, children/youth/culture, social area/hospitals, technical matters/environment/utilities, tax/debt collection • Establishment of 1 information group to issue amalgamation newsletter, website, and manage contact with the press

7. Amalgamation of 1 county +5 municipalities on Bornholm • Process: • Ordinary election to the existing 5 municipalities and 1 county is held in November 2001. The councils will sit until 31 December 2002. • Preparation of political-administrative models by 2 consultancy companies (Spring 2002) • Election of the new Bornholm Municipal Council will take place 29 May 2002 (27 members) • Bornholm Municipal Council will function as “Amalgamation Commission” 1 July – 31 Dec 2002 and as “Ordinary Council” 1 Jan 2003 – 31 Dec 2005 • “Amalgamation Commission” will decide on amalgamation conditions during Fall 2002

8. Amalgamation of 1 county +5 municipalities on Bornholm • Major Problems: • Decide on political-administrative structure, employment conditions and make administrative systems operational before 1 January 2003 • Decision making vacuum 29 May 01 – 29 May 02 • Drafting of budget for 2002 and also budget 2003 • Change all intermunicipal cooperations before 1 January 2003 • Curb spending until new Council takes over 1 January 2003 • Splitting of political power among individual LG politicians of which most will have to find new roles

9. Amalgamation on Bornholm: Financial Conditions • Equalisation and state grants • Future Bornholm Municipality will be part of equalisation systems for both counties and municipalities, hence no changes expected • Future Bornholm Municipality will receive the basic state grant for the former 5 municipalities (“administration grant” – 7.5 mill DKK per year per municipality) in a period of 8 years • Bornholm will maintain access to Grants to Municipalities in Especially Different Conditions

10. Amalgamation on Bornholm: Administrative Structures • Model 1: Geographic model • One sector administration (education, social area, infrastructure and planning, etc.) in each of the 5 former municipalities • Overall administrative department either placed centrally or split in the 5 former municipalities • One-stop-shops in each of the 5 former municipalities • Political institutions either placed centrally or split in the 5 former municipalities

11. Amalgamation on Bornholm: Administrative Structures • Model 2: Centralized model • The administrative departments are placed centrally in one place • The political institutions are centralized in one place • Decentralized local government service delivery will take place through service centres in each of the 5 former municipalities, incl. one-stop-shops

12. Amalgamation on Bornholm: Administrative Structures • Model 3: Model with emphasis on contracting out • As many services as possible are contracted out externally (usual model) or internally (“contract management”) • Use of extended internal decentralisation to the local government institutions (schools, kindergartens, homes for elderly, etc.) • Political and administrative structure and management can follow both model 1 or model 2

13. Amalgamation on Bornholm: Political-Administrative Models • Model 4: Concern model • Centralized political management • Extended use of internal decentralisation where LG institutions and administrations may become a form of “daughter companies” – this can be made operational by use of “management by goals”