Samband íslenskra sveitarfélaga

EEA AND NORWAY GRANTS;POSSIBILITIES FOR COOPERATION AT THE LOCAL LEVEL FOR ESTONIA, ICELAND AND

NORWAY

LOCAL GOVERNMENT IN ICELAND

Guðrún D. GuðmundsdóttirHead of Brussels Office

Icelandic Association of Local Authorities

Icelandic Associationof Local Authorities

THE ICELANDIC ASSOCIATION OF LOCAL AUTHORITIES

• All 74 municipalities are members• Legal base in the Local Government Act: Responsible for safeguarding the common

interests of the Icelandic local governments Coordination committee with the State

• Funded by the Municipal Equalization Fund

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THE ORGANISATION OF THE ASSOCIATION

BOARD

GeneralAssembly

Executive Director

Finance and statistic

Welfare services and

legalaffairs

Negotiation with trade unions

Development and international

affairs

Secretaritat andpublishing

Social Committtee

The Municipal Harbour Association

Municipal Credit Iceland

School CommitteeAccounting CommitteeBrussels Officein the CEMR House of Municipalities and

Regions

Planning Committee

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• Iceland 103.000 km²

• 322.000 inhabitants

• 3.1 inhabitants pr. km²

• Pheripheral, most sparsely populated country in Europe and the only one located as a whole in the Arctic Region

290 km

800 km

970 km

ICELAND HAS TWO LEVELS OF GOVERNMENT

• The State

• The municipalities,

responsible for approximately

35% of the public sector

THE ICELANDIC LOCAL LEVEL CONSISTS OF

• 74 municipalities; all with the same legal status and obligations

• No formal regional level in Iceland but municipal cooperation is common through the eight regional municipal federations in areas such as– public transport– planning– social services– education – job creation – regional development

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EIGHT REGIONAL MUNICIPAL FEDERATIONS

• All the municipalities belong to a regional municipal federation

• Interest organisations with legal basis in the Local Government Act

• Political board • Funded by the Municipal

Equalization Fund

THE REGIONAL MUNICIPAL FEDERATIONS

THE MUNICIPAL BOUNDARIES

NORDIC STRUCTURE OF LOCAL GOVERNMENT

The structure is of Nordic origin, in many fundamental ways similar to the present structure in the other Nordic countries, with the exception that in Iceland there are no regional authorities.

• Municipal councils are elected every four years.• All citizens over the age of 18 are eligible to vote.

MOST RECENT LOCAL ELECTIONS 2010

• Lower turnout (78% 2006 - 73% 2010)• New untraditional movements were the winners• Disappointing results for the four traditional

ruling parties• 40% of the elected are women (36% 2006)

LOCAL ELECTIONS 2010

Combined share of the traditional parties in the four largest municipalities

– 2006: 92%– 2010: 66.8%

Winners:

Best Party (Reykjavík)

Second Best Party (Kópavogur)

People’s List (Akureyri)

LOCAL SELF-GOVERNMENT SET OUT IN ART. 78 OF THE CONSTITUTION

• The municipalities shall manage their affairs independently as laid down by law

• The revenue sources of local authorities shall be determined by law, as well as their right to decide whether, and to what extent, they make use of them

MONITORING REPORT BY THE COUNCIL OF EUROPE CONGRESS OF LOCAL AND REGIONAL AUTHORITIES (2010)

Overall assessment: • The state of local democracy in Iceland is in

compliance with the European Charter of Local Self-Government

• National and local authorities have made major efforts to deal with the financial crisis which significantly impacted them - without undermining local self-government

THE MUNICIPAL STRUCTURE

>100.000 inhab.

10.000-99.999 inhab.

5.000-9.9999 inhab.

1.000-4.999 inhab.

500-999 inhab.

<49-499 inhab.

0 5 10 15 20 25

1

5

3

23

17

25

Chart Title

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Icelandic Association of Local Authorities

DISPARATE MUNICIPALITIES

• Reykjavík is by far the largest municipality with 120.000 inhabitants.

• The second largest, Kópavogur, has 32.000 inhabitants.

• 63% of the total population live in the capital area.

• The same legal framework and responsibilities apply to all municipalities, regardless of their size.

• The four smallest municipalities have 50-60 inhabitants.

Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

22 municipalities

13% of the population

20 municipalities

14% of the population

27 municipalities

10% of the population

1 municipality

39% percent of the population

7 municipalites

24% of the population

THE PROPORTION OF MUNICIPALITIES AND INHABITANTS BY CONSTITUENCIES TO THE PARLIAMENT, ALÞINGI

MUNICIPAL INCOME SOURCES

57%

13%

12%

2%

16%

Income taxReal estate taxEqualization fundOther taxesOther income

MUNICIPAL INCOME TAX

• The municipal council determines annually the income tax level between 12.44% and 14.48%.

• The average tax level is 14.42%.• The income tax is approximately 57% of

the total municipal income.

THE ROLE OF LOCAL AUTHORITIES IN ICELAND

• Democratic role• Service providers for the local

population• Public authorities• Employers

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RESPONSIBILITIES OF MUNICIPALITIES

The social sector

oBasic social and financial assistance

oChild welfareoServices for people with disabilities

RESPONSIBILITIES OF MUNICIPALITIES

Education, culture, sports and recreation

o Primary schools (6–16 years)

o Pre-schools (Kindergarten 2-5 years)

o After school and summer holiday arrangements for children

o Leisure activities, especially for young people and the elderly

RESPONSIBILITIES OF MUNICIPALITIES

Education, culture, sports and recreation

oMusic schoolsoSport facilities, culture

centres, museums and libraries

oSupport to local voluntary organisations such as art and theatre groups, sports clubs etc

RESPONSIBILITIES OF MUNICIPALITIES

Local infrastructure and public utilities

oBuilding, maintenance and operation of municipal streets, sewage, water and electricity works, as well as district heating

oMunicipal planning and building inspection

oPublic parks and open areas

RESPONSIBILITIES OF MUNICIPALITIES

Local infrastructure and public utilities

oSurveillance of public and environmental health

oPublic transportoFire servicesoWaste management and

collectionoHarbours

DECENTRALISATION OF PUBLIC SERVICES

• Transfer of certain public services from the state to the municipalities are on the agenda:– Care for the elderly– Primary healthcare might be next

• The municipalities took over special services for persons with disabilities in 2011. The minimum size of service entities is 8000 inhabitants

MUNICIPAL EXPENDITURE (2011)

46%

16%

12%

7%

5%

4%

3%2%2% 4%

Education

Social services

Youth and sport

Mutual cost

Transport, sewage, infrastructure

Culture

Change in pension commitments

Sanitation

Environment

Other

INTERNATIONAL COOPERATION

• Several municipalities, mainly the larger ones, have experience in international projects in some of the fields covered by the EEA/Norway Grants.

• The Icelandic Association of Local Authorities will facilitate contact with Icelandic municipal actors.

• E-mail: gudrundogg@samband.is.

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THANK YOU!

Harpa Concert HallReykjavík