REPUBLIC OF LITHUANIA LAW ON LOCAL SELF-GOVERNMENT 7 July 1994 No I-533 Vilnius (Last amended on 14 November 2008 – No X-1830) CHAPTER ONE GENERAL PROVISIONS Article 1. Objective of the Law The purpose of this Law – to promote and develop local self-government as the foundations of the development of a democratic State. Article 2. Purpose of the Law 1. This Law shall lay down the procedure of formation and activities of municipal institutions when implementing the provisions of the Constitution of the Republic of Lithuania (hereinafter referred to as the “Constitution”) and the European Charter of Local Self-government, define the principles of local self-government, municipal institutions and their competence, functions, the status of a municipal councillor, the grounds of economic and financial activities of municipalities. 2. The provisions of this Law have been harmonised with legal acts of the European Union, referred to in the Annex to this Law. Article 3. Definitions 1. “Municipality” means an administrative unit of the territory of the State, defined by law, the community of which has the right to self-governance guaranteed by the Constitution and implemented through a municipal council elected by the permanent residents of that administrative unit of the territory of the State and through an executive institution as well as other institutions and establishments of a municipality, which are formed by the latter and accountable to it.   A municipality shall be a public legal person. 2. “Local self-government” means the self-regulation and self-action, in accordance with the competence determined by the Constitution and laws, of the permanent residents’ community of a law-defined administrative unit of the state territory, where the community enjoys the right to self-government guaranteed by the Constitution. teed by the State. 3. “Municipal institutions” means the following institutions responsible for the implementation of the right to self-government in the interests of the municipal community: 1) a representative institution of the municipality – the municipal council that possesses the rights and duties of local government and public administration; 2) an executive institution of the municipality (executive institutions) – the director of the municipal administration, deputy director(s) of the municipal administration (if this/these position(s) is/are set up and if the powers of an executive institution are delegated to this/these position(s)), who possess the rights and duties of public administration. 4. “Municipal controller (municipal control and audit service)” means an entity who supervises whether the municipal property and by the right of trust managed state property is managed and used in a legal, effective, economical and efficient manner, as well as the implementation of a municipal budget and the use of other monetary resources. 5. “Centralised service of internal audit of a municipality” means a structural unit of the municipal administration, set up to perform an audit in the municipal administration, administrating entities of a municipality or other public legal persons of a municipality; the service shall be subordinate and accountable to the director of the municipal administration.    6. “Undertakings controlled by a municipality” means municipal undertakings operating pursuant to the Law on State and Municipal Undertakings, companies with share capital and private limited companies the shares of which, giving more than ½ of votes at a general meeting of shareholders, belong to a municipality by the right of ownership, as well as undertakings in which a municipality may appoint more than half of the members of the administration, management or supervisory services of the undertaking. 7. “Administrating entities of a municipality” means institutions and establishments of a municipality, other entities that have the powers delegated to them by legal acts, carry out the functions of administration and are responsible for the implementation of such functions. 8. “Functions of municipalities” means functions related to local government, public administration and provision of public services defined by the Constitution and attributed to municipalities by this and other laws. 9. “Exclusive competence of the municipal council’’ means the competence defined by the Constitution and laws, which may not be taken over, interfered in, implemented by any other municipal institution.   The municipal council may not renounce its exclusive competence or transfer it to other municipal institutions. 10. “General competence of the municipal council’’ means the competence defined by law, which is implemented by the municipal council or may transfer it to an executive institution(s) of a municipality in accordance with the procedure laid down by the municipal council. 11. “Municipal community” means permanent residents of a municipality related by common public needs, interests and local government legal relations to the municipal council and other municipal entities performing public administration functions. 12. ‘’Local community’’ means residents of a locality (part of it or several localities) linked by common needs and interests of life in the neighbourhood and acting through various forms of direct participation (assembly, public deliberation, poll, activities through their representatives, community organisations, etc.) with the aim of meeting these needs and interests. 13. ‘’Community organization’’ means an association the founders and members of which are residents (their representatives) of the community of a locality (part of it or several localities) and the purpose of which is to fulfil through initiatives public interests relating to life in the neighbourhood.    14. ‘’Elder’’ means a representative of the community of a locality situated within the territory serviced by a ward; the elder shall enjoy the rights and duties defined by this Law. 15. ‘’Meeting’’ means a meeting of elders – representatives of the communities of localities situated within the territory serviced by a ward. Such meeting shall solve the issues defined by this Law.   16. ‘’Faction of members of the municipal council’’ means a group of not less three municipal councillors which at one of the municipal council’s sittings declared by means of an public statement submitted to the presiding officer of the sitting that it continues activities in the municipal council as a faction. 17. ‘’Minority (opposition) of the municipal council’’ means municipal councillors or a group (groups) and/or a faction (factions) of municipal councillors who/which at one of the municipal council’s sittings declared by means of a public statement submitted to the presiding officer of the sitting that they/it do not/does not(do not) participate in the formation or in the already formed executive institution(s) of a municipality, and have not/has not(have not) delegated their/its(their)  representatives to it/them or to the office of mayor, deputy mayor. 18. {>‘’Majority of the municipal council’’ means municipal councillors or a group(s) and/or a faction(s) of municipal councillors who/which have/has(have) delegated their/its(their) representatives to an executive institution(s) of a municipality or to the office of mayor, deputy mayor, or who/which at one of the municipal council’s sittings have not/has not(have not) declared by a public statement submitted to the presiding officer of the sitting that they/it do not/does not(do not) participate in the formation of an executive institution of a municipality(ies) and or in the already formed executive institution(s) of a municipality, and have not/has not(have not) delegated their/its(their)  representatives to it/them or to the office of mayor, deputy mayor. Article 4. Principles of local self-government Local self-government shall be based on the following main principles: 1) representative democracy; 2) the freedom of independence and activity of municipalities in accordance with the competence denoted in the Constitution and laws; 3) supremacy of the municipal council over accountable executive institutions of a municipality. The municipal council shall have the powers to control executive institutions set up by it and accountable to it; 4) accountability of executive institutions of a municipality to the municipal council. Decisions of executive institutions of a municipality must be based on laws, decisions of the Government and(or) the municipal council; 5) responsibility before the municipal community. Members of a municipal council (hereinafter referred to as “councillors”) shall be responsible and accountable to voters and all municipal community for their activities; 6) lawfulness of the activities of a municipality and decisions taken by municipal institutions. Activities of municipal institutions and other public administration entities of a municipality, as well as decisions taken on all the issues related to their activities must meet the requirements of laws and other legal acts; 7) adjustment of municipal and State interests when managing public affairs of municipalities; 8) adjustment of interests of the community and individual residents of a municipality. Decisions taken by municipal institutions with respect to the interests of the community may not violate individual residents’ rights guaranteed by the law; 9) participation of the residents of a municipality in the management of public affairs of the municipality. Municipal institutions shall provide conditions for the residents of a municipality to directly participate in preparing and debating draft decisions, organising polls, assemblies, meetings, public consideration of petitions, as well as promote other forms of civic initiatives. Municipal institutions shall implement principles of self-governance in educational, cultural and other establishments, support initiatives of associations related to the management of public affairs of a municipality; 10) transparency of activities. Activities of municipal institutions and other public administration entities of a municipality must be transparent and easily understandable to the residents of the municipality who express interest in such activities; they shall be provided with possibilities to receive explanations what and why is done; 11) publicity and responsiveness to the opinion of the residents of a municipality. The residents of a municipality or their representatives shall be entitled to get access to drafts of decisions of municipal institutions as well as decisions taken by them, to receive public and justified answers to the expressed opinion on work done by municipal institutions and other public administration entities of the municipality or individual civil servants; 12) ensuring and respect for human rights and freedoms. Decisions taken by municipal institutions or civil servants must not infringe human dignity, human rights and freedoms, as well as equal opportunities. CHAPTER TWO FUNCTIONS OF MUNICIPALITIES Article 5. Functions of municipalities 1. According to discretion to take decisions, the functions of municipalities shall be divided as follows: 1) independent. Municipalities shall exercise these functions in accordance with the competence granted by the Constitution and laws, obligations to its community and for the interests thereof. When implementing the said functions, municipalities shall enjoy the freedom of initiative of decisions, their adoption and enforcement, and shall be responsible for the fulfilment of the said functions; When implementing these functions, activities of municipalities shall be bound by the requirements and order laid down by law, which, when this is provided for by law, shall be established in other legal acts as well; 2) State (delegated by the State to municipalities). These shall be State functions delegated to municipalities, taking into consideration interests of the population. When implementing the said functions, municipalities shall have the freedom of adoption of decisions, as prescribed by the law. Activities of municipalities carried out when implementing the above-mentioned functions shall be restricted by decisions of state institutions and/or officials.  In certain cases the state functions may be delegated for implementation to municipalities on the basis of contracts.  A municipality may conclude such a contract only in the event that the municipal council gives its consent. Usually, such functions shall be short-term or seasonal. 2. Functions of municipalities shall, in accordance with their type, be divided into local government, public administration and public service provision functions. Local government functions shall be exercised by the municipal council in the manner prescribed by the law. Public administration functions shall, in the manner prescribed by the law, be exercised by the municipal council, an executive institution (executive institutions) of a municipality, other heads of municipal establishments and services, civil servants who are granted the rights of public administration in the territory of a municipality by legal acts or decisions of the municipal council. Public services shall be provided by service providers established by municipalities or other legal and natural persons under contracts concluded with municipalities, who are chosen by public tender. 3. In order to achieve general purposes a municipality may conclude joint activity contracts or public procurement contracts with State institutions and (or) other municipalities. 4. A municipality may transfer implementation of functions of administrative and public services to another municipality by mutual consent of the municipal councils, on the basis of contracts, however, the municipality which delegates the functions shall bear responsibility for the implementation of these functions. Article 6. Independent functions of municipalities Independent functions of municipalities (set out (assigned) by the Constitution and laws): 1) drawing-up and approval of a municipal budget; 2) setting of local fees and charges; 3) management, use and disposal of the land and other property which belong to a municipality by the right of ownership;      4) incorporation and maintenance of municipal budgetary establishments, incorporation of municipal public establishments, municipal undertakings and other municipal legal persons; 5) ensuring of learning according to the programmes of compulsory education of children under 16 years of age who live on the territory of a municipality; 6) organisation of general education, vocational training and vocational guidance of children, youth and adults (founding, reorganization, liquidation, maintenance of educational establishments, organisation and implementation of teaching according to the programmes of formal education); 7) organisation of free of charge transportation to schools and to places of residence of pupils of schools of general education, who live in rural localities; 8) organization of education and employment of children and youth; 9) organisation of pre-primary education of children (founding, reorganisation, liquidation, maintenance of establishments, organisation and implementation of education according to pre-primary education programmes); 10) organization of meal services in educational establishments, which implement education according to pre-school, pre-primary and general education programmes; 11) non-formal education of adults, organization and implementation of non-formal education programmes; 12) planning and provision of social services, founding, maintaining of social services establishments, social families, and cooperation with non-government organizations; 13) cultivation of general culture and fostering of ethnoculture of the population (participation in culture development projects, establishment, reorganisation, transformation, liquidation of museums, theatres, culture centres and other cultural institutions as well as supervision of their activities, establishment, reorganisation, transformation of public municipal libraries as well as supervision of their activities); 14) provision of conditions for social integration of the disabled residing within the territory of a municipality; 15) setting-up of a social housing stock and its repairs, social housing rent; 16) participation in solving issues relating to employment of residents, acquiring of qualification and re-qualifying, organisation of public and seasonal works; 17) primary personal and public health care (founding, reorganization, liquidation and maintaining of establishments); 18) preparation and implementation of health schemes of municipalities; support of health care of the municipal population; 19) territory planning, implementation of solutions of a general plan and detailed plans of the territory of a municipality; 20) issuing of a set of design conditions for a construction works and construction permits in accordance with the procedure laid down by law; 21) supervision of exploitation of construction works; 22) planning of the infrastructure, social and economic development, preparation of strategic development and actions plans, preparation of programmes related to the development of tourism, housing, small and medium undertakings; 23) participation in the preparation and implementation of regional development programmes; 24) implementation of information society development; 25) establishment, protection and management of protected territories of a municipalities; 26) maintenance and protection of the landscape, immovable cultural values and protected areas established by a municipality, protection, maintenance and development of green areas, vegetations, organisation and monitoring of inventory, accounting, cadastral measuring of land plots of separate green areas and their recording in the Real Property Register; 27) provision and change of addresses (names of streets, buildings, construction works and other objects located within the territory of a municipality and belonging to it by the right of ownership, numbers of buildings and residential houses as well as flats); 28) improvement and protection of environment quality; 29) development of physical training and sports, organisation of recreation of the population; 30) organization of supply of heat and drinking water, and wastewater treatment; 31) development of municipal waste management, organisation of secondary raw materials collecting and processing, establishment and exploitation of landfills; 32) maintenance, repairing, surfacing of municipal roads and streets of local significance, as well as organisation of traffic safety; 33) organisation of transportation of passengers by local routes, calculation and payment of compensations for preferential transportation of passengers; 34) participation, cooperation in ensuring public order, creating and implementing crime prevention programmes; 35) assigned to municipalities implementation of environmental noise prevention and state management of environmental noise; 36) approval of sanitary and hygiene rules and organisation of the control over compliance with the said rules, ensuring of cleanliness and tidiness in public places; 37) establishment of the procedure for providing trade and other services in marketplaces and public places administrated by municipalities or undertakings controlled by them; 38) creation of conditions for the development of business and tourism, and promotion of such activities; 39) issuance of permits (licences) in cases and manner prescribed by the law; 40) control of compliance with the prohibition or restriction of alcohol and tobacco advertising on exterior means of advertising; 41) ensuring of rendering of burial services and organisation of maintenance of cemeteries;    42) monitoring and control of activities, in compliance with the competence laid down by law, of the management bodies of associations of the owners of apartments and other premises of a residential house, administrators appointed by a municipality, when owners of apartments and other premises fail to set up an association of the owners of apartments and other premises or fail to conclude a joint action agreement, as well as when the association has been liquidated or the joint action agreement has been terminated;    43) other functions that are not assigned to state institutions. Article 7. State (delegated by the State to municipalities) functions shall be as follows: State (delegated by the State to municipalities) functions shall be as follows: 1) registration of acts of civil status; 2) management of registers assigned by the law and furnishing of data to State registers; 3) civil protection; 4) fire protection; 5) participation in the management of national parks; 6) calculation and payment of compensations (heating expenses, cold and hot water expenses, etc.); 7) administration of free-of-charge meal provision for pupils at schools established by a municipality and schools not belonging to the State which were established within the territory of a municipality, as well as administration of provision with pupil supplies for pupils from low-income families, who have declared the place of residence or reside within the territory of a municipality; 8) calculation and payment of social benefits; 9) management, use and hold in trust of the State land and other State property assigned to a municipality; 10) consideration of citizens’ requests to restore ownership rights to dwelling houses, their parts, flats, buildings used for economic and commercial purposes, as well as adoption of decisions on the restoration of ownership rights; 11) execution of State guarantees for tenants moving out from dwelling houses or their parts and flats, which are returned to owners; 12) control of use and accuracy of the State language; 13) management of archival documents assigned to municipalities in accordance with legal acts; 14) participation in selecting draftees for military service; 15) participation in preparing for mobilization; 16) provision of statistical data;   17) participation in preparing and implementing labour market policy measures and employment programmes; 18) participation in organising elections and referendums provided for by law; 19) participation in holding opinion polls and other citizens’ (popular) initiatives provided for by law; 20) participation in the carrying-out of population and dwelling census as well as other total census; 21) protection of the rights of children and the youth; 22) administration of agricultural production quotas; 23) registration of agricultural holdings and farmers’ farms; 24) administration of activities related to declaration of agricultural land and crops; 25) implementation of programmes pertaining to liquidation and monitoring of natural disasters, communicable diseases of animals; 26) management and use by the right of trust of land reclamation and hydrotechnical construction works which belong to the State by the right of ownership; 27) registration and technical maintenance of tractors, self-propelled and agricultural machines and their trailers; 28) administration of implementation of rural development measures; 29) provision of primary legal aid guaranteed by the State; 30) processing of data related to declaration of a place of residence and accountancy data of persons who do not have a place of residence;   31) ensuring of provision of social care to individuals with a severe disability; 32) gathering, storing and provision to the European Commission in the manner prescribed by the Government of the information about financial relations of municipal institutions and undertakings controlled by a municipality, which meet the criteria set by the Government, as well as about undertakings which must maintain separate accounts; 33) other functions delegated under laws. CHAPTER THREE RENDERING OF PUBLIC AND ADMINISTRATIVE SERVICES Article 8. Rendering of public services 1. A municipality shall be responsible for rendering public services to residents. Municipal institutions and administration shall not render public services, with the exception of the cases provided for in this Article. They shall be rendered by budgetary and public establishments, municipal undertakings, companies with share capital and other entities. 2. In the absence of a provider of public services, a ward may, by the decision of the municipal council, render public services itself. 3. When rendering public services to residents of a municipality, their providers must act in compliance with laws, decisions of municipal institutions and other legal acts. 4. Public services shall be rendered to residents in accordance with the procedure laid down by legal acts for payment or free of charge. 5. A municipality must ensure that all residents of a municipality could make use of public services and that such services would be rendered constantly. Article 9. Administration of the Provision of Public Services 1. A municipality shall administer and ensure rendering of public services to residents by determining the way, rules and regime of rendering of these services, setting up municipal budgetary and public establishments, selecting providers of public services in accordance with the procedure laid down by laws and other legal acts, and implementing supervision and control over rendering of public services. 2. A municipality shall establish new providers of public services only in cases when other providers are not rendering public services or cannot render the said services to residents economically and of good quality. 3. If a ward shall, pursuant to paragraph 2 of Article 8 of this Law, render public services itself, a unit of the municipal administration shall be assigned to administer such services. Article 10. Provision of Administrative Services Administrative services shall be provided to residents by the director of the municipal administration and the municipal administration, other public administration entities of a municipality in accordance with the procedure laid down by the Law on Public Administration and other legal acts. CHAPTER FOUR MUNICIPAL INSTITUTIONS, ESTABLISHMENT AND POWERS THEREOF Article 11. The municipal council: 1. The municipal council shall be an institution, which implements the right of self-governance. 2. The municipal council shall consist of representatives of the municipal community – members of the municipal council (hereinafter referred to as ’’councillors’’) who have been democratically elected pursuant to the procedure laid down by the law. 3. Procedure and form of the activities of the municipal council shall be established by this Law and the rules of conduct of the municipal council (hereinafter referred to as ‘’the rules of conduct’’). 4. The powers of the municipal council shall start when the elected councillors gather to the first sitting, and shall expire when councillors elected for a new term of office gather to the first sitting. 5. A councillor shall acquire all the rights of a state politician and a representative of the municipal community only after having taken an oath in accordance with the procedure laid down by this Law. 6. Within the period of two months after the day of convocation of the first sitting of an elected new municipal council a municipal mayor must be elected, deputy (deputies) of the mayor and the director of the municipal administration must be appointed, and a municipal council board must be set up, if so decided. 7. If the election results of a new elected municipal council are deemed invalid, the powers of the existing municipal council shall last until the first sitting of the municipal council which shall be elected during a run-off election, or until introduction of temporary direct rule into the territory of the municipality. 8. When temporary direct rule is introduced on the territory of a municipality, the municipal council shall lose its powers or the powers of the municipal council shall be suspend during temporary direct rule, if the municipal council is unable to exercise its powers due to the circumstances related to introduction of a state of emergency within the territory of the municipality. 9. In the extraordinary circumstances when neither the municipal mayor, nor deputy municipal mayor(s) are able to carry out their duties for the reasons beyond their control, sittings of the municipal council shall be convened and the duties of mayor shall be carried out in accordance with the procedure laid down by the rules of conduct. Article 12. Forms of activities of the municipal council 1. The municipal council shall exercise its powers collegially at sittings of the municipal council. Issues for sittings of the municipal council shall be prepared by the committees of the municipal council (hereinafter referred to as “committees”) and commissions at their sittings, factions and groups of the councillors at meetings, councillors, municipal controller, municipal mayor and the director of the municipal administration. The municipal council shall take decisions on the issues under consideration and control their implementation. 2. The municipal council at least once a year in the manner prescribed by the rules of conduct must present a public report on the work done to the municipal community. On behalf of the municipal council the municipal mayor shall present the said report. 3. Activities of the municipal council between sittings of the municipal council shall proceed in the committees and commissions, as well as in the form of communication of the councillors with the voters. Article 13. Sittings of the municipal council 1. Municipal council’s sittings shall be considered lawful if the majority of the elected councillors are present. 2. The first sitting of a new elected municipal council shall be convened by the chairman of the constituency electoral committee not earlier than on the last day of office of the previous municipal council and not later than 7 calendar days following the last day of office of the previous municipal council, which is set in compliance with Article 119 of the Constitution, and if the elections have been held in an established new municipality or the municipality in which direct rule was introduced or run-off elections were held in the case provided for in Article 86 of the Law on  Elections to Municipal Councils – not later than within two weeks of the proclamation of election results. This sitting shall be presided over by the chairman of the constituency electoral committee. The time and place of the first sitting shall, not later than 14 days in advance, be announced via the mass media by the chairman of the constituency electoral committee. If the chairman of the constituency electoral committee does not convene the first sitting of a new elected municipal council before the end of expiry of the time limit fixed in this paragraph, the councillors of a new elected municipal council shall gather on their own on the next day after the expiry of the said time limit. In this case, a sitting shall be presided over by the eldest councillor. 3. The first and other sittings of a new elected municipal council shall be presided over by the persons referred to in paragraph 2 of this Article, until a municipal mayor is elected. The following two issues shall be considered at the first sitting of a new elected municipal council: 1) taking of a decision regarding the dismissal of director of the municipal administration (deputy director of the municipal administration) because of the expiration of his term of office, and assignment for him to hold office until a director of the municipal administration (deputy director of the municipal administration) is appointed for a new term of office; 2) election of municipal mayor (hereinafter referred as ‘’mayor’’), possible appointment of deputy mayor(s) and director of the municipal administration. Deputy mayor(s) and director of the municipal administration may not be appointed if mayor is not elected during the first sitting. In the event of failure to elect mayor during the first sitting, the municipal council shall take a decision on the date of the next sitting. It must be convened not later than within 5 calendar days after the first sitting, and it shall be also presided over by the chairman of the constituency electoral committee. 4. Subsequent municipal council sittings shall, at least every 3 months, be convened by the mayor and in case of his absence - the deputy mayor. Sittings of the municipal council shall be presided over by the mayor and in the event he is absent (in the cases laid down by the rules of conduct) – by a deputy mayor. The mayor and in case of his absence - a deputy mayor must convene a sitting of the municipal council on the written demand of at least one-third of the elected councillors who submit issues subject to consideration and drafts of their solutions, not later than within two weeks of the receipt of the demand of the councillors. If the mayor or his deputy does not convene a sitting of the municipal council within a fixed period of time, it may be convened by at least one-third of the elected councillors. If the mayor or his deputy does not attend a sitting, such sitting shall be presided over and all the documents adopted during the sitting shall be signed by a councillor appointed by the municipal council. 5. Issues subject to consideration at a sitting of the municipal council, as well as draft solutions shall be submitted to the mayor by the committees, commissions, councillors, factions and groups of the councillors, municipal controller, director of the municipal administration. Only those issues shall be considered at municipal council sittings the draft decisions whereof are submitted in the manner prescribed by the rules of conduct. Submitted drafts of decisions shall be registered in accordance with the procedure laid down by the rules of procedure and shall be put on the webpage of a municipality not later than on the working day which follows their registration. 6. The mayor shall draw up an agenda of a sitting of the municipal council. The mayor must include in the agenda of a sitting the issues subject to consideration as well as the registered drafts of solutions not later than within four working days before the sitting of the municipal council.  If the mayor fails to include the issues subject to consideration in the agenda of a sitting, the municipal council shall decide on their inclusion in the agenda. 7. The agenda of a sitting of the municipal council may be supplemented or amended by the decision of the municipal council on the proposal of the committee, commission, faction or one-third of the councillors attending the sitting, if because of these proposals the drafts of solutions are registered at least 24 hours before the beginning of the sitting.  In the cases of extraordinary events, which meet the criteria approved by the Government, the mayor shall have the right to submit to the municipal council for consideration an issue and to propose to take a decision in the urgent procedure.   8. The mayor and in the event he is absent (in the cases laid down by the rules of conduct) – a deputy mayor or a councillor who has been authorised by the one-third of the councillors shall, not later than three working days preceding the beginning of a sitting, in accordance with the procedure laid down by the rules of conduct, notify about the time of the sitting of the municipal council, the issues and drafts of solutions prepared for consideration and registered pursuant to the rules of conduct all councillors, residents and a representative of the local community – the elder, when issues under consideration concern the local community represented by him. 9. Decisions of the municipal council shall be adopted by a majority vote of all the councillors participating in the sitting. In the event of a tie, the mayor shall have a casting vote. If the mayor does not attend a sitting, in the event of a tie it shall be considered that a decision has not been taken. The results of voting of the councillors shall be stored in the information medium and announced in the website of the municipality. 10. A councillor must disqualify himself when property and financial issues related to him or his family members and close relatives are being considered, or when his participation in the voting may result in a conflict of public and private interests. 11. Council sittings shall be open to the public. The presiding officer of the sitting shall have the right to permit invited persons to take the floor in the sitting. Other persons attending the sitting shall be allowed to take the floor in accordance with the procedure laid down by the rules of conduct. If technically possible, sittings of the municipal council shall be broadcast in the website in accordance with the procedure laid down by the municipal council. 12. When an issue related to the State, official or commercial secret are being considered at the sitting, the municipal council may decide to consider it at a closed sitting. 13. Minutes shall be taken at municipal council sittings. Minutes of the sitting and decisions of the municipal council must be signed by the mayor, his deputy or any other councillor who presided over that sitting. The minutes of sittings of the municipal council must be also signed by the council secretary and in case of his absence – a civil servant or an employee working in the municipal administration under the employment contract, who is appointed by the director of the municipal administration (with the mayor’s consent). The decision concerning the election of the mayor shall be signed by the chairman of the constituency electoral committee who has presided over the sitting of the municipal council. Article 14. Committees of the municipal council 1. Municipal council committees shall be set up to preliminary consider issues submitted to the municipal council and to present conclusions and proposals, to control the observance of laws and implementation of decisions of the municipal council and the mayor. 2. The committees shall be set up of at least three councillors by the decision of the municipal council.  Each municipality must set up a control committee. The control committee shall comprise an equal number of representatives delegated by all the parties and coalitions represented in the municipal council. When setting up other committees, a principle of proportional representation of the majority and minority shall be adhered to. The number of the committees as well as their members, the powers of the committees, except the Control Committee, shall be established by the municipal council. The powers of the Control Committee shall be established by the municipal council, taking into consideration paragraph 4 of this Article. Working arrangements of the committees shall be laid down in the rules of conduct. 3. Chairmen and deputy chairmen of the committees, except the control committee, shall be elected by the councillors. The municipal council shall, in accordance with the procedure laid down by the rules of conduct, appoint chairman of the Control Committee on the proposal from the minority (opposition) of the municipal council, and deputy chairman of the Control Committee on the proposal from the mayor. If the minority (opposition) of the municipal council is not proclaimed, chairman and deputy chairman of the Control Committee shall be appointed by the municipal council on the proposal from the mayor. 4. The control committee shall: 1) submit findings to municipal council regarding results of the activities of the municipal controller (municipal control and audit service); 2) propose to the municipal council to dismiss the municipal controller, if there are grounds for dismissal from civil service, laid down in laws; 3) consider a draft action plan of the municipal controller (municipal control and audit service) for next year and submit proposals regarding supplements or amendments of the said draft plan, in accordance with the procedure laid down by the rules of conduct return this draft plan prior to November 5 of the current year for approval by the municipal controller; 4) assess appropriations necessary for the implementation of an action plan of the municipal controller (municipal control and audit service) for next year and submit the opinion regarding the said appropriations to the municipal council; 5) consider a report prepared by the municipal controller regarding the implementation of the action plan of the controller (municipal control and audit service), prepare on its basis and submit to the municipal council conclusions regarding the lawfulness, expediency and efficiency of the use of municipal property and funds, as well as activities of the municipal controller (municipal control and audit service); 6) propose to the municipal council to carry out independent audit of the use of municipal property and funds, and the activities of a municipality, submit its conclusions regarding the audit results; 7) periodically (once every quarter) consider the execution of the action plan of the municipal controller (municipal control and audit service), on the initiative of the municipal controller or on its own initiative hear out heads of institutions, establishments and undertakings concerning the elimination of deficiencies or violations of legal acts established by the municipal controller (municipal control and audit service) during the financial and performance audit, when necessary address the director of the municipal administration or the municipal council regarding the implementation of requirements of the municipal controller (municipal control and audit service); 8) work in accordance with the activities programme approved by the municipal council, and at the end of each year account for its activities to the municipal council. 5. The committees shall within the limits of its competence take recommendatory decisions. The municipal administration, its subdivisions, budgetary and public establishments, and undertakings controlled by a municipality must consider committee decisions related to their activities and inform the committees about the results of consideration. 6. Representatives of the population – elders, experts and civil servants may take part in an advisory capacity in the work of the committees in accordance with the procedure laid down by the rules of conduct. Article 15. Commissions of the municipal council 1. For the duration of its term of office the municipal council shall set up the Administrative Commission and the Ethics Commission. On the recommendation of the mayor, the municipal council shall appoint chairmen of these Commissions from the councillors. If the minority (opposition) of the municipal council is announced, the candidature of chairman of the Ethics Commission shall be nominated by the mayor on the proposal from the minority (opposition) of the municipal council in accordance with the procedure laid down by the rules of conduct. Civil servants appointed by the director of the municipal administration shall perform the duties of executive secretaries of the commissions; the said functions shall be entered in their job description. 2. The Administrative Commission shall consider cases of administrative offences assigned to its competence by the Code of Administrative Offences. 3. The Ethics Commission shall: 10 oversee the compliance by the municipal councillors with the requirements of this Law, the Code of Ethics for State Politicians, rules of conduct, other legal acts regulating activities and conduct of municipal councillors; 2) analyse the reasons of municipal councillors’ failure to attend sittings of the municipal council, committees and commissions and to carry out the duties laid down by this Law; 3) examine the received information regarding activities of a municipal councillor or incompatibility of his public and private interests; 4) examine proposals and remarks concerning the transparency of activities of a municipal controller, received from members of the municipal council, state institutions, local communities or community organisations; 5) submit a proposal to the Central Electoral Commission regarding the termination of the powers of a municipal councillor, if the said councillor has missed three sittings of the municipal council in a row without a justifiable reason. 4. In cases specified by laws or by decision of the municipal council other standing commissions (for a term of office of a particular council) and ad hoc commissions (for consideration of particular issues) may be set up. 5. Municipal councillors, civil servants, representatives of local communities and community organisations, other members of the municipal community may be members of the commissions which are set up by the municipal council. Representatives of local communities must make up not less than one-third of the Ethics Commission members. 6. The procedure for setting up the commissions of the municipal council shall be laid down in the rules of conduct. The municipal council shall approve the regulations of the commissions. Article 16. Competence of the municipal council 1. The competence of the municipal council shall be exclusive and simple. 2. The exclusive competence of the municipal council shall be as follows: 1) approval of the rules of conduct. The rules of conduct must, among other issues, provide for main forms and ways of communication with the population, which would guarantee the implementation of principles and rights to local self-governance for the interests of the community; 2) election of mayor, his dismissal prior to the expiration of the term of office, fixation of the mayor’s salary; 3) setting of the number of deputy mayors, appointment of a deputy mayor (deputy mayors) on the recommendation of the mayor, his dismissal prior to the expiration of the term of office, fixation of the salary of a deputy mayor (deputy mayors) in accordance with the procedure laid down by law; 4) establishment of spheres of activities of a deputy mayor (deputy  mayors) on the recommendation of the mayor; 5) taking of a decision on the formation of a municipal council board and formation of a municipal council board on the recommendation of the mayor; 6) setting-up of municipal council’s committees, commissions, other units necessary for organization of the work of a municipality, other commissions provided for in laws, as well as approval of their regulations; 7) appointment of chairman and deputy chairmen of the Control Committee, approval of a work programme of the Control Committee; 8) setting-up of a commission for selection of candidates to the position of municipal controller, taking of decisions on employment and dismissal of the municipal controller, forming of the municipal control and audit service on the recommendation of the municipal controller, setting of the maximum number of the positions of civil servants and employees working under the employment contract in this service, consideration of an annual report of the municipal controller (municipal control and audit service) and taking of a decision concerning the report, fixation of the salary of the municipal controller, which is provided for by laws, approval of the regulations of the municipal controller (municipal control and audit service); 9) employment and dismissal of director of the municipal administration (deputy director of the municipal administration); taking of decisions regarding establishment of the position(s) of deputy director of the municipal administration; taking of decisions on distribution of the functions, set in this Law, of the municipal executive institution to the director of the municipal administration and, if such a position (positions) is/are established – to a deputy director of the municipal administration; taking of decisions on the restriction of the right of the director of the municipal administration to delegate the implementation the functions; taking of decisions on deputizing for the director of the municipal administration, fixation of the salary of the director of the municipal administration and deputy director of the municipal administration; 10) approval of the structure of the municipal administration, regulations and salary fund, setting of the maximum possible of positions of civil servants and employees working under the employment contract in the municipal administration on the proposal from the director of the municipal administration on the recommendation of the mayor; 11) taking of decisions concerning establishment of positions of civil servants of political (personal) confidence of the mayor, determining of their number and forming of the secretariat of the municipal council on the recommendation of the mayor; 12) taking of a decision to recover damages from the director of the municipal administration and other public administration entities of a municipality, which have been inflicted due to their (his) intentional unlawful decisions, non-performance of the duties or gross negligence while carrying out the duties, when these public administration entities of a municipality have had to compensate for the damage following the court’s decision, if the damage does not exceed the amount equal to their (his) average work pays for the last six months; 13) taking of decisions on the establishment of wards and determination of their number, conferment of names to the wards and change thereof, assignment of territories to the wards, defining of the boundaries of the territories serviced by the wards as well as change of the said boundaries (when necessary, after having evaluated the opinion of the residents); 14) approval of division (grouping) of localities or their parts into elderships on the recommendation of the director of the municipal administration; 15) approval the budget of a municipality, a set of reports on the implementation of the budget in accordance with the Law on the Budget Structure, when necessary, revision of the budget of the municipality, approval of a report on the use of other cash resources; 16) taking of a decision on the formation of the mayor’s representation fund, the size of the mayor’s representation fund and use thereof; 17) taking of decisions on the allocation of additional and plan-exceeding budget revenue and other cash resources, as well as on the establishment and use of target and specialised funds; 18) taking of decisions on provision of tax, charges reliefs as well as other reliefs set by laws for account of the municipal budget, establishment of the procedure for provision of subsidies and compensations for all-type undertakings creating new jobs, by accordingly revising the municipal budget in the cases when no funds have been provided for this;   19) hearing in accordance with the procedure laid down by the rules of conduct of the reports of the mayor, the director of the municipal administration, the municipal controller, heads of budgetary and public establishments (the owner of which is a municipality), establishments and organizations controlled by a municipality, as well as their replies to the inquiries of the municipal councillors; taking of decisions on these reports and replies; 20) submission of proposals to the state institutions regarding the improvement of activities of the units of these institutions located on the territory of a municipality, when necessary, hearing of the heads of these units in accordance with the procedure laid down by the rules of conduct; 21) incorporation, reorganisation and liquidation of municipal budgetary and public establishments (the owner of which is a municipality), municipal undertakings, companies with share capital, private limited companies and social families (hereinafter referred to as “legal persons of the municipality”), as well as participation in the incorporation, reorganisation and liquidation of public and private legal persons; 22) taking of decisions regarding the incorporation, reorganization and liquidation of public and private legal persons (the company member of which is the municipality); 23) taking of decisions on the establishment of joint undertakings together with other municipalities; 24) taking of decisions on the performance of an independent audit of a certain activity at the municipal establishments or the undertakings controlled by the municipality; 25) approval of a description of the procedure for signing contracts, which are being concluded in the name of a municipality; this description must define which contracts may not be concluded without a prior consent of the municipal council; 26) taking of decisions concerning the disposal of the property belonging to a municipality by the right of ownership, establishment of rules for the procedure of management, use and disposal of the said property, with the exception of the cases when such a procedure has been defined in laws or in other legal acts adopted on the basis of the laws; 27) taking of decisions on the management, use and disposal of by the right of trust of the State land and other State property assigned to a municipality; 28) taking of decisions on taking out loans and providing guarantees for long-term loans; these loans shall be used only to finance investment projects in accordance with the procedure laid down by the Government, confining to the limits on borrowing as set by law and upon the receipt of the conclusions of the municipal controller (municipal control and audit service); 29) taking of decisions on the expediency of granting of concessions; upon having received the conclusions of the municipal controller before the announcement of tendering, approval of tendering conditions and the essential characteristics of the concession contract,  setting of phases of tendering and, upon the receipt of the conclusions of the municipal controller, approval of the final project of the concession contract before the signing of the concession contract; 30) taking of decisions on designing and building of social and industrial facilities, instructing of the municipal administration and other entities to perform the functions of a contractor of the said works; 31) taking of decisions on a procedure for forming a social housing stock (building, purchase, etc.), a procedure for granting a dwelling and on a rate of rentals of municipal living quarters; 32) approval of territorial planning documents in accordance with the procedure laid down by law, except approval of specialised and detailed plans; 33) establishment of protected territories of a municipality in accordance with the procedure laid down by the Law on Protected Areas, declaration of objects of natural and cultural heritage of local importance, which are protected by the municipality; 34) submission to the Government of proposals on the change in the boundaries of a municipality, naming of a municipality and changing of its name, establishment of localities, establishment of their names and boundaries and the change thereof, as well as, according to the criteria set by the Government, giving and changing of the names of streets, squares, buildings, construction works and other objects belonging to a municipality by the right of ownership; 35) approval of municipal plans for noise prevention actions, indicators of noise within the territory of a municipality and rules of noise prevention in public places, designation of silent zones. It shall establish the competence of an executive institution of a municipality, other subordinate public administration entities in the field of noise management and supervise its implementation; 36) approval of the rules the violation of which incurs administrative responsibility, as well as approval of other rules; 37) fixing of prices and tariffs for repayable services provided by undertakings controlled by a municipality, municipal budgetary and public establishments (the owner of which is the municipality), as well as for carriage of passengers on local routes, fixing (approval) in the manner prescribed by law of prices of district heat, cold and hot water supply, fixing of the rates of local fees and charges in the manner prescribed by law; 38) taking of decisions on the payment of compensations to specific groups of consumers, laying-down of the procedure for grating additional social support, social benefits and compensations from the municipal budget, fixing of the amount of a supplement to a natural person (guardian) for the guardianship of a child and the laying-down of the procedure for paying such supplement from the municipal budget; 39) laying-down of the rules of distribution of the support received in the name of a municipal budgetary establishment; 40) approval of municipal social, economic, rural development and other programmes; 41) taking of decisions on an analysis of the development of a municipal territory, preparation of projects of general long-term social, cultural, economic, investment, demographic, crime control and prevention, ecological, health and other programmes; 42) taking of decisions on joining municipality unions, co-operation with municipalities of foreign states or joining international self-government organisations; 43) delegating of municipal councillors to the regional councils, commissions defined by law, as well as conferring of the powers on them in accordance with the procedure laid down by the rules of conduct; 44) taking of decisions on the announcement of opinion polls of local population; 45) submission of proposals to approve in a prescribed manner the coats of arms of localities, approval of other symbols of a respective municipality and the procedure of the use thereof, the right to grant in a prescribed manner an honorary title of a resident of a municipality (its centre or another locality); 3. The simple competence of the municipal council shall be: 1) employment and dismissal of heads of municipal budgetary establishments in accordance with the procedure laid down by legal acts, implementation of other functions relating to the employment relationship of the heads of these legal persons in accordance with the procedure laid down by the Labour Code and other legal acts; 2) approval of a set of financial statements of municipal budgetary establishments; 3) employment and dismissal of heads of municipal budgetary establishments in accordance with the procedure laid down by legal acts, implementation of other functions relating to the employment relationship of the heads of these legal persons in accordance with the procedure laid down by the Labour Code and other legal acts; 4) setting-up of collegial bodies of municipal public establishments (the owner of which is the municipality), when this is provided for in the statutes of a public establishment; 5) approval of a set of financial statements of municipal public establishments (the owner of which is the municipality); 6) approval of a procedure of internal control of municipal public establishments (the owner of which is the municipality); 7) taking of decisions on appropriation of target funds of state social and economic programmes and other funds of state foundations and other tangible property for municipal budgetary establishments; 8) approval of special and detailed plans; 9) impleme …