1

CEMR POLICY COMMITTEEMEETING IN ICELAND

May 2008

Study visit to the municipality of Mosfellsbær

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The basic facts

•Iceland 103.000 km² •313.000 inhab. 2007•3 inhab. pr. km²•Two tiers of government:

The municipalities and the state

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Nordic structure of local government

• The structure of local government in Iceland is of Nordic origin and in many fundamental ways similar to the present structure in the other Nordic countries.

• However, 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.

– 83% participation in the last elections 2006

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The roles of the local authorities in Iceland

• Democratic role– Self government of municipalities

• Service provider for the local people– Respect democratic role and legal frame for the

services

• Public authority– Enforcement of certain laws such as in the field of

environment

• Employer

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The local government structure

• Very disparate municipalities• Reykjavik is by far the largest with 119 thousand

inhabitants.• The second largest has 29 thousand inhabitants.• 63% of the total population live in the Reykjavik area.• The same legal framework and responsibilities apply

to all municipalities regardless of their size• The smallest municipality has 49 inhabitants.• 79 municipalities, too many for a country of 313.000

inhabitants.

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The local government structure

• Only 32 municipalities have more than 1.000 inhabitants. More than 93% of the total population inhabit these municipalities.

• 30 municipalities have fewer than 500 inhabitants. About 2% of the total population live in those municipalities.

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Municipalities grouped on basis of number of inhabitants

29

18

23

4

4

1

0 5 10 15 20 25 30

>100.000 inhab.

10.000-99.999 inhab.

5.000-9.9999 inhab.

1.000-4.999 inhab.

500-999 inhab.

<49-499 inhab.

119.000

77.133

29.382

58.575

13.037

6.772

Inhab.

8Samband íslenskra sveitarfélaga – The Association of Local Authorities in Iceland

24 municipalities13% of the population

20 municipalities14% of the population

27 municipalities10% of the population

1 municipality39% percent of the population

7 municipalites24% of the population

Population of Iceland 2007 313.000Geographical size 103.000 km²

The proportion of municipalities and inhabitants by constituencies to the National Parliament

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Reduction of municipalities 1953–2006

0

50

100

150

200

250

1953

1958

1963

1968

1973

1978

1983

1988

1993

1998

2003

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

Number of municipalities Inhabitants

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The main challenges for Icelandic local authorities

• The municipalities outside the southwest corner are losing inhabitants and income

• The municipalities on the southwest corner have an opposite problem with fast growing population and rising expenses

• Further amalgamation is necessary to strengthen the local level and address the migration to the south-west corner

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Constitutional rights of local government

• Each municipal shall manage their affairs independently as laid down by law. (Art. 78).

• This principle is recognized in the Local Government Act, No. 45/1998:

• Municipalities decide their own affairs at their own responsibility (Art. 1).

• Municipalities can adopt any task which concerns their inhabitants, if it is not given to others according to law.

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Main responsibilites of the muncipalities

The social sector o Basic social and financial assistanceo Home assistance to the disabled and elderly o Child welfare

Education, culture, sports and recreationo Primary schools (6–16 years)o Pre-schools (Kindergarten 2-5 years)o After school and summer holiday arrangements for childreno Leisure activities especially for young people and the elderlyo Music Schoolso Sport facilities, culture centers, museums and libraries o Support to local free organizations such as art and theatre

groups, sportsclubs etc.

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Local infrastructure and public utilities

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

• Municipal planning and building inspection• Surveillance of public and environmental health• Public transport• Fire services• Waste management and waste collection• Harbours

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Municipal operating Costs

47%

14%

12%

11%

11%

4%

1%

0% 10% 20% 30% 40% 50%

Education

Infrastructure

Social services

Mutual Costs

Youth leisure andsports

Culture

Other

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Local government income sources

– 63% local income tax– 17% service charges– 11% real estate tax – 8% The Municipal

Equalizations Fund

– 1% miscellaneous

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The responsibilities of the State

• Judicial matters• The Police force• Secondary schools and further education• The health sector, both primary health care and hospitals• Public insurance• Service to the handicapped and to the elderly (divided

responsibilities)• Unemployment compensation and job centers• Highways• Customs and tax administration• Regional development