INSTITUTIONS OF MUNICIPAL POWER IN LENINGRAD REGION
  Basic information

Basic information

Text by: Stanislav Tkachenko (et al.)
St. Petersburg State University, Faculty of International Relations,
October 2001

Local self-governance is a special level of organization of power in the Russian Federation. According to the Article 3 of the Russian Constitution, the people of Russia implement its power via state institutions (State power) as well as via institutions of municipal (local) self-governance (municipal power). It means that the local self-governance and state power are two forms of single public power in Russian Federation.

The population of a municipality may implement local self-governance directly (via referendum or elections), as well as via institutions of local self-governance. The Federal Law "On General Principles of organization of local self-governance in the Russian Federation" envisages responsibility of self-governance institutions and officials to Russian Federation (Article 49).

Basic principles of local self-governance in Russian Federation are:

  • Independence of local populationsin solving all local problems;
  • Organizational isolation of local self-governance in the Russian Federation's system of rule of society and state;
  • Diversity of organizational forms of accomplishment of local self-governance (via institutions of direct and representative democracy);
  • Correspondence between responsibilities of local self-governance and their material and financial resources.

In accordance to the Civil Code of Russian Federation (Part 1, Chapter 5, Article 124) it is towns, villages and other types of settlements, which may obtain status of municipal formations and become subjects of civil law of Russian Federation.

Municipal formations in Russian Federation should have own budgets and use their resources for the financing of activities. The legal regulations of budget powers of local self-governance are executed on several levels: on the level of the Constitution of the Russian Federation; on the federal level; regional level and local level.

Institutions of local self-governance, responsible for the organization of a municipalities' functioning, can acquire property and execute towards the property all rights and obligations according to Russian legislation.

On the level of the Constitution of Russian Federation the rights of municipal formations are established by the Article 132 of the Constitution to form, adopt and implement independently a local budget. Moreover, the Constitution establishes the right of institutions of local self-governance to receive financial and other resources needed by them to perform some functions of state, which may be passed to municipal formations.

The regulation of financial aspects of the functioning of local self-governance in Russia should be in line with the European Charter of Local Self-Governance of 1985. The Article 9 of the Charter establishes following principles of financing of local self-governance activities:

  • Institutions of local self-governance have the right äto have sufficient own financial resources, which may be used freely for performing functions of local self-governance.
  • Financial resources of the municipal formations should be proportionate to powers, which the Russian Constitution and federal legislation have passed to them.
  • At least part of financial resources of local self-governance institutions should come from local taxes and duties; local self-governance institutions should define rates of local taxes and duties in limits, established by Russian legislation.

On the federal level the main source of legislation in sphere of regulation of budget issues is the Budget Code of the Russian Federation. It came into force onJanuary 1st, 2000. The Budget Code established principles of the budget system of the Russian Federation.

The most important principle of the Budget Code towards municipal formations in Russia is the principle of independence of budgets. The principle means:

  1. The right of representative institutions of local self-governance to perform the budget process independently;
  2. Existence of own revenue sources of budgets of all levels of Russian national budget system, defined by legislation of Russian Federation;
  3. The right of institutions of local self-governance to decide independently according to rules of the Budget Code of the Russian Federation, the main spheres for spending resources of budgets;
  4. The right of institutions of local self-governance to decide independently sources for financing deficits of their budgets.

The main sources for revenue in the municipal budget are the municipalities own revenues from duties and taxes as well as transfers from duties and taxes, which are regulated by federal and regional authorities.

It is rather clear, that municipal institutions in Russia are still in the process of formation. All legal acts on local self-governance have been recently created and their implementation into real life started only a few years ago. There is no "credit history" for these institutions. It makes the sphere dependent on improvisations of local, regional and federal authorities.

Leningrad region is one of 89 subjects of the Russian Federation. According to the law on the territorial device Leningrad region is divided into 29 municipal formations (municipalities). Leningrad region was established as territorial unit of the USSR on August 1, 1927. Currently the territory of the region is 83 900 square kilometers and population is 1,676 million with a rather high for the Russian Federation share of urban population - 66,1%. The territory of the region is divided into 17 districts with 29 cities and towns and about 240 village administrations.

There are 29 municipal districts in Leningrad region, which were established in the same borders as the Soviet-era administrative districts: Boksitogorsk district, Volosovo district, Volkhov district, Town of Volkhov, Vsevolozhsk district, Vyborg district, Gatchina district, Town of Gatchina, Town of Ivangorod, Kingisepp district, Kirishi district, Kirovsk district, Koltushi volost, Town of Kommunar, Settlement of Kuznechnoye, Lodeynoye Pole district, Lomonosovsky district, Luga district, Town of Pikalyovo, Podporozhje district, Priozersk district, Town of Svetogorsk, Sertolovo, Slantsy district, Town of Sosnovy Bor, Tikhvin district, Tosno district, Town of Schlisselburg.

As we may see, in distinction from Saint-Petersburg, where new municipal formations were established inside previous rajons of Leningrad in Soviet times, in Leningrad region new municipal formations just continued to perform functions of Soviet-times rajons. The decision to continue existing practice of territorial management was rather rational, but the decision assisted local Communist party and Soviet elites to keep control over power and property in new municipalities. As a result, leaders of new municipal formations and leaders of former rajons were the same Communist and Comsomol (Youth Communist Organization during the Soviet times) secretaries and functionaries.

Municipalities have an obligation to discuss their budgets and correlation between budget resources and their mission according to Russian legislation. But it is the Legislative Assembly of Leningrad region, which discusses and approves the budgets of the municipal formations in the region. It means that the Assembly has control over all spheres of activity of the municipalities. It is not contradicting Russian legislation, but goes in the opposite direction from spirit of the European Charter of Local Self-Governance of 1985.

A very important share of revenues of Leningrad region's municipal formations constitutes:

  • Local taxes and duties established by Councils of Municipal districts;
  • Share of federal taxes, which go directly to municipal formations on a permanent basis;
  • Revenues from utilization and sales of municipal property;
  • Revenues from chargeable services, provided by municipal formations of the Leningrad region;
  • Revenues from charging fines, confiscation, compensations and other financial punishments for causing of harm to municipal property;
  • Voluntary donations.

The financial conditions of the municipal formations in Leningrad region are rather difficult. It can be explained partly by short history of municipalities, as well as by concentration of economic power in the region in the Government of Leningrad region. That's why the regional government have to assist the budgets of "poor" municipal formations. Several municipalities may be included in this category: Podporozhje district, Lodeynoye Pole district, Priozersk district and the Town of Ivangorod. Experience of 2001 demonstrated that even in a favorable economic situation municipal councils of the districts are not able to pay in time salaries to staff of kindergartens, hospitals as well as institutions of culture sector, located on the territories of districts under observation. It forces the Government of Leningrad region to assist these districts. For example in one circular in October 2001, the Governor of Leningrad region sent RUR 8,3 million ($ 285 000) to the above mentioned four municipalities as well as to Gatchina district. Total financial assistance to the municipalities of Leningrad region in October 2001 was about RUR 66 million.

Another very important distinction between Leningrad region and neighboring Saint-Petersburg is related to the power of municipal formations. The power of regional municipalities is much more significant even despite the fact that politically all municipalities are dependent on decisions from the regional capital - Saint-Petersburg (key institutions of Leningrad region authorities - the Legislative Assembly and Government are located in historical part of Saint-Petersburg, a few hundred meters from the Administration of Saint-Petersburg - Smolny). The 111 municipalities of Saint-Petersburg have simply nominal functions, very limited financial resources and can not administer the city and even territory of their municipality. In towns and districts of Leningrad region municipal formations have the power to solve any economic and administrative problems and the level of their dependency on the Governor and government of the region is rather small. This fact could explain the symbolic difference in turn-out at municipal elections in Leningrad region and Saint-Petersburg. In the region more then 50% of voters participate usually. In Saint-Petersburg the same figure is 10-14%. Population of Saint-Petersburg simply don't believe that municipalities have any real power. In Leningrad region people do believe in a positive role of municipalities in their day-to-day life.

The Positive influence of geographical proximity of Leningrad region to Saint-Petersburg may be found in current attempts of municipalities of the region to elaborate and adopt strategic plans of economic development. In 1997 Saint-Petersburg politicians and academics worked out a Strategic Plan for Saint-Petersburg. European experts evaluated it as one of the best on the continent. It is important to note, that the Plan is based on liberal values and fix important characteristics of the city's future: multifunctionality, development of transport centre features, self- establishing as an interface centre for the Baltic Sea region and North-West Russia. Following example of Saint-Petersburg, 25 of 29 municipal formations of Leningrad region have prepared in 2000-2001 the same documents with assistance from the TACIS Programme of the European Union, which donated Euro 98000 to winners of competition for the best strategic plans in Leningrad region. Representatives of the business community, non-governmental organizations and academic institutions were involved in the project. The TACIS experts named the Strategic Plan of Tosno District as the best one. The main purpose for working out strategic plans is to take into consideration interests of different groups of the local population as well as higher levels of transparency of municipal authorities in the region.

The very important condition for growth of economy in Leningrad region is the development of better cooperation with leading financial-industrial groups from other Russian regions, first of all from Saint-Petersburg. Analysis of all major "success stories" in the region - Lodeynoye Pole district and Saint-Petersburg company "EGO-Holding", several southern districts and Saint-Petersburg Holding "Parnas", Town of Schlisselburg and Moscow industrial holding "New Programs and Concepts" - demonstrates that for the coming years inclusion of Leningrad region into a common industrial, financial and transport system with Saint-Petersburg and other neighboring regions is priority number one for the municipal formations of Leningrad region. Probably, next stage will include cooperation of municipalities around Saint-Petersburg with regions outside of Russian federation.

The web-site of the Government of Leningrad region has a special sub-site devoted to the municipal formations in the region. But there is little information, just contact telephones, faxes, etc.: http://www.lenobl.ru/municipalitets.

The English-language version of the web-site is: http://eng.lenobl.ru/municipal

Many municipal formations have their own web-sites, for example:
Kirishi district: http://www.kirishi.ru/
Vyborg district: http://www.vyborg.ru/
Town of Gatchina: http://city.gatchina.ru/
Town of Ivangorod: http://ivangorod.nm.ru/