About the problems of rayon authorities’ functioning as a consequence of formation of capable communities

1. ABOUT THE PROBLEMS OF
RAYON AUTHORITIES’
FUNCTIONING AS A
CONSEQUENCE OF
FORMATION OF CAPABLE
COMMUNITIES
1
ABOUT THE LEGAL
FOUNDATIONS OF RAYON
DIVISION SETTLEMENT

2. COMMUNITY AMALGAMATION WITHIN THE RAYONS
490
308
103
rayons altogether
rayons, where
community
amalgamation has
taken place
rayons, where more
than half of the
communities have
amalgamated
2

3. COMMUNITY AMALGAMATION WITHIN THE RAYONS
ZHYTOMYR OBLAST
23
22
12
rayons
rayons, where
amalgamation has
taken place
rayons, where more
than half of the
communities have
amalgamated
1
rayon, where all
communities have
amalgamated

4. Letychiv rayon of the
Khmelnytskyi oblast
Lyman rayon
of the Donetsk oblast
9
rayons,
where all the communities
have amalgamated in one
community
14
Rayons, where all the
communities have
amalgamated
of which
4
COMMUNITY AMALGAMATION WITHIN THE RAYONS

5. 29
amalgamated
territorial
communities located
in two or three rayons
in 19 oblasts
5
AMALGANMATION OF COMMUNITIES LOCATED IN SEVERAL RAYONS

6.  overlapping authority of the Rayon Council and the local self-governing
bodies of the ATCs, established within the rayon;
 duplication of functions between the rayon state administration and the
executive bodies of the ATC councils (provision of administrative, educational,
medical services and even hosing and communal services);
 inefficient cost allocation of the local and state budgets (costs are allocated to
keeping the executive bodies of the ATC councils and Rayon District Administration for execution
of duplicated functions);
 lowering the quality of service provision in certain villages due to lowering
the financing of the rayon budget (with regard to educational, medical subvention)
 transfer of communal property from the rayon to the ATC;
 Lacking the costs for keeping the Rayon Councils in the rayons, where the
majority of communities have amalgamated;
 undetermined jurisdiction of the executive power bodies on the territory
of the ATCs, located in different rayons.
6
KEY PROBLEMS

7. 7
OWN INCOME OF THE RAYON BUDGETS AND ATC BUDGETS, thousands of UAH
PROBLEM:
INEFFICIENT COST ALLOCATION OF THE LOCAL AND STATE BUDGETS
Starosyniavskyi
rayon
Starosyniavska ATC Narodnytskyi
rayon
Narodnytska
ATC
Total income fund, thousands of UAH 80,351.0 104,434.7 36,798.4 58,809.5
- Own income 61.0 39,930.0 55.4 51,082.0
- Transfers 80,290.0 64,504.7 36,743.0 37,727.5
Part of own income in the total income fund, % 0.1% 38.2% 0.2% 35.8%
61.1
39,930.0
55.4
21,082.0
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Starosyniavskyi rayon Starosyniavska ATC Narodnytskyi rayon Narodnytska ATC

8. 8
NUMBER OF RSA, ATC EMPOYEES AND THE ASSOCIATED ADMINISTRATIVE EXPENSES IN 2017
DYNAMICS OF THE EMPLOYEES NUMBER IN RAYON COUNCILS AND THE ASSOCIATED ADMINISTRATIVE EXPENSES
PROBLEM:
DUPLICATION OF FUNCTIONS AND AUTHORITY ON ONE TERRITORY
12 12
2
820.0
4…
6…
0.0
200.0
400.0
600.0
800.0
1000.0
0
2
4
6
8
10
12
14
2015 2016 2017
ThousandsofUAH
Numberofpeople
Narodnytska Rayon Council
Number of employees
Administrative expenses, thousands of UAH
13 13
9
1113.0
800.0
239.0
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
0
2
4
6
8
10
12
14
2015 2016 2017
ThousandsofUAH
Numberofpeople
Starosyniavska Rayon Council
number of employees
Administrative expenses, thousands of UAH
Starosyniavska ATC Starosyniavska RSA
Starosyniavska Rayon
Council
Number of employees 79 71 7
Administrative expenses,
thousands of UAH
11,500.0 8,100.0 240.0
Number of Council’s deputies 26 26

9. Authority of the Verkhovna Rada of Ukraine
(extract):
- creation and liquidation of rayons, establishment
and shift of rayon and city borders, giving the
communities the city status, naming and
renaming centers of population and rayons;
Point 29, first part of Article 85,
the Constitution of Ukraine
9
CONSTITUTION OF UKRAINE (acting)

10. WAYS OF SOLVING THE PROBLEM (KEY STEPS)
І
А. VRU passes a decision to change the administrative-territorial
structure of the rayon level at on the territory of the whole country
ІІ
VRU passes a decision to liquidate certain rayons, where all the
territorial communities have amalgamated
ІІІ
Legal regulation and pre-term termination of office for Rayon
Councils in the rayons, where all the communities have amalgamated
in one ATC (absence of common interests of territorial communities)
ІV
Establishment of a new rayon through amalgamation of the territory of
two or more adjoining rayons into one rayon (adoption of the draft law #6636)
B. VRU passes a decision to change the administrative-territorial
structure of the rayon level on the territory of certain oblasts

11. Rayons
(suggestions)
Population,
thousands of
people
Area,
square km
1 Berezhanskyi 142.3 3,298.2
2 Kremenetskyi 154 2,839.1
3 Trnopilskyi 442.3 3,466.1
4 Chortkivskyi 317 4,288.9
TERNOPIL OBLAST.
Administrative-territorial structure
 current — 17 rayons
 suggested – 4 rayons
11
WAYS OF SOLVING THE PROBLEM (KEY STEPS)
VRU passes a decision to change the administrative-territorial structure of
the rayon level on the territory of a separate oblast
І

12. Current administrative-
territorial structure –
ATC – RAYON (RSA+Rayon Council)
Suggested variant — ATC
12
VRU passes a decision to liquidate certain rayons, where all the
territorial communities have amalgamated
WAY OF SOLVING THE PROBLEM (KEY STEPS)
ІІ

13. Current administrative-
territorial structure –
ATC – RAYON (RSA+Rayon Council)
Suggested variant of the
subregional level
ATC – RAYON (RSA)
13
У разі об'єднання всіх територіальних громад (ТГ) в одну зникає потреба представництва
спільних інтересів ТГ через районну раду. В таких районах залишаються РДА та ОТГ
Pre-term termination of office for Rayon Councils in the rayons,
where all the communities have amalgamated in one ATC
WAYS OF SOLVING THE PROBLEM (KEY STEPS)
ІІІ

14. Suggested —
establishment of a new
amalgamated rayon
14
Establishment of a new rayon through amalgamation of the territory of
two or more adjoining rayons into one rayon (adoption of the draft law #6636)
Current administrative-
territorial structure —
ATC – RAYON (RSA+Rayon Council)
WAYS OF SOLVING THE PROBLEMS (KEY STEPS)
ІV

15. ROAD MAP OF THE REFORM
KEY STAGES AND TASKS
15

16. TIMELINE FOR REFORM IMPLEMENTATION
16
The forthcoming local elections (October 2020) must take place in a new system of communities
and rayons. Otherwise the existing system of administrative-territorial structure will be preserved
until 2025.

17. ОСНОВНІ ПОВНОВАЖЕННЯ ОМС ТА МДА ВІДПОВІДНО ДО КОНЦЕПЦІЇ
РЕФОРМУВАННЯ
МІСЦЕВОГО САМОВРЯДУВАННЯ ТА ТЕРИТОРІАЛЬНОЇ ОРГАНІЗАЦІЇ ВЛАДИ
В УКРАЇНІ
WITHIN THE FRAMEWORK OF THE ACTING CONSTITUTION OF UKRAINE
17
TASK 1. Formation of Capable Communities – the Foundation of the Reform
1. Principle of voluntariness of amalgamation is still the basic one
2. Widening the motivation line for amalgamation:
 legal formalization of the ubiquity principle with regard to the jurisdiction of the
local self-government bodies of the ATCs (outside the population centre)
 tax preferences(excise) for capable communities only (ATCs, cities of oblast
subordinance)
 securing the capable status to the cities of OS – simplification of the
amalgamation procedure (adjoining)
 not to stimulate the establishment of small and financially incapable communities
3. Approving the final versions of the Community Perspective Plans
Task 2. Structuring the Rayon Level
Local tasks will need to be solved at the stage before the adoption of the new ATS at
the subregional level (March-July 2020):
 merger, liquidation of rayons, the territory of which is fully covered by one ATC
 Optimization of authority, structure, number of RSAs of the rayons, the territory of
which is fully covered by several ATCs
KEY TASKS FOR ENSURING THE IMPROVEMENT PROCESS FOR THE
TERRITORIAL GOVERNANCE ORGANIZATION UNTIL 2021

18. WITHIN THE FRAMEWORK OF THE ACTING CONSTITUTION OF UKRAINE
18
TASK 3. Structuring the System of Territorial Bodies of the Central Bodies of
Executive Power
It is necessary to introduce the temporary territorial basis for the organizational structure
of TB of CBEP at the stage before the adoption of the new ATS at the subregional level
(approximately March-July 2020):
 to introduce administrative districts (with the consideration of hospital districts
configuration);
 to structure TB of CBEP within the administrative districts.
TASK 4. Formation of the New ATS
It is necessary to establish the new ATS at the community and rayon levels before the
upcoming local elections (the subregional division may be cancelled only through
introduction of changes to the Constitution).
Not doing this will lead to the preservation of the current system of ATS until 2025.
In order to do this it is necessary:
 law On the Foundations of the Administrative-Territorial Structure of Ukraine;
 law On the Administrative-Territorial Structure of Ukraine (or separate laws for each
oblast);
 decision about the introduction of the new ATS in 1-2 piloting oblasts in 2018 and to
introduce the exemplary system of territorial governance of an oblast.
KEY TASKS FOR ENSURING THE IMPROVEMENT PROCESS FOR THE
TERRITORIAL GOVERNANCE ORGANIZATION UNTIL 2021