DEVELOPMENT INITIATIVE FOR ADVOCATING LOCAL ASSOCIATION OF GOVERNANCE IN UKRAINE (DIALOGUE PROJECT) UKRAINIAN CITIES BY JOINT EFFORTS D I A L O G U

E PROJECT PROGRESS REPORT 2 PROJECT PROGRESS REPORT CONTEXT

The technical proposal for the DIALOGUE Project was being prepared in late 2009 in the full swing of the pre-election campaign for the 2010 presidential elections. The then Tymoshenko Government raised great hopes for the implementation of the long-overdue local government reform. With the active support of the then Prime Minister of Ukraine, the Cabinet of Ministers approved the Concept of the Local Government Reform and the work to prepare the legislation to promote the reform implementation started. The DIALOGUE Project was originally prepared to support the Government of Ukraine in its aspirations towards the implementation of the local government reform and was aimed at promoting the environment and development of the toolkit to plan and roll out this reform with the active participation of local governments and opportunities for them to provide their input. The March 2010 presidential elections dramatically changed the situation in the country. V. Yanukovych who was elected the President of Ukraine quickly reinstated the Soviet one-party traditions, and built up a central government vertical line of command right a er the local elections (autumn of 2010) and parliamentary elections (autumn of 2012). The Ukrainian parliament whose membership consisted of numerous political parties who ran the elections race quickly turned into the machine well manipulated by the Administration of President Yanukovych to make decision in his favour. The return to the majoritarian system of elections gave rise to a new class of parliamentarians – so-called “Tushkas” (MPs who change their aff iliation in the parliament in their own favour). And the Tushkas quickly joined party led by the current government. The Azarov Government overturned the decision of its predecessors to approve the Concept for the development of local self-governance and gave clear signals that this Concept had no chances for further development. Moreover, the mere existence of the system of local self-governance was very questionable. The centralisation policy pursued by the President was successfully refl ected in the decisions made by the Cabinet of Ministers and approved by the “Tushka” parliament. It led to stealing the resource related powers from local governments and depriving them of resources, thus making communities grow poorer and poorer. The political pressure exercised towards the mayors who did not belong to pro-presidential parties forced more than a hundred of mayors of Ukrainian cities leave their off ices. This is the environment the DIALOGUE Project worked for more than four years. But the Project actually did work testing and modelling instruments for local governments to eff ectively interact with central government agencies. By doing so, the Project introduced in the AUC activities the practice of holding Dialogue Days with the Cabinet of Ministers. By the way, the Azarov Government could be noted with one of the best local government representation in such Cabinet of Ministers meetings. President Yanukovych issued a decree, which helped to immediately institutionalise the institute of Local Government Regional Advisory Boards as a platform to resolve issues of local importance through the joined work of local agencies of the state executive and local governments represented by oblast, rayon and city councils. It should be worthwhile mentioning that the President Yanukovych tried to use its electoral slogan “I will hear everyone”, though his vertical line of command while not refusing to listen to actually did not want to hear. The DIALOGUE Project discovered yet another important area of activities, which was not envisioned and not well addressed in the original vision of the Project activities, namely: developing sectoral analytical materials. DIALOGUE Project experts clearly realised the fact that only having a clear understanding about the sectoral problem issues and broad sectoral representation one can eff ectively formulate, represent and advocate for the local government position in the dialogue. This gave rise to the idea of preparing sectoral technical area profi les and preparation of targeted (not explicitly stated) amendments to the sectoral legislation, which had good changes to become approved and would off er new opportunities for local governments. DIALOGUE 3

The Revolution of Dignity raised some hopes for changes for the be er. The events were developing rapidly and required the immediate reaction. The AUC came up with a recommendation to nominate V. Groisman, City Mayor of Vinnytsya to the position of the Vice Prime Minister in the so-called ‘kamikaze’ government. Having become the Vice Prime Minister, V. Groisman immediately plunges into the decentralisation reform. This was the stage where the materials and deliverables of the DIALOGUE Project became particularly useful, namely: the government now was in the position to engage the eff ective policy dialogue instruments, sectoral expert materials and research, as well as the ability of Project experts to quickly prepare the needed legislative amendments. A li le more than a months through its activities since its establishment in April of 2014 the Yatsenyuk Government approved the Concept of the local government reform and reform of the territorial arrangement of government institutions in Ukraine. This document served as the road map for the decentralisation reforms. The government made use of the topic of decentralisation as the main key to resolve the confl ict in the east of Ukraine and a good opportunity to restore stability and a chance for the further development of the country. The local self-governance in Ukraine maybe for the fi rst time in its history received a unique situation to have the window of opportunity to build up a truly eff ective, responsive and accountable system of governance. However, almost a year passed since the approval of the Concept and the beginning of its real implementation. This was a very long time for the country whose citizens got tired of waiting for changes for the be er. Therefore, the President had to dissolve the parliament, because the Tushka type National Deputy in their majority remained faithful to their patrons and continued to block the work of the parliament. Following the October parliamentary elections on the last days of 2014, the Verkhovna Rada of Ukraine under the active pressure fi rst of the Vice Prime Minister and then of V. Groisman, Chairman of the Verkhovna Rada of Ukraine approved the amendments to the budget and tax legislation initiated by the AUC. By doing so, the parliament made the fi rst step towards the fi scal decentralisation. Local governments received more autonomy in managing their own resources and increased amount of such resources. For example, the discretionary local government resources increased almost 2.5 times in 2015. However, the budget autonomy raised the issue of capacity of c0mmunities to earn their own revenues, provide services and manage the increased resources for the new authority in an eff ective manner. The establishment of capable territorial communities was the next step towards decentralisation. To make this happen, in February of 2015 the parliament approved the Law of Ukraine “On Voluntary Consolidation of Territorial Communities”, while in April of 2015, the Cabinet of Ministers approved the Methodology for the formation of capable territorial communities. Both documents were prepared and approved with the active participation of the DIALOGUE Project. These documents also had good chances to remain on the shelf without being implemented if not for the network of Off ices for Reform Implementation Support (ORIS) established by the DIALOGUE Project in all oblasts of Ukraine. The ORISes were designed to assist oblast state administrations (OSA) to plan and implement the decentralisation reform. It was these off ices that became the actual promoters of the reform: now oblasts had the experts whose task was to encourage communities to embark on consolidation. And this very “fi rst hundred of consolidators” managed to prepare long-term perspective plan for the formation of community territories in all 24 oblasts in Ukraine, conduct the fi rs local elections in these 159 pioneer communities on October 25, 2015, regulate issues inherent for their transitional period and let them start working starting of January of 2016.

Yet, in the new communities and within the framework of the new project ... 4 PROJECT PROGRESS REPORT CHAPTER 1: TASKS

The purpose of the DIALOGUE Project was to promote the decentralisation process in Ukraine. The Project activities were focused on establishing and expanding the environment conducive for the local government reform and to ensure the broad based support for the decentralisation process from public servants, civil society organisations, and the public at large. The implementation of eh DIALOGUE Project was focused in the accomplishment of the following tasks:

• Establishing the proper legal environment for the eff ective and transparent local self-governance. • Introducing the practice of the eff ective policy dialogue between local governments with their partners at the national and regional levels. • Increasing the public support for the reforms in the local government system. • Increasing the level of legal culture and eff ectiveness of local self-governance.

At the local level, the DIALOGUE Project worked with more than 500 AUC member-municipalities. At the regional level, the Project worked with oblast state administrations and oblast councils. At the national level, the DIALOGUE Project cooperated with the central agencies of the state executive, namely: line ministries, parliamentary commi ees, and independent experts. In addition to this, the project established and further developed partner relationships with national and regional media.

To achieve its goal, the Project was implemented through the four components:

• Legal framework: DIALOGUE prepared and lobbied for the approval of the legislation focused on continuous activities to support the implementation of sectoral reforms and decentralisation. These activities were driven by local government needs and were carried out with the direct participation of local government off icials. In addition to this, the DIALOGUE Project conducted the expert evaluation of the dra legislation for its compliance with the European Charter of Local Self-Governance

• Policy dialogue: DIALOGUE established and introduced into a daily practice a set of tool for eff ective policy dialogue between local governments and state executive authorities aiming at developing a common vision of the needed reforms. At the national level, the Project provided opportunities for local government off icials for regular communication with the leadership of line ministries, ad-hoc commi ees of the Verkhovna Rada of Ukraine, and to participate in consultative and advisory entities established by central agencies of the state executive. At the regional level, the Project set up Local Government Advisory Boards, which became platforms for local government off icials from AUC member municipalities, representatives of oblast state administrations and oblast councils to discuss and fi nd solutions for key issues of regional importance.

• Fostering public support for reforms: The DIALOGUE Project substantially increased the public awareness and communication and outreach activities of the Association of Ukrainian Cities and provided a signifi cant support for the implementation of the decentralisation reform through a series of TV programs and talk shows on national and regional TV channels. The Project prepared and disseminated expert materials, publications and messages for targeted audiences, including: local DIALOGUE 5 government off icials and civil servants, interested organisations, which support the development of local self-governance, media, and citizens at large.

• Legal assistance and protection: The DIALOGUE Project provided local government off icials with professional consultations and introduced the tools to increase their professional qualifi cations and skills.

The Project introduced a practice of equitable dialogue between agencies of the state executive and local governments and put in place the legal and institutional framework for the eff ective implementation of the decentralisation reform in Ukraine. 6 PROJECT PROGRESS REPORT CHAPTER 2: RESULTS

SUB-CHAPTER 1: LEGAL FRAMEWORK: FOUNDATIONS FOR THE REFORMS

At the inception phase of the DIALOGUE Project activities, the local government legal framework was in great need of substantial improvements in the context of the meaningful implementation of principles of decentralisation of governance, subsidiarity, and the conditions for ensuring the economically viable and rich in the entire necessary resources local government unit – community. The country lacked the unifi ed national strategy to implement reforms, which would clearly identify the areas, priorities, and main phases of the reform in the local self-governance sector. Aiming at developing the proper legislative framework for eff ective and transparent local self-governance, the DIALOGUE Project provided a sound analytical background for the legislation dra ing activities of the AUC. This approach made it possible to achieve the main goal of the project – to ensure the eff iciency of this activity in accordance with the local government needs. To make this happen the Association established its Center for Analysis and Legislation Dra ing as a tool for deep analysis of problem issues local governments face and formulation of local government needs in developing local government enhancing legislation. The AUC Center for Analysis and Legislation Dra ing established within the framework of the Project started to work of Technical Area Profi les in nine sectors of local government activities identifi ed in the Project Proposal, namely: • Organisational and legal foundations of local self-governance; • Local budgets and fi nancial foundations of local self-governance; • Housing and municipal utilities; • Land relations; • Local elections; • Public education; • Health care; • Culture; and, • Social protection. Later on, when such an approach proved successful, the Project developed Technical Area Profi les for three more sectors of prime importance of local self-governance: • Administrative services • Environmental protection • Energy eff iciency and energy security. These Technical Area Profi les became the refl ection of the overview of the current status of the situation in the corresponding local government sectors and turned into a road map for the necessary changes in the legislation. The Technical Area Profi le for each sector includes a list of current regulatory and legal documents, which regulate the relationships in the sector, as well as problem issues and ways to resolve them, fi rst of all through the development of the needed legislation. The content part of the Technical Area Profi les was prepared by the AUC Center for Analysis and Legislation Dra ing through the analysis of the legislative framework for each technical area, regular surveys of local governments about the need to resolve a particular set of problem issues. The regular (twice a year) working sessions of AUC Professional Groups with the participation of heads of executive agencies of local governments from the corresponding sectors provided the opportunity to identify the most important and urgent problem issues, defi ne ways to resolve them, and to reformulate the local government needs in legislation dra ing. DIALOGUE 7

The number of problem issues in the Technical Area Profi les for the corresponding sectors of local government activities. THE NUMBER OF PROBLEM ISSUES IN THE TECHNICAL AREA PROFILES FOR THE CORRESPONDING SECTORS OF LOCAL GOVERNMENT ACTIVITIES

LOCAL BUDGETS AND FINANCIAL FOUNDATIONS OF LOCAL SELF-GOVERNANCE BUDGET HOUSING AND MUNICIPAL UTILITIES LAND RELATIONS ORGANISATIONAL AND LEGAL FOUNDATIONS FOR LOCAL SELF-GOVERNANCE LOCAL ELECTIONS SOCIAL PROTECTION HEALTH CARE PUBLIC EDUCATION CULTURE ENERGY EFFICIENCY AND ENERGY SECURITY ADMINISTRATIVE SERVICES

Thus, the Technical Area Profi les became the foundation for the Association to plan its legislation dra ing activities. The Technical Area Profi les being the hands-on, non-static and living documents is their main advantage. They provide opportunities to: - feel the pulse of each local government technical area keeping track of both positive and negative changes in its legal regulation; - defi ne the priorities; - and, based on this, to plan the purpose-orients legislative and lobbying activities.

MAKING THE NEW LEGISLATION CORRESPOND WITH THE LOCAL GOVERNMENT NEEDS

The DIALOGUE Project came to the understanding of key local government problem issues and ways to resolve them with close participation of local governments in this work. For example, the following became the traditional forms of work with local governments: (1) regular (twice a year) working session of Professional Groups of the Association of Ukrainian Cities; (2) network of experts – participation of local government lawyers in legislation dra ing; (3) monitoring of problem issues in the local government sector through annual surveys of local councils of AUC member municipalities; and, (4) local government professional forums on the web-site of the Association The working sessions of the AUC Professional Groups served as an instrument to look for ways to resolve problem issues in the corresponding local government technical sectors and experience exchange for local council specialists. At various meetings, their participants discussed amendments to Technical Area Profi les, important dra legislation and regulatory documents submi ed to the Cabinet of Ministers and Verkhovna Rada of Ukraine for consideration, dra documents prepared by the Project, etc. All in all, during its implementation period, the DIALOGUE Project conducted 91 working sessions of AUC Professional Groups. Such meetings of AUC Professional Groups were conducted on a regular basis, predominantly twice a year, in various AUC member municipalities. Representatives of sectoral departments of executive commi ees of local councils, predominantly heads of the corresponding departments, etc., participated in such events. The level of importance of the problem issues, which were discussed during these meetings and the professionalism of their participants in identifying solutions to these problem issues drew the a ention of the line ministries (Ministry of Finance, Ministry of Labour and Social Policy, Ministry of Culture, Ministry of Regional Development, Construction, Housing and Municipal Utilities, Ministry of Economic Development and Trade, Ministry of Public Education and Science, and Ministry of Health Care) whose representatives also became participants of such 8 PROJECT PROGRESS REPORT

meetings. This approach provided the opportunities to increase the level of mutual understanding between local governments and central agencies of the state executive and to establish the eff ective cooperation. TABLE 1. FREQUENCY OF MEETINGS OF PROFESSIONAL GROUPS DURING THE PROJECT IMPLEMENTATION PERIOD:

20102011 2012 2013 2014 2015 TOTAL

HEALTH CARE 1 2 2 2 2 1 10 LOCAL COUNCIL SECRETARIES 1 2 1 2 1 7 PUBLIC EDUCATION 1 2 2 2 2 1 10 LOCAL GOVERNMENT FINANCE 1 2 2 2 2 1 10 CULTURE 1 2 2 2 2 1 10 LAND RELATIONS 1 2 2 2 2 1 10 HOUSING AND MUNICIPAL UTILITIES 1 2 2 2 2 1 10 SOCIAL PROTECTION 1 2 2 2 2 1 10 LOCAL GOVERNMENT LAWYERS 1 2 2 2 2 1 10 ADMINISTRATIVE SERVICES 1 1 2 ENERGY EFFICIENCY 1 1 ENVIRONMENTAL PROTECTION 1 1 TOTAL 9 18 17 18 18 11 91

To ensure the substantial and immediate participation of local government off icials in law-dra ing activities and involvement of their practical experience in this work, the Project sent out questionnaires to local governments to put together a network of local government lawyers with the corresponding electronic database. The Project also provided specialists form rayon signifi cance cities and towns with the necessary computer equipment for this work. The Project sent most important dra legislation and other regulatory and legal documents prepared within the framework of the DIALOGUE Project or dra ed by central agencies of the state executive, as well as dra legal and regulatory documents ministries sent to the AUC for its concurrence to expert lawyers to solicit their expert opinion and suggestions. The DIALOGUE Project took the proposals and comments of these experts into account in the course of the preparation of AUC proposals and off icial position with regard to dra regulatory and legal documents, as well as in the course of preparation of amendments to the current legislation. As of 2015, 336 local governments from 257 cities, 71 towns and 8 villages delegated their representatives to work in the DIALOGUE network of local government lawyers. Currently, the network consists of 377 representatives of local governments from 24 oblasts of Ukraine.

THE NETWORK OF LOCAL GOVERNMENT LAWYERS BY OBLAST

Volyn Rivne Chernigiv 15 12 10 17 Zhytomyr 15 10 7 Sumy 6 9 6 Kyiv 26 Lviv 28 28 Poltava Kharkiv 35 30 18 Ternopil Khmelnytskyi 16 16 35 21 Luhansk 17 6 19 Vinnytsya Cherkasy 8 14 15 14 15

Kirovohrad Dnipropetrovsk Donetsk 17 16 4 18 17 Zakarpaya Chernivtsi 5 6 14 7 Ivano-Frankivsk 14 Mykolaiv 15 7 Zaporizzhya Odesa 17 7 13 14 16 14 Kherson 1 Number of cities/towns 12 Number of persons 12

Autonomous Republic of Crimea 0 0 DIALOGUE 9

The Project conducted the annual wri en survey of AUC member municipalities and their local councils about the most important problem issues local governments in various technical areas of their activities. The survey was conducted prior to the Dialogue Day. The Association generalised the received information and sent it to the central agencies of the state executive, which were in charge of the corresponding problem issues and solicited their opinion and suggestion on potential ways of resolving them during the Dialogue Day. The Association also refl ected the information on the problem issues it received from the government agencies in the Technical Area Profi les. (4) Local Government Forum The Local Government Forum has been active on the AUC web-site since 2014. It represents an Internet-based resource, which was established within the framework of the DIALOGUE Project to provide communication opportunities for local government specialists form various technical sectors. The main purpose of the Forum is to provide opportunities for its users (visitors) to raise their topics related to key issues of their professional activities and suggest their solutions with further discussions. 219 participants have registered on the Forum since it became operational. These participants managed to discuss 64 topics in 15 various areas.

ANALYTICAL MATERIALS AS A SOURCE OF RELIABLE INFORMATION ABOUT THE CURRENT STATUS OF LOCAL SELF-GOVERNANCE IN UKRAINE

The analytical materials prepared by the DIALOGUE Project experts became a source of the reliable information for local governments, representatives of the central agencies of the state executive, National Deputies of Ukraine, and non-governmental organisations who are interested in the local government topics about the real situation with local self-governance, its prospects for the future and implementation of the local government reform. (1) Over the period of its implementation, the DIALOGUE Project prepared 742 expert materials on key local government issues, in particular, to serve as justifi cations of legislative proposals to promote reforms and to meet local government needs in additional fi nancial resources. The situation by year is the following: For example, the DIALOGUE Project conducted a research into to the amount of the compensation provided by the Cabinet of Ministers to housing and municipal utility companies for the diff erence between real cost of services provided to citizens and the tariff s for these services the Cabinet of Ministers deliberately reduced for political motivations. The corresponding expert materials became the foundation for local governments to send their appeals about amending the Law of Ukraine “On the National Budget of Ukraine for 2012”. Consequently, the total amount of the two tranches in 2012 constituted 15.9 billion UAH. This made it possible for housing and municipal utility companies to write off their debts for consumed energy resources. (2) the DIALOGUE Project prepared and disseminated 20 issues of the quarterly publication called «The Sectoral Monitoring». The purpose of this publication is to provide high quality analytical materials on issues related to functioning of various sectors of local self-governance – fi nancial suff iciency, economic development, management of land resources, housing and municipal utility networks, etc. The main focus of the publication is placed on general overview of current city problems and ways to resolve them, expert legal overview and comments of the new dra legislation, recommendations to improve it, etc. (3) the DIALOGUE Project prepared six annual analytical reports called «Status of Local Self- Governance». These reports describe the changes in the legal framework and in the capacity local 10 PROJECT PROGRESS REPORT

self-governance of Ukraine, which took place in the corresponding year; refl ect the political processes and events, which have a direct impact on the status of local self-governance over the reporting year; refl ected the tendencies of the national policy with regard to local government development, etc. These publications also serve as the tool for the Association of Ukrainian Cities to implement its initiative to depict the history of the development of local self-governance in modern Ukraine. In particular, the design of the cover page of the publication has been an artistic representation of the current status of local self-governance in the country.

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ)

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ)

2015 МІСЦЕВЕ САМОВРЯДУВАННЯ В УКРАЇНІ СТАН МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ В 2013 РОЦІ

The publication targets all local governments, citizens, state executive authorities, scientists, and journalists – all those who are interested in these ma ers. Copies of the publication were distributed to international organisations, such as USAID, EU Representation Off ice in Ukraine, monitoring missions of the Council of Europe, etc. DIALOGUE 11

MONITORING LOCAL GOVERNMENT LEGISLATION

The local government legislation monitoring was performed in a number of areas: 1) keeping track of legislation and other regulatory and legal documents on local self-governance, which came into force; 2) keeping track of dra legislation on local government issues, which are pending consideration in the Verkhovna Rada of Ukraine; 3) keeping track of legislation and other regulatory and legal documents on local self-governance, which are being developed by the Cabinet of Ministers of Ukraine and central agencies of the state executive; 4) engagement in the concurrence procedure with regard to dra legislation and other regulatory and legal documents sent to the AUC by the main entities of the legal initiative – state executive agencies pursuant to the Law of Ukraine “On Local Government Associations”.

Permanent and comprehensive monitoring of the legislation provided opportunities to track legislative initiatives of central government agencies, Cabinet of Ministers of Ukraine, and National Deputies of Ukraine with positive and negative impact on local governments, tendencies of the national policy development, prospects for the development and adoption of appropriate amendments aimed at developing local governments, as well as to implement the necessary operational measures to promote or prevent the adoption of the relevant legislation and regulatory and legal documents. For example, over the period of its implementation, the DIALOGUE Project experts submi ed their suggestions and comments to 998 dra regulatory and legal documents related to local government interests. Including by the year:

DIALOGUE LAW DRAFTING ACTIVITIES

Based on the local government legislation dra ing need assessment and taking into account the chances of submi ing to the parliament and approval of legislative amendments, the Project made the corresponding adjustments to planning its legislation dra ing activities. For example, 42 dra regulatory and legal documents aimed at promotion of the local government reform or resolving issues of local government activities were prepared upon the request of the Project or dra ed with direct participation of its experts. Including by the year: 12 PROJECT PROGRESS REPORT

By technical area:

ORGANISATIONAL AND LEGAL FOUNDATIONS FOR LOCAL SELF-GOVERNANCE 19 LOCAL BUDGETS AND FINANCIAL FOUNDATIONS OF LOCAL SELF-GOVERNANCE 9 HOUSING AND MUNICIPAL UTILITIES 2 LAND RELATIONS 5 LOCAL ELECTIONS 3 PUBLIC EDUCATION 1 HEALTH CARE 1 SOCIAL PROTECTION 1 ADMINISTRATIVE SERVICES 2 ENERGY EFFICIENCY AND ENERGY SECURITY 4

OUTCOMES OF THE PROJECT LEGISLATION DRAFTING ACTIVITIES

Over the period of the Project implementation, despite the diff icult social and political situation in the country, the Project managed to 64 achieve the signifi cant results in establishing the foundations for the local government reform in Ukraine. For example, the Project managed 15 14 8 14 to enact 115 regulatory and legal documents enhancing the development 2011 2012 2013 2014 2015 of local self-governance. These are the following, by years: It is the distribution of approved regulatory and legal documents aimed at supporting the development of local self-governance by year that provides the best illustration of receptivity of such initiatives in the diff icult social and political situation the country was in during the DIALOGUE Project implementation period of 2010 - 2015. For example, the period of 2009 - 2013 represented the logical refl ection of the period of stagnation of local self-governance as an important institute of the democratic society. This stagnation was motivated by political reasons. This was the period of decline for local self-governance, local governments were stripped of their powers and the sources of its revenues and resources became increasingly meagre. Local councils and their executive commi ees “willingly” became moulded into the nation-wide and local vertically subordinated systems of the political regime. Renunciation of the European integration with the creeping tendencies of re-orientation on the authoritarian East deprived local governments not only of prospects for future development, but also of prospect of existence in Ukraine. In these circumstances, to ensure the stable implementation of the authority delegated by the state, local governments had to distract a considerable part from their already meagre resources earmarked for the implementation of the exclusive local government authority granted to them by legislation. This, of course, had a detrimental eff ect on such sectors as housing and municipal utilities, urban public transportation system, local development programs, as well as the quality of social services. Moreover, local governments did not have their own eff ective instruments to increase the revenue fl ow to local budgets. They continued to remain deprived of the real impact on their tax base, tax rates, and tax administration rules, which were set at the central government level. Besides, the treasury administration of local budgets also became a growing problem. The Cabinet of Ministers used this instrument to withdraw funds from local budgets to resolve the issues, which belonged to the sphere of competence of state executive authorities. In such circumstances, the most of activities of the DIALOGUE Project were focused on preventing DIALOGUE 13 the deterioration of the current status of local self-governance and resolving individual problem issues, rather than on its strategic development. Nevertheless, during this diff icult period, the Project managed to achieve some signifi cant outcomes in its legislation dra ing activities. The most signifi cant achievements were: • resolving the problem issue associated with the prohibition for local governments to allocate as of January 01, 2012 land parcels for construction purposes in case of absence of the zoning plan and detailed territorial outline map. Most of local territorial communities found it next to impossible to comply with these requirements, because they did not have suff icient funds in their budgets to prepare the corresponding document packages. Therefore, having taken into consideration the proposals of DIALOGUE Project experts, on November 17, National Deputies approved amendments to the Law of Ukraine “On Regulation of Urban Development Activities” postponed the enactment of the prohibition mentioned above; • reorientation of the Cabinet of Ministers from the policy of se ing unifi ed tariff s from housing and municipal utility services for the whole country to the policy of introducing unifi ed mechanisms and approaches to set tariff s for district heating, water supply and sewerage services, as well as building maintenance services. The corresponding Resolution of the Cabinet of Ministers was welcomed at the local level; • regulation of problem issues local government face in the sphere of land resource management, such as: legislative regulation of procedures to conduct land sales (auctions) and se ing legal mechanisms for the delineation of state-owned and communally-owned lands; • legislative regulation of the delineation of state-owned and communally-owned lands. The Verkhovna Rada of Ukraine approved the corresponding law on September 06, 2012. The law was based on the approach the Board of the Association of Ukrainian Cities suggested to the President of Ukraine on September 15, 2011. The idea was to simplify the delineation procedure by revoking the requirement to prepare land management document packages and conducting the delineation “by the force of the law”. In other words, on the day this Law came into force, state-owned and communally-owned lands were considered to have been delineated according to the following principle: the communally-owned lands within the boundaries of populated areas included all lands, except for the privately-owned lands and lands located under state-owned property, whereas the communally-owned land outside the boundaries of populated areas consisted of the lands under communally-owned property items; • submission by the Cabinet of Ministers on November 21, 2012, upon the initiative of the AUC of amendments to the By-Laws of the Cabinet of Ministers, whereby a representative of Ukraine-wide local government associations received the right to participate in working sessions of the Cabinet of Ministers with the right to advisory vote, whereas the Cabinet of Ministers was obliged to refl ect the position of the Ukraine-wide local government associations in all supporting documents in case the Cabinet of Ministers approved an off icial document related to local government ma ers. Following the approval of this document by the Cabinet of Ministers, all dra documents, which were submi ed for consideration during regular meetings of the Cabinet of Ministers, were fi rst sent to the association for their consideration and formulation of their position. At the end of 2012 there were already cases when having taken into account the opinion and comments of local government associations the Cabinet of Ministers postponed the approval of the documents and sent them back to their authors for revision. The practice of sending on a regular basis dra documents prepared by the Cabinet of Ministers, central agencies of the state executive, their expert evaluation by specialists of the association, as well as the preparation of the corresponding expert opinions an proposals to these dra documents became an important tool to at least make sure the central government is aware about the local government position. The rapid events in early 2014 and the victory of the Revolution of Dignity provided the environment conducive for re-orienting local self-governance in Ukraine to the European development path. Within 14 PROJECT PROGRESS REPORT

a very short time, the Cabinet of Ministers, fi nally, managed to approve the Concept of the Local Government Reform and Reform of the Territorial Arrangement of Government Institutions in Ukraine. The newly-elected President of Ukraine pledged his commitment to reforms and submi ed to the parliament reform-oriented dra constitutional amendments. The parliamentary majority in the new convocation of the Verkhovna Rada of Ukraine concluded the Coalition Agreement with a clear and resolute intention with regard to the local government reform. DIALOGUE Project experts were involved in the preparation of the Coalition Agreement. Thus, the Project managed to incorporate in the text of the Agreement a separate chapter with clearly defi ned tasks and timeframe for the implementation of the local government reform and a separate section on fi scal decentralisation. In general, the year of 2014 became a milestone for local self-governance. It marked the beginning of the large-scale reform of public administration, in particular the fi nancial suff iciency of territorial communities

Work on the Coalition Agreement

Following the pre-term parliamentary elections in 2014, a new coalition of parliamentary factions of political parties was formed, including the Petro Poroshenko Block (PPB), People’s Front (PF), O. Lyashko Radical Party, Samopomich, and Yulia Tymoshenko Block. The political factions started to prepare the Coalition Agreement, which was supposed to outline the principles of the Coalition activities and priorities for legislation dra ing work. The only dra agreement prepared by the PPB included the basic proposals and approaches of the DIALOGUE Project with regard to fi scal decentralisation. None of the dra s Coalition Agreements included the provisions of the local government reform. Therefore DIALOGUE Project expert joined the work to prepare this document. Following the two-week work on the Agreement, the Project managed to include in its text a separate chapter on decentralisation and local government reform. The chapter clearly defi ned tasks and the specifi c timeframe to accomplish them. In particular, the document envisioned a clear distribution of power between local governments and state executive authorities, reform of the system of local state administrations and their transition into the prefecture type government entities, guarantees of the proper provision of resources for local self-governance, implementation of the principle of ubiquity of local self-governance through improvements of the administrative and territorial arrangement of the country, mechanisms to establish capable territorial communities, commitment of the parties to approve amendments to the Constitution of Ukraine to facilitate the large-scale local government reform. In addition to this, the Coalition Agreement envisioned a separate chapter dedicated to fi scal decentralisation, which refl ects all proposals of the DIALOGUE Project and the requirement to immediately improve amendments to the budget and fi scal legislation, as well as a section on holding local elections according to the proportionate system with open lists.

New constitutional process

The approval of the Constitution of Ukraine in 1996 marked the beginning of the new constitutional framework in the country, whereby public governance at the local level is exercised by local state administrations and local governments with the dominance given to local state administrations. This is the reason why local self-governance is of the declarative nature rather than the real one, especially at the rayon and oblast levels. In addition to this, the overly fragmented arrangement of administrative and territorial units at the basic level made the local governments in territorial communities completely incapable of providing the whole list of public services and ensuring development of their territories. To resolve the issues mentioned above, the President of Ukraine established the Constitutional Commission presided by V. Groisman, Chairman of the Verkhovna Rada of Ukraine. Myroslav Pi syk, DIALOGUE 15

Executive Director of the AUC, represented the Association in the Commissions. The materials prepared by the Commission were incorporated into the dra law submi ed by the president of Ukraine to the Verkhovna Rada of Ukraine. This dra law was approved in the fi rst reading on August 31, 2015. According to the provisions of the dra law, the country will have a three-tier system of the administrative and territorial arrangement: community, rayon, and region. In this context, the community is the primary unit in this system. The document envisions that the delineation of the authority in the system of local government bodies at various levels will be preformed according to the principle of subsidiarity, which is in line with the requirements of Article 4 of the European Charter of Local Self-Governance. At the same time, the main powers to provide public services to citizens will be devolved to the basic (lowest) level of local self- governance, i.e. to the community. Local state administrations will be abolished, whereas the positions of heads of local state administrations will be transformed to prefects. The prefect will exercise oversight over compliance of local governments with the Constitution and laws of Ukraine. The prefect will also stop local government ordinances if they are not in line with the Constitution and laws of Ukraine and will simultaneously appeal to the court. Furthermore, rayon and oblast councils will establish their executive bodies. In addition to electing their chairmen, these councils will also appoint the chairman of their executive commi ees and, upon the submission of the la er, will form up the membership of executive commi ees themselves. With regard to the material and fi nancial foundations of local self-governance, the new system envisions that the state will ensure the proper balance of the fi nancial resources and the scope of authority of local governments as defi ned by the Constitution and laws of Ukraine. In pursuance of the Minsk Agreements of February 12, 2015, the dra law envisions that the peculiarities of exercising local self-governance in those rayons of the Donetsk and Luhansk oblasts, which will be liberated from the Russian occupation, will be determined by a separate law. This provision provoked huge political resistance for the approval of this dra law, which poses certain problems for the fi nal approval of this document by the parliament in the second reading. In general, the amendments envisioned in the dra law will allow to implement the reform of the system of territorial arrangement of government institutions in Ukraine, bring it closer to European standards, as well as will make local self-governance in Ukraine a meaningful institution. By the tine this Report was prepared, Dra Law # 2217а was being prepared for consideration by the Verkhovna Rada of Ukraine in the second reading, in other words, before the fi nal approval of the constitutional amendments envisioned by the document.

FISCAL DECENTRALISATION

Over the last 10 years, one could observe negative tendencies with the budget suff iciency of territorial communities. Local governments always faced under-funded delegated powers, whereas their discretionary resources continued to decrease and the budget process was heavily centralised. Aiming at overcoming such negative tendencies, the AUC working within the framework of the DIALOGUE Project prepared a package of comprehensive amendments to the budget and tax legislation. During 2010 – 2013, these amendments were widely discussed by various local government stakeholders, representatives of government agencies and the parliament. A er the Revolution of Dignity, the AUC submi ed its materials and proposals prepared by the DIALOGUE Project to the Cabinet of Ministers through its representative V. Groisman, Vice Prime Minister. Taking into consideration the lack of time and the 16 PROJECT PROGRESS REPORT

quality of the amendments suggested by the AUC, the Cabinet of Ministers accepted them, because these documents were not mere proposals: they were presented as fully dra ed legislation to amend the Budget and Tax Codes with the corresponding fi nancial and economic justifi cations. In late 2014, the parliament approved these dra laws. The proposed reform touched upon four main areas: organisation of the budget process, formation of local government discretionary resources, a raction of borrowings, and fi nancial support for the implementation of the delegated authority. The main focus was placed on enhancing the fi scal autonomy of local governments. First of all, municipalities received increased rights in budget planning. From this time and on, municipalities were in the position to plan their own revenues and expenditures, while earlier they had to accept the corresponding projections by the Ministry of Finance. The reform also envisioned a substantial change in the system of equalisation of the fi nancial capacity of territories. This system off ered new incentives and provided opportunities to retain more funds at the local level. From this moment and on, only 50% of funds from ‘donor city budgets’ went to level out the capacity of other territories (not for the National Budget as was earlier) contrary to the previous practice of withdrawing all funds from such cities. In their own turn, subsidies cities will only receive 80% of the actually needed fi nancial resources, thus being forced to do their best to cover the shortage of funds on their own rather than waiting for a subsidy from the National Budget. Consequently, the number of subsidised local budgets decreased by 22% and the number of ‘donor city budgets’ increased by 11.5%. The reform envisioned the mechanisms to provide incentives for territorial communities to consolidate to increase their capacity. In the case these communities get consolidated, they will be vested with the authority and powers oblast signifi cance cities have. On the contrary, those communities, which keep aside from this process, will not get the right to implement the authority devolved to local governments by the state. Consequently, only over the four months of 2015 the country had as such as 159 consolidated territorial communities (comprising 795 local communities, or 7% of their total number). The discretionary resources of local budgets increased almost three times due to the increased sources of their revenues. The personal income tax, originally the fi xed tax, has become the own resource of municipalities. The land fee was transferred to the category of local taxes. The tax base form the property tax got increased due to the introduction of taxation of commercial and non- residential property. Te local excise tax on the sale of tobacco goods, alcoholic beverages and petroleum products was introduced. The transportation tax was also re-introduced. The state fee, payments for administrative services, and collections from fi nes were channelled to local budgets. Municipalities received the increased authority to accumulate their own resources, which allows them to earn their own resources and not wait for subsidies from the central government. In addition to this, 182 cities got an opportunity to engage in local borrowings. Earlier, there were only 16 such cities. There are no longer bureaucratic barriers for local borrowings and local guarantees. Servicing of local borrowings has been rendered to the (earmarked) protected budget line items. Thus, investors received the legislative confi rmation their funds will be protected, while municipalities received an eff ective mechanism to a ract inexpensive credit resources. Local governments were also vested with the right to administer in state-owned banks revenues to their own institutions working in the public sector and the development part of their budgets. By doing so, the government abolished the monopoly of the State Treasury to administer funds of municipalities, which will increase their eff ectiveness. The government also made the fi rst step to ensure the 100% fi nancial support for the implementation of the authority delegated to local governments by the state. The National Budget now envisioned special subventions to local governments for local public education and health care services. Such a system was introduced with the purpose of reforming the system of social standards by establishing a clear correlation between the quality of public services, their cost, and the total amount of funding to DIALOGUE 17 go to the corresponding public sector. Such a system is supposed to provide incentives (main spending units for the subvention funds) to optimise the network of public institutions and staff ing levels in the corresponding public sectors. The outcomes of the implementation of local budgets over 11 months of 2015 confi rm the growing tendencies and dynamics of the fi scal decentralisation. For example, the increase of collections to the general fund of local budgets as compared with the period of January – November of 2014 constituted 42.5% or + 26.8 billion UAH. A empts to lobby for the legislative initiatives aimed at returning to the old system of fi nancial support to territorial communities represent a threat for fi scal decentralisation and fi nancial autonomy of local self-governance. This also represents the risk of halting the promotion of local government reform and reforms of the territorial arrangement of government institutions. An illustrative example of this is the dra “budget package for 2016” submi ed by the Cabinet of Ministers to the parliament, which completely derailed the achievements of the fi scal decentralisation, introduced the “manual (arbitrary) administration” of public funds, decreased the revenue sources for territorial communities and placed the 27.4 billion UAH burden of additional expenditures to local governments. Due to the interference of the DIALOGUE Project, local government experts managed to exclude all provisions detrimental for local governments from amendments to the Budget and Tax Codes, as well as from the Law of Ukraine “On the National Budget for 2016”. In addition to this, the Project managed to increase the scope of authority of municipalities in the sphere of local taxation. Therefore, in 2016, one can expect an increase in local budget revenues in the amount of approximately 39.4 billion UAH. At the same time, there is a need to change the mentality of local government managers and staff . They have to study the tools they have been provided with to earn and eff ectively spend their own funds, rather than waiting for funds and solutions from the central government.

ARCHITECTURAL AND CONSTRUCTION CONTROL

In 2008, local governments were deprived of their authority to control urban development activities on the territories of their populated areas, such as: issue permits to begin construction works, commission fi nished construction objects, and prevent unlicensed construction or violations of urban development legislation. During the whole period of the implementation of the DIALOGUE Project, the Association of Ukrainian Cities and Project experts stressed the necessity of returning the functions of architectural and construction control to local governments and increasing the oversight over compliance of developers with the requirement to pay const-share contributions for the development of urban infrastructure. When the Ministry of Regional Development prepared the corresponding dra law, DIALOGUE Project experts played an active roe in working groups to discuss the dra law and prepare it for the second reading the ad-hoc parliamentary commi ee. As a result, on April 09, 2015, the parliament approved the Law of Ukraine “On Introducing Amendments to Certain Ukrainian Legislation with Regard to Decentralisation of Authority in the Sphere of Architectural and Construction Control and Improvements of Urban Development Legislation”. The dra document incorporated almost all suggestions from the AUC. In essence, this transfer of major functions in the sphere of architectural and construction control from state executive agencies to local governments represented the second serious and meaningful step towards decentralisation in Ukraine a er the fi scal decentralisation. Village, town and city councils in case they approve a decision to establish their own departments for architectural and construction control will receive a number of powers with regard to issuing permits to begin construction works, commissioning fi nished construction objects, exercising the corresponding control, as well as to control 18 PROJECT PROGRESS REPORT

how developers pay their cost share contributions for the development of the local infrastructure. During 2015, the Cabinet of Ministers together with the Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine approved 11 by-laws of coordination nature to ensure the best implementation of this Law.

LEGISLATIVE FRAMEWORK FOR THE ESTABLISHMENT OF CAPABLE TERRITORIAL COMMUNITIES.

Almost during the whole period of the implementation of the DIALOGUE Project, the majority of territorial communities in Ukraine despite the fact that they have the right to resolve issues of local importance, continue to be unable to implement this right due to the shortage of funds, deteriorated or non-existent infrastructure (necessary buildings, premises, roads, etc.), as well as to the lack of the properly qualifi ed staff . Therefore, a considerable scope of issues of local importance can not be resolved in the proper manner: premises of schools and hospitals, as well as other public and communally-owned facilities are poorly maintained, urban improvement works are not performed, street lighting is absent, etc. The prime purpose of the local government reform is to ensure the capacity of local governments to independently resolve issues of local importance at the expense of their own funds. By this we mean vesting territorial communities with more resources and mobilisation of their own internal resources. In April of 2014, the Cabinet of Ministers of Ukraine approved the Concept of the local government reform and reform of the territorial arrangement of government institutions in Ukraine. This document was followed by the approval of Action Plan to support the implementation of this Concept. In accordance with this plan, again in 2014 the parliament approved amendments to the Budget and Tax Codes of Ukraine, thus accomplishing the fi rst step of the fi scal decentralisation. In particular, the amendments to the Budget Code of Ukraine served as the foundation for incentives off ered to communities to promote consolidation and to increase their capacity through switching the budgets of consolidated communities to direct relationship with the National Budget (without the middle-man role of rayon councils). In case these communities become consolidated, they receive the same powers and resources oblast signifi cance cities have. Instead, the territorial communities of villages, towns and rayon signifi cance cities, which do not get consolidated so far and stay aside this process, will be deprived of the right to perform the authority delegated by the state to local governments. In February of 2015, aiming at promoting the mechanisms for such consolidation, the parliament approved the Law of Ukraine «On Voluntary Consolidation of Territorial Communities», which was prepared with the participation of DIALOGUE Project experts. Immediately, following this approval, the DIALOGUE Project conducted a number of meetings with representatives of local governments to provide them explanations how to apply this Law in their daily work. DIALOGUE Project experts used the fi ndings of these meetings to develop the dra Methodology for the establishment of capable territorial communities and, later on, to elaborate this dra document by the working group established at the Ministry of Regional Development. The Methodology mentioned above was approved by the Cabinet of Ministers of Ukraine on April 08, 2015. Aiming at the continuous support to the process of territorial community consolidation, Project experts continued to work on the development of the necessary legal framework to support this process. Judging by the results achieved – number of laws approved – the Project activities in this sphere were quite successful. On September 04, 2015, the Verkhovna Rada of Ukraine approved the Law of Ukraine “On Introducing Amendments to Certain Ukrainian Legislation with Regard to Conducting First Elections of Local Councils and Village, Town and City Mayors”, which was prepared with the participation of DIALOGUE Project experts. This law withdrew the right to announce upon the submission of oblast state administrations the fi rst elections in consolidated territorial communities from oblast councils, DIALOGUE 19 because they o en followed their own political interests while making such decisions. The legislation transferred this right to the Central Elections Commission. The approval of this law provided the opportunity to bring the number of consolidated territorial communities, which were able to elect their local government bodies during the regular local elections on October 25, 2015, to 159. The Law of Ukraine «On Voluntary Consolidation of Territorial Communities» failed to envision the proper mechanism for the reorganisation of councils and their executive commi ees and some of them turned to useless a er the consolidation. The Law also failed to determine the mechanism for the legal succession in governance and civil relationships; and, mechanisms to accomplish the implementation of local budgets in 2015. All these factors blocked the activities of newly-established local governments in consolidated territorial communities. Therefore, DIALOGUE Project experts ensured the preparation and lobbying for the parliament approval of Laws # 835 and # 925, whereby the problem issues mentioned above were resolved. The approved amendments envision the following: simplifi ed mechanisms for the reorganisation and state registration of local government bodies; civil succession – transferring the rights and liabilities with regard to communally-owned property and civil agreements, etc. to legal successors; and, governance succession – preserving in force all local government ordinances, which were approved prior to the beginning of the reorganisation. The Project also facilitated the approval of the Law of Ukraine “On Introducing Amendments to the Budget Code of Ukraine with Regard to the Peculiarities of the Formation and Implementation of Budgets of Consolidated Territorial Communities”. The dra of this document was prepared by DIALOGUE Project experts. It off ers the legal framework for the preparation of budgets of consolidated territorial communities and specifi es the rules for the formation of revenues and making expenditures of consolidated territorial communities in case the law on the National Budget of Ukraine does not come in force in a timely manner, as well as in case the decision on the corresponding local budget is not approved on time. In addition to this, DIALOGUE Project experts prepared a dra law whose purpose is to increase the resource capacity of consolidated territorial communities through transferring to their ownership some part of state-owned lands located outside the boundaries of populated areas. At the time this Report was prepared, this dra law was under consideration in the parliament under Registration # 3510 of November 24, 2015.

ADMINISTRATIVE SERVICES

Over quite a long period of time, the national policy was characterised by the intentional decrease of local government powers. This approach increasingly cut down the capacity of local government to eff ectively resolve issues of local importance. Over the whole period of the implementation of the DIALOGUE Project, the Association of Ukrainian Cities took an active part in the conceptual argumentation, preparation, elaboration and lobbying for the dra legislation, which would resolve this problem issue, in the Administration of the President of Ukraine, parliament, and the Cabinet of Ministers. Thus, in 2014 the Government of Ukraine introduced the nation-wide policy for decentralisation and in 2015 approved a number of laws, which signifi cantly improve the mechanisms for the provisions of the most basic administrative services and envision the transfer of the authority to local governments to provide such services starting with 2016. For example, according to Law # 320, in addition to the authority to make plans in the sphere of urban development and architecture, local governments will be vested with the authority to issue permits for the beginning of construction works, commission fi nished construction objects, as well as to exercise control in this sector. This will provide opportunities for local governments to have the direct 20 PROJECT PROGRESS REPORT

impact for promoting the architectural environment comfortable for city residents. Law of Ukraine # 836 envisions fi xed collections to local budgets from the provision of administrative services. This approach will serve as a motivation for centers for administrative services (CAS) and will improve their material situation. Laws of Ukraine # 834, # 835 transfer all the functions of the state registrars from the central government to local governments, notaries, and accredited companies. The legislation also stipulates the open nature of the information available in the state electronic registers. Users will have the opportunity to get the information from such registers in the electronic format, which will signifi cantly reduce the work load on local governments. The legislation will also remove the need to get these services only from one registrar. The government also considerably reduced the list of documents, which are to be submi ed by users due to the introduction of the system of electronic document turnover between government agencies. These new approaches will provide opportunities for CAS and local governments to provide most needed high quality administrative services in the manner convenient for users and will signifi cantly reduce the level of corruption in this sector. Law of Ukraine # 888 envisions the transfer to local governments the authority to exercise registration of place of residence of the physical person and to provide assess to the State Land Cadastre. This will provide CAS and local governments with the opportunity to provide most needed administrative services in the manner convenient for them, as well as to have the direct access to the information important for the activities of local governments.

ENFORCEMENT OF LOCAL GOVERNMENT ORDINANCES: MUNICIPAL GUARD

In many democratic countries in the world (in particular, in the US, France, etc.) municipalities have their own municipal police, which ensures law enforcement on the corresponding territories. Based on the international experience, the AUC has been repeatedly advocating for the right of local councils to establish such municipal police whose tasks would be, fi rst of all, to ensure the implementation of local council ordinances, public safety, protection of communally-owned property, and prevention of legislation violations. Upon the pressure from the AUC, the establishment of municipal law enforcement agencies was included in the Concept of the local government reform and reform of the territorial arrangement of government institutions, which was approved by the Cabinet of Ministers. The approval of the corresponding legislation was also envisioned in the Coalition Agreement. In this context, DIALOGUE Project experts prepared the Dra Law of Ukraine “On Local Government Police”. Thanks to the good work of the experts, most of its provisions were incorporated in the main text of the dra law “On Municipal Guard”, which was submi ed by a group of National Deputies representing the parliamentary majority headed by V. Groisman, Chairman of the Verkhovna Rada of Ukraine. Already on May 21, 2015, the dra law was approved by the parliament in the fi rst reading. The dra law was dra ed on the following principles: 1) the municipal guard is an executive body in the system of local self-governance, it is not part of the organisational structure of the national police and only interacts with some of its departments and units. The municipal guard and its off icials are accountable, controlled and report to the territorial community and the corresponding local council; 2) the main tasks of the municipal guard are: ensuring public safety on the territory of the jurisdiction of the local council; prevention of violations of the legislation; informing national police units about criminal off ences; enforcing certain administrative penalties; protection of communally-owned property; provision DIALOGUE 21 of certain types of legal and social assistance; and facilitating the implementation of ordinances of the corresponding local councils. These organisational principles of activities of the municipal guard are completely in line with the vision and interests of local self-governance in Ukraine. However, in November of 2015, consideration of the dra document in the second reading was postponed due to the signifi cant opposition for its approval. Media publications and private discussion in the parliament started to spread rumours about unjustifi ed “threats” implied in the dra legislation: ranging from the “legalisation of separatist units” to the “establishment of personal armies”. At the same time, European experts who know the experience of EU countries very well strongly support the establishment of the municipal guard. Experts of the Council of Europe, in particular, mention that the increased role of local self-governance in the sphere of law enforcement is in line with the principle of decentralisation and strengthening the capacity of local self-governance.

MANAGEMENT OF LAND RESOURCES

The introduction of the mechanisms for conducting land sales (auctions) and preparation of legislative mechanisms for the delineation of state-owned and communally-owned lands was the main success of the DIALOGUE Project in this sphere. The legislation, which was in force at the time of the Project implementation, introduced the mechanisms for selling land parcels exclusively through land sales (auctions) and according to the procedures specifi ed in the legislation. However, the long absence of such legislatively specifi ed procedures since 2008 blocked the possibilities of local councils to sell communally-owned land parcels and, consequently, cut down local budget revenues from such sales, as well as the development of the entrepreneurial sector. Upon the persistent pressure of the AUC, the parliament approved the corresponding amendments to the Land Code in 2012, thus providing an opportunity for local governments at all levels to signifi cantly replenish their budgets from the collections from land sale proceeds. Moreover, this also provided citizens with an opportunity to have the right to buy not developed land parcels for commercial purposes. The unclear status of communally-owned lands represented one of the problem issues local governments faced. During 2012, upon the initiative of National Deputies, the parliament registered and later on approved the Law of Ukraine “On Introducing Amendments to Certain Ukrainian Legislation with Regard to the Delineation of State-Owned and Communally-Owned Land Lands” of September 06, 2012. The main concepts of this dra law were based on the proposals of the Association of Ukrainian Cities Board. These proposals envisioned the simplifi cation of mechanisms for the delineation by abolishing the requirement to prepare land management document packages and performing the delineation according to the “by the law” principle. The Project submi ed the corresponding AUC position to the President of Ukraine on September 15, 2011. In other words, starting on the day the Law mentioned above comes in force, state-owned and communally-owned lands in Ukraine are considered to have been delineated according to the following principle: within the boundaries of populated areas all lands, except for the privately-owned lands and lands located under state-owned property items are considered to be part of the communally-owned lands, whereas beyond the boundaries of populated areas such communally-owned lands will include all lands under communally-owned property items. Following this success, the next step will be to roll out the local government authority to manage the state-owned land parcels located beyond the boundaries of populated areas, which can be used for community purposes. 22 PROJECT PROGRESS REPORT

ENERGY SERVICES

The infrastructure, which is maintained with local government funds, is ineff icient from the point of view of energy eff iciency and requires serious energy saving improvements with the prime focus on thermal insulation. However, such steps require bug investments, while most of local budgets do not have the necessary funds. At the same time, energy service businesses have recently been on the rise in Ukraine. Energy servicing companies (ESCO) perform energy modernisation activities with their own funds under condition that the customer will later on be in a position to se le the payments due to the actual savings of funds received through the implementation of the energy eff iciency projects. However, the Budget Code of Ukraine did not provide opportunities for local governments to retain in the local budgets the funds saved through the implementation of energy eff iciency projects in public sector institutions. The limited timeframe (only one year) for local governments to take the local budget fi nancial commitment was a barrier for the successful implementation of energy saving projects. Therefore, in April of 2015, the Verkhovna Rada of Ukraine took a milestone step to approve the legislation to provide incentives for energy servicing companies in Ukraine, namely: the Law of Ukraine “On Introduction of Investment Opportunities, Guarantees of the Rights and Legitimate Interests of Business Entities for the Implementation of the Large-Scale Energy Modernisation” and the Law of Ukraine “On Introducing Amendments to the Budget Code of Ukraine (with regard th introduction of new investment opportunities, guarantees of the rights and legitimate interests of business entities for the implementation of the large-scale energy modernisation)”. The main signifi cant achievements for local governments from the approval of the laws mentioned above are: • the energy service customer (public sector institution, or local government) have the opportunity not to use its own fi nancial resources for the implementation of energy eff iciency projects; • the timeframe of the energy servicing agreement can last for ten years and this will provide opportunities to signifi cantly increase the list of energy eff iciency activities during the implementation of energy eff iciency projects in public sector institutions; and, • the long-term commitment under the energy servicing agreement becomes the local government budget liability. This provides certain guarantees to the implementer of the energy service project about the return of the invested funds and, correspondingly, increases their motivation to provide the services. During the whole period of the preparation of the corresponding dra legislation in line ministries and later on in parliamentary commi ees, DIALOGUE Project experts took an active part in their discussion, whereas the AUC repeatedly came up with the statements in support of their approval. Project experts believe that these laws will serve as a strong legislative foundation for the introduction of services of energy servicing companies in the public sector. This, in its turn, will promote signifi cant reductions of the natural gas consumption and heating energy in public sector institutions and will ensure considerable savings of budget funds. In general, the approval of these laws represented an eff ective incentive for the development of energy services market and will provide opportunities for the implementation of energy eff iciency projects in public sector institutions. This will also provide opportunities for cities to implement energy saving projects in schools, kindergartens and other facilities owned by communities. During some time, these projects will provide opportunities to resolve energy saving issues and will cover a signifi cant number of facilities, which will reduce operational budget expenditures for maintenance of these buildings. DIALOGUE 23

HOUSING AND MUNICIPAL UTILITIES

Transferring the authority to set tariff s for housing and municipal utility services from local governments to the national regulator in 2011 did not bring any improvements in this sector. The level of tariff coverage of the actual cost of services in 2012 constituted, on average, approximately 75 %. This fact had a negative impact on the fi nancial and economic condition of utility companies and did not provide the necessary framework for improvements of housing and municipal utility services rendered to the population. DIALOGUE Project focused its main activities in the housing and municipal utilities sector at preventing the deterioration of legislative framework regulating the activities of municipal utility companies and compliance of the state with its commitment to compensate the diff erence between the housing and municipal utility tariff s set under the economically justifi ed levels and their actual cost. In 2011, DIALOGUE Project experts participated in the preparation of the National Budget and provided arguments to bring the state compensation for the diff erence in housing and municipal utility tariff s to the amount of 3.6 billion UAH. The research conducted by the Association about the actual and necessary amount of the compensation on tariff s and the necessary expert materials served as the foundation for local governments to send their appeals requiring amendments to the National Budget of Ukraine for 2012. Consequently, the total amount of tranches of this subvention constituted 15.9 billion UAH over the whole year, whereas in 2015, the amount of such compensation was fi rst increased to 2.9 billion UAH and then to 5.6 billion UAH. The need to continuously earmark funds in the National Budget for such compensations forced the state to take unpopular steps to increase tariff s for housing and municipal utility services to the economically justifi ed levels. Such step would improve the fi nancial conditions of municipal utility companies and the quality of services they render. However, the diff icult economic situation in the country in 2014 – 2015 did not provide opportunities to accomplish this task. In addition to this, the time consuming procedures of se ing tariff s for housing and municipal utility services made it impossible to adjust these tariff s once the prices for their components change. DIALOGUE Project experts managed to lobby for the approval of Law of Ukraine # 4231, whereby in 2012 local government decisions concerning tariff approvals were no longer dependent on the regulatory procedures. Moreover, the government abolished the requirement for local governments to receive the expert opinion from the State Inspectorate of Ukraine on Price Control with regard to the economic justifi cation of the tariff levels proposed by municipal utility companies. This approach provided the opportunity to reduce the timeframe for the approval of the necessary changes in tariff s at least by one month and, consequently, to reduce the fi nancial drain of municipal utility companies in the case of growing energy prices, change the level of minimum salaries, etc. The approval of the Law of Ukraine “On Peculiarities of Exercising the Property Right in the Apartment Block” of May 14, 2015, which was supported by the DIALOGUE Project, was milestone event for 2015. The purpose of this Law was to change the current situation with services for apartment blocks. Citizens who own apartment in apartment blocks where neither housing cooperatives nor condominium associations have been established have to make a decision: whether they will provide building maintenance works by themselves and will establish the condominium association, or they will hire the building manager (a servicing company or a physical person) and with sign the corresponding building maintenance agreement. If they fail to do so, the corresponding local government will assign the servicing company for them, sign an agreement with the manager, and will tell apartment owners what fees they will have to pay to the building manager. The main purpose of this Law is to provide incentives for co-owners of apartment blocks to fi nally actively engage in their property management: the law clearly stipulates that it is the owners of the apartment block who are responsible for its management. 24 PROJECT PROGRESS REPORT

Although one can not expect immediate improvements in the situation with apartment blocks and apartment owners will not immediately become active participants of decision making right a er the approval of the Law of Ukraine “On Peculiarities of Exercising the Property Right in the Apartment Block”, this move will increase the responsibility of owners for their property maintenance and provide the prerequisites for the formation of the market of apartment block managers. At the same time, the eff ective implementation of this Law will very much depend on the approval of the Dra Law of Ukraine “On Housing and Municipal Utility Services” (new version) (Registration # 1581), because this is exactly the law to outline the main legal mechanisms supporting the activities of apartment block managers. The possibility to manage the apartment block regardless of the tariff policy and service price regulation of the local government bodies is one of the peculiarities of this dra law. The document envisions that the price for such services will be specifi ed in the agreement, rather than set by government authorities. The authors of the dra law believe that these services have to be regulated exclusively by the market, in particular, by the competition of service providers.

LOCAL ELECTIONS

Taking into consideration the negative aspects of holding the regular local government elections in 2010 according to the Law of Ukraine “On Elections of Deputies of the Verkhovna Rada of the Autonomous Republic of Crimea, Members of Local Councils and Village, Town and City Mayors”, as well as a number of snap local government elections, right a er the Revolution of Dignity experts submi ed a dra law introducing amendments to this legislation. The parliament supported it in the fi rst reading and, later on, stakeholders elaborated it and included the proposals submi ed by DIALOGUE Project experts. Following this, the law was approved on April 08, 2014. This law eliminated from the elections procedure a number of technical and legal drawbacks, which were pointed out by local government experts and local councils in the course of the city survey conducted by DIALOGUE Project experts in February – March of 2013. Based on the fi ndings of this 2013 survey, the Association prepared its own version of the dra law “On Elections of Deputies of the Verkhovna Rada of the Autonomous Republic of Crimea, Members of Local Councils and Village, Town and City Mayors”, with some of its key provisions being included in the elaborated version of the law. In particular, the new law includes the provisions of the dra law prepared by DIALOGUE Project experts with regard to resuming the possibility for citizens for self-nomination as candidates for members of local councils in single-mandate electoral districts, as well as for positions of village, town and city mayors. At the time these provisions were introduced, this approach helped to eliminate the monopoly of political parties in nominating candidates to single-mandate electoral districts. The new version of this elections legislation was applied during a number of snap local government elections in 2014. At the same tine, the Coalition Agreement concluded by factions of political parties representing the parliamentary majority following pre-term parliamentary elections in 2014 envisioned the use of the proportional system with open party lists, as well as holding city mayoral elections in two rounds during the regular local government elections in October of 2015. The Association of Ukrainian Cities made the corresponding amendments to its own dra law prepared in 2013 and submi ed this dra law for consideration by the working group established specifi cally for this purpose at the off ice of the Chairman of the Verkhovna Rada of Ukraine. The dra law envisioned holding elections of city council members (for cities over 300 thousand residents), as well as rayon and oblast councils according to the proportional elections system with open voter lists, and elections to village and town councils according to the majoritarian elections system in single-mandate districts. The dra law off ered a suggestion to elect city mayors in cities DIALOGUE 25 with more than 300 thousand residents in two rounds, with elections of mayors in other cities to be conducted in one round. The dra document also envisioned a possibility for independent (non- aff iliated) candidates to nominate themselves for participation in the local elections. The main provisions of the dra law prepared by the AUC were incorporated in the dra law on local government elections prepared by the working group mentioned above. However, in July of 2015, the Verkhovna Rada of Ukraine took a diff erent dra law on local elections as the basic document and approved it later on. According to this document, elections to city, rayon and oblast councils were supposed to be conducted according to the proportional system with candidates assigned to electoral districts, whereas the elections of mayors of cities with the number of voters over 90 thousand were supposed to be conducted according to the system of absolute majority (in two rounds). According to this law, only political parties had the right to nominate candidates for local council deputies. The law did not envision the opportunity for the nomination of independent candidates. The preparation and holding the regular local government elections coincided with holding the fi rst local elections in a number of newly-established consolidated communities. In this context, many legislative discrepancies and collisions in the legal framework for the fi rst local elections in consolidated communities were noted. These discrepancies were resolved through a separate law whose dra was registered by DIALOGUE Project experts (please see above for more details).

SOCIAL SERVICES

Delegation of the state responsibility for the provision of the whole scale of basic services in such sectors as social protection, culture, public education, and health care combined with the constant failure of the state (Cabinet of Ministers) to comply with its constitutional obligation to support this authority with the necessary fi nancial resources represents the main problem is the public sector. The absence of properly calculated standards for the implementation of this delegated authority and unavailability of economically-justifi ed costs of such services, as well as the overall fi nancial situation in the country itself, is the main barrier impeding the eff ective provision of the corresponding services. Aiming at the preparation of the proper framework to resolve this issue, in 2013, the DIALOGUE Project performed the calculation of the cost of maintaining one real communally-owned comprehensive school and one polyclinic (both defi ned model ones). The Association of Ukrainian Cities used these fi ndings as arguments to talk to experts form the corresponding ministries. In addition to this, realising the need to optimise the cost-ineff ective network of social facilities, the DIALOGUE Project engaged through its experts into active cooperation with central agencies o the state executive to fi nd solutions to these problem issues primarily through expanding the scope of local government powers in the corresponding areas. Finally, the Law of Ukraine “On Introducing Amendments to and Considering Void Certain Ukrainian Legislation” of December 28, 2014 removed the limitations of local government powers in this sphere. Ministries of Health Care, Science and Public Education, and Labour and Social Policy established their working groups whose membership included representatives of local government associations. These working groups became platforms for the discussion of various aspects of the lack of fi nancial support for such establishments. Following these discussions, the Ministry of Labour and Social Policy started the preparation of national social standards for the provision of certain types of social services, while the Ministry of Health Care started to prepare the standard for the provision of medical assistance with regard to certain diseases, or clinical protocols. However, the ministries in general are still not in a position to 26 PROJECT PROGRESS REPORT

come up with an objective calculation of the costs of selected services and of the fi nancial resources needed to support the implementation of the authority delegated by the state to local governments. To continue the work in this area and promote fi scal decentralisation, DIALOGUE Project experts introduced amendments to the budget legislation and lobbied for the provisions to increase the responsibility of line ministries for the proper fi nancial support to the public education and health care sectors, make the ministries responsible for reforming the system of social standards, as well as to upgrade thee fi nancial standards of budget suff iciency. Following this, the Ministry of Labour and Social Policy took into account all the proposals from the Association of Ukrainian Cities in the course of the elaboration of the Dra Law of Ukraine “On Public Employment” in the part dealing with transferring the obligation to pay for temporary works organised by the employer with the support of the national employment service to the employer, rather than to local budgets. On September 17, 2013, the parliament approved the Law of Ukraine “On Introducing Amendments to Certain Ukrainian Legislation Concerning the Social Protection of Homeless Persons”, whereby executive agencies of local governments became vested with powers in the sphere of the provision of social services to homeless persons. In the course of the elaboration of this dra law in the parliamentary Commi ee, DIALOGUE Project experts managed to transfer these powers form the local government exclusive powers to the powers delegated to local governments by the state, which implies the responsibility of the state to provide the fi nancial support for the provision of such services.

*** Thus, the implementation of the DIALOGUE Project provided opportunities to signifi cantly strengthen the institutional, expert and lobbying capacity of the Association of Ukrainian Cities, the organisation, which has always been the promoter and advocate of interests of local self-governance and territorial communities. Due to this, the Project not only managed to vest local governments with the new meaningful powers and sources of revenues to local budgets and, consequently, make signifi cant improvements in local self-governance in Ukraine, but also to reverse the old tendency of weakening local self-governance, as well as to persuade central government agencies of the necessity of a systemic reform of local self- governance with the strategic focus on building the society of capable territorial communities. This work is already underway in Ukraine with the support from the international community. In particular, the Government of Ukraine has approved decisions to increase the territorial foundations of local self-governance at the local level in accordance with the European standards and has established the corresponding pilot communities. Also, the process of community consolidation and establishment of capable territorial communities is already underway in the country. It is worth mentioning that these communities are being established through the voluntary consolidation of smaller communities, which testifi es to the support to reforms in the society. The topic of the local government reform has become the leading theme in media and remains so until now. However, the issues of the future development of local self-governance remain unresolved. These, in particular, include: further roll-out of the reform and professional capacity of local government off icials in consolidated territorial communities; issues of proper fi nancial support for the implementation of the authority delegated to local governments by the state; local economic development of new territorial communities; sectoral reforms in the social sphere local governments are responsible for, and implementation of reforms in the housing and municipal utilities sector. DIALOGUE 27

SUB-CHAPTER 2: DIALOGUE FOR THE SAKE OF CHANGES

Local government advocacy and related activities in relationships with central government agencies is a key statutory task of the AUC. In 2009, this task was enhanced in the Law of Ukraine “On Local Government Associations”, which was prepared and lobbied for by AUC experts. In accordance to this Law, local government associations, which enjoy the nation-wide status, received the right to participate in consultations with central government agencies, whereas regional off ices of these associations were vested with the right to conduct such consultations with regional authorities of the state executive. Over the fi ve years of its implementation, the DIALOGUE Project prepared and introduced into AUC daily work a number of tools and activities to implement this right. The annual Dialogue Day for local government off icials and representatives of the Cabinet of Ministers has become a regular practice of the Association. A representative of nation-wide local government associations participates in working sessions of the Cabinet of Ministers with the right to advisory vote. The Association of Ukrainian Cities is engaged in concurrence of all local government related dra regulatory and legal documents, which are submi ed to the Cabinet of Ministers for consideration. Since 2015, the AUC has also been considering and concurring with dra laws, which are under discussion in parliamentary commi ees. Upon the AUC initiative the Verkhovna Rada of Ukraine established the inter-faction local government support group to support local self-governance. DIALOGUE Project works with the members of this local government caucus to submit dra legislation prepared by the DIALOGUE Project to the Verkhovna Rada of Ukraine. Members of the inter-faction local government support group serve as program speakers of the Association in their respective factions to form up the opinion of National Deputies before they vote on a given piece of legislation. Project experts participate in working sessions of parliamentary Commi ees with the right of advisory vote. Due to the policy dialogue tools introduced by the Project, the Association became stronger and turned into an equitable partner in the dialogue with central government authorities. This also became possible due to the fact that the AUC Center for Analysis and Legislation Dra ing prepares high quality expert materials, thus making the Association is well aware about problem issues local governments face, their solutions, as well as best practices piloted in its member municipalities.

POLICY DIALOGUE INSTRUMENTS WITH THE CABINET OF MINISTERS AND LINE MINISTRIES AT THE NATIONAL LEVEL WITH THE CABINET OF MINISTERS OF UKRAINE AND LINE MINISTRIES

Dialogue Day with the Cabinet of Ministers

The AUC conducts its all-hands meetings twice a year. In December, on the eve of the Local Self- Governance Day (December 07), the Association conducts an all-hands meeting to celebrate this day. In summer, the Association of Ukrainian Cities conducts the Ukrainian Municipal Forum in one of southern cities of Ukraine. It was within the framework of the Ukrainian Municipal Forum conducted in 2010 that the DIALOGUE Project piloted the idea of holding the Dialogue Day for local self-governance with the Cabinet of Ministers of Ukraine. Since then, such event was conducted six times and has become a traditional and desired event, at least on the part of local governments.

The preparations before the event begin with the preparation of the list of problem issues local governments would like to give to members of the Cabinet of Ministers. These issues are then grouped according to their topics and the Association selects the technical areas for the dialogue. 28 PROJECT PROGRESS REPORT

CS RAISED AT THE DIALOGUE DAYS

September 10, 2010, city of Yalta, Autonomous Republic of Crimea (462 participants)

- Local Elections legislation - Budget sufficiency

June 30, 2011, city of Illichivsk (312 participants)

-Legal Framework for local government activities -Budget Sufficiency -Housing and municipal utilities sector

September 27, 2012, city of Kyiv (386 participants)

-Budget support for the implementation of local government authority -Housing and municipal utilities sector and energy supply to territorial communities -Service in local governments -Land relations -New legislation to fight and prevent corruption and to ensure access to public information: implementation problem issues

June 13, 2013, city of Yalta, Autonomous Republic of Crimea (263 participants) -Budget support for the implementation of local government authority -Housing and municipal utilities sector -Local economic development of territorial communities

June 25, 2014, city of Kyiv (308 participants)

- Reforms in the housing and municipal utilities sector - Budget sufficiency of territorial communities - Improvements of services rendered to citizens

June 22, 2015, city of Odesa (236 participants)

-Implementation of decentralisation reforms: practical aspects -Fiscal decentralisation: achievements and next steps -Sectoral decentralisation: land, construction and development, administrative services DIALOGUE 29

The Association then sends the problem issues it has received from local governments to line ministries and their experts who will NUMBER OF PROBLEM ISSUES RAISED a end the Forum use them as the material for their presentations. 239 In addition to this, each representative of local governments may 183 158 put a question during the event itself. 123 118

Based on the discussions, the Association pools the questions, 60 which were not answered, and prepares an off icial appeal on behalf of the Forum participants to the Prime Minister of Ukraine, with the similar appeal being prepared recently to the Chairman of the 2010 2011 2012 2013 2014 2015 Verkhovna Rada of Ukraine as well. Based on the type of action taken by the Prime Minister on the problem issues, the Association prepares dra directives for line ministries to resolve the issues raised by local governments. For example, based on the discussions during the Dialogue Day, the Association managed to resume the self-nomination of persons for the position of mayors and the majoritarian elections system in smaller communities (2015), initiate the fi scal decentralisation (2014), resolve the problem issues with treasury administration of local budgets (2013), and to receive additional 4.4 billion UAH to provide the fi nancial support for the implementation of the authority delegated to local governments by the state (2012).

PARTICIPATION OF THE REPRESENTATIVE OF LOCAL GOVERNMENT ASSOCIATIONS IN WEEKLY MEETINGS OF THE CABINET OF MINISTERS OF UKRAINE

During the time of the Yu. Tymoshenko (2009) Government local government associations for the fi rst time received the right to participate in working sessions of the Cabinet of Ministers of Ukraine and to express their position on all issues related to local self-governance. This tradition was supported by M. Azarov, Prime Minister of Ukraine, who specifi ed this approach in the by-laws of the Cabinet of Ministers of Ukraine (2012). This provision remained unchanged in the A. Yatsenyuk government as well. On Wednesdays, a representative of Ukraine- wide local government associations participates in working sessions of the Cabinet of Ministers of Ukraine with the right to present an off icial consolidated position on behalf of local governments. He also has access (fi rst through the courier delivery and now through electronic means) to dra decisions discussed and made at these working sessions, except for the confi dential ones. During the times of the M. Azarov Government, the representative of local government associations placed the main focus on preventing the decisions, which would prevent narrowing down the local government authority, whereas during the A. Yatsenyuk Government associations managed not only to curb negative decisions, but also to promote the decisions to enhance local self-governance. Thanks to the continuous presence of local government representatives the Cabinet of Ministers managed to approve the Regulation on administration of local budget funds (the development part of local budgets and own discretionary revenues of public sector institutions) by state-owned banks, resolve issues pertaining to fi lling the gap in funding for the implementation of the delegated authority through redistributing subventions, as well as compensate for the diff erence in tariff s and actual cost of thermal energy, heating, hot water supply, and centralised water supply and sanitation services, which were generated, transported and delivered to the population. 30 PROJECT PROGRESS REPORT

Participation in advisory groups at line ministries and inter-governmental agencies

Very o en the participation in advisory groups at line ministries, collegiums or public councils is of a formal nature. In this regard, one should probably mention that the working sessions of such entities take place very rarely: once or twice a year. Very o en, such collegiums or public councils represent big entities with a big number of members where the participants listen to ministry leadership, rather than come up with problem issues or initiate their resolution.

Inter-agency working groups proved much more eff ective, DIALOGUE MATRIX: REPRESENTATION so did the working groups to prepare sectoral legislation. For OF THE AUC IN ADVISORY AND example, all the legislation, which was prepared by the Ministry INTER-GOVERNMENTAL GROUPS of Regional Development to support the implementation 29 of decentralisation reform in 2014 – 2015, was prepared by the working groups established at the Ministry of Regional 20 18 19 Development with the active participation of DIALOGUE Project 16 14 experts. This relates to: elaboration of the Dra Law of Ukraine «On Voluntary Consolidation of Territorial Communities», preparation of the Methodology for the establishment of capable territorial communities, preparation of dra laws of 2010 2011 2012 2013 2014 2015 Ukraine ‘On Local Self-Governance” (new version), ‘On Prefects”, and ‘On Administrative and Territorial Arrangement”.

This was exactly the way the amendments to the Budget and Tax Codes were prepared whose preparation took place in August – December of 2014, while the parliament approved them in the very end of December of 2014.

Presentation of the position concerning dra legislation and regulatory and legal documents submi ed to the Cabinet of Ministers of Ukraine for consideration

In accordance with the Law of Ukraine “On Local Government Associations”, Ukraine-wide local government associations received the right tot present its off icial position with regard to the legislation submi ed for consideration by the Cabinet of Ministers of Ukraine. In 2012, the same provision was specifi ed in the by-laws of the Cabinet of Ministers of Ukraine, although for quite a long time it was ignored by most of ministries. During the implementation of the DIALOGUE Project, the line Ministry of Regional Development was the most active ministry, which sent the dra legislation and regulatory and legal documents it prepared to the AUC for concurrence. The smallest number of dra documents was received from the Ministry of Justice and Ministry of Finance. The AUC POSITION PRESENTED, YEARS la er ministry even having conducted Budget Consultations in 2015 (see the next chapter for more details) reserved the right to submit 101 104 69 the dra National Budget for 2016 to the Cabinet of Ministers for 42 52 consideration without concurrence from the AUC. This was one of the 15 arguments the Association used to speak against the approval of this 2010 2011 2012 2013 2014 2015 document by the parliament. DIALOGUE 31

AUC POSITION ON LEGISLATION PRESENTED ON DRAFT LEGISLATION PREPARED BY

Ministry of Regional Development, Constryction, Housing Ministry of Finance of Ukraine and Municipal Utilities 297 4

Ministry of Infrastrycture 11 National Agency of Raods of Ukraine 2

Ministry of Economic Development and Tratde State OCmmiee for Television and 11 Raio Braodcasting of Ukraine 1

Ministry of Youth and Sports 2 National Archive Service of Ukraine 2

Ministry of Social Policy 10 National Services of Emergencies of Ukraine 1

National Service of Ukraine for Regulatory Policy and Ministry of Environment and Natural Resources 1 4 Entrepreneurship

National Service of Ukraine for Geodesy, Cartography Ministry of Agrarian Policy 3 and Catdastre 1

Ministry of Education and Science 4 State Registration Service of Ukraine 1

Ministry of Health Care 1 National Agency for Civil Service of Ukraine 6

State Fiscal Service 9 National Architecture and Constyrctiuon Inspection 1

National Commission for Energy and Municipal Utilities Ministry of Justice of Ukraine 10 1 Regulation

More and more o en, the refusal of the AUC POSITIONS PRESENTED, OUTCOMES AUC to concur with the dra legislation, which is submi ed to the inter-government Concurred with commi ee or Cabinet of Ministers for consideration, represents the reason to halt its consideration. For example, the Association blocked the Cabinet of Concurred with reservations Ministers consideration of a package

TOTAL of dra legislation on land resource management, withdrew from consideration Not concurred with the corresponding dra Resolution, and eliminated the special conditions for se ing tariff s for electricity for urban public transportation companies and street lighting in populated areas.

Starting with 2015, with the active support from V. Groisman, Chairman of the Verkhovna Rada of Ukraine, the AUC rolled out the practice of AUC concurrence and presentation of AUC position to the parliamentary Commi ees. The most active commi ee in this regard is the ad-hoc Verkhovna Rada of Ukraine Commi ee on State Building, Regional Policy and Local Self-Governance. This Commi ee sends for AUC concurrence all the dra laws, which have been submi ed to the Commi ee for consideration. Moreover, in most cases this Commi ee takes into account the position of the Association in its decision making. In its turn, in the course of the consideration of the National Budget for 2015, the Budget Commi ee introduced a practice of a aching the AUC expert opinion as an integral part of its position. 32 PROJECT PROGRESS REPORT

BUDGET CONSULTATIONS

In accordance with the Law of Ukraine “On Local Government Associations” participation in consultations is the main form of interaction between local governments and state executive authorities. At the same time the law stipulates that budget issues represent the main topic of such consultations. Every year, prior to February 15, the AUC submits to the Ministry of Finance its proposals to the Main Direction of the Budgetary Policy for the coming year – general approaches to the formation of the budget for the year to come. Starting from 2012, such proposals are being presented in the form of a joint le er from three Ukraine-wide local government associations, namely the association of regions, association of cities, and association of villages. In the last day of August or during the fi rst days in September, the government holds traditional consultations on the preparation of the national budget for the next year. Representatives of the Ministry of Finance of Ukraine, three Ukraine-wide local government associations, and the Ukrainian Association of City Finance Off icers participate in such consultations. These parties sig a protocol of the consultations and submit is as an annex to the Dra Law of Ukraine “On the National Budget of Ukraine”, which is submi ed by the Cabinet of Ministers to the parliament. As far as the quality of the consultations is concerned, one can fi rmly assert that the Ministry of Finance has been and continue to be one of the least transparent and least dialogue-oriented ministries regardless of the Prime Minister who is at the head of the Cabinet of Ministers. During the period of the DIALOGUE Project implementation, the budget consultations were held fi ve times (except for the autumn of 2015), with the Ministry of Finance being three times the only ministry refusing to sign the protocol for the reasons local government associations could not agree to. Most productive turned out to be budget consultations in 2015 when the Ministry of Finance of Ukraine was represented by I. Umanskyi, First Deputy Minister of Finance. This was probably the fi rst time when the Association received the support from the Ministry of Finance to introduce a system of social standards and fi nancial spending norms in the social sector: public education, health care, and social protection, as well as readiness to join the work on preparation of social standards together with line ministries. However, this good will declared in September was levelled in reality in the Cm1 versions of the Dra Law of Ukraine “On the National Budget of Ukraine for 2016”, with the National Budget to be calculated on a new tax base. None of such changes – neither tax nor budget changes - was discussed and coordinated with the AUC.

Success story: Fiscal decentralisation of 2015 The AUC initiated and was supported by V. Groisman, the then Vice Prime Minister of Ukraine, the fi rst step towards fi scal decentralisation. The dra amendments to the Tax Code and Budget Code prepared by the DIALOGUE Project served as the foundation for the new consensus-based version of these two documents prepared by the working group established at the Ministry of Regional Development. Following this, the Law of Ukraine “On the National Budget of Ukraine for 2015” was approved on the new tax base and represented a long-waited breakthrough for local governments and a qualitative change in the budget suff iciency of territorial communities. DIALOGUE 33

In late 2015, when the Cabinet of INCREASED LOCAL Ministers again tried to limit the cash GOVERNMENT RESOURCES (billion UAH)

fl ow to local budgets while vesting them 39.4 with more responsibilities, the AUC 32.8 resorted to all possible mechanisms and instruments of policy dialogue and 23 24.7 19 persuasion and managed to defend the 16.7 achievements of fi scal decentralisation for 2016 as well.

2011 2012 2013 2014 2015 2016

WITH THE VERKHOVNA RADA OF UKRAINE

Inter-Faction Local Government Support Group of National Deputies The fi rst Inter-Faction Local Government Support Group of National Deputies was established in the Verkhovna Rada of Ukraine of the seventh convocation (following the parliamentary elections in October of 2012). 1On March 14, 2013, the participants of the working session of the Board of the Association of Ukrainian Cities, which was a ended by National Deputies (Yu. Herzhov, former mayor of Voznesensk and M. Fedoruk, former mayor of Chernivtsi) made a decision to establish in the Verkhovna Rada of Ukraine a group of National Deputies to support local self-governance. Following the discussions and negotiations with the National Deputies, 33 National Deputies of Ukraine joined the inter-faction group in Verkhovna Rada of Ukraine of the seventh convocation. Ye. Kartashov, former mayor of Zaporizzhya, chaired the group. The main purpose of the local government caucus was to advocate for local government interests in the parliament through: - Preparation and submission to the Verkhovna Rada for consideration dra legislation aimed at supporting the development of local self-governance, - Assisting parliamentary factions to formulate their position on issues and dra legislation related to local government interests.

NUMBER OF MEMBERS OF THE INTER-FACTION LOCAL GOVERNMENT SUPPORT GROUP OF NATIONAL DEPUTIES Following the pre-term parliamentary elections in 2014, the Project resumed the practice of establishing Seventh convocation 33 the Inter-Faction Local Government Support Group (local Eighth convocation 37 government caucus) in the Verkhovna Rada of Ukraine of the eighth convocation (2015). The membership of the caucus included 37 National Deputies of Ukraine. NUMBER OF MEETINGS OF THE OF THE INTER-FACTION LOCAL GOVERNMENT SUPPORT GROUP OF NATIONAL DEPUTIES I. Kulichenko, former mayor of Dnipropetrovsk, chaired Seventh convocation 11 the caucus. To ensure the high quality and productive Eighth convocation 3 work of their group, the caucus members came to a decision to establish six thematic sub-groups: budget 34 PROJECT PROGRESS REPORT

NUMBER OF DRAFT LAWS SUBMITTED support for territorial communities; land INCLUDING APPROVED ONES relations; local elections; housing and municipal submied approved utilities and urban development; social sector; Seventh convocation 20 10 and, administrative and territorial reform, and distributed their responsibilities correspondingly. Eighth convocation 7 5 Due to the active position of three National Deputies I. Kulichenko, S. Melnyk, and M. Fedoruk, former mayors of Dnipropetrovsk, Khmelnytskyi and Chernivtsi, the Verkhovna Rada of Ukraine of the eighth convocation managed to partially take into account the AUC position in the course of the elaboration of legislation on local elections. The Association of Ukrainian Cities also got their support in its a empts in regulating issues of the transitional period of consolidated territorial communities and safeguarding the achievements of the fi scal decentralisation.

Participation in the work of parliamentary commi ees

Upon the directive of V. Rybak, the then Chairman of the Verkhovna Rada of Ukraine, DIALOGUE Project experts received the right to participate in the activities of parliamentary commi ees in early 2013. At the beginning, the Project initiated close cooperation with three ad-hoc parliamentary commi ees: Commi ee on State Building and Local Self-Governance, Budget Commi ee and Commi ee on Construction, Urban Development, Housing and Municipal Utilities. Following the 2014 elections, thanks to the directive of V. Groisman, Chairman of the Verkhovna Rada of Ukraine, Project experts work with all parliamentary commi ees on issues related to local self-governance. Project experts engage in close cooperation with commi ee secretariats in the course of the preparation of dra laws for discussion, submit AUC position with regard to the dra laws under discussion, and participate in the work of parliamentary commi ee with the right to present their position. It should be mentioned that the Association continues to enjoy the closes cooperation with two parliamentary commi ees: Commi ee on State Building, Regional Policy and Local Self-Governance and Budget Commi ee. For example, due to the close cooperation with the Commi ee on State Building, Regional Policy and Local Self-Governance, the Association of Ukrainian Cities managed to get the Commi ee concurrence on all dra laws concerning the consolidation of territorial communities and the corresponding transitional period for consolidated territorial communities (despite sometimes critical negative a itude of S. Vlasenko, Chairman of the Commi ee (the Batkivschyna Faction). AUC participation in the work of the Budget Commi ee provided the opportunities to get the concurrence from the Commi ee on the fi scal decentralisation legislation and its approval by the parliament, promote local government enhancing provisions in National Budgets for 2015 and 2016, and tot prevent the reduction of the fi nancial resources of local self-governance (fi rst of all, preventing the reduction of local government share of the unifi ed tax, excise tax and environmental fee).

PARTICIPATION IN THE WORK OF PARLIAMENTARY COMMITTEES (TOTAL 343)

COMMITTEE ON AGRARIAN POLICY AND LAND RELATIONS 11 COMMITTEE ON CONSTRUCTION, URBAN DEVELOPMENT, HOUSING AND MUNICIPAL UTILITIES 35 BUDGET COMMITTEE 116 COMMITTEE ON STATE BUILDING, REGIONAL POLICY AND LOCAL SELF-GOVERNANCE 76 COMMITTEE ON ECONOMIC POLICY 4 COMMITTEE ON INDUSTRIAL POLICY AND ENTREPRENEURSHIP 6 COMMITTEE ON YOUTH AND SPORT 3 COMMITTEE ON PREVENTING AND FIGHTING CORRUPTION 11 COMMITTEE ON CULTURAL AND CULTURAL HERITAGE 2 COMMITTEE ON SCIENCE AND PUBLIC EDUCATION 25 COMMITTEE ON HEALTH CARE 12 COMMITTEE ON FUEL AND ENERGY COMPLEX, NUCLEAR POLICY AND NUCLEAR SAFETY 11 COMMITTEE ON TAX AND CUSTOMS POLICY 22 COMMITTEE ON LEGAL POLICY AND JUSTICE 2 COMMITTEE ON SOCIAL POLICY, EMPLOYMENT AND PENSION SUPPORT 7 DIALOGUE 35

SUPPORT FOR ESTABLISHMENT OF CAPABLE COMMUNITIES

In early 2015, Ukraine received all the necessary legal framework for the implementation of one of the most important and desired reform in the sphere of local self-governance in the country – establishment of the communities, which would be capable of exercising the powers they have been vested with. The establishment of capable communities is a prerequisite for the full-fl edged decentralisation reform, because this reform envisions devolution of resources and powers at the local level, which should, in its turn, be capable of exercise these powers in the proper manner. Lack of such capacity may question the feasibility and success of decentralisation and again, like what already happened before) will leave Ukraine with no chances to build a truly eff ective and eff icient system of governance. Approved in February of 2015 the Law of Ukraine «On Voluntary Consolidation of Territorial Communities» and the Methodology for the formation of capable communities endorsed by the Cabinet of Ministers opened the way to establish capable territorial communities. Yet, all these documents would have not been implemented had not there been personalities in the regions who immediately started to implement them. The DIALOGUE Project provided support to the Ministry of Regional Development in this context through establishing Off ices for Reform Implementation Support in all oblasts of Ukraine. The Reform Off ices started their activities on May of 2015. From the off ice space perspective, ORIS staff work in the premises of oblast state administrations, but coordinated their activities with regional off ice of three Ukraine-wide local government associations, such as the Association of Village Councils, Association of Ukrainian Cities, and the Association of Rayon and Oblast Councils. Candidates for the position of Reform Off ice directors were submi ed by Heads of oblast state administrations and were endorsed by V. Nehoda, First Deputy Minister of Regional Development. The main purpose of Reform Off ices was to assist oblast state administrations, the regional level government entity responsible for the preparation and implementation of community consolidation, in their corresponding activities. At various stages of the reform implementation ORISes had diff erent tasks to accomplish: 1) Stage One – preparation of reforms Reform Off ice tasks: • Preparation dra long-term perspective plans in cooperation with communities and OSA; • Assistance to oblast councils in the preparation of long-term perspective plan; • Technical elaboration of dra long-term perspective plan for endorsement by the Cabinet of Ministers; and, • Providing incentives for communities to consolidate.

Timeframe: May – October of 2015 Each Reform Off ice employed fi ve persons. DIALOGUE Project rendered assistance to Reform Off ices in their work

Outcomes: long-term perspective plans for community consolidation were prepared for 24 oblasts, long-term perspective plans for 22 oblasts were approved by the corresponding oblast councils and endorsed by the Cabinet of Ministers (no all long-term perspective plans proposed by the oblast councils were endorsed by the Cabinet of Ministers), 159 became prepared to conduct fi rst local elections on October 25, 2015 within the new territorial framework. In December, the Cabinet of Ministers accepted and endorsed one more long-term perspective plan: the one submi ed by the Ternopil oblast (making the total number long-term perspective plans of 23). The long-term perspective plan of the Zakarpa ya oblast was not approved by its oblast council. 36 PROJECT PROGRESS REPORT

STATUS OF APPROVAL AND ENDORSEMENT OF LONG-TERM PERSPECTIVE PLAN FOR THE FORMATION OF COMMUNITY TERRITORIES AS OF DECEMBER 23, 2015

Volyn Chernihiv Sumy 25.06 Rivne 19.06 25.06 23.09 12.06 12.09 (04 та 23.12) 08.09 74 08.09 (04.12) Zhytomyr 81 51 52 59 28.05 50 49 5 51 12.08 (4.12) 5 1 5 59 Lviv 37 Kyiv 07.07 13.08 9 Poltava Kharkiv 11.03 (04.12) Khmelnytskyi 18.03 18.06 28.05 18.06 162 61 23.09 (04.12) Ternopil 08.09 (04 та 23.12) 23.09 29 Cherkasy 89 11.12 56 57** Luhansk 25.06 59 15 16.12 49 1 45 10.07 26** 22 Vinnytsya 08.09 (04.12) 53 12 05.08 26 24.06 0 99 24* 26 13.10 (23.12) 45 24 106 Kirovohrad Dnipropetrovsk 3 2 29 14.07 27.05 2 11.03 5.08 (4.12) Donetsk 24.07 43 90 8.09 Zakarpaya Chernivtsi 20 74 28.07 15 38* 2 Zaporizzhya Ivano-Frankivsk 13.10 (04 та 23.12) 38 Mykolaiv 07.07 24.07 43 12.06 3 13.10 16.09 (23.12) 25 Odesa 08.09 Kherson не схвалений 63 69 10 24.06 32 05.06 53 52 16.09 28 05.08 3 6 43** 1 43 24 41 8 1

Date the plan was approved by the oblast council Date the plan was endorsed (adjusted) by the CMU Number of communities in the long-term perspective plan as approved by the oblast council Number of communities in the long-term perspective plan as endorsed by the Cabinet of Ministers Number of communities to conduct first local government elections * without temporarily occupied territories ** does not cover the whole oblast

2) Stage Two – pilot communities Reform Off ice tasks: • Assistance in the preparations for holding local elections in consolidated communities; • Assistance to pilot communities in launching their local councils and establishment of executive entities; • Resolving issues of the transitional period: registration of communities, legal succession, formation of joint ownership, etc.; • Assistance to consolidated communities in organisational aspects of their work and provision of services to citizens; • Popularisation of fi rst successes of consolidated territorial communities; and, • Encouraging new communities to consolidate.

Timeframe: September – December of 2015 DIALOGUE Project, Council of Europe Programme, and the Participative Democracy in Ukraine Project (Ministry of Foreign Aff airs of Norway) render assistance to Reform Off ices. DIALOGUE 37

Outcomes: 159 communities conducted fi rst local elections on the new territorial basis, conducted fi rst sessions of consolidated territorial community councils, elected their leadership, set up commissions and executive entities, conducted registration, resolved issues of compensations to starostas, as well as streamline the fi nancial support and treasury administration. The National Budget of Ukraine for 2016 approved by the Verkhovna Rada of Ukraine envisioned direct inter-budget relationships with the National Budget for all 159 consolidated territorial (subsidies and subventions for the health care and public education sectors).

INSTRUMENTS FOR POLICY DIALOGUE AT THE REGIONAL LEVEL

Local Government Regional Advisory Boards The Law of Ukraine “On Local Government Associations” stipulates that local agencies of the state executive are to conduct consultations with regional off ices of Ukraine-wide local government associations with regard to: • budget issues (distribution of investment subventions and social and economic development of territories, se ing target indicators for the preparation of budgets of villages, towns and rayon signifi cance cities, distribution of inter-budget transfers and investment subventions between budgets of villages, towns and rayon signifi cance cities); • dra programs for social and economic development.

The DIALOGUE Project made the best use of this right and established in all oblasts of Ukraine Local Government Regional Advisory Boards (LGRAB). LGRABs were intended to serve a platform for discussions and resolving issues of regional importance through joint eff orts: OSA, oblast council, and local governments from the oblast. However, in reality, most of problem issues raised by the Local Government Regional Advisory Boards had to be resolved at the central government level.

Every year the Project conducted meetings of AUC Regional Off ices to select problem issues suggested for discussions at the working sessions of Local Government Regional Advisory Boards. The top ten issues most o en raised at working sessions of LGRABs included:

1. Local budget revenues 2. Energy saving 3. Management of land resources and maintaining land cadastres 4. Solid waste management and disposal 5. Eff ective ways to promote investments and improved investment capacity of the region 6. Provision of administrative services to citizens and activities of Centers for Administrative Services 7. Solutions of problem issues in the housing and municipal utilities sector 8. Problem issues in the sphere of urban development and preparation of urban development document packages 9. Implementation of legislation on access to public information 10. Establishment of capable territorial communities. 38 PROJECT PROGRESS REPORT

NUMBER OF WORKING SESSIONS OF LOCAL GOVERNMENT ADVISORY BOARDS BY YEAR

LGRAB LGRAB LGRAB LGRAB LGRAB LGRAB

2 LGRAB 28 LGRAB 39 LGRAB 44 LGRAB 19 LGRAB 15 LGRAB meetings meetings meetings meetings meetings meetings 57 participants 969 participants 1,120 participants 1,312 participants 634 participants 390 participants

2010 2011 2012 2013 2014 2015

NUMBER OF WORKING LGRAB SESSIONS BY REGION

13

11

10 10

9 9

8 8

7 7 7

6 6 6 6

5

44

3 3

2

1 1 1 Lviv Lviv Kyiv Kyiv Rivne Sumy Volyn Volyn Odesa Poltava Poltava Kharkiv Ternopil Ternopil Donetsk Kherson Luhansk Mykolaiv Cherkasy Zhytomyr Vinnytsya Chernivtsi Chernihiv Kirovohrad Kirovohrad Zakarpaya Zaporizzhya Khmelnytskyi Dnipropetrovsk Dnipropetrovsk Ivano-Frankivsk Ivano-Frankivsk

However, in addition to discussing problem issues, which had to be resolve at the central government level, LGRABs also performed their role in fi nding solutions to issues of local importance through the joined eff orts of local governments and the oblast council. For example, LGRABs managed to repair hundreds of roads in rural areas in the Rivne region, improve sanitation networks in two cities – Sambir and Turka, purchase medical equipment for hospitals in Uliyanivka and Znamianka, open a modern solid waste sorting station in the Ternopil region, purchase three new school buses in the Kherson region, set up a unifi ed system for territorial mapping and planning in the Odesa oblast (including the spa and health resort zones), improve water supply services in two communities in the Luhansk oblast (Krasnyi Luch and Antratsyt), and purchase three street cleaning machines in the Zhytomyr region

NATIONAL COHESION EXCHANGE STUDY TOURS

The events, which took place following the Revolution of Dignity, such as annexation of Crimea and the military confl ict in the east of Ukraine, forced the Project to spur up its activities in the sphere of close expert dialogue professional exchanges between experts from various parts of Ukraine. Starting in autumn of 2014, the Project DIALOGUE 39 introduced a new type of activities as part of its training component called “National Cohesion Exchange Study Tours”. These events facilitated professional experience exchange between local government officials and setting up professional contacts, as well as national cohesion of experts from various parts of Ukraine through professional dialogue. The topics and cities for exchange study tours were selected with the help of surveying AUC member municipalities and data base of best practices. The schedule of the events was prepared in the way to give opportunities for representatives of cities for the south and east of Ukraine o visit cities in the center and west, and vice versa. For less tan a year since the Project became engaged in this type of activities, DIALOGUE conducted 22 exchange study tours:

23 city of Kyiv July 08 – 09 Working with children and 18 city of Bucha (Kyiv oblast) youth and energy saving November 24 – 25 projects in the public education sector Solid waste management

18 city of Boryspil (Kyiv oblast) January 27 – 28 21 city of Ternopil March 18 – 19 Social services 25 city of Rivne IT technologies in May 21 – 22 municipal management 19 city of Zhytomyr Sustainable economic November 27 – 28 development 22 city of Cherkasy Energy efficiency projects January 22 – 23 30 city of Lviv Energy efficiency projects March 30 – 31 City management

18 city of Kharkiv February 18 – 19 One-stop-shop to pay for housing and municipal services

20 city of Vinnytsya December 11 – 12 e-Governance

23 city of Myrhorod (Poltava oblast) February 26 – 27 25 city of Vinnytsya Energy efficiency projects April 23 – 24 Social protection of citizens, provision of subsidies

16 city of Oleksandriya 24 city of Kamianets-Podilskyi (Kirovohrad oblast) (Khmelnytskyi oblast) March 12 – 13 April 24 – 25 19 city of Khmelnytskyi Unified customer service Protection of historic April 28 – 29 monuments and tourism Protection of the population from emergency situations 20 city of Kryvyi Rih (Dnipropetrovsk oblast) May 27 – 28 Industrial tourism 20 city of Ivano-Frankivsk 22 city of Illichivsk May 14 – 15 (Odesa oblast) June 03 – 04 21 city of Berdyansk Investment sin the Urban improvements and solid waste management 21 city of Kherson (Zaporizzhya oblast) municipal utilities sector. June 17 – 18 June 10 – 11 Social partnership Technologies for interaction Open government. between the government Citizen self-organisation 24 city of Odesa and community bodies July 15 – 16 Promotion of tourism and culture 21 city of Yuzhne (Odesa oblast) August 26 – 27 Number of participants Social and economic 21 City development of cities Date 2014 Topic

Number of participants 21 City Date 2015 Topic The AUC will continue to use the policy dialogue tools introduced by the Project after its completion, because they proved effective and enabled the Association of Ukrainian Cities to conduct policy dialogue with state executive authorities in the interests of local self-governance. 40 PROJECT PROGRESS REPORT

SUB-CHAPTER 3: AWARENESS AND SUPPORT TO REFORMS

Establishing and promoting the environment conducive for reforms was a key mission of the DIALOGUE Project. It has been a generally accepted fact that important factors to support any process, such as understanding and commitment come with knowledge sharing and discussion. At the same time, the information should be tailored for specifi c types of audiences. Therefore, the DIALOGUE Project built its communication and outreach activities based on the need to provide timely, reliable and expert information to various audiences while pursuing its main goal of building up an informed a itude and understanding of the importance of reforms for the future development of territorial communities and the country in general. Outset environment the DIALOGUE Project started to work in In 2010, during the preparation of the strategy of its informational policy, the DIALOGUE Project had to tailor it in the context of the political situation in the country, especially in the times when the central government postponed the reform for an unlimited period of time. The mere words, such as “local government reform” and “decentralisation” could not be heard in speeches of representatives of the state executives, while this area was not mentioned in strategic programs of the Cabinet of Ministers and the President. This undoubtedly had its eff ect on media, which were not interested in covering topics of reforms and decentralisation. At the fi rst stage of its implementation, the DIALOGUE Project encountered such problems as critically low level of citizen awareness about local government problem issues, lack of professionalism of media representatives in covering municipal development, low presence of local and regional development topics in the nation-wide media environment, etc. In this context, the DIALOGUE Project team decided to be fl exible, put local government interests as its priority and focus its activities on covering the wide spectrum of local government problem issues in Ukraine, which was expected, in its turn, tot build up a nation-wide consensus and understanding of the u ermost need of implementing decentralisation reforms.

TARGET AUDIENCES

Implementing new systems has always been the process to involve and feel impact of groups of stakeholders. Therefore, it is next to impossible to implement the local government reform without the support and participation of local government off icials and employees of this level of government themselves. Nor do the central government agencies, which should ensure the proper legal framework, play a smaller role in this context. Development projects and programs, as well as the expert community, which work in the sphere of local democracy, should serve as partners in preparing the framework for the reforms. The public at large represent an important target group as well and serves as the main benefi ciary of the reforms, because the main purpose of the reforms is to improve living standards of citizens. In this context, various media become the main channel to deliver information to the society and, consequently, become an active participant as well. To achieve the maximum eff ect in the sphere of promoting the environment conducive for reforms the DIALOGUE Project outlined the following target audiences to work with: • local governments (elected and appointed local government off icials; members of local councils; managers of structural departments on public education, housing and municipal utilities, health care, economy, budget and fi nance, administrative services, etc.; local government lawyers; and managers of municipal utility companies); DIALOGUE 41

• state executive authorities (top managers and staff of the Ministry of Regional Development, off icials from line ministries and Ministry of Finance; National Deputies, their aides, employees of the Verkhovna Rada of Ukraine Secretariat and secretariats of parliamentary commi ees); • partners (international technical assistance projects, which work in the sphere of democratic development; donor community; international organisations, non-governmental organisations, and expert community); • media (printed and Internet publications, television, radio, freelancers; press-services of city councils); and, • public at large.

TOOLS TO DELIVER STRATEGIC MESSAGES

To ensure the proper a itude towards reforms from various target audiences and to deliver strategic messages to them, the Project developed and implemented a number of tools in its activities.

Printed and electronic publications

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) The “AUC Herald” – a monthly newsle er featuring the activities of the УК І
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ǐǴǼDZǶǾǺǼǮǴǰǬǹǹȋǘǬǼǯǬǼǴǾǬǪǼȃDZǹǶǺ ǑǶǽǻDZǼǾǴǘǴǼǺǽǷǬǮǛȑǾȂǴǶ  ǚǷDZǶǽǬǹǰǼǝǷǺǭǺDzǬǹ ǟǶǼǬȒǹǬǖǴȒǮ ǮǿǷǝȑȃǺǮǴȁǝǾǼȑǷȈȂȑǮǻǺǮDZǼȁ ǾDZǷ   ȀǬǶǽ   international local government experience. The DIALOGUE Section of the newsle er

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¯¦¬œ‹©¤ Ì ІЇ Ì ȼȱɋɇɂɄȺɋɈɐȱȺɐȱȲɆȱɋɌɍɄɊȺȲɇɂ ІЇ ÑÒ ÓÊÐÀ ¨ ІÀÖ ІÀÖ Â²ÑÍÈÊ ÀÑÎÖ²ÀÖ²¯КРАЇНИ ВІСНИК АСОЦІАЦІЇ Ì МІСТ УКРАЇНИ ВІСНИК АСОЦІАЦІЇ МІСТ Ì У ВІСНИК А А Ö²ÀÖ²¯ ̲ÑÒ ÓÊÐÀ¯ÍÈ ІÀÖ ¿´ÎÊÅǽÎËÓ´½Ó´µÉ´ÎÏÐÇͽµÊÅ ÊÐÀ¯ÍÈ Â²ÑÍÈÊ ÀÑÎÖ²ÀÖ²¯ ̲ÑÒ ÓÊÐÀ¯ÍÈ Â²ÑÍÈÊ ÀÑÎÖ²ÀÖ² ̲ÑÒ ÓÊÐÀ¯ÍÈ Â²ÑÍÈÊ ÀÑÎÖ²ÀÖ²¯ Ì²Ñ ʜ xouedrmgcvrmoevs{ce{cdqcvwxouedr²ÀÖ²¯ ̲ÑÒ ÓÊÐÀ¯ÍÈІ ²ÑÍÈÊМІСТ ÀÑÎÖ²ÀÖ²¯ УКРАЇНИ ВІСНИК Ì²ÑÒ АСОЦІАЦІЇ ÓÊÐÀ¯ÍÈ МІСТ УКРАЇНИІЇ МІСТ УКРАЇНИȱȲɆȱɋɌɍɄɊȺȲɇɂȼȱɋɇɂɄȺɋɈɐȱȺɐȱȲɆȱɋɌɍɄɊȺȲɇɂjlbspx¨bx¨ªn¨stulrbªojd¨sojlbspx¨bx¨ªn¨st ВІСНИК АСОЦІАЦІЇ МІСТ УКРАЇНИÈ Â²ÑÍÈÊ УКРАЇНИ ÀÑÎÖ²ÀÖ²¯ УКРАЇНИ Ì²ÑÒСТ ВІСНИК УКРАЇНИ ÓÊÐÀ¯ÍÈВІСНИК АСОЦІАЦІЇ АСОЦІ ВІСН²Ñʑʶʠ МІ ÓÊÐÀ¯ÍÈÑÍÈÊ Â²ÑÍÈÊ ÀÑÎÖ²¯ ÊÐÀ¯ÍÈÀÑÎÖ²ÀÖ²¯ ̲ÑÒ ÓÊÐÀ¯ÍÈ Ì²ÑÒǺǥǿȀȁǸǾǮǦǻǶ ÓÊÐÀ¯ÍȲÑÍÈÊ Â²ÑÍÈÊǥǦǺǥǿȀȁ ²ÑÍÈÊǃnjǢǃDŽǘǃǝǞǟǖǜnjDŽǙǔǎǃǝǙǔǖnjǝǚǢǃnjǢǃDŽǘǃǝǞǟǖǜnjDŽǙǔǎǃǝǙǔǖ ÀÑÎÖ²ÀÖ²¯ ÀÑÎÖ²ÀÖ²¯À¯ÍÈ Ì²ÑÒ Â²ÑÍÈÊ Ì²ÑÒ ÓÊÐÀ¯ÍÈ ÓÊÐÀ¯ÍÈ ÀÑÎÖ²ÀÖ²¯ ̲ÑÒ ²ÑÒ Ì²ÑÒ ÓÊÐÀ¯ÍÈК ÓÊÐÀ¯ÍÈ ÓÊÐÀ¯ÍÈÀÑÎÖ²¯ ²ÑÍÈʲÑÍÈÊ Ì²ÑÒ ÀÑÎÖ²ÀÖ²¯ÓÊÐÀ¯ÍÈ ÀÑÎÖ²ÀÖ²¯ ̲ÑÒ Â²ÑÍÈʪ ±®¶’ ¶’¬’±²³ª° ­¨ ÓÊÐÀ¯ÍÈ̲ÑÒ ÀÑÎÖ²ÀÖ²¯ÓÊÐÀ¯ÍÈ Ì²ÑÒ ÓÊÐÀ¯Ƕ ÑÎÖ Ì²ÑÒ ÍÈ Â ²ÀÖ АЦІЇ ǮȄǥǦ ȄǥǮȄ ǝǚǢ ІАЦ ɈɐȱȺɐ d¨so ¯Ì ̲ÑÒ ²ÀÖ ÐÀ¯Í Ї МІСТ ’±­¨ МІСТ ІЇ МІ ǾǮǦǻÊ ෈ැ෡ය ÍÈÊ ÀÑÎÖÀÑÎÖ²ÀÖ²¯ÑÒ ÓÊÐÀ¯ÍÈ̲ÑÒce{cdqcvwxouedrm ÓÊÐÀ¯ÍÈ Â²ÑÍÈÊÎÖ²ÀÖ²¯ ²ÑÍÈÊ ÀÑÎÖ²ÀÖ²¯ÓÊÐ ИК ÀÑÎÖ²ÀÖ²¯ АСОЦІАЦІЇÂ²ÑÍÈÊ Ì²ÑÒ МІСТ Ì²Ñ УКРАЇНИ ÀÑÎÖ²ÀÖ²¯ÓÊÐÀ¯ÍСНИК Ì²ÑÒЦІАЦІЇМІСТ ÓÊÐÀ¯ÍȲÀÖ²¯ УКРАЇНИ Ì²ÑÒ ВІСНИККРАЇНИ ÓÊÐÀ¯ÍÈ ÑÍÈÊАСОЦІАЦІЇ ВІСНИКÑÍÈÊ АСО МІС Over the time of the Project, AUC published 65 issues of the Herald with the total circulation of 45.5 thousand copies.

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ The “Local Self-Governance in the Year of 20__” annual report – an (ПРОЕКТ ДІАЛОГ) annual printed report about the status and changes in the sphere of local self- governance over the year, as well as future prospects and tasks for the year to come. The Project distributed this analytical report both to state executive authorities, National Deputies and parliamentary commi ees, and to Project partners. The Association also presented this report to Media during its special annual event. Since the beginning of the Project, the Association prepared six such reports (for 2010, 2011, 2012, 2013, 2014, and 2015) with the total circulation 2015 of 6 thousand copies. МІСЦЕВЕ САМОВРЯДУВАННЯ В УКРАЇНІ The “Sectoral Monitoring” – this is a quarterly printed publication for state executive agencies, which off ers high quality sectoral analysis prepared with due regard to the position of local government experts “at the grass root level”. In addition to this, the information from this publication was used as the background material for DIALOGUE Project in its lobbying activities aimed at supporting or rejecting a number of legislative initiatives. During the Project implementation, the Association published 19 issues with the total circulation of 11.4 thousand copies. 42 PROJECT PROGRESS REPORT

The “Legal Consultations”– a quarterly electronic

ЩОКВАРТАЛЬНЕ ЕЛЕКТРОННЕ ВИДАННЯ ПРОЕКТУ “ДІАЛОГ” ЮРИДИЧНІ КОНСУЛЬТАЦІЇ publication for local governments. All in all, the DIALOGUE №17, (листопад 2014 року - січень 2015 1. Щодо практичного застосування норм Податкового кодексу в частині запровадження місцевих податків та зборів у 2015 році Project prepared and disseminated 22 issues.

Підпункт 4.1.9 пункту 4.1 статті 4 Податкового кодексу України, визначає, що до будь- яких елементів податків та зборів не можуть вноситися зміни пізніше як за шість міся- ців до початку нового бюджетного періоду, в якому будуть діяти нові правила та ставки. При цьому відповідно до підпункту 12.3.4 пункту 12.3 статті 12 цього Кодексу рішення про встановлення місцевих податків та зборів офіційно оприлюднюється відповідним The “Legislation News” – a monthly electronic органом місцевого самоврядування до 15 липня року, що передує бюджетному періоду, в якому планується застосовування встановлюваних місцевих податків та зборів або змін (плановий період). В той-же час, Закон України Про внесення змін до Податкового кодексу України щодо податкової реформи» (№71-VIII від 28.12.2014) вносить зміни до елементів як загальнодержавних податків і зборів, так і до місцевих. Звертаємо увагу, що стягнення загальнодержавних податків і зборів здійснюється з 1 січня 2015 року. При цьому законодавець рекомендує у пункті 4 розділу ІІ «Прикінцеві положення» За- monitoring digest for local government lawyers, which кону №71-VIIIорганам місцевого самоврядування у місячний термін з моменту опуб- лікування цього Закону прийняти та оприлюднити у 2015 році рішення про встановлення місцевих податків. Отже,у випадку прийняття місцевою радою рішення про встановлення місцевих по- датків, вони можуть застосовуватися з 1 січня 2015 року або з моменту їх оприлюд- нення. was disseminated according to the mailing list of local Ще одним аргументом на користь можливості встановлення та застосування органами місцевого самоврядування місцевих податків і зборів в 2015 році є їх звільнення в про- цесі прийняття відповідних рішень від застосування вимог, встановлених Законом Ук- раїни «Про засади державної регуляторної політики у сфері господарської діяльності». Вважаємо, що такий підхід повинен бути застосований і у випадку прийняття рішення government lawyers. All in all, the DIALOGUE Project щодо встановлення та його застосування відносно земельного податку, який з 2015 року віднесено до категорії місцевого податку. Разом з тим у випадку, коли місцева рада не прийме рішення про встановлення місцевих податків, відповідно до пункту 5 пункту 3 статті 12 Податкового кодексу України, такі податки будуть справлятися виходячи з норм цього Кодексу із застосуванням мінімаль- ної ставки (а по платі за землю за ставками, які діяли до 31 грудня 2014 року) до мо- prepared 78 digests менту прийняття такого рішення. При цьому звертаємо увагу на ту обставину, що змінами до Податкового кодексу Ук- раїни, які набрали чинності з 1 січня 2015 суттєво зменшено перелік осіб, які звільня- ються від сплати земельного податку. Зокрема з переліку звільнених від сплати

Це видання стало можливим завдяки підтримці Американського народу, здійсненій через USAID. The “DIALOGUE” – a monthly electronic English Зміст видання є відповідальністю АМУ і не обов’язково відображає погляди USAID або уряду США. 1 language newsle er, which provided regular updates about Project activities and successes, expert deliverables, as well as about the current status of reform implementation in the country. The Project disseminated the newsle er to its partner organisations and international technical assistance projects. All in all, the DIALOGUE Project prepared and disseminated 64 issues. The “COMMUNITY” – a specialised electronic publication targeting National Deputies founded in 2015 with the purpose of providing information to members of the Inter-Faction Local Government Support Group (local government caucus) about problem issues communities face, how these issues are being resolved, or how these issues should be dealt with at the parliamentary level.

DEVELOPMENT INITIATIVE FOR ADVOCATING LOCAL ASSOCIATION OF The “Decentralisation in Focus” – a monthly GOVERNANCE IN UKRAINE (DIALOGUE PROJECT) UKRAINIAN CITIES BY JOINT EFFORTS Decentralisation focus electronic newsle er featuring the activities of OFFICES FOR REFORM IMPLEMENTATION SUPPORT MONTHLY NEWSLETTER #7, NOVEMBER, 2015 Off ices for Reform Implementation Support, which was founded in 2015 THE PARLIAMENT CREATED THE LEGAL FIELD FOR THE TRANSITION PERIOD OF THE TERRITORIAL COMMUNITIES CONSOLIDATION NOVEMBER 26, on Decentralisation Day the Parliament approved a number of laws to pro- during the period of most active reform implementation. The newsle er mote decentralisation of administrative services and to streamline registration of consoli- dated territorial communities and preparation of their budgets. The parliament approved a number of laws, which significantly increase the scope of local govern- ment authority in the sphere of administrative services, in the second reading and as laws. The parliament approved a number of laws, which significantly increase the scope of local gov- provided a detailed information about the implementation of decentralisation ernment authority in the sphere of administrative services, in the second reading and as laws:

Dra law on the state registration of legal persons, entrepreneurs represented by physical persons and civil associations (# 2983) The document envisions transferring to executive agencies of local governments the authority to reforms, establishment of new communities, approved legislation, as well as perform the state registration of legal persons, entrepreneurs represented by legal persons and civic associations, as well as the possibility for other executive bodies of local councils to have such authority. The approved Dra Law # 2983 incorporates the provisions on the state registration of local gov- ernment bodies as legal persons. fi rst outcomes of decentralisation. The newsle er was distributed to partner The purpose of these provisions (Paragraph 33 of Chapter І of Dra Law # 2983) is to remove the drawbacks of the legal regulation for the process of voluntary consolidation of territorial communi- ties with regard to: - introducing a simplified system to reorganize and/or perform the state registration of abolish- ment of local government bodies as legal persons (public law); organisations and international technical assistance projects. All in all, the - removing drawbacks in the legal regulation of legal succession in consolidated territorial commu- nities, their councils and executive commiees (decisions, ordinances, agreements and contracts, execution of individual budgets prior to giving the community consolidation approval, etc.). The dra law on the state registration of property rights and their limitations (# 2982) DIALOGUE Project prepared and disseminated 8 issues. The document envisions transferring to local government executive bodies of oblast significance cities the authority to perform the state registration of rights to immovable property and their limitations, as well as giving a possibility to other executive bodies of local councils to have such powers. One should also mention that all DIALOGUE Project publications, both printed and electronic ones, were published on the Project web-site.

Web-sites and social networks

AUC web-sites (http://auc.org.ua/) and, most importantly, the DIALOGUE Project web-site (http://dialogueauc. org.ua/) represented important tools for delivering messages to various target audiences. Over the timeframe of the Project implementation, these resources became rather popular as sources of unbiased and DIALOGUE 43

trustworthy information about the status of local self- governance and problem issues territorial communities face. The AUC and DIALOGUE Project web-sites off er expert overviews and materials on local self-governance, AUC expert position with regard to legislative initiatives, reform implementation and decentralisation. Very o en, top country leadership, National Deputies, partner project experts and media would quote the expert information placed on the web-sites. The overview of the Cabinet of Ministers dra National Budget of Ukraine for 2016 prepared by DIALOGUE Project experts and placed on AUC and DIALOGUE Project web-sites was used and disseminated on the decentralization.gov.ua web-site, as well as on web-sites of oblast state administrations, Off ices for Reform Implementation Support, international organisations, which are active in the sphere of local democracy and decentralisation, and media. A strong media support and the accompanying lobbying work with National Deputies performed by the DIALOGUE Project resulted in the successful prevention of curtailment of fi scal decentralisation in 2016.

Modern interactive tools – Facebook page and YouTube account.

Despite its institutional nature, the DIALOGUE Project for six years of its implementation remained open to the introduction of new interactive communication tools. The tool the Project piloted included the AUC Facebook page and the AUC YouTube account each featuring narrative and video materials of the Project. Live and timely interviews, interesting and engaging information, as well as excellent visualisation of these resources provoked the high level of feedback.

Summing up the Project achievements one should mention that the news section of the DIALOGUE Project Facebook account enjoys the audience of more than 2,000 users.

The YouTube account off ers a number of video products, such as: TV programs prepared over the last fi ve years, promotional social videos and video comments of DIALOGUE Project experts. The corresponding traff ic includes more than 2,200 hits. The links and icons to these resources are placed on the main AUC web-page.

Radio

Off ering information through radio broadcasts has been an eff ective instrument to deliver messages to the large audience. Two radio projects were implemented within the framework of the DIALOGUE Project:

The “Personal Point of View” featured by the Radio Era FM Radio Station In 2012 – 2013, cooperation with the Radio Era FM Radio Station the DIALOGUE Project implemented a series of where Project experts off ered live interviews to express their opinions on local government problem issues, ways to resolve them and needed reforms in this sphere. AUC program speakers 44 PROJECT PROGRESS REPORT

also provided answers to questions raised by the radio audience. All in all, the Project prepared and broadcast 48 such programs. The “Community Government” featured by the “Громадське радіо” [public radio] Radio Station In October – November of 2013 – 2014 aiming at expanding the audience who would be aware of decentralisation reforms the DIALOGUE Project in cooperation with the “Громадське радіо” implemented the “Community Government” project broadcast by the National Radio Station, which enjoys the 100% nation-wide coverage. The station prepared and aired six radio programs with the participation of DIALOGUE Project experts.

Television

Television remains the most eff ective tool to provide information to all layers of the society. Based in the fi ndings of surveys, 70% of citizens report to receive the new information from this source alone. The DIALOGUE Project decided to choose this very tool as the most eff ective way to deliver the messages about the values and philosophy of reforms to the society. The «зМІСТОвна Україна» [CITY-minded Ukraine] Project The purpose of this TV project was to draw the a ention of the public at large to problem issues territorial communities face and fi ll the decentralisation and sectoral reforms “gap” in the TV space. In 2011 – 2013, the DIALOGUE Project prepared and aired the series of the «зМІСТОвна Україна» programs together with the “Перший На- ціональний” [fi rst national] TV Channel, whereas in 2014, the same program was implemented in cooperation with the «Тоніс» TV Channel. The programs were aired during the evening prime time hours. All in all, the DIALOGUE Project prepared and aired 152 programs. The topics of the programs varied depending on the political environment and conditions conducive for the reforms in the country: the thematic focus ranged from best practices and successful experience of cities in resolving local development issues to explanations of the local government reform, its support and promotion. The “Your Government” - a series of talk-shows on the Channel 5 TV Channel The “Your Government” series of talk-shows implemented jointly with the Channel 5 TV Channel started in 2015 with the purpose of drawing the a ention of the TV audience to the essence of the reforms, which already started in the country. In the course of the preparations, choosing the topics and selecting program speakers, the DIALOGUE Project intended to provide a step-by-step explanation why decentralisation was needed, the way it takes place in Ukraine, and what benefi ts citizens will have. The list of program participants included Project experts and various local government off icials ranging from village, town and city mayors to the leadership of line ministries. V. Groisman, Chairman of the Verkhovna Rada of Ukraine, off ered his exclusive interview for the program The “Your Government” project became an eff ective mechanism to form up the public opinion and increase citizen awareness of the importance of decentralisation. According to the Channel 5 TV Channel assessment, this project became very popular and enjoyed a wide and stable audience if this TV channel.

In 2015, the Channel 5 TV Channel aired 28 such programs during the evening prime time hours. The videos of these programs are accessible on the DIALOGUE Project web-site. DIALOGUE 45

EVENTS FOR MEDIA

Regular Project updates in media on the off icial AUC position and Project activities became an eff ective and reliable way to form up the public opinion and delivering strategic messages directly to citizens. To be er interact with media the Project introduce a series of information delivery tools.

Media database and updates

To disseminate the media information, the Project set up the data NUMBER OF JOURNALISTS IN THE POOL base of email addresses of various media outlets (journalists, television, 45 electronic and printed media – NUMBER OF INDEPENDENT INQUIRIES approximately 200 email addresses), TO AUC EXPERTS FROM JOURNALISTS FOR COMMENTS as well as the pool of interested 26 27 90 98 101 journalists (45 persons). Project events 65 21 47 48 for media representatives provided the 15 2010 2011 2012 2013 2014 2015 opportunity to update the database 9 of email addresses for local media representatives (100 email addresses). The Project used these groups 2010 2011 2012 2013 2014 2015 to send weekly news updates, press releases and announcements, as well as to disseminate “hot” news on a regular basis. The constant annual increase of independent inquiries to AUC experts from journalists for comments speaks about the good AUC choice of means and methods to work with media and a high expert and professional level of comments.

National and regional press clubs as discussion platforms

The DIALOGUE Project introduced working sessions of national and regional press clubs, which became a new type of events for representatives of local and regional media. The press club represents a platform for media to engage in a direct dialogue with representatives of local governments and the state executive on key local self-governance issues and development of communities. National Press Clubs events were conducted to provide the information to the journalist community from central media about the current status and most important local government problem issues. Most o en such meetings were conducted as summing-up events on Project developments and the activities of the Association of Ukrainian Cities (Ukrainian Municipal Forum, AUC Board, AUC All-Hands Meeting, as well as other events). Such forums provided the opportunity for media representatives to talk directly to event participants and experts. All in all, the DIALOGUE Project conducted 15 meetings of the National Press Club. Regional Press Clubs events were conducted in oblasts following the working sessions of Local Government Regional Advisory Board with the purpose of discussing problem issues of local importance and ways to resolve them. The journalists were able to talk to the leadership of oblast state administrations, village, town and city mayors from oblasts, and regional experts. All in all, over the 46 PROJECT PROGRESS REPORT

REGIONAL PRESS-CLUBS time of its implementation, the DIALOGUE Project conducted 116 ALL IN ALL, THE DP! CONDUCTED 116 meetings of regional press clubs. REGIONAL PRESS CLUBS: During the fi rst years of the Project implementation, local 35 35 government off icials and media used the press club meetings to talk mostly about specifi c local government problem issues, whereas

19 during the more active reform implementation they discussed its

14 13 essence and benefi ts. The DIALOGUE Project activities to organise and conduct press club meetings proved to be a successful direct communication channel for

2011 2012 2013 2014 2015 representatives of local governments and regional level state executive off icials. The press clubs became a real platform to discuss important issues related to regional development and fi nd solutions to urgent local government problem issues. During the period of its implementation, the Project put together a pool of interested journalists who prepared their publications on important issues related to community development topics.

Informational seminar for regional media representatives

Taking into consideration the overly focused a ention of Ukrainian media on the developments at the central government level with insuff icient coverage of regional topics, as well as poor coverage of decentralisation topics in regional media, the DIALOGUE Project decided to redirect its activities to fi ll this gap. On December 15 – 16, 2014, the Project conducted a unique information sharing training event for 100 representatives of regional media. The Project prepared a set of presentations, info graphics and user-friendly expert materials for the seminar participants. The purpose of these materials was to help regional media representatives to be er understand the essence and advantages of decentralisation and to provide be er, simple and user-friendly coverage of these topics in their media products intended for average citizens. By doing so, the Project prepared a sound information framework for support at the regional level for decentralisation reforms both from media and citizens. The preparation and compilation of the database of regional media to be used for further dissemination of Project messages become another achievement of this seminar. “This has bees a very interesting seminar with lots of important information. It was interesting to learn about problem issues related to the local government reform. The main takeaway from this seminar is my understanding that reforms in the health care, social and public education sectors should be synchronised with the local government reform. Everything should take place in a concerted manner, because it will be next to impossible to one thing without the other. It is of very important for journalists to be aware about this and to deliver this message to the people.”

Dmytro Klymenko, journalist of the Zhytomyr oblast TV and Radio Company DIALOGUE 47

“People are truly looking for changes and the reform, however, most of them do not understand its outcomes and benefi ts they can get. People are both looking for the reform and sort of afraid of it. Their special concerns focus on community consolidation, changes in administrative and territorial arrangement, less employment opportunities for those who work in the public sector, for example in the context of closing schools. No doubt, there is no suff icient information and explanations in this regard. This is exactly the area where you and us should work together to deliver proper messages to people”.

Roman Omelchenko, Director of the «Миргород» City TV Studio (Poltava oblast)

“It was very interesting to talk to my colleagues. The presentations of speakers were very interesting, especially on Day One, especially of those who have city management experience. It was also useful to listen to presentations of USAID programs, as they have the European vision of solutions to many problem issues. As far as the local government reform is concerned, this is a very important topic nowadays, there fore we agree with the idea to continue holding such events. We would very much wish to join our eff orts to achieve good outcomes and make the life of people be er.”

Svitlana Sherement, Sector for Informational Policy of the Komsomolsk City Council (Poltava oblast).

BEST PRACTICES IN THE SPHERE OF COOPERATION WITH MEDIA

A team of program speaker Aiming at improving its communication with media, the PROGRAM SPEAKERS FOR MEDIA DIALOGUE Project put together a team of program speakers 160 – a group of experts including city mayors, experts from local 123 106 councils and Project experts who communicated clear and user- friendly messages about the values of the reform and its aspects 25 30 in various social sectors to media representatives.

2011 2012 2013 2014 2015 It should be mentioned that DIALOGUE Project program speakers are local government practitioners with rich experience in municipal management, many of them being authors and dra ers of local government legislation with sound professional expertise. This is a visible advantage of the DIALOGUE Project program speakers, which diff erentiates them from a phenomenon of “popular” experts who can “talk on all topics” so widely spread in the media. The article under the title “The Excise of the Local Discontent” of O. Slobozhan, one of the DIALOGUE program speakers and First Deputy Executive Director of the AUC, in the Mirror Weekly newspaper (h p://gazeta.dt.ua/economics_of_regions/misceviy-akciz-rozbratu-_.html) drew the a ention of the society and provided the opportunity to block the legislative initiatives to reduce local budget revenues from the excise tax collections.

Media monitoring Monitoring of media resources was an integral part of the daily information activities of the DIALOGUE Project. Every year the monitoring showed continued improvements and a growing interest on the part of media in decentralisation topics, local government reform, as well as project activities. 48 PROJECT PROGRESS REPORT

NUMBER OF PUBLICATIONS IN MEDIA ABOUT THE AUC ACTIVITIES AND ITS POSITION NUMBER OF CASES OF MENTIONING THE AUC AND REFERENCES TO THE AUC IN MEDIA Newspapers and Internet Television 800 811 830 630 680 710 Radio

2010 2011 2012 2013 2014 2015 140 178 195 240 280

46 43 60 75 80 21 21 23 25 35 2011 2012 2013 2014 2015

COMMUNICATION SUPPORT FOR THE DECENTRALISATION REFORM

The Revolution of Dignity was a turning point in the mindset of citizens, which provided the opportunity for Ukraine to shi the political focus toward decentralisation of government authority and local government reform. The central government declared its commitment for the implementation of the decentralisation reform and in April of 2014 approved the Concept of the Local Government Reform and Reform of the Territorial Arrangement of Government Institutions in Ukraine. This was the fi rst step towards the beginning of the preparation of the legislative framework for its implementation. In spring of 2014, the turning point for the reform, the DIALOGUE Project Information Group changed the strategy and areas of its information policy. The broad-based public understanding of reform advantages and its benefi ts, as well as the public support are of high importance for any reform. A high quality communication support, continuous and well-grounded information, user-friendly explanations to citizens about the reform purpose, phases, advantages and expected results of each target audience represent the prerequisite for the success of the reform.

Sociological survey about support for decentralisation

Aiming at be er understanding of the mood in the society how and information environment, the DIALOGUE Project conducted a nation-wide sociological survey in November of 2014. The fi ndings of the survey demonstrated that 68% of responded are aware about decentralisation, with 68% supporting it. In particular, city residents expressed the strongest support to the following aspects of the decentralisation reform: • redistribution of taxes and fees from the National Budget to local budgets (65%); • transfer of powers from local state executive authorities to local governments (58%); • introduction of the municipal police (49%); and, • vesting local governments with the right to set the rates for their local taxes and fees (49%). The survey also demonstrated that city residents expect that decentralisation will give them opportunities to have more impact on local government decision making and be er quality of services. DIALOGUE 49

The sociological survey also demonstrated the readiness of the society for the local government reform and decentralisation. This means that it is high time for the meaningful implementation of decentralisation reforms and, consequently, for a much more powerful information campaign to support it.

Change of DIALOGUE Project information policy

In 2014, the media environment was still characterised by a severe lack of proper public awareness work in communities, high quality coverage of reforms and absence of clear and comprehensive messages about the reform, which would be welcome by citizens, especially at the local level. The main problems the DIALOGUE Project encountered were lack of understanding of the logics of the reform, its stages and sequencing of systemic and sectoral changes. In other words, citizens have become prepared for the reform and would accept it, but they fail to understand its main implications, why it is needed and what outcomes it will yield. In this context, the DIALOGUE Project makes a decision to engage in an active public awareness campaign at the national and regional levels to provide information to both the community residents and to local governments with the prime focus on involving them to the work on establishment of capable communities through the voluntary community consolidation and dissemination of the corresponding best practices. In addition to this, it was very important to avoid political speculations on topics related to the reform while focusing the a ention of common citizens on the content of the reform including new increased powers of local councils leading to enhanced capacity of local territorial communities. The DIALOGUE Project made the decision to overhaul the content and style of its information production and to focus all its eff orts on developing comprehensive and well-grounded messages for various audiences about the essence and advantages of the decentralisation reform and its impact on various aspects of citizen life. This communications work was divided into two important areas: • emphasising all a ractive aspects and advantages of the reform; • elimination of concerns and refuting the unjustifi ed myths widely spread in communities. The year of 2015 became the “year of decentralisation”. The DIALOGUE Project opened Off ices for Reform Implementation Support in all regions and joined the work to develop and implement a nation-wide communications campaign to support reforms in the system of local self-governance and decentralisation, as well as prepared a number of new information products to support the reform.

Off ices for Reform Implementation Support – communication channels at the regional level

Each of the 24 Reform Off ices established by the DIALOGUE Project employed a communications expert, thus strengthening the public outreach component of the Project. To promote the reform and consolidation of territorial communities, the Reform Off ices put together a pool of program speakers – local experts and public opinion leaders who spoke on the local TV and radio channels and published their materials in media. In addition to this, the Off ices for Reform Implementation Support used out-door advertisements to promote reforms.

The Reform Off ice in the Dnipropetrovsk oblast in cooperation with the oblast TV Channel implemented a series of the “Live” talk shows where experts and community representatives talked about the implementation of the decentralisation in the oblast. TV programs dedicated to decentralisation were aired on a regular basis by oblast TV channels in the Lviv, Volyn, Odesa, Kirovohrad, and Mykolaiv oblasts. 50 PROJECT PROGRESS REPORT

The Dnipropetrovsk Off ice for Reform Implementation Support in cooperation with the Oblast Radio Station implemented the Reform in Regions Project where speakers provided answers to the questions of listeners about the establishment of consolidated territorial communities and future prospects for their development. The Cherkasy Off ice for Reform Implementation Support launched their Facebook account. Over the half a year, its experts prepared approximately 30 articles, whereas there were more than 13 visitors to the Facebook page. The Chernihiv Off ice for Reform Implementation Support prepared and launched an information portal (h p://reformy.cn.ua) about the local government reform, where visitors may fi nd the long-term perspective plan of the oblast, community profi les, thematic articles and info graphics materials. The Zakarpa ya Off ice for Reform Implementation Support placed 20 billboards in all rayons in the oblast with the title: “Decentralisation: money and powers to communities”. The Ternopil Off ice for Reform Implementation Support in cooperation with the Oblast State Administration prepared and placed billboards providing answers to the questions: “Why it is worthwhile consolidating territorial communities?” and “Why are local politicians afraid of the reform?”

Experts of Off ices for Reform Implementation Support prepared their own info graphics materials with regard to local peculiarities of community consolidation in their respective regions. This approach was actively used by the Kyiv, Lviv, Chernivtsi, and Chernihiv Reform Off ices. Having established 24 Off ices for Reform Implementation Support with each of them employing a communications specialist, the DIALOGUE Project received powerful channels at the regional level to disseminate image and information products supporting the reform and ensured the nation-wide scale of this type of activities.

Social promotional videos “Capable communities – strong state”

The DIALOGUE Project paid a lot of a ention to the preparation of visual materials to support reforms, because this is the best way for people to receive the information. The Project prepared a series of short video programs with the title “Capable communities – strong state” – fi ve 30-second videos. These videos provide a simple and user-friendly explanation of the decentralisation reform and refute rumours about its consequences for ordinary people in such sectors as: high quality education, health care, road construction, services off ered in consolidated communities, and new jobs. It is important to note that the National Council for Television and Radio of Ukraine granted the status of promotional social videos to the “Capable communities – strong state” programs. «Спроможні громади - сильна держава» DIALOGUE 51

The “Capable communities – strong state” social videos were aired by: - the “Перший національний” [fi rst national] TV Channel on a daily basis in October – November of 2015; - 22 regional TV stations in October – December of 2015.

In some oblasts, in particular in the Vinnytsya, Donetsk, Lviv, Rivne, Cherkasy, Chernivtsi and Chernihiv oblasts, in addition to the state-owned TV channels, the programs were aired by local communally- owned and private TV companies. A number of TV companies, in particular in the Dnipropetrovsk, Volyn, Odesa, Rivne, Lviv and other oblasts, repeatedly used social promotional videos prepared by the DIALOGUE Project in their programs dedicated to the decentralisation reform to describe the reform implications and refute groundless rumours. The video programs under the title “Capable communities – strong state” are accessible on the DIALOGUE Project web-site (h p://dialogueauc.org.ua/dialogue/video-roliki-%C2%ABspromozhni- gromadi-silna-derzhava%C2%BB), as well as in the social networks. A considerable number of internet resources and web-sites of non-governmental organisations and off icial web-pages of government agencies placed the DIALOGUE social promotional videos on their web-sites. Being a participant of the nation-wide communication campaign, the Association of Ukrainian Cities disseminated the videos prepared within the framework of the DIALOGUE Project to the corresponding departments of government authorities.

On August 26, 2015, H. Zubko, Vice Prime Minister of Ukraine, presented these videos at the working session of the Cabinet of Ministers. The videos received exclusive appraisal and support from ministers. On December 9, 2015, H. Zubko o, Vice Prime Minister of Ukraine, presented a report on the implementation of the Cabinet of Ministers Action Plan for 2015. In particular, he mentioned that the implementation of the decentralisation reform should be in full swing in 2016. At the end he talked about the necessity to continue the nation-wide communication support for the decentralisation reform. The meeting participants had the opportunity to watch the “Capable communities – strong state” social videos.

This means that social DIALOGUE videos became a successful and eff ective instrument to deliver the message about the necessity of continuing the local government reform and pursuing the decentralisation policy.

New web-sites as a source of trustworthy information about the reform In the course of the preparation of long-term perspective plan for the formation of community territories DIALOGUE Project worked closely with Off ice for Reform Implementation Support experts and indentifi ed a great need to develop new Internet-based resources, which would help citizens to understand the sequencing of steps towards community consolidation and receive user-friendly information about reforms. The “Map of Communities” web-site (h. p:// kartagromad.org.ua) ) provides an opportunity to use interactive maps to track the process of establishing consolidated communities beginning with the approval of long-term perspective plans in oblasts to the actual establishment of capable communities. In particular, the site represents an interactive map of Ukraine where 52 PROJECT PROGRESS REPORT

users can get the following information on each separate oblast: about the approval of the long-term perspective plan by the oblast council and its endorsement by the Cabinet of Ministers, list and boundaries of consolidated communities, conducting fi rst local government elections, etc. In the end of 2015 this web site provides the information about the 23 long-term perspective plans for the formation of community territories in oblasts approved by the Cabinet of Ministers. The “My Community” web- page (h p://moiagromada.org. ua) off ers comprehensive and user-friendly way of tell ordinary citizens about the decentralisation reform and capable communities, refutes myths and rumours, as well as provides answers to the reform related questions so important for people. To promote these new Internet-based resources, the DIALOGUE Project prepared a poster under the title “DECENTRALISATION. Changes for the sake of the future” (А1 reformat), which calls people

ɇȺȾɊɍɄɈȼȺɇɈȼɊȺɆɄȺɏɉɊɈȿɄɌɍȾȱȺɅɈȽəɄɂɃɋɉȱɅɖɇɈȼɉɊɈȼȺȾɀɍȯɌɖɋəȺȽȿɇɌɋɌȼɈɆɋɒȺɁɆȱɀɇȺɊɈȾɇɈȽɈɊɈɁȼɂɌɄɍ 86$,' ɌȺȺɋɈɐȱȺɐȱȯɘɆȱɋɌɍɄɊȺȲɇɂ to support the reform and to visit the web-sites to learn more about decentralisation. The print run of these posters was disseminated to Off ices for Reform Implementation Support, 2 thousand libraries (with the assistance of the USAID IREX Bibliomist Program), and to the Regional Off ices of the Association of Ukrainian Cities.

Info graphics: telling about reforms in a simple and user-friendly way

During the last year of its implementation, the DIALOGUE Project continued to provide consultative and methodological support for implementation of reforms. The Project info graphics was a new product, the DIALOGUE Project began to prepare in this time.

Info graphics is a graphical visual presentation of the information, data or expertise aimed at providing quick and clear interpretation of complicated information. DIALOGUE 53

The DIALOGUE Project decided to introduce this tool as the one, which is capable of improving the perception of the information. The info graphics provides opportunities to understand the content of expert materials and can used as a universal product for all targeted audiences. Most useful was the info graphics in explaining the essence of dra laws to National Deputies of Ukraine. In 2015, the DIALOGUE Project presented a series of info graphics materials dedicated to various aspects and technical areas decentralisation was involved in: • The “DECENTRALISATION: telling a simple and user-friendly story about reforms” info graphics provides answers to the following questions: Why is decentralisation needed?, What does a capable territorial community look like?, What authority will local governments in consolidated communities receive?, and What revenues will they have? The info graphics also show how oblasts and rayons will look like a er the reform, as well as the algorithms for community consolidation. The info graphics materials was distributed to participants of the meeting with mayors of rayon signifi cance cities (February 13, 2015) and the meeting with mayors of towns and villages (February 19, 2015), it was used in presentations of AUC experts, as well as disseminated through the following information resources: AUC web-site, AUC Herald, AUC Facebook account, media and other Internet-based resources. • The “Achievements of inter-budget relations reform” info graphics explains the essence and benefi ts territorial communities will receive from amendments to the tax and budget legislation approved by the parliament. The info graphics materials, which were placed on the AUC web-site was repeatedly used in presentations of AUC experts, at joint working meetings with government off icials and National Deputies, and in media.

Info graphics presentation of dra legislation

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) • The “New provisions of the new legislation on local elections in ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ ОСОБЛИВОСТІ МІСЦЕВИХ ВИБОРІВ 2015 (ПРОЕКТ ДІАЛОГ)

ВИБОРЧИЙ ПРОЦЕС ОСОБЛИВОСТІ МІСЦЕВИХ ВИБОРІВ 2 2015” info graphics provides an illustrative explanation of the new provisions

Висування кандидатів у депутати Реєстрація кандидатів Виборча агітація

Декларація про доходи ПІДБИТТЯАгітацію за себе ПІДСУМКІВі за партію ВИБОРІВ МІСЦЕВИХ РАД, Подають всі ДЕведе ПРОВОДИЛИСЯ кожен кандидат, включе ВИБОРИ ЗА СПИСКАМИ кандидати на ний до партійного списку, в of the Law of Ukraine “On Local Elections”, in particular: system of elections посади голів і окрузі, за яким він закріплени Виборчі списки Блоки партій не депутатів місцевих ОКРУЖНІ визначають та повідомляють до територіальної комісіїк формують лише передбачені рад за кожну партію в окрузі, та відсоток голосів, набраних к партії ВИБОРЧІ КОМІСІЇ Грошова застава був закріплений за даним округом Виборча агітація з бюджетни коштів не фінансується Кандидати на посади голів of community mayors and local council members, peculiarities of nominating Кількість осіб однієї статі у кожному вносять самостійно партійному списку не менше 30% За кандидатів у 1. визначає відсоток голосів, набраних кожною партією н депутати місцевих міста, району, області рад з партійних Виборчі бюлетені ТЕРИТОРІАЛЬНА 2. визначає партії, що набрали понад 5% голосів та беру списків вносить депутатських мандатів партія Бюлетень з виборів за спискам У партійному списку місце закріплюється ВИБОРЧА КОМІСІЯ 3. визначає кількість депутатських мандатів, які отримує and registration of candidates, formation of voting ballot, vote tabulation, лише за кандидатом, який очолює цей партій, що беруть участь у дан список. Прізвища решти кандидатів розта- Для кандидатів у За назвою кожної партії в то від набраних нею голосів шовуються за алфавітом депутати селищ- вказане прізвище кандидата, 4. розташовує прізвища кандидатів у списках партій, що них, сільських рад список, та кандидата, що зак бар’єр, згідно з відсотками голосів, набраних кандидата не передбачено даним округом 5. визначає список кандидатів від кожної партії, що отрим Важливі дати Списки затверджуються центральним appealing the outcomes of the elections, and recalling local councils members органом відповідної партії З 21 вересня Висування кандидатів у депутати, на посаду с селищного, міського голови До 30 вересня включно ПоданняОСКАРЖЕННЯ до ТВК документів для реєстрації РЕЗУЛЬТАТІВ кан ВИБОРІВ До 1 жовтня включно Прийняття рішення про реєстрацію кандидат в реєстрації Кандидати до сільських і селищних рад Рішення територіальної виборчої висуваються місцевими організаціями До 9 жовтня включно Утворення дільничних виборчих комісій and mayors. The info graphics materials were placed in the AUC web- партій або через самовисування комісії може бути оскаржено до До 22 жовтня включно Передача уточненого списку виборців на папе Позо ДВКі адміністративного суду за місцем судом 5-денний Голосування розміщення комісії в Не раніше 22 жовтня Передача ДВК виборчих бюлетенів длятермін голосу від прийняття рішення. До 24 години 23 жовтня Завершення передвиборної агітації 25 жовтня з 8 до 20 години ГолосуванняСуди працюють в т.ч. у вихідні дні та в день голосування, щоб забезпечити прийом site, distributed to Off ices for Reform Implementation Support and media та скарг у строки, встановлені Кодексом адміністративного судочинства України. representatives, and placed on the AUC Facebook account (more than six

thousand users used this information during the fi rst days a er it was placed in ЗАКОНОПРОЕКТ «ПРО МУНІЦИПАЛЬНУ ВАРТУ» №2890

ПРИЙНЯТИЙ ПАРЛАМЕНТОМ У ПЕРШОМУ ЧИТАННІ 21.05.2015 ЗАКОНОПРОЕКТ РОЗРОБЛЕНИЙ ЗА УЧАСТІ АСОЦІАЦІІЇ МІСТ УКРАЇНИ the web-site). МУНІЦИПАЛЬНА ВАРТА це не новий правоохороний орган, а виконавчий орган в системі місцевого самоврядування, що створюється місцевою радою з метою сприяння • The “Dra law on the municipal guard. Registration # 2984” info виконанню рішень органів місцевого самоврядування, забезпечення охорони громадського порядку, законності, прав, свобод і законних інтересів громадян на території юрисдикції відповідної ради у взаємодії з поліцією.

СТВОРЮЄТЬСЯ ФІНАНСУЄТЬСЯ СТРУКТУРА graphics provides explanations of the main tasks and principles of activities of за рішенням місцевої ради: місцева рада затверджує: В містах обласного та 3 3за кошти 3чисельність - не більше республіканського значення місцевого 10 службовців на 10 тис. жителів 3В Києві та Севастополі бюджету new local government bodies – the municipal guard – in the system of local self- 3В об’єднаних територіальних 3керівника мв за результатами громадах конкурсу

КОНТРОЛЬ: 3публічне звітування (раз на півроку) governance. Te info graphics materials state that this dra law was prepared with 3висловлення недовіри місцевою радою керівнику муніципальної варти 3при загрозі національній безпеці - тимчасове призупинення діяльності муніципальної варти за рішенням рнбоу Проект Закону про внесення змін до Розділу ІI "Прикінцеві та перехідні 3при неналежному виконанні повноважень - ліквідація муніципальної варти положення" Закону України "Про внесення змін до деяких законодавчих за рішенням місцевої ради актів України щодо розмежування земель державної та комунальної the participation of the AUC Center for Analysis and власності" щодо розмежування земель на територіях об'єднаних територіальних громад (№ 3510 від 24.11.2015) ɈɋɇɈȼɇȱɁȺȼȾȺɇɇə

Автори законопроекту № 3510: народні депутати М. Федорук та О. Бойко 3ɋɉɊɂəɇɇə ȼɂɄɈɇȺɇɇɘ Ɋȱɒȿɇɖ ɈɊȽȺɇȱȼ ɆȱɋɐȿȼɈȽɈ ɋȺɆɈȼɊəȾɍȼȺɇɇə (Ɂ ɉɂɌȺɇɖ ɁȺȻɍȾɈȼɂ, ɄɈɊɂɋɌɍȼȺɇɇə ɁȿɆȿɅɖɇɂɆɂ ȾȱɅəɇɄȺɆɂ, ɑɂɋɌɈɌɂ, Legislation Dra ing. These info graphics materials were ɉɊɂɊɈȾɈɄɈɊɂɋɌɍȼȺɇɇə ɌɈɓɈ) МЕТА: 3ȼɂɄɈɇȺɇɇə ɈɄɊȿɆɂɏ ȺȾɆȱɇȱɋɌɊȺɌɂȼɇɂɏ ɋɌəȽɇȿɇɖ (ɁȺ ɉɈɊɍɒȿɇɇə ɉɊȺȼɂɅ 3підтримка добровільного об’єднання територіальних громад ȻɅȺȽɈɍɋɌɊɈɘ, ɌɈɊȽȱȼɅȱ, ɉȺɊɄɍȼȺɇɇə ɌɈɓɈ) 3формування органів місцевого самоврядування спроможних до виконання 3ɈɏɈɊɈɇȺ ȽɊɈɆȺȾɋɖɄɈȽɈ ɉɈɊəȾɄɍ наданих ним повноважень disseminated to National Deputies who are members 3ɉɊɈɎȱɅȺɄɌɂɄȺ ɉɊȺȼɈɉɈɊɍɒȿɇɖ 3надання органам місцевого самоврядування об’єднаних громад реальних 3ɈɏɈɊɈɇȺ ɄɈɆɍɇȺɅɖɇɈȽɈ ɆȺɃɇȺ повноважень розпоряджатися земельними ділянками за межами населених ɇȺȾȺɇɇə ɉɊȺȼɈȼɈȲ ȾɈɉɈɆɈȽɂ ȽɊɈɆȺȾəɇȺɆ ɌȺ ɈɆɋ пунктів, що дозволить їм чітко і прозоро формувати дохідну частину місцевих 3 бюджетів від плати за землю of the Inter-Faction Local Government Support Group, 3ȱɇɎɈɊɆɍȼȺɇɇə ɈɊȽȺɇȱȼ ɉɈɅȱɐȱȲ ɉɊɈ ȼɂəȼɅȿɇȱ ɄɊɂɆȱɇȺɅɖɇȱ ɉɊȺȼɈɉɈɊɍɒȿɇɇə ЗАКОНОПРОЕКТ ПЕРЕДБАЧАЄ:

3поширення юрисдикції органів місцевого самоврядування об’єднаних територіальних громад на всю територію таких громад підрозділи муніципальної варти не входитимуть до структури підрозділів національної поліції, а сприятимуть у виконанні їх завдань. 3передачу з державної власності до комунальної власності media, and to Off ices for Reform Implementation земель в межах території об’єднаних територіальних громад ВІДНОСЯТЬСЯ ДО КОМУНАЛЬНОЇ ВЛАСНОСТІ: Support. усі землі за межами населених пунктів в межах територій об’єднаних територіальних громад, що створюються згідно із законом та перспективним планом формування територій громад • The “Dra Law of Ukraine # 3510 concerning delineation of lands on

НЕ ВІДНОСЯТЬСЯ ДО КОМУНАЛЬНОЇ ВЛАСНОСТІ ЗЕМЛІ:

на яких розташовані будівлі, споруди, інші приватної власності territories of consolidated communities” об’єкти нерухомого майна державної власності info graphics explains the essence

які перебувають у постійному користуванні органів державної влади, державних підприємств, установ, організацій, Національної академії наук України, державних галузевих академій наук and purpose of the dra law and delivers a clear message about what land parcels

які належать до земель оборони

зон відчуження та безумовного (обов’язкового) відселення, що зазнали радіоактивного belong and what land parcels do not belong to communally-owned lands. The забруднення внаслідок Чорнобильської катастрофи 54 PROJECT PROGRESS REPORT

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ)

ǽǾǼdzǸȀ ǵǮǸǼǻȁ Ɋ3106 «ǽǾǼ ǰǻdzǿdzǻǻȍ ǵǺǥǻ DzǼ DzdzȍǸǶȃ ǵǮǸǼǻǥǰ ȁǸǾǮǦǻǶ ȇǼDzǼ ǼǿǼǯǹǶǰǼǿȀdzǷ DzdzǾǴǮǰǻǼǦ ǾdzǣǿȀǾǮȄǥǦ ǼǾDZǮǻǥǰ ǺǥǿȄdzǰǼDZǼ ǿǮǺǼǰǾȍDzȁǰǮǻǻȍ ȍǸ ȌǾǶDzǶȅǻǶȃ Ǽǿǥǯ» info graphics materials were distributed to National Deputies who are ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) ǰǾdzDZȁǹȊǼǰȁǣ ǺdzȃǮǻǥǵǺǶ ǿȘȜȞȜȥȓțțȭ ǽǾǼdzǸȀǼȀDZ ǵǮǸǼǻȁ – Ȝȏ’ȱȒțȎțȎ Ɋ 3106 «ǽǾǼ ǰǻdzǿdzǻǻȍ ǵǺǥǻ DzǼ DzdzȍǸǶȃ ǵǮǸǼǻǥǰ ȁǸǾǮǦǻǶȠȓȞȖȠȜȞȳȎșȪțȎ ȇǼDzǼ ǼǿǼǯǹǶǰǼǿȀdzǷ ȑȞȜȚȎȒȎ DzdzǾǴǮǰǻǼǦ ǾdzǣǿȀǾǮȄǥǦ ǼǾDZǮǻǥǰ ȝȓȞȓȞȓȱȟȠȞȎȤȳȴ ȭȘ ȬȞȖȒȖȥțȖȣ Ȝȟȳȏ ǼǺǿ – ȜȞȑȎț ȚȳȟȤȓȐȜȑȜ members of the Inter-Faction Local Government Support Group with ǺǥǿȄdzǰǼDZǼ ǿǮǺǼǰǾȍDzȁǰǮǻǻȍ ȍǸ ȌǾǶDzǶȅǻǶȃ Ǽǿǥǯ» 318 ȟȳșȪȟȪȘȖȣ, ȟȓșȖȧțȖȣ, ȚȳȟȪȘȖȣ ȞȎȒ ȟȎȚȜȐȞȭȒȡȐȎțțȭ «ȟȠȎȞȖȗ» ȏȬȒȔȓȠ – ǼȀDZ ȠȎ ȴȣ ȐȖȘȜțȎȐȥȖȣ ȘȜȚȳȠȓȠȳȐ ȏȬȒȔȓȠ ȚȳȟȤȓȐȜȴ ȞȎȒȖ ǯȌDzǴdzȀǶȒȜ Ȝȏ ’ǼȀDZȱȒțȎțțȭ ȄǸȁ – ȄȖȐȳșȪțȖȗ ȘȜȒȓȘȟ ǻȜȐȖȗȁȘȞȎȴțȖ ȑȜșȜȐȎ ǼȀDZ ȟȠȎȱ ȞȜȕȝȜȞȭȒțȖȘȜȚ – ȝȞȖȝȖțȓțțȭ ȭȘ ȬȞȖȒȖȥțȖȣ Ȝȟȳȏ «ȟȠȎȞȖȣǯǸȁ ǯȬȒȔȓȠțȖȗ» ȏȬȒȔȓȠȳȐȘȜȒȓȘȟ țȎ ȥȎȟ ȴȣ ȐȖȘȜțȎțțȭ ǻȜȐȳ OMC ǼȀDZ ȡȠȞȖȚȡȬȠȪȟȭ ȁȘȞȎȴțȖ the purpose of garnering their support for the corresponding dra law. ȏșȖȕȪȘȜ 1200 ȟȳșȪȟȪȘȖȣ, ȟȓșȖȧțȖȣ, ȒȜ ȕȎȠȐȓȞȒȔȓțțȭ ȏȬȒȔȓȠȡ ǼȀDZ. ȕȎ ȞȎȣȡțȜȘ ȏȬȒȔȓȠȡ, ȕȎȠȐȓȞȒȔȓțȜȑȜ «ȟȠȎȞȜȬ» ȞȎȒȜȬ. ȚȳȟȪȘȖȣ ȞȎȒ ȠȎ ȴȣ ȐȖȘȜțȎȐȥȖȣ ȘȜȚȳȠȓȠȳȐ. ǰȖȞȳȦȓțțȭ ȝȜȠȞȓȏȡȐȎȠȖȚȡȠȪ șȖȦȓ ȐȖȒȎȠȘȖ țȎ ȡȠȞȖȚȎțțȭ ȟȠȎȞȜȟȠ. ǾȎȒȎ ǼȀDZ ȚȜȔȓ ȐțȜȟȖȠȖ ȕȚȳțȖ ȒȜ

ǽdzǾdzDzǯǮȅǮǣ ȞȳȦȓțȪ ȝȞȜ ȚȳȟȤȓȐȳ ȏȬȒȔȓȠȖ ȡȟȳȣ ȞȎȒ ȒȜ Ȝȏ’ȱȒțȎțțȭ ȕȎ țȓȜȏȣȳȒțȜȟȠȳ. ǿȠȎșȓ ȢȳțȎțȟȡȐȎțțȭ ȐȖȒȎȠȘȳȐ • The ”Dra Law of Ukraine # 3106 concerning the peculiarities DZǼǹǼǰǻǮ 3106 țȎ ȢȡțȘȤȳȜțȡȐȎțțȭ ȠȎ ȜȝșȎȠȡ Ɋ ǽȓȞȓȒȏȎȥȎȱȠȪȟȭ ȝȜȦȖȞȓțțȭ țȜȞȚ ȝȞȎȤȳ țȜȐȜȜȏȞȎțȖȣ ȝȜȟȎȒȜȐȖȣ ȕȎȏȓȕȝȓȥȖȠȖ ȏȓȕȝȓȞȓȞȐțȳȟȠȪ ȞȓȎșȳȕȎȤȳȴ ȝȡȏșȳȥțȜȴ ȐșȎȒȖ țȎ ǺdzȀǮ ȟȠ. 41, 79 ǯǸȁ țȎ «ȟȠȎȞȳ» ȏȬȒȔȓȠȖ ȡ Ȝȟȳȏ ǼȀDZ ȞȳȐțȳ ȚȳȟȤȓȐȜȑȜ ȟȎȚȜȐȞȭȒȡȐȎțțȭ ȡ 159 Ȝȏ’ȱȒțȎțȖȣ2016 ȞȜȤȳ ȠȓȞȖ ȡ ȐȖȝȎȒȘȎȣ- țȓȟȐȜȱȥȎȟțȜȑȜ ȕȎȠȐȓȞȒȔȓțțȭ «țȜȐȜȑȜ» ȚȳȟȤȓȐȜȑȜ ȠȜȞȳȎșȪțȖȣ ȑȞȜȚȎȒȎȣ, ȡ ȭȘȖȣ 25 ȔȜȐȠțȭ 2015 ȞȜȘȡȏȬȒȔȓȠȡ ȐȳȒȏȡșȖȟȭ. ȝȓȞȦȳ ȚȳȟȤȓȐȳ ȐȖȏȜȞȖ. of the state registration of local government bodies as legal ȅȖțțȓ ȕȎȘȜțȜȒȎȐȟȠȐȜ țȓ ȐȖȕțȎȥȎȱ ȞȜȕȝȜȞȭȒțȖȘȎ «ȟȠȎȞȖȚȖ» ȏȬȒȔȓȠȎȚȖ, ȍȘȧȜ Ɋ3106 ȧȜ ȚȜȔȓ ȝȞȖȕȐȓȟȠȖ ȒȜ ȴȣ țȓ ȐȖȘȜțȎțțȭ. DzȜ ȝȞȖȗțȭȠȠȭ țȜȐȖȣ ȏȬȒȔȓȠȳȐ ǼȀDZ țȓ ȏȡȒȓ ȝȞȖȗțȭȠȜ ȐȖȒȎȠȘȖ ȕ ȚȳȟȤȓȐȖȣ ȏȬȒȔȓȠȳȐ ȏȡȒȡȠȪ ȕȎȏșȜȘȜȐȎțȳ (ȕȜȘȞȓȚȎ, țȎ ȐȖȝșȎȠȡ ǾdzǼǾDZǮǻǥǵǮȄǥȍ ȆǹȍȃǼǺ ǽǾǶǣDzǻǮǻǻȍ ǵǮǸǼǻǼǽǾǼdzǸȀ ȕȎȞȜȏȳȠțȜȴ ȝșȎȠȖ). ǰȟȳ ȚȳȟȤȓȐȳ ȞȎȒȖ ȠȎ ȴȣ ȐȖȘȜțȎȐȥȳ ȘȜȚȳȠȓȠȖ ȝȞȖȱȒțȡȬȠȪȟȭ ȒȜ ȚȳȟȤȓ- ȐȜȴ ȞȎȒȖ ȠȎ ȴȴ ȐȖȘȜțȎȐȥȜȑȜ ȘȜȚȳȠȓȠȡ, ȧȜ ȕțȎȣȜȒȭȠȪȟȭ ȡ ȎȒȚȳțȳȟȠȞȎ- persons” ǽǾǮǰǼǻǮǿȀȁǽǻǥǿȀȊ ǸǼǺȁǻǮǹȊǻǼǦ ǰǹǮǿǻǼǿȀǥ info graphics presents the suggestions of this dra law, which ȠȖȐțȜȚȡ ȤȓțȠȞȳ ǼȀDZ ǼȀDZ ȱ ȝȞȎȐȜțȎȟȠȡȝțȖȤȓȬ ȐȟȪȜȑȜ ȚȎȗțȎ, ȝȞȎȐ ȠȎ ȜȏȜȐ’ȭȕȘȳȐ ȠȓȞȖȠȜȞȳȎșȪțȖȣ

ǽdzǾdzDzǯǮȅǮǣ ȑȞȜȚȎȒ, ȧȜ ȐȐȳȗȦșȖ ȒȜ ȴȴ ȟȘșȎȒȡ, Ȑ ȠȜȚȡ ȥȖȟșȳ ȝȞȎȐȎ ȕȎȟțȜȐțȖȘȎ ȘȜȚȡțȎșȪțȖȣ ȞȜȕȝȜȥȖțȎȱȠȪȟȭ ȡ ȟȖșȡȝȳȒȝȞȖȱȚȟȠȐ ȠȎ ȏȬȒȔȓȠțȖȣ ȡȟȠȎțȜȐ, ȝȞȎȐȎ ȠȎ ȜȏȜȐ’ȭȕȘȖ țȎ ȞȎțȳȦȓ ȡȘșȎȒȓțȳ ȕȎȏȓȕȝȓȥȡȱ ȕȎȘȜțȡ ȝȳȟșȭ țȎȏȡȠȠȭȒȜȑȜȐȜȞȖ :

3106 ȝȞȎȐȜțȎȟȠȡȝțȖȤȠȐȜ ȝȜȐțȜȐȎȔȓțȪ ȚȳȟȤȓȐȎ ȞȎȒȎ ȠȎ ȐȖȘȜțȎȐȥȖȗ ȘȜȚȳȠȓȠ ǼȀDZ ȱ ȝȞȎȐȜțȎȟȠȡȝțȖȘȎȚȖ ȝȞȎȐ țȜȐȜȜȏȞȎțȜȴ ȞȎȒȖ ȝȞȜȤȓȟȜȚ Ɋ

’ « » ȠȎ ȜȏȜȐ ȭȕȘȳȐ Ȑȟȳȣ ȟȠȎȞȖȣ ȞȎȒ ȠȎ ȐȖȘȜțȎȐȥȖȣ ȘȜȚȳȠȓȠȳȐ was prepared by the DIALOGUE Project, on legislative regulation of the ȞȓȜȞȑȎțȳȕȎȤȳȴ ȘȓȞȡȱ țȜȐȖȗ ȕȎȏȓȕȝȓȥȡȱȠȪȟȭǽdzǾdzDzǯǮȅǮǣ ȑȜșȜȐȎȅȖțțȖȚ ǼȀDZ ȕȎȘȜțȜȒȎȐȟȠȐȜȚ țȓ ȐȞȓȑȡșȪȜȐȎțȎ ȝȞȎȐȜȐȎ ȒȜșȭ ȟȠȐȜȞȓțȖȣ «ȟȠȎȞȖ- ȝȞȜȟȠȎ, ȦȐȖȒȘȎ, ȟȖțȣȞȜțțȳȟȠȪ ȕ ȍȘȧȜ Ɋ3106 ȚȖ» ȞȎȒȎȚȖ ȘȜȚȡțȎșȪțȖȣ ȝȳȒȝȞȖȱȚȟȠȐ ȠȎ ȏȬȒȔȓȠțȖȣ ȡȟȠȎțȜȐ. ȍȘȧȜ ǼȀDZ țȓ ȠȎ ȬȞȖȒȖȥțȜ țȎȏȡȠȠȭȚ ȝȜȐțȜȐȎȔȓțȪ țȓ ȏȡȒȓ ȝȞȖȗțȭȠȜ ȟȠȎțȓ ȝȞȎȐȜțȎȟȠȡȝțȖȤȓȬ - Ȑȟȳ țȜȐȳ ȞȳȦȓțțȭ ȧȜȒȜ ȘȜȚȡțȎșȪțȜȴ ȐșȎȟțȜȟȠȳ ȒȜȟȘȜțȎșȎ țȜȐȖȚȖ ȞȎȒȎȚȖ3106 ȠȎ ȝȞȜȤȓȒȡȞȎ ȚȜȔȡȠȪ ȏȡȠȖ ȟȘȎȟȜȐȎțȳ ȟȡȒȜȚ.

ȏȬȒȔȓȠțȖȚ ȝȞȜȤȓȟȜȚɊ transitional period of community consolidation. The materials provide

ǵǮǸǼǻǼǽǾǼdzǸȀ ǿȀǮǹǥǿȀȊ ȀǮ ǯdzǵǽdzǾdzǾǰǻǥǿȀȊ ǼǺǿ ȍȘȧȜ Ɋ3106 ȅȖțțȓ ȕȎȘȜțȜȒȎȐȟȠȐȜ ȝȓȞȓȒȏȎȥȎȱ ȟȘșȎȒțȡ ȝȞȜȤȓȒȡȞȡ șȳȘȐȳȒȎȤȳȴ ǼǺǿ, 3 . țȓ ȏȡȒȓ ȝȞȖȗțȭȠȜ ȭȘȎ țȓ ȝȓȞȓȒȏȎȥȎȱ ȝȞȎȐȜțȎȟȠȡȝțȖȤȠȐȎ ȳ ȠȞȖȐȎȱ ȧȜțȎȗȚȓțȦȓǽȓȞȓȣȳȒțȎȚȳȟȭȤȳ țȜȞȚȎ, ȭȘȎ ȕȎȏȓȕȝȓȥȖȠȪ ǽȜȐțȜȐȎȔȓțțȭ «ȟȠȎȞȖȣ» ȐȖȘȜțȘȜȚȳȐ ȒȳȬ «ȟȠȎȞȖȣ» ȞȳȦȓțȪ ȧȜȒȜ ȕȏȓȞȳȑȎȬȠȪȟȭ ȒȜ ȟȢȜȞȚȡȐȎțțȭ ȐȳȒȝȜȐȳȒțȖȣ ȠȓȞȖȠȜȞȳȗ ȠȎ Ȝȟȳȏ ȝȓȞȟȜțȎșȪțȜȑȜ ȟȘșȎȒȡ «țȜȐȜȑȜ»

ǵǮǸǼǻǼǽǾǼdzǸȀ clarifi cations on the mechanisms of reorganisation, implementation ȒȜ ȚȜȚȓțȠȡ ȝȞȖȗțȭȠȠȭ țȜȐȖȣ. ȐȖȘȜțȎȐȥȜȑȜ ȘȜȚȳȠȓȠȡ.

ȁȟȳ ȞȎțȳȦȓ ȝȞȖȗțȭȠȳ ȞȳȦȓțțȭ ȚȳȟȤȓȐȖȣ ȞȎȒ ȐȠȞȎȠȭȠȪ ȥȖțțȳȟȠȪ ȡ ȕȐ’ȭȕȘȡ ȕ ȴȣ ȍȘȧȜ Ɋ3106 șȳȘȐȳȒȎȤȳȱȬ. ǰȖțȖȘțȓ țȓȜȏȣȳȒțȳȟȠȪ ȝȓȞȓȡȘșȎȒȓțțȭ Ȑȟȳȣ ȒȜȑȜȐȜȞȳȐ. DzȜ ȢȜȞ- țȓ ȏȡȒȓ ȝȞȖȗțȭȠȜ ȚȡȐȎțțȭ țȜȐȜȑȜ ȐȖȘȜțȎȐȥȜȑȜ ȘȜȚȳȠȓȠȡ ȞȓȎșȪțȜȴ ȚȜȔșȖȐȜȟȠȳ ȕȒȳȗȟțȓțțȭ ȐȖȘȜțȎȐȥȜȴ ȒȳȭșȪțȜȟȠȳ țȓ ȏȡȒȓ. of budgets in consolidated territorial communities, and mechanisms to ensure the legal succession with regard to communally-owned property. These materials were distributed to National Deputies who are members of the Inter-Faction Local Government Support Group, media, and to Off ices for Reform Implementation Support. The info graphics on the Dra; Law of Ukraine # 3106, which was approved on the decentralisation day in the Verkhovna Rada of Ukraine on November 26, was distributed to National Deputies right in the session hall.

ȻɘȾɀȿɌɇȺȾȿɐȿɇɌɊȺɅȱɁȺɐȱəɄɊɈɄȼɉȿɊȿȾȾȼȺɇȺɁȺȾ ɝɪɭɞɧɹɪɨɤɭɍɪɹɞɜɧɿɫɞɨɉɚɪɥɚɦɟɧɬɭɡɚɤɨɧɨɩɪɨɟɤɬɢ ɉɊɂɊȱɋɌȾɈɏɈȾȱȼ ɆȱɋɐȿȼɂɏȻɘȾɀȿɌȱȼ • The «Budget innovations in 2016: one step forward and two 3 ©ɉɪɨȾɟɪɠɚɜɧɢɣɛɸɞɠɟɬɍɤɪɚʀɧɢɧɚɪɿɤª ʋ ɆɅɊȾȽɊɇ 3©ɉɪɨɜɧɟɫɟɧɧɹɡɦɿɧɞɨɞɟɹɤɢɯɡɚɤɨɧɨɞɚɜɱɢɯɚɤɬɿɜɍɤɪɚʀɧɢ ɳɨɞɨɫɬɚɛɿɥɿɡɚɰɿʀɮɿɧɚɧɫɨɜɨɝɨɫɬɚɧɭɞɟɪɠɚɜɢɬɚɭɞɨɫɤɨɧɚɥɟɧɧɹɨɤɪɟɦɢɯɩɨɥɨɠɟɧɶɫɨɰɿɚɥɶɧɨʀɩɨɥɿɬɢɤɢ ª ʋ 3©ɉɪɨɜɧɟɫɟɧɧɹɡɦɿɧɞɨȻɸɞɠɟɬɧɨɝɨɤɨɞɟɤɫɭɍɤɪɚʀɧɢ ɳɨɞɨɭɡɝɨɞɠɟɧɧɹɧɨɪɦȻɸɞɠɟɬɧɨɝɨɤɨɞɟɤɫɭɡɿɡɦɿɧɚɦɢɞɨɝɚɥɭɡɟɜɨɝɨɬɚɩɨɞɚɬɤɨɜɨɝɨɡɚɤɨɧɨɞɚɜɫɬɜɚª ʋ 3©ɉɪɨɫɬɜɨɪɟɧɧɹɤɨɧɤɭɪɟɧɬɧɢɯɭɦɨɜɜɨɩɨɞɚɬɤɭɜɚɧɧɿɬɚɫɬɢɦɭɥɸɜɚɧɧɹɟɤɨɧɨɦɿɱɧɨʀɞɿɹɥɶɧɨɫɬɿɜɍɤɪɚʀɧɿª ʋ  ɦɿɫɹɰɿɜ 3©ɉɪɨɜɧɟɫɟɧɧɹɡɦɿɧɞɨɞɟɹɤɢɯɡɚɤɨɧɨɞɚɜɱɢɯɚɤɬɿɜɍɤɪɚʀɧɢɭɡɜ ɹɡɤɭɡɩɪɢɣɧɹɬɬɹɦɁɚɤɨɧɭɍɤɪɚʀɧɢ©ɉɪɨɫɬɜɨɪɟɧɧɹɤɨɧɤɭɪɟɧɬɧɢɯɭɦɨɜɜɨɩɨɞɚɬɤɭɜɚɧɧɿɬɚɫɬɢɦɭɥɸɜɚɧɧɹɟɤɨɧɨɦɿɱɧɨʀ ɪɿɤ ɞɿɹɥɶɧɨɫɬɿɜɍɤɪɚʀɧɿªª ʋ  steps back» info graphics off ers an overview of the budget suff iciency ɁȺɉɊɈɉɈɇɈȼȺɇȱɍɊəȾɈɆɁɆȱɇɂȼɎȱɇȺɇɋɈȼɈɆɍɁȺȻȿɁɉȿɑȿɇɇȱɌȿɊɂɌɈɊȱȺɅɖɇɂɏȽɊɈɆȺȾɇȺɊȱɄɇȱȼȿɅɘɘɌɖ ɪɿɤ ȻɘȾɀȿɌɇɍȾȿɐȿɇɌɊȺɅȱɁȺɐȱɘɐȿɇɌɊȺɅȱɁɍɘɌɖȼɂȾȺɌɄɂɌȺɋɌȼɈɊɘɘɌɖȾɈȾȺɌɄɈȼȿɇȺȼȺɇɌȺɀȿɇɇəɇȺɆȱɋɐȿȼȱȻɘȾɀȿɌɂ

ɁɆȿɇɒȿɇɇəȾɈɏɈȾȱȼ ɐȿɇɌɊȺɅȱɁȺɐȱəɍɉɊȺȼɅȱɇɇə ɆȱɋɐȿȼɂɏȻɘȾɀȿɌȱȼ ȻɘȾɀȿɌɈɆ of territorial communities 2016 and potential losses of local government [ɧɟɞɨɮɿɧɚɧɫɭɜɚɧɧɹɫɭɛɜɟɧɰɿɣɦɥɪɞɝɪɧ ɨɫɜɿɬɧɹɦɥɪɞɝɪɧ [ɍɪɹɞɧɚɜɥɚɫɧɢɣɪɨɡɫɭɞɜɢɤɨɪɢɫɬɨɜɭɜɭɽɡɚɥɢɲɤɢɨɫɜɿɬɧɶɨʀɫɭɛɜɟɧɰɿʀ ɦɟɞɢɱɧɚ±ɦɥɪɞɝɪɧ [ɍɪɹɞ©ɜɪɭɱɧɨɦɭɪɟɠɢɦɿªɱɟɪɟɡɫɭɛɜɟɧɰɿɸɜɢɡɧɚɱɚɽɩɟɪɟɥɿɤɡɚɤɥɚɞɿɜɩɟɪɜɢɧ [ɫɤɚɫɭɜɚɧɧɹɫɭɛɜɟɧɰɿɣ ɧɨʀɦɟɞɢɱɧɨʀɞɨɩɨɦɨɝɢ  ɦɟɞɢɱɧɢɯɞɟɪɠɩɪɨɝɪɚɦɦɥɪɞɝɪɧ [Ⱦɟɪɠɤɚɡɧɚɱɟɣɫɬɜɨɡɚɥɭɱɚɽɤɨɲɬɢɦɿɫɰɟɜɢɯɛɸɞɠɟɬɿɜɞɥɹɩɿɞɬɪɢɦɤɢɮɨɧɞɿɜ  ɩɿɥɶɝɨɜɨɝɨɩɟɪɟɜɟɡɟɧɧɹɦɥɪɞɝɪɧ ɞɟɪɠɚɜɧɨɝɨɫɨɰɿɚɥɶɧɨɝɨɫɬɪɚɯɭɜɚɧɧɹ  ɧɚɩɨɝɚɲɟɧɧɧɹɪɿɡɧɢɰɿɜɬɚɪɢɮɚɯɦɥɪɞɝɪɧ ɈɄɊȱɆɌɈȽɈ [ɩɟɪɟɪɨɡɩɨɞɿɥɽɞɢɧɨɝɨɩɨɞɚɬɤɭɿɡɦɟɧɲɟɧɧɹɣɨɝɨɩɨɞɚɬɤɨɜɨʀɛɚɡɢɦɥɪɞɝɪɧ budgets in the context of fi scal initiatives the Cabinet of Ministers [ɩɟɪɟɞɚɱɚɧɚɨɪɝɚɧɢɦɿɫɰɟɜɨɝɨɫɚɦɨɜɪɹɞɭɜɚɧɧɹɨɛɨɜ¶ɹɡɤɭɞɟɪɠɚɜɢɮɿɧɚɧɫɭɜɚ [ɤɨɦɩɟɧɫɚɰɿɹɦɚɥɨɦɭɛɿɡɧɟɫɭɜɚɪɬɨɫɬɿɤɚɫɨɜɢɯɚɩɚɪɚɬɿɜɦɥɪɞɝɪɧ ɬɢɧɢɡɤɭɫɨɰɿɚɥɶɧɢɯɩɿɥɶɝ [ ɜɿɞɫɭɬɧɹɤɨɦɩɟɧɫɚɰɿɹɜɬɪɚɬɞɨɯɨɞɿɜɦɿɫɰɟɜɢɯɛɸɞɠɟɬɿɜɜɧɚɫɥɿɞɨɤɧɚɞɚɧɧɹ [ɮɿɧɚɧɫɭɜɚɧɧɹɞɟɥɟɝɨɜɚɧɢɯɩɨɜɧɨɜɚɠɟɧɶɧɟɡɚɛɟɡɩɟɱɟɧɨɧɚɨɫɤɿɥɶɤɢ ɞɟɪɠɚɜɨɸɩɿɥɶɝɩɨɦɿɫɰɟɜɢɦɩɨɞɚɬɤɚɦ ɍɪɹɞɧɟɪɨɡɪɨɛɢɜɮɿɧɚɧɫɨɜɿɧɨɪɦɚɬɢɜɢɩɨɝɚɥɭɡɹɦɛɸɞɠɟɬɧɨʀɫɮɟɪɢ [ɧɨɜɿɩɪɚɜɢɥɚɦɿɫɰɟɜɨɝɨɨɩɨɞɚɬɤɭɜɚɧɧɹɳɨɜɜɨɞɹɬɶɫɹɡɦɨɠɧɚ ȾɈȾȺɌɄɈȼȱɉɈȼɇɈȼȺɀȿɇɇə ɛɭɞɟɡɚɩɪɨɜɚɞɢɬɢɥɢɲɟɡɪɨɤɭ suggested in December of 2015. These materials were distributed to ȻȿɁɁȺȻȿɁɉȿɑȿɇɇəɎȱɇȺɇɋɍȼȺɇɇə [ɜɢɞɚɬɤɢɧɚɩɿɞɝɨɬɨɜɤɭɮɚɯɿɜɰɿɜɬɚɪɨɛɿɬɧɢɱɢɯɤɚɞɪɿɜɭɉɌɍɦɥɪɞɝɪɧ [ɜɢɞɚɬɤɢɧɚɩɿɞɝɨɬɨɜɤɭɮɚɯɿɜɰɿɜɜȼɇɁȱȱȱɪɿɜɧɹɚɤɪɟɞɢɬɚɰɿʀɦɥɪɞɝɪɧ ȼɂȾȺɌɄɂɇȺɈɇɈȼɅȿɇɇəɄɈɆɍɇȺɅɖɇɈȲȱɇɎɊȺɋɌɊɍɄɌɍɊɂ ɚɫɚɦɟ ɧɚɠɢɬɟɥɹɜɪɿɤ ɇȿɊȿȺɅȱɋɌɂɑɇȱȾɀȿɊȿɅȺɎȱɇȺɇɋɍȼȺɇɇə [ɪɟɦɨɧɬɛɭɞɿɜɟɥɶɿɞɨɪɿɝ [ɉɨɥɶɳɚ ɪɿɤ   ɽɜɪɨ National Deputies and were used by DIALOGUE Project experts for their ɊɈɁȼɂɌɄɍɌȿɊɂɌɈɊȱȺɅɖɇɂɏȽɊɈɆȺȾ [ɝɪɨɦɚɞɫɶɤɢɣɬɪɚɧɫɩɨɪɬ [Ʌɚɬɜɿɹ ɪɿɤ   ɽɜɪɨ Ⱦɟɪɠɚɜɧɢɣɮɨɧɞɪɟɝɿɨɧɚɥɶɧɨɝɨɪɨɡɜɢɬɤɭɦɥɪɞɝɪɧ ɡɚɦɿɫɬɶɦɥɪɞɝɪɧ [ɡɛɿɪɿɭɬɢɥɿɡɚɰɿɹɫɦɿɬɬɹ [ɋɥɨɜɚɱɱɢɧɚ ɪɿɤ  ɽɜɪɨ &ɭɛɜɟɧɰɿɹɨɛ¶ɽɞɧɚɧɢɦɬɟɪɢɬɨɪɿɚɥɶɧɢɦɝɪɨɦɚɞɚɦɦɥɪɞɝɪɧ ɡɚɦɿɫɬɶɦɥɪɞɝɪɧ  [ɟɧɟɪɝɨɟɮɟɤɬɢɜɧɿɫɬɶɜɦɿɫɬɚɯ [ɍɤɪɚʀɧɚ ɪɿɤ   ɽɜɪɨ Ɉɞɧɚɤɰɿɤɨɲɬɢɧɟɦɨɠɥɢɜɨɛɭɞɟɨɬɪɢɦɚɬɢ [ɨɫɜɿɬɥɟɧɧɹɜɭɥɢɰɶ [ɍɤɪɚʀɧɚ ɪɿɤ   ɽɜɪɨ ɞɠɟɪɟɥɚɦɢɮɿɧɫɭɜɚɧɧɹȾɎɊɊɬɚɫɭɛɜɟɧɰɿʀɈɌȽɜɢɡɧɚɱɟɧɨ©ɤɨɧɮɿɫɤɨɜɚɧɿ [ɛɥɚɝɨɭɫɬɪɿɣ [ɍɤɪɚʀɧɚ ɪɿɤɩɥɚɧɍɪɹɞɭ ɽɜɪɨ presentations during working session and meetings of parliamentary ɤɨɲɬɢɬɚɤɨɲɬɢɨɬɪɢɦɚɧɿɜɿɞɪɟɚɥɿɡɚɰɿʀɦɚɣɧɚɤɨɧɮɿɫɤɨɜɚɧɨɝɨɡɚɪɿɲɟɧɧɹɦɫɭɞɭɡɚ [ɬɚɿɧɲɟ ɜɱɢɧɟɧɧɹɤɨɪɭɩɰɿɣɧɨɝɨɬɚɩɨɜ¶ɹɡɚɧɨɝɨɡɤɨɪɭɩɰɿɽɸɩɪɚɜɨɩɨɪɭɲɟɧɧɹª ɐɟɧɬɪɚɧɚɥɿɡɭɬɚɪɨɡɪɨɛɤɢɡɚɤɨɧɨɞɚɜɫɬɜɚȺɫɨɰɿɚɰɿʀɦɿɫɬɍɤɪɚʀɧɢ Commi ees.

LOCAL CENTERS FOR EXPERTISE ON REFORM SET UP IN COOPERATION WITH THE IREX «BIBLIOMIST» PROGRAMME

Interactive informational events conducted together with partners represent a good way to a ract new audiences. In July of 2015, the DIALOGUE Project in cooperation with the International research and Exchange Council (IREX Ukraine) conducted a webinar in the America House dedicated to decentralisation, its outcomes and tasks for the nearest future. Visitors to 200 libraries including local government off icials and public activists joined the discussion on-line. The speakers at the event were V. Nehoda, First Minister of Regional Development, Construction, Housing and Municipal Utilities of Ukraine, and Myroslav Pi syk, Executive Director of the AUC. Following the successful event, the DIALOGUE Project and IREX agreed to conduct a number of joint informational and public awareness events with the participation of Off ices for Reform Implementation Support, libraries and regional training centers, which cooperate with the Bibliomist Program. The main purpose of the event was to draw the a ention of citizens to the content of the reform and give them comprehensive explanation of the benefi ts of community consolidation and transfer of resources and authority from state executive agencies to local governments. DIALOGUE 55

In September – December of 2015, the Project conducted 40 such events almost in all oblasts. The seminars, webinars and video conferences were conducted both in oblast libraries and in libraries of smaller cities. Experts of Reform Off ices served as keynote speakers at these events. The audience was represented by the library staff , teachers, local government off icials, youth and ordinary citizens. The main interest of the participants was focused on mechanisms for consolidation of communities, activities and status of starostas, the scope of services to be provided by executive agencies of local governments in consolidated communities, fi nancial support for public sector facilities and, in particular, libraries and other cultural establishments. In addition to this, the Project distributed to 2,000 libraries the “DECENTRALISATION. Changes for the sake of the future” poster prepared within the framework of the Project. Special stands and display zones in libraries with visual and printed materials served as a substantial component of the Project informational and public awareness work to support decentralisation reforms at the regional and local levels. The DIALOGUE Project used the network established within the framework of the USAID “Bibliomist” Program to deliver its important messages and products to new audiences including readers of local and oblast libraries, public activists ad other groups of citizens who visit these centers of cultural and public life.

PROMOTION OF REFORM SUCCESSES

In August of 2015, experts of the AUC Center for Analysis and Legislation Dra ing and Center for Communication and Public Relations conducted a survey of AUC member municipalities on the outcomes of fi scal decentralisation. Based on the fi ndings of the survey the project prepared a collection of case studies on community projects, which became possible due to increased funds in local budgets as a consequence of the reform of inter-budget relations. In particular, the successes of fi scal decentralisation include road repairs, insulation of buildings in public sector institutions and installation of energy metering devices. This selection of success stories of the fi scal decentralisation became a strong motivation factor in persuading other communities of the benefi ts and reforms and a component of Project work to roll out the nation-wide communication and public awareness campaign to support decentralisation reforms. The DIALOGUE Project disseminated these promotional materials to public relations services of state executive authorities and to media. The information provided by the DIALOGUE Project to high level government off icials served as a sound background material for various presentations of fi scal decentralisation and was used in speeches of the Chairman f the Verkhovna Rada of Ukraine and the Prime Minister of Ukraine. The Administration of the President of Ukraine expressed its gratitude for the information provided about the fi rst successes of the fi scal decentralisation and informed that it will use this information for the work of its structural departments. The Project also disseminated the selection of best practices to regional and central media. The monitoring of media demonstrates that the information prepared by the DIALOGUE Project is very popular with journalists and many of them use it to prepare their stories covering such topics as fi scal decentralisation, local government reform, and consolidation of territorial communities. 56 PROJECT PROGRESS REPORT

The last years were particularly productive and fruitful for the DIALOGUE Project, which became one of the champions and the driving force behind the implementation of the decentralisation reform in Ukraine: the Project established Off ices for Reform Implementation Support in all oblasts of Ukraine, prepared long-term perspective plans for the formation of community territories, helped to conduct fi rst local government elections in consolidated territorial communities, and prepared a number of methodological recommendations including the algorithms of steps for newly-established consolidated territorial communities and sample documents for local government bodies. The synergies of various tools, communication channels and ways to disseminate strategic Project messages about decentralisation for various targeted provided the desired tangible eff ect. Despite the resistance from selected politicians whose interest are not in line with the reform, the public at large demonstrate growing interest and understanding of the importance of the reform for the establishment of the eff ective local self-governance system and for the sustainable social and economic development of territorial communities. In the end of 2015, one could defi nitely assert that each active citizen of our country had heard and understand the notion of “decentralisation”. The media established a pool of journalists who specialise in this topic, understand its philosophy and can off er a simple and user-friendly explanation of essence of reforms in their publications. Decentralisation, according to many politicians and top country leadership, is one of the strategic areas of the development of the country. For example, today, in the end of 2015, local governments of consolidated territorial communities face a number of important tasks ranging from defi ning their territory development strategy to ensuring the provision of the new quality of services and improving living standards for each resident. The consistent information and public awareness policy will continue to stimulate territorial communities for consolidation. With the emphasis of public awareness activities placed on achievements and successful results of the fi rst 159 consolidated territorial communities, which appeared on the map of Ukraine, one could motivate other communities to consolidate and, fi nally, to implement the decentralisation reform on the whole territory of Ukraine. DIALOGUE 57

SUB-CHAPTER 4: PROFESSIONAL DEVELOPMENT AND LEGAL ASSISTANCE

Legal assistance for local governments has been a traditional need of local government off icials and staff . Such situation is explained by the unsatisfactory legal support for the local governments in the implementation of their powers, with objective factors being the following: • low level of legal culture of local government off icials and local council members; • low level of professional qualifi cations and lack of proper experience; • insuff icient fi nancial capacity of territorial communities with regard to involving highly qualifi ed specialists and providing proper incentives for them; • smaller territorial communities have no Internet access to the database of the current legislation; • discrepancies, inconsistencies and gaps in the legislation on local self-governance and related sectors; and, • absence of permanent system for on-the-job training for local government off icials and legal education for local council members. Consequently, the lack of proper legal support for local governments during the implementation of their tasks and powers puts many local ordinances beyond the framework of the Ukrainian legislation, thus making law enforcement and inspection agencies appeal them in courts; leads to violations of legislation on the part of selected local government off icials; and gives rise confl icting relationships between local governments and local agencies of the state executive. Providing local governments with legal assistance in the reform of clarifi cations of the provisions of the current legislation, addressing state executive authorities for protection of rights and legitimate interests of specifi c territorial communities, and preparation of local ordinances and regulatory and legal documents has been the types of statutory activities of the Association of Ukrainian Cities. However, only with the DIALOGUE Project was the Association able to bring this activity to a qualitatively higher level and to off er legal assistance to most local governments and their off icials. Over the timeframe of the Project implementation, its experts prepared the tools to render legal assistance and capacity building for local governments, which ensured the implementation of Project tasks in this sphere – increasing the level of legal culture and be er eff iciency of local government activities.

Consultations on the application of provisions of the current legislation in the sphere of local self-governance and related sectors

Telephone hot line for urgent legal consultations On September 01, 2010, the Project opened the mobile hot line, whose main tasks were: • organisational aspects of urgent consultations on local government problem issues by telephone; • pu ing together a database of problem issues local governments face in their activities and placing it on the web-site of the Association of Ukrainian Cities; singling out the issues of the general nature to explain them in Project publications; • ensuring quick response to phone calls about the unlawful prosecution and pressure on local government off icials and members of local councils; and, • generalisation and analysis of negative legal practices with regard to protection of rights and legitimate interests of local governments. 58 PROJECT PROGRESS REPORT

The algorithm of consultations was driven by the nature of questions and included the following: • immediate consultations during the phone conversation itself (problem issues not requiring sound analysis); • consultations provided during one working day (issues, which require more detailed analysis); • consultations provided during one week (in case of medium-level problem issues the customer was off ered an opportunity to send the question in a wri en form or by e-mail); and, • consultations provided during one month (in case of the special nature of the problem issue, which is of general importance – the customer was off ered an opportunity to send both the question and copies of the documents needed to prepare the answer).

During the project implementation period, the interest to the hot telephone line continued to remain very high, which testifi ed this type of legal assistance was eff ective and needed.

The Q&A section on the AUC web-site The off icial web site of the AUC has a section for legal consultations provided in the Q&A format. This section off ers an opportunity for local government off icials to receive answers to their questions about proper application of the provisions of the current legislation. The materials mentioned above were used for the preparation of generalised consultations placed in the electronic ‘Legal Consultations” publication. Since its beginning, the DIALOGUE Project provided 4,082 consultations to local governments, their off icials and local council members: More than half of the questions from local governments 644 673 811 dealt with organisational and legal foundations of local 595 655 511 self-governance, namely: organisational aspects of 193 activities of the local council as a representative body, 2010 2011 2012 2013 2014 2015 2015 organisational aspects of activities of executive entities (October – of local councils, service in local governments, status of December) local council members, peculiarities of applying the labour law with regard to elected position in local governments, pre-term termination of the term of off ice of local councils and village, town and city mayors, and mechanisms for conducting local elections.

Below is the distribution of consultations provided to local government off icials by technical areas:

SOCIAL PROTECTION, PUBLIC EDUCATION, HEALTH CARE, AND CULTURE 211 LOCAL BUDGETS AND FINANCIAL FOUNDATION OF LOCAL SELF-GOVERNANCE 331 LAND RELATIONS 462 HOUSING, MUNICIPAL UTILITIES AND COMMUNALLY-OWNED PROPERTY 808 ORGANISATIONAL AND LEGAL FRAMEWORK FOR LOCAL SELF-GOVERNANCE 2270 Appeals to state executive authorities concerning amendments to the current legislation and off icial explanations how to apply it Studying the case studies on provided consultations revealed joint problem issues local government faced. These problem issues have been the consequence of legislation gaps rather than lack of legal knowledge of local government off icials. The case studies helped central government authorities to understand potential solutions to problems through introducing amendments to legislation or providing the necessary off icial clarifi cations. DIALOGUE 59

The Project helped to prevent illegal incrimination for corruption practices DIALOGUE Project experts repeatedly drew a ention to the fact that the possession of corporate/ ownership rights by local government off icials is not in direct contradiction with the Law of Ukraine “On Preventing and Fighting Corruption”, as this is not entrepreneurship per se. At the same time, law enforcement agencies and courts have widely applied the legislation. The mayors of Trostyanets and Yuzhnoukrainsk were brought to justice for that ma er and, subsequently, the corresponding local councils terminated their term of off ice. Experts turned to the Chairman of the Verkhovna Rada of Ukraine Commi ee for Justice and other National Deputies asking to help comply with the legislation, when trying corruption cases. National Deputies appealed to the Constitutional Court which acted on the motion, confi rming that the public servants under the law on preventing and fi ghting corruption had a right to possess corporate rights, and ruling unconstitutional the ban stipulated in the law for these individuals to a end shareholders rights meetings with the purpose of gaining a commercial profi t. Thus, the DIALOGUE Project managed to prevent illegal accusations of allegedly corruption charges against a lot of territorial community servants.

Consultations helped to expedite decision making by local governments In accordance with Part Three of Article 15 of the Law of Ukraine “On Access to Public Information” local government dra ordinance are to be made no later than 20 workdays before their consideration and enactment. This requirement prolongs the local government decision making for another month to act on appeals submi ed by physical and legal persons. At the same time, this provision was not in line with other pieces of legislation. In this situation, DIALOGUE Project experts found a solution and recommended to apply provisions of diff erent pieces of legislation, namely Budget Code, Land Code, Labour Code, and Civil Code that represent higher level legislation, rather than applying the provision of the Law of Ukraine “On Access to Public Information”. This approach was discussed with representatives of the Verkhovna Rada of Ukraine Commi ee on the Freedom of Speech and Information. Based on these discussions, the corresponding formal explanations were provided to the Piatykhatky City Council of the Piatykhatky rayon of the Dnipropetrovsk oblast, Fastiv City council of the Kyiv oblast, Dniprodzerzhynsk City Council of the Dnipropetrovsk oblast, Merefa City Council of the Kharkiv rayon of the Kharkiv oblast, Nikopol City Council of the Dnipropetrovsk oblast, as well as were posted on the off icial AUC web-site, disseminated through the “Legal Consultations” e-publication, and published in the “AUC Herald”. These explanations helped to reduce by one month the time for the preparation work on 80% of the ordinances and regulatory and legal documents of the local councils mentioned above and their executive commi ees.

Project electronic publications the “Legislation News” and the “Legal Consultations” Aiming at providing local government off icials with immediate updates on changes in the legal framework for local self-governance and related sectors, the DIALOGUE Project started to prepare the “Legislation News” monthly electronic publication. This publication was disseminated through the network of local government lawyers established by the Project. The publication off ered important information about the legislation, by- laws of the Cabinet of Ministers and other regulatory and legal documents of line ministries and other government agencies approved over the past month, as well as main news in the sphere of legislation dra ing. Over the period of its implementation, the DIALOGUE Project prepared 59 issues. The DIALOGUE Project also prepared its quarterly publication for local governments called the “Legal Consultations”. This publication off ered explanations of problem issues, which could be applied to local governments, off icial explanations of state executive authorities provided upon the request of DIALOGUE Project experts, as well as generalised responses to the questions received from local governments to the hot telephone line and to the AUC web-site. Over the period of its implementation, the DIALOGUE Project prepared 22 such issues. 60 PROJECT PROGRESS REPORT

Providing consultations to consolidated territorial communities In the context of the approval of the Law of Ukraine «On Voluntary Consolidation of Territorial Communities», which opened the way towards the establishment of new capable communities, the Project faced the need to conduct public awareness activities work with village, town and city mayors and members of local councils on advantages of consolidated communities, mechanisms for their voluntary consolidation, and application of the current legislation in this sphere. The DIALOGUE Project took an active part in facilitating the consolidation of territorial communities, preparation of long-term perspective plan, etc. through providing 1,024 consultations to representatives of consolidated territorial communities.

Providing legal protection services The Project legal protection activities were performed in the following main areas: • protection of rights and legitimate interests of local governments in courts; • protecting the rights and representation of interests (advocacy) of local governments and their off icials in law-enforcement agencies; • preparation of dra documents; and, • expert evaluation of local government ordinances and preparation of expert opinions on these documents. Over the period of its implementation, the DIALOGUE Project off ered legal protection services to 138 local government off icials. In the course of the implementation of this component, the DIALOGUE Project faced certain diff iculties, in particular those related to the cases when city mayors would appeal to the AUC for legal protection in the context of their internal confl icts with city councils. In these situations the AUC had to make a decision not to interfere into internal confl icts of local government bodies, because village, town and city mayors perform only the function of representing the interests of local councils in the AUC, whereas the la er are AUC members.

Expert workshops in regions An expert workshop is an event for local government off icials who work in a given technical area. They were conducted to help local government off icials be er understand provisions of the current legislation and to provide opportunities for professional experience exchange.

During such meetings, their participants had an opportunity to initiate the needed legislative amendments and introduce new pragmatic decisions. The topics of expert workshop were selected by AUC Regional Off ices upon the proposal of local government off icials.

All in all, the DIALOGUE Project conducted 351 expert workshops with the participation of 7,345 local government off icials. The most popular topics of these events were the following: • New provisions of the budget and tax legislation. Peculiarities of the preparation of local budgets. Opportunities to involve additional resources for the development of local communities (budget and non-budget resources); • Local government reform: aspects for modernisation of municipal management. Establishment of capable communities: ways to implement the Law of Ukraine DIALOGUE 61

«On Voluntary Consolidation of Territorial Communities»; • Reforms and development of the housing and municipal utilities sector of the territorial community. Establishment of the condominium association: problem issues and future prospects; • Social protection and support to low- income families as a way to strengthen civil society; • Local economic development of cities as a source of increase budget revenues and platform for community development strategies. Preparation of innovation projects and programs for the development of local self-governance; • Land as the main resource for the sustainable development of local communities: management of land resources of territorial communities; • Investment policy and strategic planning in territorial communities; • Environmental policy: key issues related to solid waste management; • Changes in the legislation on daily work of local governments; and, • Eff ective use of energy resources and energy saving in the municipal sector. Energy saving in the public sector.

Young Local Government Lawyers School The Young Local Government Lawyers School gives an opportunity for undergraduate law students in higher educational establishments (law departments) to tailor their knowledge in law to the practical needs of local governments. By doing so, they will focus on developing the proper legal framework for local government activities, as well as protection of rights and legitimate interests of territorial communities.

The training curriculum consisted of four components: • training part; • internship in the Secretariat of the VRU Commi ee on State Building, Regional Policy and Local Self-Governance, Executive Board of the Association of Ukrainian Cities; self-training and performing individual assignments; and, • knowledge check in the form of tests.

Over the period of its implementation, the DIALOGUE Project conducted 7 Young Local Government Lawyers School sessions, with 104 student receiving School accomplishment certifi cates. 62 PROJECT PROGRESS REPORT

Training need assessment of local government off icials Aiming at performing the training need assessment of local government off icials, the DIALOGUE Project prepared and sent out to AUC member municipalities a questionnaire form with a proposal to answer the questions related to organisational aspects of training and potential training topics. As of December 31, 2014, the Association received 370 questionnaires including: 39 questionnaires from city mayors, 47 from local council secretaries and 69 from local council members, and 215 from other local government off icials. 92.5 % of the interviewees supported the idea of se ing up at the AUC a permanent system for on-the-job training for local government off icials, 45.4 % - selected short term training seminars as the most eff ective format of educational events, 41.9% - found workshops and round table discussions to be the most eff ective and interesting types of training events, with 35.7% speaking in favour of expert workshops where one could freely talk to experts and exchange professional experience with colleagues. 49.1 % of respondents supported the idea of conducting traditional Summer Schools for village, town and city mayors, with 82.1 % of city mayors who used to participate in these events supporting them. Based on the topics local off icials are most interested in, the Project selected nine topics for the preparation of training programs for distance-learning courses for local government off icials: - Planning and management of fi nancial resources of the territorial community; - Planning of territorial community development; - Energy eff iciency in the municipal sector; - Management of land resources of the territorial community; - Legal support for activities of local governments; - Fundraising, preparation and implementation of international technical assistance projects; - Provision of administrative services in the municipal sector; - Local initiatives and involving citizens to local self-governance; and, - Management of communally-owned property.

Updating distance-learning courses Based on the topics local off icials are most interested, the Project prepared six training programs for distance-learning courses for local government off icials. These programs target local government managers and local government staff , members of local councils and all those who are interested in the topics related to planning the development of territorial communities in the current environment, eff ective involvement and use of fi nancial resources, introduction of modern technologies, providing comfortable conditions and accessible environment for the provision of administrative services in the municipal sector, etc.

“Planning for the Development of the Territorial Community” The training program off ers the opportunity to realise globalisation challenges for local development and way to utilise new managerial tools, ne er understanding of main trends and development rules applied by successful communities in the current context. The manual is also dedicated to modern approaches to planning the development of communities, local economic development, sustainable

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) development, utilisation of innovative tools in planning, diagnostics and evaluation of the community status, issues related to strategic and spatial planning, etc. “Planning and Management of Financial Resources of the Territorial Community” НАВЧАЛЬНИЙ ПОСІБНИК ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ The training program off ers a research into the peculiarities of the formation

ПЛАНУВАННЯ РОЗВИТКУ and use of fi nancial resources of territorial communities with due regard to the ТЕРИТОРІАЛЬНИХ ГРОМАД advantages and disadvantages of fi scal decentralisation. The Manual focuses a considerable a ention on potential sources of revenues for territorial communities. The Manual also off ers recommendations to eliminate corruption in the sphere of accumulating and using local government fi nancial resources. “Energy Eff iciency in the Municipal Sector” DIALOGUE 63

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ The training program is dedicated to solutions in the sphere of thermal insulation ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) of residential housing stock and social facilities with active involvement of local governments. The Manual describes the meaning and role of thermal insulation in the current circumstances, principles and methods for its implementation,

НАВЧАЛЬНИЙ ПОСІБНИК major milestones and principles of the implementation of ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) the corresponding projects, as well as the mechanism for ПЛАНУВАННЯ ТА УПРАВЛІННЯ ФІНАНСОВИМИ РЕСУРСАМИ performing the evaluation of their eff iciency. The Manual ТЕРИТОРІАЛЬНОЇ ГРОМАДИ pays special a ention on the fi nancial support for thermal insulation of residential buildings including the a raction of НАВЧАЛЬНИЙ ПОСІБНИК ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ investment funds. ЕНЕРГОЕФЕКТИВНІСТЬ У МУНІЦИПАЛЬНОМУ “Fundraising, Preparation and Implementation of International Technical СЕКТОРІ Assistance Projects” The training program describes the approaches to the preparation and implementation of local development projects from the point of view of their hands- on experience and application. The Manual off ers case studies, and real problem issues encountered in the course of the implementation of real projects. “Provision of Administrative Services in the Municipal Sector”

НАВЧАЛЬНИЙ ПОСІБНИК The training program explains the theoretical and practical aspects of the ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ provision of administrative services with a special emphasis on se ing up centers for administrative services or integrated off ices to provide

ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) services for citizens and business entities. The training manual was compiled according to the provisions of the Law of Ukraine “On Administrative Services” of September 06, 2012. It refl ects the experience of its implementation and incorporates best НАВЧАЛЬНИЙ ПОСІБНИК ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ Ukrainian and international experience and in organisational aspects of the НАДАННЯ АДМІНІСТРАТИВНИХ ПОСЛУГ provision of administrative services. У МУНІЦИПАЛЬНОМУ СЕКТОРІ “Local Initiatives and Citizen Involvement in Local Self-Governance” The purpose of this training program is to increase the eff ectiveness of communication between local government and citizens, as well as to optimise the

process of joint decision making. This training course provides an overview of the ІНІЦІАТИВА ЗАХИСТУ ПРАВ ТА ПРЕДСТАВЛЕННЯ ІНТЕРЕСІВ МІСЦЕВОГО САМОВРЯДУВАННЯ В УКРАЇНІ (ПРОЕКТ ДІАЛОГ) eff ective methods for interaction between local governments and residents of the territorial community and demonstrates the benefi ts of citizen involvement for local government off icials.

НАВЧАЛЬНИЙ ПОСІБНИК The series of professional training manuals came in the printed format ДЛЯ ПОСАДОВИХ ОСІБ МІСЦЕВОГО САМОВРЯДУВАННЯ

МІСЦЕВІ ІНІЦІАТИВИ and was sent out to local councils of Association of Ukrainian Cities member ТА ЗАЛУЧЕННЯ ГРОМАДСЬКОСТІ ДО ЗДІЙСНЕННЯ МІСЦЕВОГО municipalities and Off ices for Reform Implementation Support to support their САМОВРЯДУВАННЯ daily work. The series of training manuals will also be accessible on the off icial AUC web site for all those who are interested in these topics.

Training manuals for consolidated territorial communities Right a er the beginning of the consolidation process the Off ices for Reform Implementation Support established within the framework of the DIALOGUE Project appealed to the AUC with a request to prepare a training manual to help establish capable territorial communities. The Project did prepare such a publication, which became very popular in territorial communities. Picture of the book This publication off ered clarifi cations with regard to the following: • milestones and timeframes of the voluntary consolidation of territorial communities; • powers and resources of consolidated communities; 64 PROJECT PROGRESS REPORT

• preparation of long-term perspective plan for the formation of community territories; • forms of the support form the state; and, • tasks in the sphere of public awareness.

It is important to note that the publication off ers dra regulatory and legal documents of local governments, as well as their ordinances in the context of each stage of voluntary consolidation.

The Manual was backed up by media due to its dissemination through the «УНІАН» News Agency, “Decentralisation” Web Portal and other media. Upon the request of Off ices for Reform Implementation Support and Ministry of Regional Development, the total print run of the Manual reached more than 5 thousand copies.

In the course of the hands-on application of the Law of Ukraine «On Voluntary Consolidation of Territorial Communities», local governments raised a number of questions related to the organisational aspects of local council and executive commi ee activities and a er the consolidation. The Association of Ukrainian Cities in cooperation with the Ministry of Regional Development conducted a number of working sessions to come up with a unifi ed position with regard to practical organisational aspects of local government activities in consolidated territorial communities.

Based on these steps, the Association prepared a hands-on manual for consolidated territorial communities, which consisted of 6 thematic modules.

Picture of the book Module One includes the model Community Charter and a model regulation on the starosta.

Picture of the book Module Two has the title “Procedural Issues and Organisational Aspects of Local Government Activities in the Consolidated Territorial Community” and includes model by-laws of the local council and its executive commi ee, as well as the model regulation of standing commissions of the local council. The local council obligation to approve the by-laws of the council not later than at its second

ПРАКТИЧНИЙ ПОСІБНИК З ПИТАНЬ ОРГАНІЗАОРГАНІЗАЦІЇЦІЇ РОБОТИ session has been explicitly specifi ed in Paragraphs 1 of Part ОРГАНІВ МІСМІСЦЕВОГОЦЕВОГО САМОВРЯСАМОВРЯДУВАННЯДУВАННЯ ОБ’ЄОБ’ЄДНАНИХДНАНИХ ТЕРИТОРІАЛЬНИХ ГРОМАГРОМАДД 1 of Article 26 and Paragraph 13 of Article 46 of the Law of Ukraine “On Local Self-Governance in Ukraine”.

Типовий статут територіальної громади Примірне положення про старостаростусту Picture of the book Module Three “Organisation of Activities of Executive Commi ees of Local Governments.

Sample Regulations of Structural Departments” includes sample terms of references МОДУЛЬМОДУЛЬ 2 ПроцедурніПроцедурні питання організаціїорганізації роботроботии органіворганів місцевого самоврядуваннясамоврядування of main departments and agencies of the consolidated об’єднаноїоб’єднаної теритериторіальноїторіальної громади

ОРГАНІВОРГАНІВ МІСЦЕВОГО САМОВРЯДУВАННЯ ОБ’ЄДНАНИХ ТЕРИТОРІАЛЬНИХ ГРОМАДГРОМАД territorial community council, dra local government ordinances approving the model structure of executive agencies and manning schedules, and the organisational chart of distribution of authority between the Mayor of the consolidated territorial community and his/her deputies. Picture of the book Module Four off ers the algorithm of the state registration of local government bodies of the consolidated territorial community accompanied МОДУЛЬМОДУЛЬ 3 with the corresponding dra ordinances. Організація роботироботи виконавчих органіворганів місцевого самоврядуваннясамоврядування ПримірПримірніні положення струкструктурнихтурних підропідрозділівзділів DIALOGUE 65

Picture of the book Module Five is completely dedicated to recommendations for the preparation and implementation of the consolidated territorial community budget.

Picture of the book Module Six off ers a mechanism for

ПРАКТИЧНИЙ ПОСІБНИК З ПИТАНЬ ООРГАНІЗАЦІЇРГАНІЗАЦІЇ РОБОТИ local governments of consolidated territorial communities ОРГАНІВОРГАНІВ МІСЦЕВОГОМІСЦЕВОГО САМОВРЯДУВАННЯСАМОВРЯДУВАННЯ ОБ’ЄДНАНИХОБ’ЄДНАНИХ ТЕРИТОРІАЛЬНИХ ГРОМАДГРОМАД to exercise their authority in the sphere of land relations

МОДУЛЬ 4 and urban development. The publication of this Manual АлгоритмАлгоритм основних ддійій з реорганізаціїреорганізації органіворганів ммісцевогоісцевого самоврядсамоврядуванняування will be possible a er the Verkhovna Rada of Ukraine approves amendments to the land legislation, whereby local government consolidated territorial communities will be ПРАКТИЧНИЙ ПОСІБНИК З ПИТАНЬ ОРГАНІЗАЦІЇ РОБОТИ ОРГАНІВ МІСЦЕВОГО САМОВРЯДУВАННЯ ОБ’ЄДНАНИХ ТЕРИТОРІАЛЬНИХ ГРОМАД vested with the right to manage lands located beyond the МОДУЛЬ 5 boundaries of populated areas (DIALOGUE Project experts Стратегічний план розвитку громади prepared the corresponding dra law).

МОДУЛЬМОДУЛЬ 6 Відповіді на проблемні питання 66 PROJECT PROGRESS REPORT CHAPTER 3: PROJECT RESULTS IN NUMBERS

998 The Project worked with 998 dra laws and regulatory and legal documents AUC was engaged in the concurrence of 383 dra laws and regulatory and legal documents 383 42 The Project draed 42 dra laws and The Project ensured the approval of 115 dra laws and regulatory and legal document regulatory and legal documents aimed at supporting local 115 government development 9 The Project conducted expert evaluation of 9 dra The Project set up a network of local government lawyers laws and regulatory and legal documents with the participation of 394 local government lawyers. Work places of 267 local government lawyers from smaller 394 cities were equipped with computers Local government officials from 53% of AUC member 53% municipalities participated in the legislation draing The Project introduced 7 instruments of policy work dialogue in the daily work of the AUC 7 Representatives of 38% of AUC member municipalities 38% participated in policy dialogue events with central government 75% authorities and 75% of AUC member municipalities participated in policy dialogue events at the regional level The Project conducted 6 Dialogue Day events with 1967 the participation of 1,967 persons 187 AU representatives participated in 187 working sessions of the Cabinet of Ministers of Ukraine Project experts participated in 343 working sessions of 15 parliamentary commiees 343 The Project conducted 91 working sessions of 12 AUC 2189 Professional Groups with the participation The Project established Local Government Advisory Boards in 24 oblasts of Ukraine and conducted 147 of 2,189 persons of their meetings boards with the participation 4482 of 4,482 persons The Project conducted 22 national cohesion exchange 470 study tours with the participation of 470 local Representatives of 56% of AUC member municipalities speak government officials about improvements in relationships between local 56% governments and state executive authorities (with 36% in 2010) Representatives of 41% of AUC member municipalities 41% believe the state provides transfers from the National The Project conducted 597 events for media Budget in a transparent way (with 21% in 2010) (including the events organised by Offices for 597 Reform Implementation Support) The Project prepared, published and disseminated its 241 8 types of publications in a regular manner National TV channels (the «Перший національний» м(total of 241 issues); [first national] and “Тоніс”) aired 152 «зМІСТОвна 152 Україна» [CITY-minded Ukraine] programs 28 The Channel 5 TV Channel aired 28 «Твоя влада» [your government] programs The «Громадське радіо» aired 6 programs 6 dedicated to decentralisation 101 101 journalists addressed the AUC for comments 45 journalists are members of the AUC pool of on issues related to local self-governance journalists who receive the AUC local government 45 news on a regular basis The Project provided 5,106 consultations for local 5106 government officials including 1,024 consultations The Project conducted 351 working sessions of expert provided by Offices for Reform Implementation Support workshops with the participation of 7,345 7345 local government officials Representatives of 72% AUC member municipalities 72% speak about their increased capacity to resolve issues of local government daily legal issues