-------- --- -- -- LOCAL GOVERNMENT INNOVATIVE PRACTICES GUIDE for Central and Eastern Europe and the New Independent States April1997 Prepared for U.S. Agency for International Development ENI/EEUD/UDH Prepared by Robert Dubinsky INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION Local Government and Housing Privatization USAID Contract No. EUR-0034-C-00-2034-00 USAID Project No. 180-0034 Request for Services #159 CONTENTS Acknowledgments Introduction Municipal Credit Developing a Credit Finance Model, Czech Republic Using a Financial Model for Long-Term Debt Financing, Poland Economic Development and Planning Creating a Municipal Economic Development Office, Ukraine Fostering Development Through Public-Private Cooperation, Kazakstan Initiating Community Partnerships for Local Development, Hungary Coordinating Assistance for Dislocated Workers, Hungary Using Strategic Planning to Improve Decision-Making, Russia Linking Bulgarian Cities Through Computers, Bulgaria Implementing a Municipal Economic Development Program, Lithuania Building Consensus Using Economic Development Planning, Czech Republic Involving the Community in Economic Development, Bulgaria Using a Decision Matrix To Analyze Privatization Options, Estonia Municipal Association Development and Capacity Building Establishing an Effective Municipal Association, Ukraine Strengthening a New Association of Municipalities, Czech Republic Creating a Municipal Training System, Slovakia Establishing a Training and Technical Assistance Partnership, Lithuania Improving Infrastructure Through a Municipal Association, Czech Republic Creating an Association of Municipal Finance Officers, Slovakia Citizen Participation in the Municipal Decision-Making Process Encouraging Participation Via a Citizens Service Center, Romania Improving Relations with Citizens and the Media, Czech Republic 111 Involving and Educating Citizens Via the Budget Process, Romania Improving Public and Media Relations, Bulgaria Initiating a Proactive Public Relations Strategy, Former Yugoslav Republic of Macedonia Urban Service Delivery Restructuring a Local Utility, Ukraine Using the Request for Proposal Process for Housing Development, Slovakia Using Task Forces to Improve the Management of Service Delivery, Ukraine Improving Wastewater Treatment Systems, Poland Improving Public Transportation Management, Ukraine Strengthening Management of Municipal Companies, Slovakia Improving the Management of Municipally-Controlled Infrastructure Systems, Romania Privatizing Maintenance of Municipally-Owned Housing, Ukraine Saving Money Through Competitive Contracting, Kazakstan Environmental Management Improving Solid Waste Management Practices, Hungary 101 Coordinating Medical Waste Management, Hungary Improving Cost Recovery Through Water Metering, Russia Improving Solid Waste Collection and Disposal, Hungary Local Revenue Generation Generating Local Revenue by Taxing Telephone Services, Hungary Relating User Fees to the Cost of Service, Bulgaria Generating Revenue Through Auctioning Land Use Rights, Kyrgystan Increasing Local Revenue Through Percentage Leasing, Romania Generating Revenue Through the Sale of City-Owned Land, Russia Facilitating Sales of City-Owned Land to Private Enterprises, Russia IV Budgeting and Financial Management Improving the Budget Process, Hungary IIIli Creating a Model for Integrated Financial Management, Russia Improving Financial Management with a Municipal Treasury, Kyrgystan Improving Municipal Efficiency Through Task Budgeting, Poland Involving the Community in the Capital Budgeting Process, Czech Republic Improving City Hall Budgeting Skills and Practices, Romania Improving Budgeting Using a Computerized Model, Russia Management Creating an Information and Analysis Unit, Poland Establishing a Low-Cost Title Registration System, Ukraine The Role of the Municipality in Housing Supporting Associations of Housing Cooperatives, Kazakstan Improving Neighborhoods Through a Partnership Program, Poland Facilitating Condominium Formation, Russia Using a Database To Improve Housing Management, Poland Developing a Comprehensive Public Housing Policy, Hungary Facilitating the Formation of Condominium Associations, Armenia Developing Housing Through Cooperatives, Poland Using Zoning To Regulate Land Development, Ukraine Facilitating the Formation of Condominium Associations, Russia Developing Housing Through Public-Private Partnerships, Bulgaria Privatizing Municipally-Owned Housing, Slovakia National Initiatives To Build Local Capacity Establishing a Targeted Housing Subsidy System, Ukraine Strengthening the Municipal Bond Market, Poland Encouraging Private Markets and Increasing Autonomy, Armenia Building a Competitive Municipal Credit Market, Czech Republic Privatizing Housing Management and Reducing Subsidies, Kazakstan v Appendixes List of USAID Missions List of USAID Contractors VI ACKNOWLEDGMENTS Preparation of the Innovative Practices Guide was funded by USAID under its Local Government and Housing Privatization Contract for Central and Eastern Europe (Contract No. EUR-0034-C- 00-2034-00, Request for Services #159). Many people contributed to the Guide. Nancy Hooff, David Olinger, and Dennis Taylor of the ENI Bureau helped to conceptualize the Guide and provided useful guidance and advice. Wendy Graham ofthe ENI Bureau drafted a number of innovative practice descriptions. The strong sup­ port and cooperation ofUSAID Missions and contractors in CEE and the NIS were invaluable in helping to identify and document innovative practices. Special thanks are given to ICMA consul­ tant Jo-Ellen Pozner and Judit Haracsek ofiCMA, who helped plan the guide, prepared many summary descriptions, and handled a variety of tasks to make the Guide a reality. Lauren Erdman designed the cover for the binder. Diane Ferguson provided editorial and production services. The Guide was translated by Interuniversity, Julie Donat (Romanian), and Dmitri Zaremba (Russian). Vll INTRODUCTION Background Immediately following the revolutions of 1989, many countries of Central and Eastern Europe (CEE) and the New Independent States (NIS) region began to pursue more market-oriented strategies as a solution to the enormous economic crises facing central governments. A com­ ponent of those strategies has been a move toward decentralization in which democratically elected local governments are increasingly responsible for the provision of urban services and the future of their communities. In most countries, local governments are no longer viewed as passive implementors of central government policies but as active and essential partners in the economic and political transition. They are being called upon, along with the private sector, to relieve the burden of service and infrastructure provision that the central government can no longer bear alone. In some countries, municipal governments have been given responsibilities, but they do not yet have the corresponding authority or sufficient financial resources to provide the requisite services. Many municipal governments and their partners have found creative solutions to the problems their communities face. Many are working in association with other municipalities to improve their capacity to provide services, raise revenues, and include citizens in the decision-making process. They are also collaborating to shape policy at the national level that would allow them to provide services more efficiently. Innovative Practices Guide This Innovative Practices Guide documents many of the successes that cities in the region have achieved. The examples cover the full range of municipal responsibilities in urban service delivery, increasing citizen participation in decision-making, municipal credit, economic development and planning, municipal association development, environmental management, revenue generation, management, budgeting and finance, housing privatization, and real estate development. In addi­ tion, there are examples of national level policy changes that have been instrumental in the ability of local governments to respond to the needs of citizens. This Guide will facilitate the exchange of information about the innovations local governments are implementing. It will also enhance the dialogue in the region about what national level policy changes are needed to enable local governments to respond to citizens' needs. The Guide pro­ vides information on the implementation ofthe innovative practices and their results and identifies the city official(s) or other knowledgeable person who can be contacted for more details. In this way, cities can learn from other cities that are facing similar problems and adapt the approaches for their communities. The Guide lends itselfto updating and improvement. It has been produced in Albanian, Bosnian, Bulgarian, Czech, English, Hungarian, Polish, Romanian, Russian, Slovak, and Ukrainian. It is intended to be an easily accessible regional reference resource for municipal and national gov­ ernment officials and for businesses and non-governmental organizations working with local IX governments to solve community problems. There are many more innovative practices yet to be documented, and many innovations are just now getting underway. The Guide can also be used to help carry out national dissemination strategies. USAID looks forward to working with local government officials to continue to disseminate the Guide on a regional basis or adapt it for use through national networks serving municipalities. USAID has posted the English version