There are 79 local governments in Estonia, which are divided into 15 cities and 64 rural municipalities, which decide on and organise matters related to local life independently. Irrespective of their size, the local governments must fulfil the same functions all over Estonia and offer the same services to citizens. The territory of local governments, i.e. administrative units, is divided into settlement units: cities, towns, small towns, villages.
In addition to cities with a municipal status, Estonia has 37 cities within local governments which do not constitute a separate administrative unit. In total, there are 47 cities as settlement units in Estonia [(read more about the distinction of a city as an administrative unit and as a settlement unit) (https://omavalitsus.fin.ee/linn-kui-haldusuksus-ja-kui-asustusuksus/)].
Estonian municipal system
Since 1993, a one-tier local government system has been in place in Estonia. Rural municipalities and cities act as local authorities, which are equal in terms of their legal status. Local governments decide on and organise matters related to local life independently. The state may give them obligations only pursuant to the law or in agreement with the local governments.
In order to decentralise the power, the local authorities may form rural municipality districts or city districts with a limited municipal status on their territory. Rural municipality districts and city districts are authorities with a limited municipal status, and the general grounds for their formation are determined by the Local Government Organisation Act. Their formation and status are regulated by the statutes of the local government. For example, city districts have been formed in Tallinn and rural municipality districts in Hiiumaa.
All local authorities are part of a county. They can also be members of county and national local government unions.
Functions of the local government
The main functions of a local government are determined by the Local Government Organisation Act.
The local government must organise social assistance and services, welfare services for the elderly, youth work, housing and utilities, the supply of water and sewerage, the provision of public services and amenities, waste management, spatial planning, public transportation within the rural municipality or city, and the construction and maintenance of rural municipality roads or city streets unless such functions are assigned by law to other persons.
The local government must also organise the maintenance of pre-school child care institutions, basic schools, secondary schools, hobby schools, libraries, community centres, museums, sports facilities, shelters, care homes, health care institutions, and other local agencies in their ownership. Payment of specified expenses from the state budget or other sources may be prescribed by law.
Pursuant to law, a rural municipality or a city may authorise a private company or a non-profit association to fulfil their functions. Additionally, the local government may form agencies for providing services, be a partner or a shareholder in these companies and a member in foundations or non-profit associations.
Where necessary, the residents of the local government can use services provided in other local governments. The local government of residence of the service users must pay for these services.
Structure of the local government
The activities of the rural municipality or city are organised and led by an assembly chosen by the residents – the municipal council, who appoints an executive body, i.e. the government.
The principle of subsidiarity is the cornerstone of modern democratic state organisation, which means that the functions must be fulfilled on a level of public administration located as close to the residents as possible. One of the main functions of the municipal council is to make decisions related to the local life, for example education, culture, social welfare, or health and lead the development of the municipality.
Residents of the rural municipality or city with the right to vote appoint the municipal council for four years via free, general, uniform, direct, and secret elections. All citizens of Estonia and the European Union with the right to vote and whose permanent residence is in the respective rural municipality or city as at 1 August of the voting year at the latest, can run as a candidate for the member of a municipal council. Persons convicted of a criminal offence by a court and serving a sentence in a custodial institution cannot run as candidates in elections.
The municipal council must have at least seven members and the number of members must be uneven. The exact number of the next composition is set by a decision of the municipal council.
The municipal council appoints a chairman, who organises the work of the municipal council, chairs sessions, and represents the local authority. The position of the chairman of the municipal council and the deputy chairmen may be remunerative based on a resolution of the municipal council. A municipal council also has the right to pay remuneration to its members for the wages they did not receive for their principal job and for expenses incurred in the performance of tasks assigned to them by the municipal council.
The municipal council may form committees, which may be standing or ad hoc committees. Pursuant to the Local Government Organisation Act, a municipal council shall form a revision committee of not less than three members, which inspects the activities of the rural municipality or city government. The formation of other committees is regulated by the statutes of the local government.
The municipal council committees may only be chaired by members of the municipal council. In most local governments, the statutes provide that half of the members of committees must belong to the municipal council. The revision committee is an exception – it may consist only of municipal council members.
Pursuant to law, the resolution of the following issues is within the exclusive competence of a municipal council:
- deciding on the formation of the rural municipality or city budgets, the imposition of local taxes, the taking of loans, and on matters related to municipal property;
- altering the boundaries of the local authority and forming city districts or rural municipality districts;
- the approval of the statutes and development plans of the rural municipality or city;
- appointing or releasing from office the chairman of the rural municipality or city council or the rural municipality or city mayor;
- appointing the salary grades and rates of public servants;
- forming or liquidating municipal council committees.
The rural municipality or city government is appointed by the municipal council for one council term. The government is chaired by the rural municipality or city mayor, on whose proposal the municipal council appoints other members of the rural municipality or city government.
The government may include both officials and politicians, who may not be part of the municipal council at the same time. Unlike municipal council sessions, the sessions of rural municipality or city governments are usually closed.
In the Estonian local government management system, in addition to the government, the rural municipality or city mayor manages the administration of the local government, which is divided into departments and offices. In larger cities, where there are many labour-intensive areas, agencies have been set up as structural units of the administration, which, in turn, consist of departments. In smaller local authorities, the department is replaced by one specialist responsible for the whole area.
The administration of each local authority must have a rural municipality or city secretary position. A rural municipality or city secretary prepares the session materials and is responsible for the legality of legislation adopted by the government.
Development plans
Each rural municipality and city must have a development plan and budget strategy, which is the basis for integrating and coordinating the development of different areas of life.
The development plan must have:
- long-term directions in and needs for the development of the economic, social, cultural, and natural environment;
- analysis of the current status of problems and opportunities by areas of activity;
- strategic objectives in areas of activity together with the effect to be achieved until the end of the development plan period;
- activities necessary for the performance of the strategic objectives until the end of the development plan period.