§ 154. All local issues shall be decided and organised by municipalities, which shall act independently on the basis of laws.
Obligations may be imposed on a municipality only on the basis of a law or by agreement with the municipality. Expenditure related to obligations of the state imposed by the law on a municipality shall be funded from the state budget.
§ 155. Municipalities shall be rural municipalities and towns.
Other local self-government units may be formed on the bases and pursuant to a procedure provided by a law.
§ 156. The representative body of a municipality shall be the council which shall be elected in free elections for a term of four years. The term of the mandate of a council may be shortened by a law in relation to a merger or division of municipalities or the inability of a council to act. Elections shall be general, uniform and direct. Voting shall be secret.
In elections of municipal councils, persons who reside permanently in the territory of the municipality and have attained sixteen years of age have the right to vote, under conditions prescribed by a law.
§ 157. Municipalities shall have independent budgets for which the bases and procedure for formation shall be provided by a law.
Municipalities have the right, on the basis of a law, to establish and collect taxes, and to impose duties.
§ 158. The boundaries of municipalities shall not be altered without hearing the opinion of the municipalities concerned.
§ 159. Municipalities have the right to form associations and joint agencies with other municipalities.
§ 160. The organisation of municipalities and supervision of their activities shall be provided by a law.