amalgamation of 1 county 5 municipalities on bornholm
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Amalgamation of 1 county + 5 municipalities on Bornholm. Why amalgamation on Bornholm? Negative economic development forces new solutions

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amalgamation of 1 county 5 municipalities on bornholm
Amalgamation of 1 county +5 municipalities on Bornholm
  • Why amalgamation on Bornholm?
    • Negative economic development forces new solutions
    • Efficiency of the LG administration not optimal and laws and regulations from EU and Danish Gov. demand more administrative expertise than is currently available to be effectively implemented
    • Increasing demands from the population puts municipalities under pressure
    • The 5 municipalities have a limited ability to take unpopular, but necessary decisions (eg. schools)
amalgamation of 1 county 5 municipalities on bornholm1
Amalgamation of 1 county +5 municipalities on Bornholm
  • Current structure
    • Bornholm county: 44,300 inhabitants
    • Rønne Municipality: 15,000 inhabitants
    • Nexø Municipality: 8,500 inhabitants
    • Allinge-Gudhjem Municipality: 7,600 inhabitants
    • Aakirkeby: 6,600 inhabitants
    • Hasle Municipality: 6,400 inhabitants
amalgamation of 1 county 5 municipalities on bornholm2
Amalgamation of 1 county +5 municipalities on Bornholm
  • The process:
    • Year 2000: Investigation of development potentials in existing LG structure within the following areas: public schools, care taking of the elderly, protection of the environment, use of IT in administration, tax administration, and collection of taxes and loans
    • Development of various scenario (through use of intermunicipal cooperation, extended use of contracting out of LG services, extended use of IT)
    • Conclusion: 5 municipalities decide that a new administrative-territorial structure needed (Jan 01)
amalgamation of 1 county 5 municipalities on bornholm3
Amalgamation of 1 county +5 municipalities on Bornholm
  • The process:
    • Establishment of a Bornholm negotiation committee, with a secretariat, to clarify and negotiate with MIA/MOF about economic and other conditions in connection with the amalgamation
    • The County of Bornholm agree with the 5 municipalities to form one future county/municipality (during Fall 2001) - future name: “Bornholm Municipality”
    • Advisory referendum in 5 municipalities 29 May 01 (agreed by county + 5 municipalities)
    • The population in all 5 municipalities vote in favour!! (totally 73.9% in favour)
amalgamation of 1 county 5 municipalities on bornholm4
Amalgamation of 1 county +5 municipalities on Bornholm
  • The process:
    • County + 5 municipalities request Min. of the Interior to draft a law on amalgamation as of 1 January 03, Ministry agrees but cannot do this in time to suspend the ordinary election in November 2001
    • 8 administrative working groups are established to make an overview of areas to decide upon in short and longer terms, covering finances, salary/personnel matters, IT, secretarial functions, children/youth/culture, social area/hospitals, technical matters/environment/utilities, tax/debt collection
    • Establishment of 1 information group to issue amalgamation newsletter, website, and manage contact with the press
amalgamation of 1 county 5 municipalities on bornholm5
Amalgamation of 1 county +5 municipalities on Bornholm
  • Process:
    • Ordinary election to the existing 5 municipalities and 1 county is held in November 2001. The councils will sit until 31 December 2002.
    • Preparation of political-administrative models by 2 consultancy companies (Spring 2002)
    • Election of the new Bornholm Municipal Council will take place 29 May 2002 (27 members)
    • Bornholm Municipal Council will function as “Amalgamation Commission” 1 July – 31 Dec 2002 and as “Ordinary Council” 1 Jan 2003 – 31 Dec 2005
    • “Amalgamation Commission” will decide on amalgamation conditions during Fall 2002
amalgamation of 1 county 5 municipalities on bornholm6
Amalgamation of 1 county +5 municipalities on Bornholm
  • Major Problems:
    • Decide on political-administrative structure, employment conditions and make administrative systems operational before 1 January 2003
    • Decision making vacuum 29 May 01 – 29 May 02
    • Drafting of budget for 2002 and also budget 2003
    • Change all intermunicipal cooperations before 1 January 2003
    • Curb spending until new Council takes over 1 January 2003
    • Splitting of political power among individual LG politicians of which most will have to find new roles
amalgamation on bornholm financial conditions
Amalgamation on Bornholm: Financial Conditions
  • Equalisation and state grants
    • Future Bornholm Municipality will be part of equalisation systems for both counties and municipalities, hence no changes expected
    • Future Bornholm Municipality will receive the basic state grant for the former 5 municipalities (“administration grant” – 7.5 mill DKK per year per municipality) in a period of 8 years
    • Bornholm will maintain access to Grants to Municipalities in Especially Different Conditions
amalgamation on bornholm administrative structures
Amalgamation on Bornholm: Administrative Structures
  • Model 1: Geographic model
    • One sector administration (education, social area, infrastructure and planning, etc.) in each of the 5 former municipalities
    • Overall administrative department either placed centrally or split in the 5 former municipalities
    • One-stop-shops in each of the 5 former municipalities
    • Political institutions either placed centrally or split in the 5 former municipalities
amalgamation on bornholm administrative structures1
Amalgamation on Bornholm: Administrative Structures
  • Model 2: Centralized model
    • The administrative departments are placed centrally in one place
    • The political institutions are centralized in one place
    • Decentralized local government service delivery will take place through service centres in each of the 5 former municipalities, incl. one-stop-shops
amalgamation on bornholm administrative structures2
Amalgamation on Bornholm: Administrative Structures
  • Model 3: Model with emphasis on contracting out
    • As many services as possible are contracted out externally (usual model) or internally (“contract management”)
    • Use of extended internal decentralisation to the local government institutions (schools, kindergartens, homes for elderly, etc.)
    • Political and administrative structure and management can follow both model 1 or model 2
amalgamation on bornholm political administrative models
Amalgamation on Bornholm: Political-Administrative Models
  • Model 4: Concern model
    • Centralized political management
    • Extended use of internal decentralisation where LG institutions and administrations may become a form of “daughter companies” – this can be made operational by use of “management by goals”
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