The Local Government in Cyprus is entering a new era from today, since the much-discussed reform with ambitious goals and challenges is being implemented.
Aiming at immediate and quality service to citizens, financial and administrative autonomy of local authorities and strengthening transparency, this reform aspires to address the dysfunctions of the previous system and create stronger, economically viable and more flexible municipalities and communities.
However, the first months of operation of the new Local Government structure are expected to be accompanied by some difficulties, mainly in relation to the transfer of responsibilities to the Provincial Self-Government Organizations (EOAs).
At the same time, the reform has been characterized as a live, ongoing process, with the changes, adjustments and clarifications in the relevant legislation being permanent, while from September it is expected to start the discussion on further changes regarding the revenues and the structure of the municipalities as well as the powers of elected officials.
The bet of autonomy and cost reduction
The new Local Government structures were created with the rationale of reducing operating expenses and service costs, the possibility of providing better quality services to citizens and financial and administrative autonomy. However, the implementation of the reform and the course of time will prove whether the expectations will finally be verified.
In the five Provincial Self-Governing Organizations of Nicosia, Limassol, Larnaca, Paphos and Famagusta, the services of water supply, drainage and waste management, as well as development licensing, will be consolidated. The aim was to create economies of scale, which is expected to lead to a reduction in operational costs and will offer citizens a single service for all relevant licences.
20 new Municipalities were also created, through the amalgamation of 30 existing municipalities and 50 communities, with the aim of saving resources that will allow the municipalities to be financially sound and independent. The funding of municipalities is changing radically, with revenue from annual road tax being secured, removing reliance on government sponsorship and increasing revenue.
In addition, it is considered that the transfer of many responsibilities from the central state to the municipalities will allow the provision of services closer to the citizen. For the first time, a system of transparency and control is being introduced, with the creation of preventive internal control units in each municipality and the publication of all decisions online.
However, the number of deputy mayors triples from 30 to 93 and councilors increase by 15, reaching 404, which is expected to have increased costs, along with the remuneration of the heads of EOAs.
Besides, as the Minister of the Interior Konstantinos Ioannou had announced, the state sponsorship to the municipalities and communities will reach €117 million in 2024, increased by approximately €46 million, compared to what was in force before the reform. In later statements, Mr. Ioannou had stated that the cost of the reform will exceed €117 million as the budgets do not cover the requirements. As an example, he brought the new Provincial Self-Government Organizations (EOAs) which must be financially autonomous, but 60% of the revenue from licensing must be returned to the municipalities, making their financial sustainability difficult.
As far as the communities are concerned, 30 Local Service Provision Clusters are being created, which will serve groups of neighboring communities with specialized staff, offering secretarial, accounting, technical services, dog collection and other basic functions. Local Clusters will have a significant number of staff, in contrast to the insufficient number of staff previously maintained by individual communities. However, the amount for the employment of this staff is expected to rise to €3 million and be covered by the Government.
The smooth operation of development licensing is critical
From July 1, 2024, all the procedures concerning the authorization of the development which have now been transferred to the EOAs also restart. The Home Secretary had described this transition as the biggest challenge of the reform, as three different licensing bodies with three different cultures are now merged into one. The smooth transition to the new regime is considered critical, since development licensing is a critical sector of the Cypriot economy.
From July 1st, all applications will be submitted electronically through the "Ippodamos" system, for which there has already been corresponding staff training. The receipt of applications had been suspended for about two weeks due to the transfer and transition procedures to the new system.
The existing personnel dealing with licensing in the Municipalities, the Provincial Town Planning Offices and the District Administrations were transferred to the EOAs, so that the licensing sector could gradually be set up in the EOAs until the Organizations announce positions based on the organizational charts. A total of around 330 people were taken to EOAs.
Since last February, 85 more Fixed-Term Workers have also been recruited, increasing the human resources of the organizations by approximately 30%. A package of 22 measures was also implemented, with the main objective of simplifying the licensing system and speeding up the process of examining and issuing licenses. At the same time, there was an adaptation of the Ippodamos Information System to the new data.
The new structure of Municipalities and District Complexes
With the reform of the Local Government, a new structure was created for the 20 municipalities and the 30 community clusters, while the elected officials have already emerged in the elections of June 9, 2024.
In the province of Nicosia, the Municipality of Nicosia, based in Nicosia, consists of the municipalities of Nicosia, Agios Dometios, Aglantzia and Engomi. The Municipality of Lakatamia, with headquarters in Lakatamia, includes the Municipalities of Lakatamia and Tseri, as well as the community settlement of Anthoupolis. The Municipality of Strovolos remains as it is. The Municipality of Latsia-Geri, with headquarters in Latsia, consists of the Municipalities of Latsia and Geri. Finally, the Municipality of South Nicosia-Idalion, with headquarters in Idalion, includes the Municipality of Idalion and the communities of Alhambra, Lymion, Nisos, Pera Chorio and Potamia.
In the province of Limassol, the Municipality of Limassol consists of the Municipalities of Limassol and Mesa Geitonia, as well as the community of Circassians. The Municipality of East Limassol, with headquarters in Agios Athanasios, includes the municipalities of Agios Athanasios and Germasogeia, and the communities of Agios Tychonas, Akrountas, Mathikolonis, Mouttayakas and Foinikario and Armenochorio. The Municipality of Polemidion consists of the municipality of Kato Polemidion and the community of Ano Polemidion. The Municipality of West Limassol, with headquarters in Ypsonas, includes the Municipality of Ypsonas and the communities of Akrotiri, Asomatos, Episkopi, Erimi, Kanto, Kolossi, Sotiras and Trachoni.
In the province of Larnaca, the Municipality of Larnaca consists of the Municipalities of Larnaca and Livadia, as well as the community of Voroklini. The Municipality of Aradippou includes the Municipality of Aradippou, as well as the communities of Kellia and Trulli. The Municipality of Dromolaxia-Meneos consists of the Municipality of Dromolaxia-Meneos, as well as the communities of Kiti, Perivolion and Tersefanou. The Municipality of Lefkara includes the Municipality of Lefkara and the communities of Vavla, Delikipou, Kato Lefkara, Kornos, Laia and Skarino. Finally, the Municipality of Athienou includes the Municipality of Athienou and the community of Avdellerou.
In the district of Paphos, the Municipality of Paphos remains as it is. The Municipality of East Paphos, with headquarters in Geroskipou, includes the Municipality of Geroskipou and the communities of Agia Marinouda, Achelia, Konia and Timi. The Municipality of Akamas, based in Pegeia, consists of the Municipality of Pegeia and the communities of Akoursou, Inia, Kathika, Kato Arodon, Kissonerga and Pano Arodon. The Municipality of Polis Chrysochous consists of the Municipality of Polis Chrysochous and the communities of Agia Marina, Androlikos, Argakas, Gialia, Druseia, Krito Tera, Makounda, Neo Chorio, Nea Dimma, Pelathousa, Pomou, Tera and Chrysochous.
In the province of Famagusta, the Municipality of Agia Napa consists of the Municipalities of Agia Napa and Sotiras, as well as the communities of Avgorou, Achna and Liopetriou. The Municipality of Paralimni-Deryneia includes the Municipalities of Paralimni and Deryneia and the communities of Acheritos and Frenarous.
As regards Community Service Clusters, nine clusters are being created in Nicosia province, eight clusters in Limassol province, seven clusters in Larnaca province and eight clusters in Paphos province.