Filenews 18 July 2025 - by Vasos Vassiliou
With a claim of €27 million. The Municipalities will come today to the meeting with the Minister of the Interior, Mr. Konstantinos Ioannou. At the forefront of the demands of the Municipalities regarding the outstanding issues that still exist and which block their proper functioning, one year after the reform of Local Government began to be implemented, is the need for financial support.
The Municipalities are asking for a total of €27 million in order to survive, but also to serve their citizens with dignity.
Specifically, in their memorandum, the Municipalities demand that the government immediately pay €15 million. concerning the maintenance of the roads under the responsibility of Public Works, which now fall under their own competence. These funds are considered necessary for the elementary maintenance and upgrading of the road network within the municipal boundaries. In addition, they point out the absence of a legislative control framework during the land separation stage, ensuring that the road networks and green spaces delivered to the Municipalities meet the necessary specifications.
At the same time, the same memorandum calls for the immediate payment of €12 million as compensation for the loss of revenue from the issuance of planning and building permits. This significant loss creates, according to the Union of Municipalities, an irreplaceable gap in their budgets. At the same time, they are demanding additional funds from the government to cover the needs of the 63 communities that have been incorporated into the 20 new Municipalities.
They make it clear that they disagree with the €5 million budget which the government decided to dispose of without consulting them. It is noted that before the reform of Local Government, the District Governors allocated funds to cover the needs/services of the 63 communities. The Municipalities consider it unacceptable that the government bypassed them and indicate that government-sponsored projects had been launched in 63 communities for the beautification of places, national memorials, etc.
They also remind that the communities had projects and actions planned for the coming years, as evidenced by specific examples (e.g. landscaping funds for national memorial services). We are demanding, it is said, special mention and clarification in order to ensure the financing and future needs of these regions.
At the same time, they demand that the issue of debts (to Water Supply Councils and other creditors) be resolved, which had been entered into by the communities that were incorporated into the new Municipalities.
At the same time, the Municipalities express strong dissatisfaction with the fact that the regulation of the way of calculating 40% of their personnel costs in the absence of the Union of Municipalities is being discussed in their absence. The Municipalities also consider that the government has put in the refrigerator the process of subordination of the school boards to them.
The Municipalities also claim the coverage of deficits related to social programs provided by Municipalities. They also ask the Minister of the Interior to issue a circular clarifying the responsibilities of the Municipalities in relation to the NEAs, given that the Municipalities consider that in some issues these Organizations are involved at the feet of the Local Authorities, to the point that they are attempted to be overwhelmed.
Furthermore, they demand the financing of a voluntary exit plan for the Municipalities.
As "F" is informed, during today's meeting on the subject of discussion on the assessment of the one year of Local Government Reform and the outstanding issues that still exist, the president of the Union of Municipalities, Mr. Andreas Vyras, is expected to indicate the following:
-The central state does not fully demonstrate the necessary confidence in the ability of the Local Government to effectively manage its new responsibilities and to serve the citizens without hindrance.
Continued underfunding and lack of meaningful dialogue on critical issues undermine the very spirit and objectives of the reform.
-It is imperative to increase the state sponsorship to the Municipalities, based on the integrated study that has already been submitted by the Association of Cyprus Municipalities. The delay in the implementation of this provision creates serious problems of liquidity and operational planning, jeopardizing the uninterrupted provision of services.
Transfer of School Tax Offices
The following will also be indicated:
-No substantive discussion has begun on how the transitional period for the transfer of school tax offices to the Municipalities, which will undertake their management in the year 2029, has not begun. It is imperative to establish a clear timetable and plan for this transition in order to ensure the smooth operation of schools.
-Strong dissatisfaction is expressed for the fact that the regulation of the method of calculating 40% of personnel costs is being discussed in the absence and without the participation of the Union of Municipalities of Cyprus.
"We believe that there was an explicit agreement on the issue and any unilateral action is a violation of the principle of dialogue. We demand the immediate start of a substantive consultation on the issue."
