1. Fiscal Decentralization Task Force 2007 REPORT

2. TF on Fiscal Decentralization Two meetings: Two meetings: Planning: June in Skopje Planning: June in Skopje Launching: November in Sofia Launching: November in Sofia Five project ideas developed Five project ideas developed Three projects have been started: Three projects have been started: - Budget Negotiation project (funded by SDC) - Cost Estimation of Municipal Services (GTZ contract with NAMRB) - Local Property Tax Administration (GTZ contract with SCTM)

3. TF on Fiscal Decentralization Objectives: -support municipalities in financial management -create and implement successful policy for fiscal decentralisation

4. Budget Negotiations Project Questionnaire sent to members, 7 responses –Regulations on budget preparation –Involvement in budget approval –Budget implementation Foreseen results (June, 2008): 1.Recommendation on legal regulations 2.Model agreement with MoF (2 options) 3.Arrangements with the Government 4

5. Cost Estimation of Municipal Services Project Project proposal approved Pilot services agreed: –Kindergarten –Primary school –Building permits Methodology will be designed Testing in 24 municipalities (6 countries) Handbook and training program (December 2008) 5

6. Local Property Tax Administration Project Project proposal approved ToR for country reports (January, 2008) Country reports with case studies are due in May, 2008 Manual on local property tax collection Proposals on capacity development (December, 2008) 6

7. Projects under preparation Projects under preparation To be prepared by the end of 2008: 1.Local government borrowing (RFLA) 2.Program budgeting at municipal level, linked to cost estimation project (AKM) 3.Municipal Finance Database Other ideas to be designed in 2009: Citizen participation in budgeting Benchmarking municipal finances 7