1. UNION OF MUNICIPALITIES OF MONTENEGRO

2. Local self-government in Montenegro
The new Law on Local Self-Government and the Law on Local Self-Government Financing were adopted in the middle of the year This laws have provided greater degree of autonomy to the local self-government. The Laws also enabled delegating of certain competences as well as the resources for their financing. Also, the possibility was provided for the further decentralization of certain state affairs like the education system, healthcare system and social/children protection system.

3. Principles
The Law on Local Self-Government was based on the key principles:
depolitization,
decentralization,
autonomy,
proffessionalization and
efficiency of the local self-government work

4. Local self-government Financing
According to the Law on Local Self-Government Financing, the municipalities get a complete amount of revenues earned from the property tax and 30% of revenues earned from the concession fees based on utilization of natural goods. The law also envisaged establishing of egalisation subsidies (10% of the personal income tax within the Republic) which, through the Committee on Egalisation Fund, enables financial equalisation of municipalities. This makes an imortant improvement for the local self-government financing system. Out of 7 members of the Committee on Financial Equalisation of municipalities in Montenegro, 5 members are representatives of the Union of Municipalities.

5. Citizens Participation
The Law created an institutional framework for providing the principles of public and transpartent work of the bodies as well as for the bigger citizens participation in the decision-makin process at the local level, which makes the prerequisites for establishing the citizens' trust into the local authorities and prerequisites for the development of local democracy.

6. Citizens Participation
In the process of implementation of the Law on Self-Government, all municipalities in Montenegro adopted (or they are going through the procedure of adopting) the Ordinance on Citizens Participation in conducting of Public Affairs. The Union of Municipalities was an initiator of drafting and adopting of this, very important act which comprise mechanisms for encouraging and involving the citizens in conductig of public affairs at the local level.

7. National Work Plan for Better Local Self-Government
Union of Municipalities and the Ministry of Justice worked together on drafting The National Work Plan for Better Local Self-Government, which was adopted by the Government of the Republic of Montenegro in February of this year.

8. National Work Plan for Better Local Self-Government
Currently the Union and the Ministry are conducting following analysis:
Analysis on the Local Self-Government Affairs;
Analysis on Functioning of Local Self-Government and
Analysis on Local Self-Government Financing.
These analysis ought to result with the proposal of the concrete measures e.g. the proposal of tasks and activities that must be undertaken by the Government, respective ministries , Union of Municipalities and municipalities

9. Dialogue between central government and local authorities
For the purpose of establishing necessary dialogue between central and local authorities, Union of Municipalities addressed to the Government of the Republic of Montenegro, the proposal of the Agreement on Cooperaton between the Government and the Union of Municipalities. It precisely defined necessary methods of cooperation and istruments for their implementation. The negotiations for signing the Agreement are going on.

10. Dialogue between central government and local authorities
The Union represent interests of municipalities towards Central government also through:
Membership in intergovernmental bodies (Coordination Committee on Local Self-Govermnent Financing, Coordination Committee on the Local Self-Government Reform, Committee on Equilisation Fund).
Membership in working groups for drafting the laws and other regulations
Membership in the working teams for preparation of national strategies
Commenting the drafts of laws and other regulations in relation to the position and the right of local self-government.

11. Activities of the UoM in the implementation of the Law on LSG
Union of Municipalities of Montenegro, through its working teams consisting of representatives of municipalities and the Union employees, prepared models of the most important regulations which are adopted by the local self-govenment bodies, as follows:
Municipal Statute,
Rule Book of the Municipal Assembly,
The Ordinance on Citizen Participation of in the Decision-Making Process,
The Ordinance on Neighbourhood districts,
The Ordinance on the Council for the Development and the Protection of Local Self-Government;
the Ordinance on Organizaton of the Local Self-Government.

12. Training Strategy
In the future period the Union shall be engaged in important issues like proffessional training of the employees in the local self-government. National Work plan for better Local Self-Government envisaged preparation of the Strategy of Training of Local Officers. Union of Municipality shall prepare The Training Strategy for Local Officers in cooperation with the Council of Europe and European Agency for Reconstruction. The activities on preparation of this document were envisaged for the year 2006

13. MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS
The Union is full member of NALAS
The Union has its delegates in the Congress of Local and Regional Authorities to the Council of Europe.
The Union is associated member of CEMR, and
The Union is member of Energie-Cities.