REPUBLIC OF LITHUANIA
LAW
ON
LOCAL SELF-GOVERNMENT
Chapter 1
GENERAL PROVISIONS
Purpose of the Law
Local self-government (hereinafter referred to as self-
government") denotes the right and actual power of the
institutions of a local government which is elected by the
residents of an administrative unit of the territory of the
Republic of Lithuania, to freely and independently on their own
responsibility regulate and manage public affairs and meet the
needs of local residents according to the Constitution and laws
of the Republic of Lithuania.
The municipality shall be an administrative unit of the
territory of the State, the community of residents whereof has
the right to self-government guaranteed by the State.
The community of the municipality population shall be the
residents of the actual municipality, who are connected with
the legal relations of self-government. The legal relations
of self-government shall be regulated by the Constitution, this
and other laws of the Republic of Lithuania, and statutes of the
councils. This Law shall establish the general procedure for the
organization and activities of the self-government institutions.
If other functions of state governing or administration are
delegated to the local authority, or this is necessary for the
implementation of its exclusive status, the laws may also
establish a different procedure for the organization and
activities of the institutions of the respective local authority.
Article 2. The Principles of Self-Government
Self-government shall be implemented on the basis of the
following principles:
2) the direct participation of the citizens of the Republic
of Lithuania residing in the respective municipality in the
election to the municipal council, polls, meetings of the
residents and petitions;
6) economic independence.
Article 3. Territorial Basis of Self-Government
The right to self-government shall be guaranteed to the
administrative units of the State territory which are provided
by the Law.
Chapter 2
SELF-GOVERNMENT INSTITUTIONS,
PROCEDURE FOR THEIR ORGANIZATION AND ACTIVITIES
Article 4. Self-Government Institutions
Self-government institutions shall comprise the following
institutions:
1) the elective representative institution - the municipal
council (hereinafter referred to as "council");
2) executive institutions - the local authority mayor or
the local authority mayor and the municipal executive board
(formed by the decision of the council); and
3) the control institution - the local authority
controller.
The structure of the executive institutions, specified in
the second item of this Article, as chosen at the beginning of
the term of office, shall not be changed until the end of the
term of office of the council.
Within two months from the day of convocation of the first
meeting of the newly-elected council the local authority mayor
and deputy mayor must be elected, self- government institutions
formed, the structure of the administration as well as the
council statute approved.
The powers of the local authority institutions expire when
a newly elected council assembles at the first meeting. The
mayor, board and controller shall resign at the first council
meeting, and the council shall charge them to continue performing
its functions until new officers are elected or appointed in the
established procedure.
Article 5. The Council
Councillors shall be elected for a term of two years by the
respective municipality residents - citizens of the Republic of
Lithuania, in secret voting on the basis of universal, equal and
direct suffrage in the procedure established by the Law of the
Republic of Lithuania on Election to Municipal Councils.
The municipal council shall implement the right to self-
government and shall possess the rights of a legal person.
The council shall form committees, commissions and other organs
provided by laws of the Republic of Lithuania.
The council statute shall establish the structure and
procedure for activities of the council.
The powers of the council shall be terminated before the
expiration of the term of office when direct rule is temporarily
introduced into the territory of the local authority.
Article 6. Forms of the Activities of the Council
The procedure for the work of the council shall be
established by this Law and the statute adopted by the council.
A sitting shall be the main form of activities of the council.
The council shall exercise its powers by considering and
resolving issues at the sittings of the council, committees and
commissions, meetings of factions and groups. The council shall
adopt decisions on the issues under consideration and organize
their implementation and control.
The council must at least once a year provide information
to the residents concerning the activities of the council and
the institutions formed by it, shall correct the indicated
shortcomings of its work, and implement constructive proposals.
The payment not received at the principal place of employment for
the time spent at council sittings shall be paid and expenses
incurred during work in the council shall be compensated to the
councillors in the manner prescribed by the council.
Article 7. Council Sittings
A council sitting shall be considered lawful if the
majority of the established whole number of councillors is
present.
The first sitting of a newly elected council shall be
convened by the chairman of the appropriate electoral committee
within two weeks after the elections. Said sitting shall be
opened by the chairperson of the electoral committee who shall
preside over the sitting until the mayor is elected. If the
chairman of the committee does not convene a sitting,
councillors shall gather on their own on the next day after the
expiration of a two-week term.
Subsequent council sittings shall be convened by the mayor
and in case of his absence - the deputy mayor on the initiative
thereof or on the proposal of the committee, board, as well as
on the written demand of at least one-third of the established
number of councillors, indicating the issues under consideration.
The mayor, deputy mayor must convene the sitting and present the
proposed issues for consideration within two weeks of receipt of
the demand of the councillors. If the sitting is not convened in
due time, it may be convened by at least one-third of all the
councillors, having informed other councillors and the local
residents about this in writing. If the mayor or his deputy does
not participate in the sitting, the sitting shall be presided
over and all documents adopted at the sitting shall be signed by
one of the councillors.
The mayor, his deputy or one-third of councillors shall
inform all the councillors and the local residents of the
convocation of a sitting as well as of the issues prepared for
consideration at least three days prior to the commencement of
the sitting.
Issues to be considered by the council shall be submitted by
committees, commissions, councillors, mayor, and the board. The
mayor shall draw up the agenda of the council sitting. It may be
supplemented or amended by the decision of the council upon
proposal of the committee or commission, faction, group,
controller or a Government representative-at-large.
Decisions of the council shall be adopted by a majority
vote of all the councillors participating in the sitting. In the
event of a tie vote, the vote of the mayor shall be decisive. A
councillor shall not have the right to vote if the property or
financial issues related to his person are being considered.
Decisions of the council shall become effective on the next day
following their promulgation, unless a further date of their
coming into force is set forth in the decisions.
Minutes shall be taken at council sittings. The mayor shall
sign the minutes and the council decisions. Decisions concerning
the election of the mayor shall be signed by the chairman of the
electoral committee or the sitting.
Council sittings shall be convened at least once a quarter.
Council sittings shall be open to the public. The controller,
board members, a Government representative-at-large, members of
the Seimas of the Republic of Lithuania shall have the right to
participate and speak at the sittings. The procedure for
participating of representatives of enterprises, institutions
and organizations as well as residents at council sittings
shall be established by the council statute.
Only those issues shall be considered at council sittings
the draft decisions whereof are submitted in the procedure
established by the council statute.
Article 8. Council Committees
Council committees shall be the council organs which are
formed for the preliminary consideration, preparation, and
submission of issues to the council, mayor and the board, as
well as for controlling the observance of laws and implementation
of the decisions of the council, mayor and the board.
Committees may consider issues which are within their competence
and adopt recommendatory decisions, which must be considered by
self-government institutions, subdivisions of administrations,
municipal enterprises and organizations which have received the
recommendations or proposals.
Committees shall also submit proposals and findings
concerning decisions submitted to the council for consideration
as well as other draft documents. Committees shall be formed from
the councillors. The number of committees as well as members,
competence and working procedure whereof shall be established by
the council statute. Committee chairmen shall be elected on the
recommendation of the mayor.
Minutes shall be taken at committee sittings. Committee
chairmen shall sign the findings and decisions.
Article 9. The Mayor, Deputy Mayor
For the term of office, the council shall, from among the
councillors, elect a mayor and, on the recommendation of the
mayor, a deputy mayor. The mayor, deputy mayor shall be elected
by secret voting. The mayor, deputy mayor shall be considered
elected provided that the majority of the established whole
number of the councillors voted for their candidatures.
The mayor, deputy mayor shall be responsible for and
accountable to the council for exercising the powers of the
autonomous competence.
The mayor, deputy mayor shall be directly responsible for
exercising the powers delegated by the State. If the mayor,
deputy mayor fails to exercise or poorly exercises the powers
delegated by the State, the Government shall inform the council
about this, and shall warn said officers as well as establish
the term for elimination of the short-comings. If the
shortcomings are not eliminated within the established time, the
Government shall appeal to the council with its directive
concerning the dismissal of the mayor, deputy mayor. The
Government appeal must be considered at a council sitting within
two weeks. If the council does not dismiss the mayor, deputy
mayor, the Government shall appeal to the Seimas for the
introduction of direct rule.
The powers of the mayor, deputy mayor shall also be
terminated:
2) when they do not resign from another job or office
according to paragraph 10 of this Article; and
3) when direct rule is being temporarily introduced into the
local authority territory.
By the motivated decision of the council, the mayor, deputy mayor
may be dismissed prior to the expiration of the term of office
on the initiative of the one-third of councillors, if the
majority of the established whole number of councillors votes
for this. The mayor, deputy mayor may be dismissed prior to the
expiration of their term of office on other basis and procedure
established in the Law on the Employment Contract.
If the decision to dismiss the mayor, deputy mayor is not
accepted, this issue may be considered no sooner than after six
months, with the exception of cases, when the circumstances set
forth in paragraph 4 of this Article turn out.
After the expiration of the term of office, if the mayor,
deputy mayor are not re-elected for a new term and it is not
possible to provide them with the previously held job (office),
they shall be paid a severance pay equal to their three-month
average salary.
The council shall establish the salary of the mayor, deputy
mayor according to the rates established by the Government.
The mayor, deputy mayor may not hold any other elective or
appointive office, work in any other state or private
enterprises and receive additionally any other salary, with the
exception of payment for creative activities.
The deputy mayor shall exercise the powers delegated to him
by the mayor and perform all the duties of the mayor in the
absence of such.
The deputy mayor shall preside over the sitting of the
council or board, when issues related to the personality of the
mayor are being considered.
The powers of the mayor, deputy mayor shall be extended
after a new election until the transfer of matters to a newly-
elected mayor, deputy mayor or to a person authorized by the
Government, when direct rule is being temporarily introduced
into the local authority territory.
Article 10. The Board
The council, upon the decision and for the term of the
powers thereof, shall, from among its members, form a joint
executive institution - the board, also establishing the
number of its members.
In separate cases provided for in laws, it may be
obligatory to form a board, and its composition - regulated.
If the board is formed, the mayor and deputy mayor shall be ex
officio members of the board. The mayor shall present the
candidatures of the board members for the council's approval.
A sitting of the board shall be lawful provided that at least
two-thirds of all of the board members participate therein.
The agenda of a board sitting shall be drawn up by the mayor. It
may be supplemented or amended by the council decision, on the
proposal of the board members, controller or the Government
representative-at-large.
Minutes shall be taken at board sittings. The mayor shall
sign the minutes of the sittings.
Decisions of the board shall be adopted by majority vote of
the members participating in the sitting. The board decisions
shall become effective on the next day following their
promulgation, unless a further date of their enforcement is set
forth in the said acts. Board decisions concerning the issues
of the council's autonomous competence must be signed by the
mayor. The mayor shall be entitled not to sign the board
decisions concerning the functions delegated by the State if
said decisions contradict laws. The mayor's deeds concerning
the decision not to sign, which violate the rights of citizens
and organizations may be appealed against in the court.
On the initiative of 1/3 of councillors, the council may
declare non-confidence in the whole board, should the board be
formed, or in an individual board member, if the majority of the
established whole number of councillors votes for this. When
non-confidence is being declared, the board or its individual
member must resign from office. If the decision to declare non-
confidence is not approved, this issue may be considered no
sooner than after six months.
The powers of the board shall be extended after an election
of councillors until the formation of a new board.
Article 11. The Administration
The administration shall implement decisions of the
council, mayor and the board, as well as provide technical
services for the council, mayor and the board.
The council shall approve the structure and regulations of
the administration, and the mayor (the board, should the board
be formed) shall draw up a list of the staff as well as fix the
salaries thereof, following the laws and standards approved by
the Government decrees and not exceeding the established wage
fund.
The administration shall be headed by the administrator.
The administrator shall:
4) within his competence issue orders.
The administrator shall be appointed and dismissed by the
mayor. If the board is formed, it shall appoint and dismiss the
administrator on the recommendation of the mayor.
With the mayor's consent, the administrator shall appoint
and dismiss the heads of the administration divisions as well as
their assistants. Other employees of the administration shall be
hired and dismissed from work by the administrator.
Employees of the administration may not be the members of
the council they are providing services for.
Article 12. Chief Executive of the Neighborhood
The chief executive shall be an officer of administration in
the Neighborhood. He shall be appointed and dismissed by the
mayor.
Usually the chief executive must be a resident - a citizen
of the Republic of Lithuania - of the respective Neighborhood.
Upon the expiration of the term of office, if the chief
executive is not appointed for a new term and it is not possible
to provide him with the job, previously held by him, he shall be
paid a severance pay equal to his three-month average salary.
The chief executive's powers shall be extended after a new
election of councillors until the transference of the matters to
a newly-appointed chief executive.
The chief executive's salary shall be fixed by the mayor
(the board, should it be formed) according to the standards
approved by the Government.
Article 13. The Controller
For the term of office the council shall appoint a
controller. A controller may be a citizen of the Republic of
Lithuania who has a higher education. The controller shall be
appointed by secret ballot. The controller shall be considered
appointed if the majority of the established total number of
councillors has voted for his candidature. The same procedure
shall be applied for appointing an assistant controller on the
recommendation of the controller.
The controller, assistant controller may not perform any
elective or appointive duties, work in any other state or
private enterprises and receive any other salary, with the
exception of payment for creative activities.
If the controller is not able to perform his duties or in
his absence, the assistant controller shall perform said duties.
The controller, assistant controller may be dismissed before the
expiration of his term of office on the initiative of 1/3 of
councillors upon the motivated council's decision, if the
majority of the established whole number of councillors votes
for this.
If the decision to dismiss the controller, assistant
controller is not approved, this issue may be considered not
sooner than after the passage of six months.
Upon the expiration of the term of office, if the
controller, assistant controller are not appointed for a new
term and it is not possible to provide him with the job
(office), previously held by him, he shall be paid a severance
pay equal to his three-month average salaries.
The powers of the controller, assistant controller extend
after a new election of councillors until the transference of
matters to a newly appointed controller.
Chapter 3
COMPETENCE OF SELF-GOVERNMENT INSTITUTIONS
Article 14. General Provisions
The competence of self-government institutions shall be
autonomous and delegated by the State. Self-government
institutions, within the limits of the autonomous competence
ascribed to them by this Law, shall be entitled to free
activities, initiative, and adoption of decisions to the extent
permitted under the Constitution, laws and subordinate
legislation of the Republic of Lithuania. Moreover, other
problems, the resolution of which does not fall within the
competence of state institutions, which arise to the population
of municipality communities shall be resolved in local
authorities.
The state functions shall be delegated to local authorities
by this Law or other laws.
Self-government institutions, adopting decisions on the
issues within the competence delegated by the State, shall act
in compliance with laws, Government decrees and other subordinate
legislation.
State institutions shall act and control self-government
institutions, which execute the functions delegated by the
State, only in cases and forms provided by laws.
Article 15. Autonomous Competence of the Council
The council shall:
2) form committees, and, upon the decision of the council,
the board, administrative and other commissions, alter their
composition, approve candidatures, proposed by the mayor, of
the chairmen of committees and commissions;
5) adopt decisions concerning the division of the
respective local authority territory into neighbourhoods and
establish their limits;
7) approve the regulations for activities of the mayor (the
board, should it be formed) and controller;
8) terminate the powers of the councillors prior to the
expiration of their term of office in cases and the procedure
provided for in the Law on the Status of the Local Authority
Councillor;
10) approve the procedure for accumulation and
utilization of non-budgetary funds and resources and reports on
their utilization;
11) distribute or authorise the mayor (the board, should it
be formed) to distribute additional municipal budgetary
resources;
12) establish prices and tariffs for services rendered to
residents by public municipal enterprises;
13) approve the general sum of allotments and wage funds for
institutions and organizations which receive financing from the
municipal budget;
15) adopt decisions to establish, reorganize and liquidate
municipal enterprises and organizations which function according
to the Law on Enterprises;
16) adopt decisions on the establishment, reorganization
and liquidation of institutions, enterprises, and organizations,
maintained from the municipal budget funds;
17) establish the size of payment or compensations for
plots of land which are being bought out, utilization of the
municipality equipment, facilities, and natural resources ;
18) approve the master plan for the development of the
respective local authority territory and amendments thereof, as
well as the general schemes for the development and establishment
of settlements and towns;
19) in accordance with the procedure prescribed by laws,
establish and manage local authority protected territories and
objects of landscape;
20) establish the procedure for approval of local authority
contracts and agreements with enterprises, institutions and
organizations located on the territory of said and other local
authorities, as well as with other local authorities and foreign
enterprises;
21) may at the expense of the council grant privileges to
enterprises which create new work places or meet other urgent
needs of the residents;
22) utilize bank credits, take and lend loans in the manner
prescribed by laws, establish conditions for the use of bank
credits by local authority executive institutions, as well as
for the lending and granting of loans;
24) hear the reports of the mayor (the board, should it be
formed) and other organs, formed by the council, inquiries by
councilors to the officers of the administration, heads of
municipal enterprises and organizations and adopt decisions
thereon;
25) on its own initiative, the proposal or demand of the
Government representative-at-large, or other institutions repeal
or withdraw the decisions and ordinances of the council, mayor
(the board, should it be formed) and other self-government
institutions, which contradict the laws, as well as the decisions
of the Government or the council;
26) approve the rules concerning the protection of green
plantations, of maintaining order and sanitary conditions in
towns and settlements, and trade in market places and other rules
for the violation whereof an administrative responsibility is
established;
27) adopt decisions to join the local authority unions and
international self-government organizations;
28) approve the symbols of a respective municipality,
submit proposals to approve the coat of arms of a local
authority; and
29) submit proposals concerning the altering of the limits
of the local authority territory.
Article 16. Competence Delegated by the State
Self-government institutions shall perform the functions
of civil registration, keep the register of municipal, state and
private enterprises, as well as public organizations; they may
also manage state parks (national and regional), organize the
municipal police, civil security and fire prevention system, and
implement other functions delegated by laws.
In implementing the functions delegated by the State, self-
government institutions shall observe the laws, execute the
Government decrees.
Article 17. Competence and Powers of the Mayor
The mayor shall provide agendas of council sittings,
convene council sittings and preside over them, coordinate
the activities of council committees and commissions, sign
council decisions and minutes of the sittings. The mayor shall
organize the implementation of council decisions.
If a joint executive institution - the board - is being
formed, the mayor shall head it and preside over its sittings,
sign decisions on the issues of an independent competence and
shall have the right not to sign the board decisions concerning
the issues of the competence delegated by the State, if these
decisions, in his opinion, contradict the laws or Government
decrees.
The work of the mayor shall be regulated by the regulations
approved by the Council.
While executing his powers, the mayor shall:
1) represent or authorize other persons to represent the
council and the board in court, in relations with other local
authorities, state institutions, institutions of foreign states
as well as self-government institutions, residents of the
municipality;
2) propose candidatures for a deputy mayor, chairmen of
committees and commissions, other heads of bodies formed by the
council;
3) appoint and dismiss an administrator and chief
executives, approve the regulations of the chief executive's
activities;
4) draw up and present to the council for approval
contracts and agreements with enterprises, institutions and
organizations functioning on the territory of the respective
local authority and other local authorities, as well as with
foreign enterprises and other local authorities;
5) organize the general education and additional training
of children and youth and the general training of adults, look
after the cultural education of the population and the promotion
of general and ethnic culture, organize primary health care and
disease prevention for residents, as well as care for the sick,
disabled and elderly, ensure that the territory is sanitary and
that the requirements for hygiene and environmental protection
are being complied with, and develop the industry of recreation
and tourism of the residents; and
6) organize the support, care and attendance of the
disabled and single elderly persons, arrange charity events, and
distribute accumulated funds and donations in accordance with the
procedure established by the council.
While executing these and other provided powers, the mayor
shall adopt ordinances.
Article 18. Competence of the Board
In the event that the council forms a board, while
executing its powers the latter shall:
1) upon the instruction of the council, set prices and
tariffs for services provided by municipal enterprises for the
population;
2) upon the authorization by the council appropriate
additional municipal budgetary funds and other resources;
3) organize analysis of the development of the respective
territory, preparation of drafts of general long-term social,
cultural, economic, investment, demographic, ecological and
other programmes;
4) organize the implementation of the programmes, approved
by the council, on the local authority territory;
5) organize the drafting of a master plan of the respective
territory, as well as projects and detailed plans concerning its
amendments;
6) control over compliance with the requirements for the
construction, extension and renovation of all facilities, the
erection of buildings and constructions on the territory, as
well as the protection of landscape, architectural and cultural
monuments;
7) submit to the council for consideration or resolve
itself issues concerning the design and building of the
facilities of the social and industrial infrastructure,
supervise the establishment of the procedure for the
exploitation thereof, and, when necessary, discharge the
functions of a single client;
8) compose a draft budget and account on the budget
implementation and submit them to the council for approval;
10) control the expediency and lawfulness of the
utilization of funds which have been formed by the local
authority;
11) control the implementation of the rules established by
the council for the violation of which administrative liability
is provided;
12) organize the construction and exploitation of
residential premises, arrange and supervise waiting lists of
citizens for state support, rent and sale residential premises
belonging to the municipal fund pursuant to laws;
13) examine and analyse migration processes, organize, in
conjunction with the territorial labour exchanges, the rational
employment of the residents, the improvement of their skills,
their retraining, and communal work;
14) in conjunction with other state institutions, prepare
and implement preventive measures, rescue the residents in the
event of disaster, natural calamity, epidemic, or outbreak of
infectious diseases, and liquidate the consequences thereof;
15) prepare recommendations for the council to found,
reorganize and liquidate institutions, enterprises and
organizations financed from the municipal budget funds;
17) call meetings of residents in which, at least once a
year, provide information concerning local authority affairs,
account to the council for its activities once a year as well as
upon request.
The competence of the board shall be regulated by the
regulations approved by the council.
Should the board be not formed, the powers assigned to the
board shall be exercised by the mayor.
Article 19. Competence of the Chief Executive
The chief executive's work shall be governed by the
regulations of his activities.
The chief executive shall:
1) upon the instruction of the mayor, prepare and present
draft ordinances of the mayor (the board, should it be formed)
on issues concerning the Neighbourhood;
3) present to the mayor proposals concerning the care of
the territories and landscape objects protected by the local
authority;
5) issue to the residents of the respective Neighbourhood
certificates concerning their social status;
11) control and furnish to the local government
information concerning the implementation of the decisions
of the council (the board, should it be formed), and ordinances
of the mayor on the territory of the respective Neighbourhood;
12) in rural areas register births and deaths, issue burial
permits, execute notarial acts in the manner prescribed by laws;
and
13) perform other functions delegated by the mayor's
ordinance (decision of the board, should it be formed).
Article 20. Competence of the Controller
The controller, not exceeding the powers established by
laws of the Republic of Lithuania and decisions of council, shall
supervise the utilization of the municipal budgetary funds, the
legitimacy, expediency and effectiveness of the exploitation
of the municipal property, as well as the state property
entrusted to the local authority.
The activities of the controller shall be regulated by the
regulations. The controller shall within his competence issue
orders.
The controller shall:
1) direct the controlling service, hire and dismiss
employees of the said service (without exceeding budgetary
appropriations and the established wage fund);
2) present to the council conclusions concerning the
implementation of the municipal budget, utilization of non-
budgetary assets and funds;
3) on the proposal of the council, its committees, mayor
(the board, should it be formed), or on his own initiative,
organize inspections and audits in the administration, municipal
public and state stock enterprises, institutions, and
organizations of the local authority;
4) present to the local authority institutions conclusions
and proposals on the results of inspections and audits; and
5) carry out other actions ensuring the elimination of the
established violations.
The controller shall be a legal person.
Chapter 4
THE BASIS OF ECONOMIC ACTIVITIES
OF LOCAL AUTHORITIES
Article 21. Municipal Property
The basis of the economic activities of the local authority
shall be the municipal property.
The municipal property shall be the property which belongs
to the local authority by the right of ownership, the functions
of owner whereof shall be implemented by the council according
to laws.
The facilities of municipal ownership shall be established
by laws.
The local authority shall acquire the ownership right by:
1) conveying state-owned facilities to the local authority
ownership in accordance with the procedure established by laws.
In this case, there may be provisions, established by laws,for
the limitation of the disposal of such objects;
3) concluding contracts, or in other cases provided for in
laws.
The council may delegate the right to manage and exploit
concrete objects of local authority ownership to the institutions
formed by it or to economic entities.
Article 22. Ownership Relations in Changing the Limits
of the Territories of Local Authorities of the
Republic of Lithuania
When liquidating a local authority or changing the limits of
a territorial administrative unit of the Republic of Lithuania,
the real estate of the local authority shall be ascribed to
another local authority by that part of the real estate which
is on the ascribed territory; other property and debts of
the local authority shall be distributed among local authorities
in proportion to the amount of taxes of legal and natural persons
of the ascribed territory collected to the municipal budget.
Disputes concerning property of administrative units of the
territory of the Republic of Lithuania arising from the
reorganization of the limits of administrative units of the
respective territory shall be settled by the court.
Article 23. Financial Resources of the Local Authority
Financial resources of the local authority shall be
comprised of the municipal budget, non-budgetary funds and
resources.
Each local authority shall have an independent budget.
The municipal budget shall be drawn up and approved for the
period of one year.
During a budget year the council may amend the budget and
make up an additional budget in the same procedure as it is made
and approved. The relations between the Lithuanian State budget
and the budgets of local authorities shall be regulated by the
Laws of the Republic of Lithuania on Budget Structure and on
Taxation.
The municipal budget revenues shall be formed from the
income received for the exploitation of property which is in the
ownership of the local authority, from the taxes paid by
enterprises, institutions and organizations which are on the
territory of the respective local authority, and from other
sources of income ascribed to local authorities by laws of
the Republic of Lithuania.
In the event that the income assigned to budgets of local
authorities is insufficient for meeting the social needs of local
authorities, municipal budgets shall be provided with subsidies
from the Lithuanian State budget for the implementation of
purpose-oriented programmes.
Supplementary income of municipal budgets which are received
during the implementation of the budget as well as funds received
from expenditure savings shall be left to local authorities.
In the event that the revenue or expenditure of the
municipal budget changes due to acts adopted by the state
institutions of Lithuania, the sums of said changes shall
be appropriately compensated for from the Lithuanian State
budget or from municipal budgets. The sums of compensations
shall be coordinated by the interested parties. In the event of
a dispute, the final decision shall be adopted by the court.
Funds from the Lithuanian State budget shall be allocated to
exercise functions delegated by the state.
Local authority non-budgetary funds and resources shall be
formed from local fees and other sources of income. The procedure
for the establishment of local fees and the formation and
utilization of local authority non-budgetary funds and resources
shall be established by laws.
The local authority may make use of bank credits, may
borrow and grant loans according to the procedure established by
laws.
Chapter 5
RELATIONS OF LOCAL AUTHORITIES
WITH STATE INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS
Article 24. Relations of Local Authorities with State
Institutions
Relations between the councils and executive institutions
of local authorities and State institutions shall be based on
the Constitution and laws of the Republic of Lithuania.
Self-government institutions shall not be subordinate to
the State institutions.
In the cases when higher State institutions consider
matters related to interests of a local authority, the former
must inform the local authority about this. The council submit
proposals which must be considered by higher State
institutions.
The Government and its institutions shall coordinate the
decisions on issues concerning the planning of the State
territory with local authorities and propose the changes in the
limits of local authorities, taking into consideration the
proposals of local authorities.
The Government shall support local authorities in train
ing, improving and retraining municipal employees.
Local authorities shall be informed and consulted at
the State institutions on all issues concerning local
authorities.
Article 25. Representation of Local Authorities of the
Republic of Lithuania
The association of local authorities shall represent local
authorities of the Republic of Lithuania in the Seimas, in the
relations with the President, in the Government and
international organizations.
Chapter 6
LEGAL GUARANTEES FOR THE ACTIVITIES
OF LOCAL AUTHORITIES
Article 26. General Provisions of Legal Guarantees for
the Activities of Local Authorities
The decisions of self-government institutions adopted
within their competence shall be binding to all enterprises,
institutions and organizations located on the territory of a
respective local authority as well as to the officers and
residents thereof.
Local authority rights established by this Law may not be
restricted or curtailed, except in the cases provided for in the
laws of the Republic of Lithuania.
Article 27. Legal Protection for the Activities of the
Councils
Councils shall have the right to appeal to court concerning
the violations of their rights.
Article 28. Legal Supervision of Self-Government
Institutions and Officers
The compliance of local authorities with the Constitution
and laws of the Republic of Lithuania and decisions of the
Government shall be supervised by the Government representatives-
at-large.
Complaints of citizens concerning the abuse of power or
bureaucracy of municipal officers shall be examined by the
Seimas Ombudsmen whose powers shall be defined by the Law on the
Seimas Ombudsmen.
Acts or actions of councils, their executive institutions
and officers, which violate the rights of citizens and
organizations may be appealed against in the court.
Article 29. Symbols and Business Conduct of Local
Authorities
The coat of arms of an administrative center of a
municipality shall be considered the coat of arms of
the respective local authority. The local authority which does
not have a coat of arms shall use the State Emblem.
The local authority coat of arms shall be used on certain
types of seals, signs and headletters of self-government
institutions.
Local authority business shall be conducted in the
Lithuanian language and must correspond to the requirements for
business conduct established by the State.
Article 30. Introduction of Direct Rule into the Local
Authority Territory
By the decision of the Seimas, direct rule may be
temporarily introduced into the territory of the local authority,
but not longer than up to the expiration of the term of office.
Upon the introduction of direct rule, the municipal council and
the executive institutions formed by it shall lose their
powers.
Direct rule may be introduced if:
1) the actions of self-government institutions threaten the
integrity of the state territory and constitutional order;
2) courts establish that the council fails to adhere to the
Constitution of the Republic of Lithuania, violates laws;
3) the council fails to elect a mayor, deputy mayor and does
not form self-government institutions within the time
established in this Law or fails to convene for the sitting,
convoked by the mayor, three times in success; and
4) the mayor or the council does not adhere to the
provisions of Par.3 of Article 9 of this Law.
Proposals to temporarily introduce direct rule may be
submitted to the Seimas by the Government of the Republic of
Lithuania, and the conclusions concerning the validity of this
proposal shall be submitted to the Seimas by the Local
Government Committee of the Seimas.
In the decision to temporarily introduce direct rule, the
Seimas shall set the date of a new election to the municipal
council.
The Government of the Republic of Lithuania shall implement
direct rule of a municipality in accordance with the Law of the
Republic of Lithuania on Direct Rule of Administrative
Territorial Units.
Article 31. Coming into Effect of the Law
This Law shall become effective on the day following the
elections to the councils of municipalities of the Republic of
Lithuania. Upon coming into effect of this Law, the Law of the
Republic of Lithuania on the Fundamentals of Local Government
becomes invalid.
I promulgate this Law enacted by the Seimas of the Republic