Municipal Act (GG) (GG)

**1. This act regulates the fundamental principles of the organization and financial administration of municipalities, as well as the political rights of their citizens and the supervision of the canton over the municipalities.**

**2. Municipalities are:**

a) the political municipalities;

b) the school municipalities;

c) the local municipalities and local citizen corporations;

d) the local corporations.

3. ...

1. Special municipalities are

a) the school municipalities;

b) the local municipalities;

c) the local corporate bodies;

d) the local corporations.

2. The existence and tasks of the school municipalities are governed by the legislation on public schools.

1. The municipality enforces law through the municipal code as well as through regulations and agreements. These generally establish binding rights and duties of the municipality and of the citizens, as well as the organization of the authorities.

2. The municipality can set usage fees.

3. It can provide for fines or, in minor cases, warnings for violations.

1. The competent department approves

a) the municipal code;

b) agreements on special-purpose associations and municipal associations.

2. The approval confers legal validity.

1. A prescribed or in the interest of worthy protection necessary official announcement shall be made by publication in the official publication organ pursuant to Art. 27 of the Publication Act of August 14, 2018.

2. ...

1. Referendum Deadline, Legal Validity, and Commencement of Enforcement for Municipal Ordinances, Regulations, and Generally Binding Agreements Shall Be Officially Announced.

1. The publication of the results of elections and referendums held at the polls is governed by Art. 104 para. 2, Art. 111 para. 2, and Art. 116 para. 2 of the Law on Elections and Referendums of December 5, 2018.

1. If public inspection is required, the subject, location, and duration of the inspection, as well as any applicable appeal period, shall be officially announced.

1. The political municipality bears a coat of arms.

2. The coats of arms are listed in a cantonal register of coats of arms.

1. Municipalities may agree on boundary adjustments.

1. The number and names of the political municipalities are listed in the annex to this decree.

1. The political municipality assumes the responsibilities of a special municipality, against compensation, which the canton has assigned to the municipalities by constitution or law, if the special municipality wishes to transfer them to it. In the event of over-indebtedness, the political municipality may order remedial measures in advance.

2. The political municipality may take over responsibilities of a local corporation if an economical use of resources or effective task fulfillment requires it and the other political municipalities in the corporation's area agree.

1. The local municipality fulfills charitable, cultural, and other tasks in the public interest with its resources. Its services benefit the general public.

1. The local municipality establishes principles through regulations regarding the acquisition, disposal, and management of property.

1. Municipal Corporations are

a) Property communities of several local municipalities;

b) Districts and other parts of a local municipality;

c) Citizenship corporations and other associations of certain families within a local municipality;

d) Associations of residents of the same religious denomination within a local municipality.

1. New Municipal Corporations Cannot Be Established.

1. The local corporation is established with the adoption of the municipal ordinance and recognition by the competent department. The department may compel a minority to join.

2. The local corporation performs certain tasks not assumed by the political municipality, such as the supply of water and electricity, public lighting, or wastewater treatment.

1. A local corporation may exist within the area of one or several political municipalities. It records the territorial extent in its municipal charter.

2. The local corporation may modify its area if the affected parties consent.

3. The competent department may order a modification if public interest requires it.

1. If the corporate territory extends beyond the cantonal border, the government shall reach an agreement with the neighboring canton regarding the applicable law, legal protection, and supervision for the corporation.

1. The municipality may organize itself through the municipal ordinance as

a) Municipality with a citizens' assembly;

b) Municipality with a parliament.

1. The citizenry deliberates and decides at the citizens' assembly, unless referendums are conducted.

2. The council manages ongoing affairs and submits proposals to the citizenry.

3. The audit committee reviews the conduct of office by the council and administration and exercises financial oversight.

1. The Parliament represents the citizenry.

2. The citizenry exercises its reserved powers at the ballot box.

3. The Council manages current affairs and submits proposals to the Parliament.

1. The citizenship elects the chairperson and the members of the council as well as the members of the audit commission.

2. The municipal code may provide for the election of the head of a department or division by the citizenship.

2bis In municipalities where more than one council member is employed full-time, the municipal code may provide for the election of the chairperson of the council from among its members.

2ter If a municipality provides for the election from among the council pursuant to paragraph 2bis of this provision

a) the heads of a department or division to be elected by the citizenship are also elected from among the council members;

b) the decisive majority for the council members, the chairperson of the council, as well as the heads of a department or division to be elected by the citizenship, is determined separately;

c) a person is considered elected as chairperson of the council or a department or division only if they are simultaneously elected as a council member or are already a council member in a by-election.

3. The citizenship decides on

a) the municipal code;

b) the annual financial statement;

c)* budget and tax rate;

d) one-time or new recurring expenditures exceeding at least ten years, which surpass the amount set in the municipal code. Expenditures also include loans and participations if security and yield do not comply with generally accepted commercial principles, as well as sureties and guarantees;

e) membership in municipal associations and purpose associations;

f) initiative requests;

g) matters in accordance with the municipal code or special legislation.

1. Subject to the Optional Referendum

a) Generally binding regulations, except for fee tariffs;

b) Generally binding agreements;

c) Transfer of administrative tasks to another municipality;

d) Matters in accordance with the municipal ordinance, insofar as it does not provide for the mandatory referendum.

1. Exemptions from Mandatory Voting by the Citizenry and from the Optional Referendum

a) Matters for which legislation, regulatory ordinances of the municipality, or other legal obligations do not leave a wide scope of discretion;

b) Regulations concerning the service and salary conditions of members of authorities and administrative personnel. New provisions that cause additional expenditures shall only be implemented after the citizenry has approved the funds for the first year of implementation;

c) Rules of procedure for the council, administrative commissions, and the business audit commission.

2. The municipal code or regulations subject to a referendum may exclude implementation provisions of the council from the referendum.

1. On fundamental issues falling within the jurisdiction of the citizenry, the council may order a vote.

2. The result of the fundamental vote is binding on the council during the drafting of the intended resolution. However, the council is free in its opinion. The binding nature does not extend to later procedures in which the same question is addressed again.

3. The citizenry is not bound by the result of the fundamental vote.

1. The citizenry shall make its decisions openly at the citizens' assembly, unless this enactment provides for a different voting procedure.

2. Elections that are within the competence of the citizenry according to Art. 22 paras. 1 and 2 of this enactment shall be conducted by ballot.

3. Ballot votes on matters shall be conducted if

a) a referendum request has been made;

b) the municipal regulations provide for it. The council can submit the proposal to a citizens' assembly, which may decide on rejection, postponement, or amendment;

c) the majority at the citizens' assembly decides it or, insofar as the municipal regulations determine, a minority demands it. The proposal may still be dealt with according to letter b.

4. The municipal regulations, annual accounts, budget, and tax rate shall be submitted to the citizens' assembly. One-third of the citizens' assembly may demand a ballot vote for the final vote on the municipal regulations.

1. In special municipalities, the municipal code may provide for open elections. The citizens' assembly has the right to decide on ballot voting on a case-by-case basis. The municipal code may also grant this right to a minority of the assembly.

2. If no more candidates are proposed for an open election than there are mandates to be distributed, a collective vote may be undertaken.

3. If more candidates are proposed than there are mandates to be distributed, individual votes on the candidates will be conducted. A candidate is elected who receives more than half of the valid votes. No new candidates may enter the election after the second round of voting. In each subsequent round of voting, the candidate with the fewest votes is eliminated.

4. If more candidates achieve an absolute majority than there are seats to be distributed, the candidates with the fewest votes are eliminated from the election.

1. The citizens' assembly decides on the annual accounts, budget, and tax rate by April 15. The competent department may extend the deadline for the approval of the accounts until June 15.

2. The municipal regulations may provide that the citizens' assembly decides on the budget and tax rate by no later than December 10 of the previous year.

3. The citizenry or the council may convene additional citizens' assemblies.

4. The council determines the location and time of the citizens' assembly. The assembly room may be supplemented with adjoining rooms, provided that the audiovisual transmission of the assembly is ensured.

1. The citizens' assembly shall be announced at the latest on the twelfth day before it takes place, specifying the subjects of discussion.

2. In urgent cases, the notice period may be shortened to five days.

1. As of the day of the announcement, the following are publicly available until the civic assembly

a) Opinions and motions of the Council;

b)* Annual accounts, management report, and budget;

c) Motions of the Audit Commission.

2. The citizenry or the Council can decide that the documents, in full or in excerpts, be sent to each voter, each household, or upon request. If they are sent to households, each voter can request the documents.

3. The voting card is delivered to eligible voters at least eight days before the civic assembly.

1. Access to the citizens' assembly is granted to eligible voters who present their voting certificate.

2. Non-eligible individuals may be admitted as listeners if they can be assigned a separate place. They do not participate in discussions or voting.

3. The council may allow individual motions to be explained by non-eligible professionals.

1. The Chairperson of the Council

a) conducts the meeting;

b) ensures the proper handling of business;

c) may expel attendees who disturb the proceedings.

1. The use of technical aids for minute-taking is permissible.

2. For recording for other purposes, it requires the consent of the citizens' assembly.

**1. The citizen assembly elects the vote counters openly at the beginning of the session. The municipal code may provide for the election of vote counters for a term of office or authorize the council to call upon vote counters who are elected for ballot voting.**

**2. Council members, as well as the council's secretary and members of the auditing committee, are not eligible to be elected as vote counters.**

**3. Vote counters do not perform their duties in matters concerning their own affairs.**

1. The matters shall be addressed in the announced order. The citizens' assembly may decide on a different order.

2. Matters not announced shall not be addressed.

1. The council may request

a) an additional vote on individual items of a proposal;

b) an additional vote on a variant of individual items of the proposal;

c) a vote on two different proposals regarding the same matter.

2. The procedure for variant and alternative voting according to letters b and c is appropriately governed by the provisions of the Law on Referendum and Initiative for Initiative and Counterproposal.

1. Procedural motions are motions that relate to the conduct of the proceedings, such as motions to close the speaker list, to close the discussion, or to revisit a decision.

2. They are addressed immediately.

3. Motions to revisit are admissible until the conclusion of the proceedings.

1. Eligible voters may submit amendment proposals concerning a subject.

2. If there are multiple amendment proposals concerning the same subject, the proposals shall be compared against each other until a consolidated main proposal is presented.

3. The consolidated main proposal is submitted for the final vote. This final vote will be postponed if the approved amendments require further clarifications.

4. If a voting question is divisible, any eligible voter may request its division.

1. The motions of the council are read aloud and explained if necessary.

2. The eligible voters may express their opinions on the subject of negotiation and may propose non-consideration, referral, postponement, or amendment.

3. The chairperson of the meeting may require that an amendment proposal be submitted in writing.

1. The Citizens' Assembly first votes on motions for non-consideration, rejection, or postponement.

1. Votes are conducted by a show of hands or by standing up.

2. The motion that receives more votes is considered adopted.

3. In the event of a tie, the chairperson casts the deciding vote.

1. The vote shall be repeated if the tellers are in doubt about the result.

2. If the result of the repeated vote is also unclear, the votes shall be counted aloud as instructed by the chairperson of the assembly.

1. If motions are made regarding individual items of the annual financial statement, a decision must be made on these first, and subsequently on the approval of the annual financial statement.

2. If the approval is rejected, the council must review the contested items again and supplement or correct them if necessary. It must immediately inform the Audit Committee of its position.

3. ...

4. ...

1. If motions are submitted for individual budget items, a decision must first be made on these, followed by a decision on the adjusted budget.

2. If it is not immediately ascertainable what increase or decrease in the tax rate the acceptance of a motion requires, the motion can only be dismissed or referred to the council for reporting.

3. If a change in the tax rate is proposed, a specific tax rate must be suggested. If a reduction is demanded, numerically specific motions for changes to the budget must be submitted at the same time to avoid a budget deficit.

4. If the budget is rejected, the council shall adjust it according to the instructions of the citizens' assembly. The council must immediately inform the audit committee of the adjustments made.

1. If the budget or the annual financial statement is rejected, the council shall convene an extraordinary citizens' meeting within eight weeks of the rejection.

2. If the budget or the annual financial statement is rejected again, the council shall inform the government of the circumstances. The government shall take appropriate measures.

1. Upon completion of the announced business, the general survey shall be opened.

2. During this, questions of general significance concerning a subject within the municipality's jurisdiction may be posed. The council shall answer these questions orally or in writing no later than at the next citizens' assembly.

3. If motions are submitted that fall under the jurisdiction of the citizenry, they may be deliberated upon, referred to the council for examination and drafting of a resolution, or rejected.

1. Illegal motions shall not be voted upon.

2. If illegality is alleged, an opportunity for discussion must be provided.

3. The decision is vested in the chairwoman or chairman of the meeting.

1. Eligible voters may raise an objection due to procedural defects or other legal violations until the conclusion of the proceedings.

2. The chairperson of the meeting decides whether the discussion on a subject will be reopened or a vote will be repeated.

1. The Council shall ensure the preparation of minutes of the citizens' assembly.

2. The minutes shall include

a) Location and time of the meeting;

b) Number of eligible voters;

c) Number of eligible voters participating in the meeting;

d) Motions;

e) Resolutions and tallied voting results;

f) Objections and their resolution.

1. The minutes shall be made publicly available for fourteen days beginning fourteen days after the citizens' assembly.

1. Within the period for lodging an appeal, eligible voters and individuals able to assert legitimate interests may file a protocol complaint with a request for correction to the competent department.

2. Supplementary records of the negotiations shall be retained until the resolution of protocol and voting complaints, but at least until the end of the appeal period. If they are retained longer, they shall be used only as evidence or by order of the supervisory authority.

3. The provisions of the Administrative Procedure Law of May 16, 1965, regarding the lodging of appeals shall apply accordingly.

1. A fine shall be imposed on

a)* anyone who forges, falsifies, or unlawfully uses a voting card for the citizens' assembly;

b)* anyone who knowingly uses a forged or falsified voting card or provides it to another for use;

c) anyone who disturbs the peace and order at a citizens' assembly;

d) anyone who records the proceedings of a citizens' assembly with technical devices without permission.

2. Attempt and complicity are punishable.

3. The provisions of the Swiss Criminal Code concerning offenses against the popular will remain reserved.

1. If extraordinary circumstances prevent the holding of a town meeting, the council shall order a ballot vote on the urgent matters.

2. If not all eligible voters willing to participate can be accommodated in the meeting room and adjoining rooms, the council shall order a ballot vote on the urgent matters. For the handling of other matters, it shall call a new town meeting.

3. If extraordinary circumstances in several municipalities prevent the holding of town meetings and it is not foreseeable when town meetings can be held, the government may issue regulations by ordinance for decision-making on matters of the town meeting at the ballot. The regulations may deviate from the provisions of this ordinance and the Law on Elections and Votes of December 5, 2018.

4. The ordinance under paragraph 3 of this provision shall be applied for a maximum of six months.

1. The Audit Commission consists of at least five members, in special municipalities at least three members. The municipal code determines the number.

2. The Audit Commission elects the president from among its members and the secretary.

3. It may issue rules of procedure.

1. The Audit Commission operates without instructions from the Council and performs its duties independently.

1bis. It makes and represents its decisions as a collegiate body.

2. It reviews the Council's and administration's office and budget management for the past year, as well as the Council's proposals regarding the budget and tax rate for the coming year.

3. It can conduct announced interim audits during the year.

4. It reports the results of its audit to the general assembly. Before publishing its report, it gives the Council the opportunity to comment.

5. The citizenry may request supplementary reports.

1. The Audit Commission submits motions to the citizenry regarding the approval of the annual financial statement.

2. It may propose motions

a) concerning the budget and tax rate;

b) on other matters, if it has discussed the issue with the council.

1. The Audit Committee ensures the appropriate expert oversight of the financial budget. It may engage experts when necessary for the fulfillment of its duties.

1. The Audit Commission independently prepares its section of the budget. The Council includes the Audit Commission's funding requests in the draft budget for the citizens' consideration.

2. The Audit Commission executes its section of the budget under its own authority, with due consideration for the provisions concerning financial management.

1. The council may involve the Audit Committee for the consultation of individual matters.

2. The Audit Committee may request joint discussions.

1. The municipal code determines the number of members of the parliament.

2. The parliament is elected by the citizenry in accordance with the provisions of the Law on Elections and Referendums of December 5, 2018.

1. The members of the council and the council secretary, as well as other senior administrative staff, are not members of the parliament.

2. The municipal code may exclude additional administrative staff from membership in the parliament.

1. The Parliament issues a set of procedural rules.

2. The procedural rules particularly govern

a) Constitution;

b) Deliberation procedures;

c) Quorum and the procedures for elections and voting;

d) Competence for issuing official explanations concerning voting proposals;

e) Public nature of the negotiations.

1. The Parliament decides on

a) the municipal code;

b) the annual financial statement;

c) budget and tax rate;

d) one-time or new recurring expenditures over at least ten years that exceed the amount set in the municipal code. Expenditures also include loans and investments if security and yield do not comply with generally accepted commercial principles, as well as guarantees and declarations of guarantee;

e) membership in municipal associations and joint authorities as well as their association agreements;

f) generally binding regulations, excluding implementing provisions;

g) generally binding agreements;

h) fee tariffs for the use of municipal enterprises, provided that neither the municipal code nor the regulation declares the council to be responsible;

i) the council’s annual report;

j) transfer of administrative tasks to another municipality.

2. The Parliament supervises the council and the administration.

1. The Parliament elects from among its members a commission, which assumes the responsibilities of the Business Audit Commission. The provisions of Art. 54 to 56 of this decree, with the exception of Art. 54 paragraph 1bis, shall be applied correspondingly.

2. The municipal ordinance may provide that the financial management audit, instead of being conducted by an external auditing company, be carried out by an internal and independent auditing body. The auditing body must be headed by a professional qualified in auditing matters, who is elected by the Parliament.

1. The municipal code may assign additional tasks to the Parliament, provided that these tasks are not conclusively assigned to the council by law.

1. The citizenry elects

a) the members of the Parliament;

b) the chairperson and the members of the council.

2. The municipal code may provide for the election of the chairperson of a department or office by the citizenry.

2bis In municipalities where more than one member of the council is employed full-time, the municipal code may provide for the election of the chairperson of the council from among its members.

2ter If a municipality provides for the election from within the council according to paragraph 2bis of this provision

a) the chairpersons of a department or office, who are to be elected by the citizenry, are also to be chosen from among the members of the council;

b) the decisive majority for the members of the council, the chairperson of the council, as well as the chairpersons of a department or office to be elected by the citizenry, is determined separately;

c) only those elected simultaneously as members of the council or, in a replacement election, those who are already members of the council, are considered elected as chairperson of the council or a department or office.

3. The citizenry votes on initiative requests from within their ranks.

1. Subject to the Mandatory Referendum

a) the municipal code;

b) membership in municipal associations;

c) matters pursuant to Art. 61 Para. 1 let. d of this enactment, for which the municipal code provides the mandatory referendum.

1. Subject to the optional referendum

a) generally binding regulations, except for fee schedules;

b) generally binding agreements;

c) matters pursuant to Art. 61 para. 1 let. d of this enactment, for which the municipal regulations provide for the optional referendum;

d) the annual financial statement;

e)* budget and tax rate;

f) membership in purpose associations.

2. A number of parliament members specified in the municipal regulations may submit these resolutions to the mandatory referendum immediately after deliberation.

1. Exemptions from Mandatory Voting and Optional Referendum

a) Matters for which legislation, regulatory decrees of the municipality, or other legal obligations do not leave a greater scope of discretion;

b) Regulations regarding the employment and salary conditions of members of authorities and administrative personnel. New regulations that cause additional expenditures shall only be implemented after the credit for the first year of implementation has become legally valid;

c) Decisions concerning the business report, business regulations, and administrative plans.

2. Decisions of the council cannot be subjected to a referendum.

1. On fundamental matters that fall within the jurisdiction of the citizenry, the Parliament may order a vote.

2. The result of the fundamental vote binds the Parliament in drafting the proposed resolution. However, in its response, the Parliament remains free. The binding effect does not extend to later proceedings in which the same issue is raised again.

3. The citizenry is not bound by the result of the fundamental vote.

1. Voting Capacity and Eligibility in the Municipalities are Determined by the Provisions of the Cantonal Constitution.

2. In Local Corporations, the Municipal Order May Expand the Circle of Eligible Voters.

3. Persons Considered to be Incompetent to Vote According to Art. 31 Lit. b of the Cantonal Constitution of June 10, 2001, are Those Who, Due to Permanent Incapacity of Judgment, are Under Comprehensive Guardianship or are Represented by a Person Appointed for Care Purposes.

1. Eligible voters must be informed before each vote on a proposal with the following applications

a) In municipalities with citizen assemblies, the advice of the council and, if applicable, a differing opinion from the audit committee in matters concerning accounts;

b) In municipalities with a parliament, an explanatory report on the resolution.

2. Articles 1bis and 1ter of the Law on Referendum and Initiative of November 27, 1967, are applied accordingly. Municipalities can forgo the summary in simple language of the council's advice or the explanatory report. Municipalities with a parliament can also establish different competences for issuing the explanatory report.

1. Proposals for voting must maintain the unity of the subject matter.

2. There must be a factual connection between the individual parts of a proposal.

3. Matters that are inherently connected must be consolidated into a single proposal.

1. A referendum request is valid if the number of eligible voters specified in the municipal ordinance formally demands a vote by the citizenry.

1. Requests for a referendum on the annual financial statements and budget must specify the contested items and indicate why and to what extent they should be amended.

2. Requests for changes to the tax rate must propose a specific tax rate. If a reduction is demanded, numerically specific proposals for amending the budget must be submitted at the same time to avoid a deficit.

1. In particular with regard to the procedure, the provisions of the law on referendums and initiatives are applied correspondingly. Article 83a of this decree concerning electronic signatures remains reserved.

2. The municipal regulations may provide for other deadlines.

1. The municipal code may provide that the council or parliament can submit a contingent proposal to a draft that is subject to a referendum pursuant to Art. 73 of this decree.

2. If the referendum is held, both the draft and the contingent proposal are simultaneously presented to the eligible voters.

3. Regarding the procedure in particular, the provisions of the law on referendum and initiative concerning initiative and counterproposal are applied accordingly.

1. The municipal code may provide for a popular initiative regarding enactments.

2. The number of eligible voters determined in the municipal code may submit a popular initiative within forty days from the publication of the referendum proposal, if the council or parliament has not submitted a counter-proposal.

3. The popular initiative is considered a referendum.

1. By means of the popular proposal, an amendment or repeal of individual provisions of a decree may be requested. The popular proposal must be submitted in the form of a fully formulated draft.

1. If the referendum takes place, both the proposal and the popular initiative shall be submitted to the eligible voters simultaneously.

2. ...

1. In particular regarding the procedure, the provisions of the Law on Referendum and Initiative concerning referendum, initiative, and counterproposal are applied accordingly. The provisions concerning electronic signatures are excluded.

1. An initiative petition is established when the number of eligible voters specified in the municipal code formally requests a referendum by the citizenry on a matter that falls within the jurisdiction of the citizenry.

2. The decisive factor is the number of eligible voters during the last general renewal elections of the council.

1. The petition shall be submitted as a simple suggestion. Decrees may be requested in the form of a fully drafted proposal.

2. The petition shall not encompass more than one subject matter.

1. In particular, concerning the procedure, the following shall be applied correspondingly and appropriately

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| a)**\*** | for initiative requests in the form of a simple suggestion, the provisions of the law on referendum and initiative regarding the uniform initiative. Reserved remains [Art. 83a](https://www.gesetzessammlung.sg.ch/data/151.2/de/art83a) of this enactment regarding electronic signature; | | |

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| b)**\*** | for initiative requests in the form of a drafted proposal, the provisions of the law on referendum and initiative regarding the legislative initiative. Reserved remains [Art. 83a](https://www.gesetzessammlung.sg.ch/data/151.2/de/art83a) of this enactment regarding electronic signature. | | |

2. The municipal ordinance may provide for different deadlines and a different minimum size for the initiative committee.

1. The municipal code may provide for the popular motion.

2. With the popular motion, the number of eligible voters determined by the municipal code can request that the council draft a proposal on a matter that falls within the jurisdiction of the citizenry.

1. A popular motion may only be submitted to the citizens' assembly or the parliament if it is admissible. Admissibility is determined appropriately according to [Art. 44](https://www.gesetzessammlung.sg.ch/data/111.1/en/art44) of the Cantonal Constitution of June 10, 2001[[12]](#paragraphtext_content_fn_536026_2_12_c) in conjunction with [Art. 34](https://www.gesetzessammlung.sg.ch/data/125.1/en/art34) of the Law on Referendum and Initiative of November 27, 1967[[13]](#paragraphtext_content_fn_536026_2_13_c).

2. The popular motion may be submitted to the council for preliminary examination before the start of the signature collection.

3. If the council determines inadmissibility during the preliminary examination or after the submission of the popular motion, it shall issue a decision.

1. The council requests the citizens' assembly or the parliament for approval, approval with amended wording, or non-entry.

2. If the citizens' assembly or parliament approves the popular motion, the council drafts the proposal.

3. The municipal code regulates the deadlines.

1. Provisions of the Law on Referendum and Initiative dated November 27, 1967, regarding electronic signing shall be appropriately applied in a political municipality for municipal optional referenda and initiatives if

a) the government decides on the applicability;

b) the council of the political municipality decides on the implementation based on the resolution under letter a of this provision.

1. The elected person may only exercise their office if they reside in the municipality.

2. The competent department may grant temporary exceptions if there are important reasons and the fulfillment of official duties is ensured.

1. The grounds for exclusion are governed by the provisions of the cantonal constitution.

1. The procedure in the presence of a ground for exclusion pursuant to Art. 34 of the Cantonal Constitution of June 10, 2001, shall be governed by the Law on Elections and Voting of December 5, 2018.

2. ...

3. ...

4. ...

1. A member of an authority may resign during their term of office only with the approval of the council. If the majority of the members of an authority wish to resign simultaneously, the government decides.

2. Members of the municipal parliament may resign at any time without restriction.

1. The request shall be granted if

a) the resignation is in the public interest;

b) the officeholder would suffer significant disadvantages from continuing to hold the office.

1. The Council is the highest governing and administrative body of the municipality.

2. It consists of at least three members.

3. In the political municipality, it is called the "Municipal Council" or "City Council," in the school municipality, it is called the "School Board," and in other special municipalities, it is called the "Administrative Board" or "Citizens' Board."

4. The chairperson is referred to in the political municipality as the "Municipal President" or "City President," and in other municipalities as "President."

1. The Council

a) adopts and represents its decisions as a collegial body;

b) leads the municipality and plans and manages its activities.

2. The municipal code determines the responsibilities. The responsibilities of the citizenry and parliament remain reserved.

1. If the political municipality operates the public school, the council is responsible for the school administration.

2. In matters of education, it is under the supervision of the educational authorities.

1. After renewal elections, the newly elected council conducts the necessary elections.

2. It ensures, as far as possible, that the elected individuals can assume their office at the start of the term.

1. The administrative offices and commissions perform the duties assigned to them by law, municipal code, regulations, and supplementary directives of the council.

2. Permanent commissions are appointed for the term of office, while others are appointed according to specific directives.

3. Commissions with significant powers and commissions for the management and supervision of specific administrative branches shall include at least one member of the council.

1. The municipality may

a) provide for a school commission, which may be called a school board;

b) …

2. …

3. The municipality may, through generally binding regulations, provide that the school commission shall be the highest administrative authority of the municipality in judicial matters related to school affairs.

1. …

2. …

4. In the municipal ordinance, it may be specified that

a) the election of the school commission shall be carried out by the citizenry;

b) the school commission shall be responsible for unforeseen new expenditures up to a certain amount.

1. Employees who are in public or private law employment relationships with the municipality constitute the administrative staff.

2. The public law employment relationship is regulated by ordinance. Unless otherwise specified, the Personnel Act of January 25, 2011, is applied accordingly.

1. Administrative staff are not members of the council.

1. The Chairperson of the Council may perform administrative functions in the municipality.

1. The municipality insures the administrative staff against

a) the economic consequences of old age, disability, and death. The insured shall pay reasonable contributions;

b) occupational and non-occupational accidents. The premiums for non-occupational accident insurance can be wholly or partly passed on to the insured.

2. Individuals elected by the public can be insured against the economic consequences of unforeseen non-re-election.

1. Members of authorities, administrative personnel, and agents are obligated to maintain confidentiality regarding official matters that are required to be kept secret by specific provisions or by their nature. The provisions of the Freedom of Information Act of November 18, 2014, remain reserved.

2. The duty of confidentiality continues even after leaving office.

3. Reserved are special legal provisions regarding the lifting of the duty of confidentiality.

1. Members of authorities, administrative personnel, and agents are liable in disciplinary, criminal, and financial matters in accordance with the legislation.

2. The council, the audit committee, or the parliament are competent to file a criminal or damage compensation lawsuit.

3. The government may act in place of the municipality if significant municipal interests have been violated and no municipal authority files a criminal or damage compensation lawsuit.

1. The Council adopts rules of procedure. It particularly regulates

a) Convening of meetings;

b) Deliberation and decision-making;

c) Authorization to sign.

1. The Chairperson and the Secretary sign on behalf of the Council.

1. The Protocol Shall Include

a) Location and time of the meeting;

b) Name of the chairperson, absent members, and the secretary or minute taker;

c) Matters discussed and resolutions passed;

d) Names of members who have recused themselves;

e) Motions and statements by a member, if recording is requested;

f) Essential content of the proceedings if recording is decided upon;

g) Circular resolutions and orders issued by the presidium since the last meeting.

1. Proceedings and records are not public.

2. Subject to the provisions of the Public Access to Information Act of November 18, 2014.

3. ...

1. The financial budget shall be managed according to the principles of legality, budget equilibrium, and the appropriate and economical use of public funds.

2. The council is responsible for managing the financial budget.

3. ...

1. Financial reporting presents a picture of the financial budget that as closely as possible corresponds to the actual asset, financial, and income situation. It adheres to the principles of

a) Gross presentation;

b) Continuity;

c) Accrual accounting;

d) Comparability;

e) Consistency;

f) Understandability;

g) Materiality;

h) Reliability.

2. Bookkeeping conforms to the principles of

a) Verifiability;

b) Timeliness;

c) Accuracy;

d) Completeness.

3. Budgeting is guided by the principles of

a) Gross presentation;

b) Annuality;

c) Specification;

d) Comparability;

e) Completeness.

1. The budget and annual financial statement are structured functionally and by types of expenses and income, and they are presented according to a uniform chart of accounts.

2. The municipality may additionally provide an institutional breakdown by organizational units.

1. The annual financial statement shows the financial position of the municipality as well as the financial development compared to the previous year and the budget.

a)* ...

b)* ...

c)* ...

2. It is composed of the accounts of the general household and the accounts of the dependent public-law enterprises.

3. The accounts of the general household and the dependent public-law enterprises comprise

a) the profit and loss statement;

b) the investment statement;

c) the cash flow statement;

d) the balance sheet;

e) the appendix.

1. Fiscal Year is the Calendar Year.

1. The council shall report to the citizenry on the annual financial statement in an appropriate form.

1. The income statement includes the total expenses and income of an accounting period.

2. The operating result by type of expenses and income forms the first stage of the income statement. It consists of

a) the operating result;

b) the financial result.

3. The result from changes in reserves by type of expenses and income forms the second stage of the income statement. It includes changes in

a) the reserve for maintaining financial assets' value;

b) additional depreciation;

c) pre-financing;

d) the equalization reserve;

e) other legally prescribed reserves.

4. The total result is derived from the sum of the first and second stages of the income statement.

1. A surplus from the first level of the income statement, as well as proceeds from pre-financing and additional depreciation, shall be wholly or partially allocated to

a) the reserve for maintaining the value of financial assets;

b) additional depreciation;

c) pre-financing;

d) the balancing reserve;

e) other legally prescribed reserves.

2. Any remaining surplus in the overall result alters the balance sheet surplus or deficit.

1. An expense excess at the first level of the income statement may be covered wholly or partially by the compensation reserve to the extent it is not covered by other revenues at the second level of the income statement. It will be covered by any available compensation reserve, to the extent it cannot be covered by the cumulative results of previous years.

2. A remaining expense excess in the overall result alters the balance sheet surplus or deficit.

3. An expense excess in the overall result of the current year, which cannot be covered by the cumulative results of previous years, must be charged at the latest to the budget after the next one at the second level of the income statement.

1. The investment calculation includes all expenses and revenues for assets that are recognized in the administrative assets.

2. The net investment is capitalized.

1. The cash flow statement shows the source and use of funds.

2. It is structured according to operating activities, investing activities, and financing activities.

3. In special municipalities, special-purpose associations, municipal associations, and dependent public enterprises, where the expenditure according to the annual accounts does not exceed ten million Swiss Francs in each of the three preceding accounting years, a cash flow statement can be omitted.

1. The balance sheet includes on the asset side the financial and administrative assets, and on the liability side the liabilities and equity.

1. Financial Assets consist of assets that do not directly serve the fulfillment of public duties.

1. An asset in financial assets is recognized on the balance sheet when it provides a future economic benefit and its value can be reliably measured.

2. Financial assets are valued at fair value. Investments in financial assets are initially measured at acquisition or production cost. If no expenditure arises, the fair value at the time of acquisition is decisive.

3. Subsequent valuations are periodically carried out at the fair value on the balance sheet date. Financial and fixed assets are maintained in an asset accounting system.

1. Administrative Property consists of the assets that directly serve the fulfillment of public tasks.

1. An asset in the administrative assets is recognized on the balance sheet when

a) it provides a multi-year public benefit, and

b) its value can be reliably determined, and

c) its value exceeds the capitalization threshold.

2. Administrative assets are valued at acquisition or production cost. If no expenditures arise, the market value at the time of acquisition is decisive.

3. Depreciation of the administrative assets is done on a straight-line basis over the expected useful life of each asset category. Administrative assets are recorded in an asset ledger.

1. Liabilities are composed of short-term and long-term obligations. They are valued at nominal value.

2. Equity capital includes

a) commitments and advances related to special financing with considerable flexibility;

b) funds with considerable flexibility;

c) the financial asset value preservation reserve;

d) additional depreciation;

e) pre-financing;

f) the balancing reserve;

g) other legally provided reserves;

h) the balance sheet surplus or deficit.

1. A special financing arises from the allocation of public funds for a specific purpose as stipulated in a generally binding regulation.

2. If there is significant discretion in design, special financings are attributed to equity, otherwise to liabilities.

1. A fund is an asset that serves a specific purpose according to generally binding regulations or a designation.

2. If there is significant discretion, funds are classified as equity; otherwise, they are classified as liabilities.

1. The Financial Asset Value Preservation Reserve serves

a) to finance future maintenance and renovation works on real estate within the financial assets;

b) to offset fluctuations in the value of financial assets.

2. Contributions to the reserve can be made from the income generated by the financial assets.

3. The establishment of the reserve requires regulations. These must determine at least

a) the amount of the fixed annual contribution from the income of financial properties as a percentage of the new value of these properties;

b) the amount of additional contributions from increases in the value of financial assets;

c) the maximum balance of the reserve.

4. School municipalities do not maintain a Financial Asset Value Preservation Reserve.

1. The Additional Depreciation serves to reduce the depreciation expense of an existing investment object. It arises from the allocation of public funds to a specific, already made investment expenditure.

1. Pre-Financing serves to reduce the depreciation expense of a future investment object. It arises from the allocation of public funds to a specific future investment expenditure.

1. The equalization reserve is used for balancing the income statement in the short to medium term.

2. It can be utilized to reduce surpluses in expenses and revenues in the overall result.

3. In the event of a surplus of revenue in the operating result, contributions to the equalization reserve do not lead to a surplus of expenses in the overall result.

4. In the event of a surplus of expenses in the operating result, withdrawals from the equalization reserve do not lead to a surplus of revenue in the overall result.

1. The balance surplus or deficit corresponds to the sum of the cumulative results from previous years and the total result of the current year.

1. The notes to the financial statements shall include

a) Accounting principles, including significant accounting and valuation principles;

b) Information on the composition and changes in equity;

c) Information on provisions;

d) Information on significant participations and guarantees;

e) An overview of the composition and changes in administrative assets as well as the financial and tangible assets of financial assets;

f) Further information necessary for the assessment of the asset, financial, and earnings position.

1. A budget is prepared for the fiscal year.

1bis. The budget consists of the general budget and the budgets of dependent public-law enterprises.

2. The budget lists the anticipated expenses and revenues as well as the expected expenditures and income. Significant deviations from the budget of the preceding fiscal year must be justified.

3. Appropriations are generally resolved at the lowest levels of functional and economic classification. The municipal code may allow the appropriation resolution at no higher than the third level of economic classification.

1. The budget of the income statement is structured so that, in the overall result, the revenue balances the expenses.

2. An excess of expenses is permissible if it is covered by a surplus in the balance sheet.

1. The budget determines the extent to which taxes are to be levied.

2. The tax rate is set such that the budgeted overall result of the income statement is balanced.

3. The tax rate can be set lower if the budget deficit is covered by a balance surplus.

1. The council incurs expenses only within the framework of a credit.

2. If this is not sufficient, a supplementary credit is obtained before the additional expenditure.

1. Credits are granted through the budget or by special resolutions of the citizenry or the municipal parliament.

2. A special resolution is required for an expenditure of significant financial consequence.

3. The municipal code may authorize the council to decide on unforeseeable expenditures up to a certain amount.

1. The council may incur an expenditure without credit if

a) a delay significantly jeopardizes or damages the interests of the municipality;

b) legislation, municipal decrees, or other legal obligations do not leave a greater scope of discretion.

1. The financial needs of the school community correspond to the expenses that the school community cannot cover through its own revenues.

1. The school district reports its financial needs to the political municipality.

2. If a school district extends over multiple political municipalities, it allocates its financial needs proportionally. The determination is based on 30 percent of the number of residents and 70 percent of the number of students. Students in special education are counted twice.

3. The financial needs of the school districts are a mandated expenditure for the political municipality.

1. The municipal council may have the appropriateness of the expenditures reviewed by the competent department.

2. The municipal council or the school board may appeal the decision of the competent department to the government. The deadline and form are determined by the provisions of the Law on Administrative Procedure of May 16, 1965, concerning the filing of appeals.

3. The government makes the final decision.

1. The council shall prepare an annual financial plan, which includes at least the planning for the three fiscal years following the budget.

2. It shall particularly contain

a) An overview of the development of expenditure and revenue;

b) A compilation of investment projects;

c) An estimate of financial requirements;

d) An overview of financing possibilities.

3. Special municipalities, associations of municipalities, municipal associations, and dependent public-law entities that do not perform tasks assigned to municipalities by the constitution or by law may waive the preparation of a financial plan.

1. The council ensures an internal control system adjusted to the size of the financial budget.

2. It serves in particular

a) the appropriate use of funds;

b) the prevention of errors and irregularities in budget management.

1. The Council prepares a consolidated view of the financial budget when, without consolidation, the assessment of the asset, financial, and earnings position as well as financial risks is not possible.

2. It determines the form, scope, and method of consolidation and reports to the citizenry.

1. The Council shall publish the remuneration of the authority members elected by the citizenship in the annual report after the end of the fiscal year, unless the citizenship is informed in another appropriate manner.

2. For each authority member, at least the following information shall be published

a) Name;

b) Function within the authority;

c) Percentage workload for individuals receiving a monthly salary for their authority activities;

d) Gross salary for the authority activities;

e) Expense reimbursements for the authority activities;

f) Compensation exceeding CHF 500.- received by an authority member for their activities in the organs of legal entities under public or private law, to which they have been directly or indirectly delegated by the municipality, provided that the compensation is paid to the authority member and not to the municipality.

1. The municipality may establish framework conditions for performance-oriented administrative management in the municipal code.

2. It particularly determines the responsibilities for

a) the issuance of performance mandates;

b) the issuance of global credits;

c) ensuring controlling.

3. The municipal code may deviate from the provisions of this decree to the extent necessary for the instruments of performance-oriented administrative management.

1. The government issues regulations by ordinance, particularly regarding

a) the management and control of the budget;

b) the asset categories and the range of depreciation duration for each asset category;

c) the capitalization limits;

d) the maximum amount of annual contributions and the inventory of the reserve for maintaining the value of financial assets.

2. The competent department issues directives regarding

a) the chart of accounts;

b) the calculation of financial indicators.

1. Municipalities may, by regulation or agreement

a) establish independent public-law enterprises;

b) provide for administrative branches to be managed organizationally independently as enterprises without legal personality.

2. The establishment and dissolution of independent public-law enterprises are subject to a mandatory referendum.

3. The regulation and agreement shall be brought to the attention of the competent department.

1. The municipality may

a) participate in a private law corporation or foundation to fulfill public tasks;

b) transfer public tasks to private entities through a service agreement.

2. If the municipality transfers sovereign powers, it enacts a regulation for this purpose. It may stipulate in the regulation that private entities can levy fees and contributions in accordance with the cost recovery and equivalence principles. The regulation governs legal protection.

3. The municipality safeguards public interests when participating in a private law corporation or foundation, as well as when transferring tasks to private entities.

1. The council or a commission, which includes at least one member of the council, manages the enterprise.

2. The municipal code determines the responsibilities of the council, the parliament, and the citizenry.

1. The budget shall be managed in accordance with the provisions of this ordinance concerning the municipal budget.

2. ...

1. For companies with economic functions, a regulation governs the appropriate financing through usage fees.

2. The company is to be operated independently to the extent that it competes directly with private entities.

1. Revenue surpluses may be used to establish necessary business reserves. The remaining net profit is allocated to the general municipal budget.

2. Expenditure surpluses are covered by the company and, insofar as this is not possible, by the general municipal budget.

1. The municipality may establish a public law corporation or institution with its own legal personality.

2. The company manages itself.

3. The council exercises overall supervision. The budget, usage regulations, and resolutions designated in the municipality's regulations require the approval of the council to be valid. The council reviews legality and appropriateness.

1. The company is operated independently.

2. Article 130 of this decree shall be applied accordingly for surpluses of expenses and revenues.

3. The municipality is subsidiarily liable for liabilities to third parties.

1. The municipality may dissolve the enterprise at any time, unless important public interests oppose it.

2. It shall dissolve the enterprise if it had to cover budgetary deficits for several consecutive years.

3. The rights and obligations of the dissolved enterprise shall transfer to the municipality.

1. The municipality is obligated to cooperate with other communities in accordance with the legislation.

2. It is, in particular, required to provide legal assistance to other public administrations in the canton.

3. The municipality collaborates with other communities when efficient use of resources or effective fulfillment of tasks necessitates it.

1. Failure to engage in the required cooperation will result in the additional expenses not being considered in the financial equalization or the contributions being reduced.

1. The municipality may conclude agreements with other communities within its area of competence. In particular, it may

a) Provide administrative personnel and facilities to another municipality;

b) Establish joint commissions and administrative personnel or create shared facilities;

c) Form municipal associations and purpose associations.

2. Agreements with communities outside the canton, which exceed the sole area of competence of the municipality, require an inter-cantonal agreement or, if sufficient, a specific legal provision.

3. Agreements with foreign communities, which exceed the sole area of competence of the municipality, require a treaty or, if sufficient, a specific legal provision.

1. The government may require a municipality or a special-purpose association to admit a municipality or may require a municipality to join a municipality or special-purpose association if efficient resource utilization or effective task fulfillment demands it, and the admission does not significantly disadvantage the existing member municipalities.

2. It may, at the request of two-thirds of the members, escalate a proposal for a resolution for which unanimity is required. The resolution must serve the interest of the association and must be reasonable for the dissenting members.

1. The municipality may enter into private law contracts, provided that such contracts do not establish generally binding rights and obligations.

1. The purpose association is a public-law corporation consisting of municipalities with its own legal personality.

2. It serves the joint fulfillment of one or more substantively related municipal tasks.

3. Corporations and institutions that fulfill municipal tasks can be members if they have a special relationship to the association's purpose.

1. The agreement shall determine at least

a) Name, members, purpose, and seat;

b) Designation, composition, and convening of the association's organs;

c) The jurisdiction of the association and its organs;

d) Principles of financing;

e) Conditions and procedures for admission and withdrawal;

f) The dissolution procedure.

1. Organs of the Joint Authority are

a) Assembly of Delegates;

b) Administrative Council;

c) Audit Office.

1. Each member is entitled to at least one representation in the delegates' assembly.

2. The agreement may stipulate that the board of directors is elected from within the delegates' assembly.

3. The provisions of this decree for municipalities with a parliament shall be applied accordingly.

1. The association of municipalities maintains its own budget.

2. The provisions of this decree concerning the municipal budget and its oversight shall be applied accordingly.

3. ...

1. The agreement and the regulations issued by the association of municipalities govern the revenues.

2. The members are obliged to at least cover the current deficits in expenditures.

3. The annual financial statement and budget are prepared in a timely manner so that the member municipalities can incorporate their contributions into their own accounts and budgets for the following year at the latest.

1. The members are secondarily liable for the special-purpose association according to their respective shares.

1. The Agreement stipulates

a) the amount of new expenditures requiring the consent of all members;

b) other resolutions requiring the consent of the majority or all members.

1. The members shall be comprehensively informed about the activities of the special-purpose association.

2. They may request information at any time.

3. The councils of the participating municipalities shall inform the public annually about the management and budget of the special-purpose association.

1. A reasonable purchasing amount may be required from new members.

2. Withdrawing members are not entitled to compensation unless otherwise stipulated in the agreement. They are liable for the obligations of the association that arose during the term of their membership.

1. The municipal association is a public-law corporation composed of municipalities with its own legal personality.

2. It serves the joint fulfillment of several municipal tasks.

1. The municipal association is organized through the association agreement as a municipal association with a citizens' assembly or as a municipal association with a parliament.

1. The Association Citizenship is the supreme body of the Municipal Association.

2. It is composed of the eligible voters of the member municipalities.

3. The provisions of this decree concerning the authority of the citizenship and the exercise of political rights shall be applied accordingly. The association agreement may reduce the number of signatures required for referendum and initiative requests.

1. The Association Agreement shall at least determine

a) Name, members, and seat;

b) the association's tasks;

c) the responsibilities of the association's bodies. For the municipal association with a citizens' assembly, the provisions of this law regarding municipalities with a citizens' assembly shall be applied accordingly, and for the municipal association with a parliament, the provisions of this law regarding municipalities with a parliament shall be applied accordingly;

d) principles of financing;

e) conditions and procedures for joining and leaving;

f) the dissolution procedure.

1. The provisions of this decree concerning the special-purpose association shall be applied mutatis mutandis, unless otherwise specified.

1. State supervision encompasses, according to the provisions of the cantonal constitution, the public-law and private-law activities of the municipality.

2. The regulations on state supervision apply accordingly to independent public-law enterprises, municipal associations, and special-purpose associations.

3. The resolutions of the citizenry and the activities of the authorities are subject to state supervision.

4. In the area of municipal autonomy, state supervision is limited to the review of legality.

1. Supervisory Authorities are

a) Government;

b) competent Department;

c) other authorities in accordance with the legislation.

1. The government exercises supreme oversight.

2. The provisions of this decree regarding supervision by the departments shall be applied accordingly.

1. The competent Department exercises oversight through

a) inspections;

b) orders and directives;

c) approvals;

d) revocation of orders.

1. The competent department shall take appropriate measures to restore or secure the legal order.

2. It may, in particular

a) act in place of a municipal body;

b) order substitute performance;

c) issue regulations;

d)* approve the annual financial statement, budget, and tax rate;

e) transfer tasks of a municipality to another municipality in the public interest if no agreement has been reached;

f) appoint a substitute administration if

1. the highest administrative authority of the municipality is not able to make decisions in a specific case;

2. the municipality continuously violates its legal obligations;

3. the municipality defies the orders of the supervisory authorities;

4. the municipality endangers its solvency through its financial conduct.

1. The supervisory authority may at any time inspect the files, question the members of the authority and administrative staff, and clarify facts in other suitable ways.

1. Any person may report defects in the administration of a municipality, an independent public-law entity, a municipal or special-purpose association to the supervisory authority.

2. The supervisory authority shall provide the reporting person with a written statement.

3. If the report is clearly unfounded, the reporting person may be required to pay a fee and reimburse the costs incurred.

1. Decisions of the Citizenry, excluding decisions regarding naturalization applications, as well as decisions subject to a referendum, can be challenged for unlawfulness by eligible voters and other persons demonstrating a legitimate interest in the amendment or repeal of the decision, through an appeal to the competent department.

2. The appeal must be filed within fourteen days from the adoption of the contested decision or from the expiration of the referendum period without action.

3. The competent department may

a) annul the decision of the Citizenry or the decision subject to a referendum;

b) take appropriate measures. Article 159 of this decree shall be applied accordingly.

1. The preparation and conduct of voting may be challenged by eligible voters due to procedural defects.

2. Procedural defects in the public assembly are only considered grounds for complaint if they were objected to in the assembly or if the complainant proves that it was impossible for him or her to perceive or object to the procedural defects despite reasonable diligence.

3. The complaint must be submitted within fourteen days of becoming aware of the grounds for the complaint, or at the latest within fourteen days after the vote. The competent department shall cancel or annul the vote if the procedural defect could have had, has had, or might have had a decisive influence on the outcome.

1. To the extent that this decree does not provide otherwise, the voting appeal shall be governed accordingly by the provisions of the Law on Administrative Jurisdiction of May 16, 1965, concerning the filing of appeals.

1. The government determines the commencement of this decree's enforcement.

1. Upon the commencement of this decree, a revaluation of financial assets shall take place.

2. The difference resulting from the revaluation of the financial assets shall be allocated to the revaluation reserve of financial assets within shareholders' equity. The revaluation reserve of financial assets shall be transferred, without affecting the result, in the financial year of the commencement of this decree, into one or more of the following equity positions

a) the balance sheet surplus or deficit;

b) the equalization reserve;

c) the reserve for maintaining the value of financial assets.

3. School municipalities shall transfer the revaluation reserve of financial assets in the financial year of the commencement of this decree into an interest-free loan to the affected political municipality. If a school municipality extends over multiple political municipalities, it shall divide the revaluation reserve of financial assets proportionally. The decisive factor is the number of pupils, averaged over the five years preceding the commencement of this decree.

1. Commencing with the enactment of this decree, a reassessment of provisions and participations shall occur. Other administrative assets may be revalued.

2. The difference from the revaluation of administrative assets and provisions shall be recorded as a revaluation reserve for administrative assets in equity.

3. The revaluation reserve for administrative assets can be dissolved linearly over 10 to 15 years through the second level of the income statement. The portion of the revaluation reserve that the municipality does not dissolve according to sentence 1 of this provision shall be transferred to the balance surplus or deficit without affecting the income after 5 years from the commencement of this decree.

4. School municipalities shall dissolve any potential revaluation reserve for administrative assets linearly over 10 to 15 years through the second level of the income statement.

1. School districts coordinate the balance sheet adjustments with the affected political municipalities. The council of the political municipality can have the appropriateness of the school district's balance sheet adjustments reviewed by the relevant department. The competent department makes the final decision.

1. With the first annual financial statement based on this amendment, the council shall present a report to the citizens' assembly or the parliament regarding the balance adjustments pursuant to Articles 173 to 175 of this decree. In this annual financial statement, the comparison with the previous year is omitted.

1. Municipalities that adopt the budget before the start of the fiscal year shall apply the provisions of this addendum in the year preceding the enforcement of the other provisions of this addendum, specifically for the budget of the following year.

1. Municipalities may, within the framework of pilot projects and until the commencement of enforcement of the other provisions of this amendment, deviate from the provisions of the Municipal Act as amended on November 18, 2014, for the implementation of this amendment.

2. The Office for Municipalities agrees with individual municipalities on their participation in the pilot projects.

3. It provides the affected municipalities with the necessary foundations for the implementation of this amendment and supports them in its enforcement.

1. The competent department may permit municipalities, for significant reasons, to manage their financial affairs according to the provisions of the Municipal Act of April 21, 2009, in the version preceding the implementation of this amendment. The exceptional permit may be granted for a maximum of two years from the implementation date of this amendment.

2. Significant reasons according to paragraph 1 of this provision particularly include

a) a disproportionate additional expense compared to applying the provisions of this amendment from its implementation date;

b) unforeseen personnel shortages;

c) technical resources not available in a timely manner.

3. For municipalities with an exceptional permit under paragraph 1 of this provision, the Financial Equalization Act of September 23, 2007, in the version preceding the implementation of this amendment shall be applied.