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131.1 GGLC CH-ZH

Municipal Act (MA) (GG)

181 Articles / Provisions · Switzerland · Canton of Zurich
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Table of Provisions (181)

Art. 1 Art. 2 Art. 3 Art. 4 Art. 5 Art. 6 Art. 7 Art. 8 Art. 9 Art. 10 Art. 11 Art. 12 Art. 13 Art. 14 Art. 15 Art. 16 Art. 17 Art. 18 Art. 19 Art. 20 Art. 21 Art. 22 Art. 23 Art. 24 Art. 25 Art. 26 Art. 27 Art. 28 Art. 29 Art. 30 Art. 31 Art. 32 Art. 33 Art. 34 Art. 35 Art. 36 Art. 37 Art. 38 Art. 39 Art. 40 Art. 41 Art. 42 Art. 43 Art. 44 Art. 45 Art. 46 Art. 47 Art. 48 Art. 49 Art. 50 Art. 51 Art. 52 Art. 53 Art. 54 Art. 55 Art. 56 Art. 57 Art. 58 Art. 59 Art. 60 Art. 61 Art. 62 Art. 63 Art. 64 Art. 65 Art. 66 Art. 67 Art. 68 Art. 69 Art. 70 Art. 71 Art. 72 Art. 73 Art. 74 Art. 75 Art. 76 Art. 77 Art. 78 Art. 79 Art. 80 Art. 81 Art. 82 Art. 83 Art. 84 Art. 85 Art. 86 Art. 87 Art. 88 Art. 89 Art. 90 Art. 91 Art. 92 Art. 93 Art. 94 Art. 95 Art. 96 Art. 97 Art. 98 Art. 99 Art. 100 Art. 101 Art. 102 Art. 103 Art. 104 Art. 105 Art. 106 Art. 107 Art. 108 Art. 109 Art. 110 Art. 111 Art. 112 Art. 113 Art. 114 Art. 115 Art. 116 Art. 117 Art. 118 Art. 119 Art. 120 Art. 121 Art. 122 Art. 123 Art. 124 Art. 125 Art. 126 Art. 127 Art. 128 Art. 129 Art. 130 Art. 131 Art. 132 Art. 133 Art. 134 Art. 135 Art. 136 Art. 137 Art. 138 Art. 139 Art. 140 Art. 141 Art. 142 Art. 143 Art. 144 Art. 145 Art. 146 Art. 147 Art. 148 Art. 149 Art. 150 Art. 151 Art. 152 Art. 153 Art. 154 Art. 155 Art. 156 Art. 157 Art. 158 Art. 159 Art. 160 Art. 161 Art. 162 Art. 163 Art. 164 Art. 165 Art. 166 Art. 167 Art. 168 Art. 169 Art. 170 Art. 171 Art. 172 Art. 173 Art. 174 Art. 175 Art. 176 Art. 177 Art. 178 Art. 179 Art. 180 Art. 181. The Ordinance to the Municipal Law is subject to the Mu- : Municipal Law (ML)

Statutory Text (181 Articles)

Art. 1 : Municipal Act (MA) Open official source

This Law governs the fundamental principles of the organization and subject matter

of the financial households of political municipalities and school municipalities.

Art. 2: Municipal Act (MA) Open official source

1 The municipalities shall autonomously manage their affairs within the framework of superior law.

2 They shall designate their name. Amendments to municipal names shall require the approval of the Government Council.

Art. 3: Municipal Act (MA) Open official source

1 The cantonal territory is divided into political communes. The structure and

school communes comprise the territory of one or more political organizations or

communes.

2 Political communes organize themselves as assembly communes

or as parliamentary communes. ...4

3 School communes organize themselves as assembly communes.

4 Parliamentary communes may divide the municipal territory into districts with

their own authorities, provided that cantonal law makes provision for this.

Art. 4 : Municipal Act (MA) Open official source

1 The municipalities shall regulate the fundamental principles of their organisation, legislation, and the powers of their organs in the municipal charter. This charter may only enter into force after approval by the Government Council.

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131.1 Municipal Act (MA)

2 Important legal norms shall be adopted by the municipalities in the form of a municipal enactment. The electorate or the municipal parliament shall be responsible, subject to the optional referendum.

3 Less important legal norms shall be adopted by the municipal authorities in the form of an executive enactment.

Municipal Organs

Art. 5: Municipal Act (MA) Open official source

1. Municipal Organs are

a. the eligible voters,

b. the Municipal Parliament,

c. the following authorities

1. the Municipal Executive,

2. the School Board,

3. independent commissions.

2. The Municipal Charter may establish different designations for the Municipal Executive and the Municipal Parliament.

Minutes

Art. 6: Municipal Act (MA) Open official source

1 Minutes shall be kept of communal assembly meetings as well as of meetings of Parliament and the authorities.

2 The minutes shall contain at least the decisions, the election results, and any objections to the procedure.

Publication

Art. 7: Municipal Act (MA) Open official source

1 Edicts, generally binding resolutions and election results

are published. The municipalities determine their publication

organ.

2 In addition, the municipalities publish their law in a system-

atically structured collection of laws.

3 The Government Council regulates publication by electronic means

in an ordinance.

Duty of confidentiality

Art. 8: Municipal Law (ML) Open official source

Members of municipal parliaments and authorities, as well as

municipal employees and private individuals performing public duties,

are bound to secrecy regarding matters of which they have become aware

in their official or service capacity,

provided that the conditions of Section 23 of the Act on Information

and Data Protection of February 12, 2007 (IDG)10 are met.

2

Municipal Act (GG)

Part 2: Organization

Section 1: Eligible Voters

131.1

Art. 9: Municipal Law (ML) Open official source

Supreme Organ of the Municipality are the Voters. Supreme Organ

Art. 10: Municipal Act (MA) Open official source

1. **Voting on Ballot Matters by Voters**

Voters shall decide at the ballot box on matters assigned to them by cantonal law or the municipal constitution.

2. **No Ballot Vote shall take place on the following matters:**

a. setting the budget and the tax rate,

b. approving the accounts,

c. elections in the municipal assembly or municipal parliament,

d. procedural decisions when dealing with initiatives,

e. other matters designated in the municipal constitution.

3. **In municipalities with a parliament, no ballot vote shall furthermore take place on the following matters:**

a. approval of the annual report,

b. rejecting decisions of the parliament, with the exception of rejected popular initiatives,

c. procedural decisions when dealing with parliamentary motions.

Art. 11: Municipal Law (ML) Open official source

**1 Right to Propose Motions**

In assembly municipalities, the municipal executive, and in parliamentary municipalities, the parliament, submit matters to the eligible voters for decision.

**2** If the municipal assembly or the parliament amends a proposal, and the amended proposal is put to a ballot vote, the municipal executive may also submit the original proposal to the eligible voters.

Art. 12: Municipal Law (ML) Open official source

1. In assembly municipalities, the municipal executive, and in parliamentary municipalities, the parliament, may exceptionally decide to submit to the voters

a. two options (variants), or

b. a fundamental question for a vote.

2. In cases according to para. 1 lit. a, the municipal executive or the parliament shall designate its preferred option.

3. If the voters have approved a fundamental question, the deadlines for handling popular initiatives in the form of a general proposal shall apply to its implementation.

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131.1 Municipal Law (ML)

Voting procedure

at the ballot box

Art. 13: Municipal Act (MA) Open official source

For the voting procedure at the ballot box, the corresponding provisions of the Law on Political Rights of 1 September 2003 (GPR) apply mutatis mutandis.

Composition

and

Publicity

Tasks and

Powers

Pre-consultative

Municipal

Assembly

Right to submit

queries

2. Section: Municipal Assemblies

A. Composition and Powers

Art. 14: Municipal Act (MA) Open official source

1 The communal assembly is the assembly of the

eligible voters.

2 The assembly is public. The municipal executive council shall exclude

persons not entitled to vote if overriding public or private interests according to § 23 IDG so require.

Art. 15: Municipal Act (MA) Open official source

1 The municipal assembly decides on matters

assigned to it by cantonal law or the municipal ordinances.

2 It exercises political control over authorities, administration and

other public service providers.

Art. 16: Municipal Law (ML) Open official source

1 The Municipal Code may stipulate that proposals, which are to be put to a ballot, must first be dealt with in the Municipal Assembly. Excluded from this are popular and individual initiatives.

2 The eligible voters shall be presented with the proposal adopted by the Assembly. The Assembly shall decide on a voting recommendation.

3 If the Municipal Assembly amends a proposal from the Municipal Council, the Municipal Council may also submit the original proposal to the eligible voters.

Art. 17: Municipal Law (ML) Open official source

1. **Electors may submit inquiries regarding matters of general interest to the municipality and demand their answer at the municipal assembly. They shall address the inquiry in writing to the Municipal Executive Board.**

2. **Inquiries submitted at least ten working days before an assembly shall be answered in writing by the Municipal Executive Board at the latest one day before that assembly.**

3. **At the assembly, the inquiry and the answer shall be announced. The inquiring person may comment on the answer. The assembly may decide that a discussion shall take place.**

4. **Municipal Law (ML)**

**131.1**

**B. Preparation**

Art. 18: Municipal Act (MA) Open official source

1. The municipal council convenes municipal assemblies when this is necessary for the transaction of business.

2. It publicly announces the assembly at least four weeks in advance, stating the business to be transacted.

3. In urgent cases, it may shorten the period to two weeks.

Art. 19: Municipal Law (ML) Open official source

1. **Explanatory Report by the Municipal Council**

The municipal council drafts an explanatory report. Article 64a, paragraph 1, lit. a, b, and d of the Municipal Law (GPR9.20) apply.

2. It shall submit the report to eligible voters at least two weeks before the municipal assembly or indicate in the announcement of the assembly that the report is available for inspection and will be delivered free of charge upon request.

C. Implementation

Art. 20: Municipal Act (MA) Open official source

1 The President of the Municipal Council chairs the Municipal Assembly.

Assembly Management

2 He or she may remove disruptive individuals and close a meeting if order cannot be restored.

3 The President determines the number of eligible voters.

Art. 21: Municipal Law (ML) Open official source

The municipal assembly elects the tellers. Tellers

These may not have participated in the preparation of a matter.

Art. 22: Municipal Law (ML) Open official source

1. A member of the Municipal Council represents the business. Deliberation and

2. Any person entitled to vote may comment on the business and submit motions regarding the procedure and content of the proposal.

3. The deliberation shall continue until no one else requests the floor or the assembly decides to conclude the deliberation.

4. The assembly decides on restrictions to speaking time.

Art. 23: Municipal Act (MA) Open official source

1 Procedural motions are dealt with before motions regarding the content of the

voting proposal.

2 Motions that mutually exclude each other are put to a vote against one another. The motion with the fewest votes is eliminated. The procedure is repeated until only one motion remains. This motion is then voted on in the final ballot.

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131.1 Municipal Law (GG)

Voting procedure

a. open ballot

b. secret ballot

Election procedure

Art. 24: Municipal Act (MA) Open official source

**1 Before the first vote on a matter, the President of the Municipal Executive announces the subject and the order of the votes.**

**2 He or she determines whether the majority of voters has accepted or rejected the motion. In case of doubt, the vote is repeated and the votes are counted.**

**3 The President does not vote. In the event of a tie, he or she casts the deciding vote.**

Art. 25 : Municipal Law (ML) Open official source

**1 A quarter of the eligible voters present may demand a secret ballot. It is excluded when reconciling equivalent motions.**

**2 Voting shall take place on officially issued ballot papers.**

**3 The President of the Municipal Executive Board shall vote.**

**4 The Government Council shall regulate the details in an ordinance.**

Art. 26: Municipal Law (ML) Open official source

1. **Selection of Candidates**

The eligible persons proposed by the voters are available for election. Nominations can be made before or during the assembly.

2. **Uncontested Elections**

If the number of persons nominated is equal to or less than the number of positions to be filled, the nominated persons are declared elected.

3. **Contested Elections**

Otherwise, the election shall proceed according to the following provisions

a. The election shall be open and conducted in a single ballot.

b. The nominated persons shall be called in alphabetical order. The voters shall have as many votes as there are positions to be filled. They may cast only one vote for each person.

c. The persons who have received the most votes are elected.

d. The President of the Municipal Executive Board does not vote. In the event of a tie, he or she casts the deciding vote.

**Quorum**

**Public Nature of Proceedings**

**Section 3: Municipal Parliaments**

Art. 27 : Municipal Act (MA) Open official source

1 Political communes may introduce a parliament.

2 The communal charter determines the number of members.

Art. 28: Municipal Law (ML) Open official source

1 The deliberations of Parliament are public.

2 Parliament may exclude the public from the treatment of individual

matters if overriding public or private interests pursuant to § 23 IDG so

require.

6

Municipal Act (GG)

131.1

Art. 29: Municipal Act (GG) Open official source

1. **Independence of Members of Parliament**

Members of Parliament are not bound by any instructions in their decisions; they act independently.

2. They disclose their interests.

Art. 30: Municipal Act (MA) Open official source

1 The Parliament decides on matters assigned to it by federal and cantonal law or the municipal charter.

2 It exercises political control over authorities, administration, and other bearers of public tasks.

Powers

Art. 31: Municipal Law (ML) Open official source

1 The Parliament regulates its organisation in a communal Organisation

ordinance.

2 The ordinance shall regulate in particular

a. the organs and their competences,

b. the rights of the members of Parliament according to §§ 33–35 and

the procedure for their exercise,

c. the rights and the procedure of the parliamentary investigation

commission,

d. the voting rules.

3 If the communal ordinance does not contain corresponding regulations,

then

a. the voting procedure shall be governed by §§ 24 and 25,

b. the election procedure shall be governed by § 26, whereby in the first and second

ballots the absolute majority applies, and in the third ballot the relative majority applies,

c. the procedure for handling the rights of members of Parliament

according to §§ 34 and 35 shall apply mutatis mutandis according to the Cantonal

Council Act11.

ordinance

Art. 32: Municipal Act (MA) Open official source

1 Members of Parliament shall recuse themselves if they appear to

be personally biased in the matter, particularly in matters

a. directly affecting themselves or a person closely related to them

by kinship or affinity or for other reasons,

b. affecting a legal entity in which they hold a leading position or for

which they perform an advisory function.

2 Members of Parliament who are employed by the municipality shall

recuse themselves when dealing with matters falling within their area

of activity.

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Rights of

Members

of Parliament

a. Deliberation and

Motion Submission

b. Possible

Proposals

c. Subject Matter

Rights of the

Municipal

Council

Children and

Youth

Parliament

131.1

Municipal Act (MA)

Art. 33: Municipal Act (MA) Open official source

Each Member of Parliament may comment on the proceedings and submit motions regarding the procedure and content of the bill.

Art. 34: Municipal Act (MA) Open official source

Each Member of Parliament may submit motions, postulates, parliamentary initiatives, interpellations, questions, and other proposals provided for in the Parliament's Organizational Decree.

Art. 35: Municipal Act (MA) Open official source

1 A referred motion obliges the municipal executive to prepare a proposal on a matter that falls within the competence of the parliament.

2 A referred postulate obliges the municipal executive to examine whether a proposal should be prepared or a measure taken.

3 A provisionally supported parliamentary initiative obliges the parliament to prepare a proposal on a matter that falls within the competence of the parliament.

4 A supported interpellation obliges the municipal executive to provide information on municipal matters of general interest.

5 The inquiry obliges the municipal executive to provide information on municipal matters of general interest. A discussion in parliament does not take place.

Art. 36: Municipal Act (MA) Open official source

1 The Municipal Council submits matters to Parliament for decision. It may, in exceptional cases, also submit proposals with variants or fundamental questions.

2 The Municipal Council has the right to make proposals or the right to express an opinion on all matters of Parliament.

3 In the deliberations of Parliament, the members of the Municipal Council have an advisory vote and the right to make proposals.

4 The Municipal Council may have its proposals represented by a member in the preliminary commissions of Parliament.

Art. 37: Municipal Law (ML) Open official source

The municipalities can introduce a Children's and Youth Parliament and grant it, in particular, the following powers in the municipal ordinance

a. Right to be heard by the municipal assembly or the municipal parliament,

b. Right to submit inquiries to the municipal executive board or postulates to the municipal parliament.

8

Municipal Act (GG)

4th Section: Authorities

A. General

Art. 38: Municipal Law (ML) Open official source

1 Authorities shall assemble at the invitation of the President

or upon request of at least one-third of their members.

2 Members are obliged to participate in the meetings.

Art. 39: Municipal Act (MA) Open official source

### 1 A body may make decisions if the majority of its members are present.

### 2 It makes its decisions after joint deliberation as a collegial body. In exceptional cases, it may decide by circular resolution.

### 3 The members of the body represent the decisions of the collegial body.

Art. 40: Municipal Act (MA) Open official source

1. Each member is obliged to cast a vote in ballots and elections. Voting is open. In the event of a tie, the chairperson's vote shall be decisive.

2. In elections, an absolute majority shall apply in the first ballot, and a relative majority in the second ballot.

3. For the rest, §§ 23, 24 and 26 shall apply mutatis mutandis to the voting rules and to the voting and election procedure.

Art. 41: Municipal Act (MA) Open official source

**1 If urgent matters cannot be dealt with in time by the authority, the President decides in their place. He or she informs the authority.**

**2 An authority may authorize the President to decide on matters of minor importance themselves.**

Art. 42: Municipal Law (ML) Open official source

1 Members as well as clerks of authorities shall recuse themselves

from deliberations and decision-making if a ground for recusal pursuant

to § 5a of the Administrative Justice Act of 24 May 1959 (VRG)12 exists.

2 Members of authorities shall disclose their interests.

Art. 43 : Municipal Act (MA) Open official source

The deliberations of authorities are not public.

Art. 44: Municipal Act (MA) Open official source

A public authority may delegate tasks to individual members or committees from among its own members for independent completion. The members and committees are obligated to undertake these tasks.

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131.1

Convening

and Participation

Decision-

making

Votes

and Elections

Presidential

Decisions

Duty to

Recuse

Exclusion of

the Public

Delegation of

Tasks

a. to Members

or Committees

9

131.1

Municipal Act (MA)

b. to Municipal

Employees

Advisory

Commissions

and Experts

Composition

Tasks

Management of the

Municipal Administration

Art. 45: Municipal Law (ML) Open official source

1 Tasks can be delegated to municipal employees for independent

execution.

2 The tasks and decision-making powers are defined in an

ordinance.

3 For independent commissions and school boards, the delegation of

tasks to municipal employees requires a basis in the

municipal regulations.

Art. 46: Municipal Act (MA) Open official source

An authority may appoint committees or consult experts for the preliminary discussion of its business.

B. Municipal Executive

Art. 47: Municipal Act (MA) Open official source

1 The municipal executive consists of at least five members, including the president.

2 The municipal by-laws determine the number of members.

Art. 48: Municipal Law (ML) Open official source

1 The municipal executive is the supreme authority of the municipality. It is responsible for political planning and leadership.

2 It regulates the organisation of the administration in an executive order.

3 The municipal executive attends to all matters, insofar as cantonal law or the municipal constitution does not assign them to another body.

4 It represents the municipality externally.

Art. 49: Municipal Act (MA) Open official source

**1 The Municipal Council manages the municipal administration.**

**It can delegate the management of the administration to municipal employees.**

**2 It supervises the administration and**

**a. ensures compliance with regulations,**

**b. provides for the appropriate use of funds,**

**c. takes measures to protect municipal assets and to prevent irregularities.**

**3 The municipalities monitor written-off claims for their subsequent collectability. If the debtor's solvency improves, the claim must be re-collected.**

**4 The municipalities may assign certificates of non-payment to third parties. The Government Council issues the necessary regulations.**

10

Municipal Act (GG)

131.1

Art. 50: Municipal Law (ML) Open official source

1 The Municipal Council may delegate tasks to subordinate commissions for independent execution. The Municipal Ordinance regulates the composition of these commissions.

2 The Municipal Council determines the number of members, the composition, the tasks, and the decision-making powers of the commissions in an official decree.

3 The commissions are subject to the supervision of the Municipal Council.

Art. 51: Municipal Act (MA) Open official source

1 The municipal constitution may designate commissions that, within

the scope of their duties, act in place of the municipal executive.

2 The commissions consist of a president, who is a member of the municipal executive, and at least four other members.

3 The municipal constitution regulates the number of members, the

composition, the duties, and the decision-making powers of the

commissions.

4 The commissions may have matters submitted to the electorate or

the municipal parliament for decision. For this purpose, they submit their matters to the municipal executive, which then submits them to the competent body with its voting recommendation.

5 The municipal constitution may exclude the direct right of initiative according to para. 4.

Art. 52 : Municipal Act (MA) Open official source

1 The Municipal Council appoints a Municipal Clerk.

Municipal Clerk

2 The Municipal Clerk supports the Municipal Council and performs the tasks assigned to her or him by the Municipal Council.

3 She or he participates in the meetings of the Municipal Council in an advisory capacity.

Art. 53: Municipal Law (ML) Open official source

1 The employment relationship of employees of municipalities,

associations for specific purposes, and institutions is governed by public law.

2 To the extent that municipalities do not issue their own regulations,

the cantonal personnel law13 and the cantonal provisions on

administrative investigations are applicable by analogy.19

relationship

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131.1

Municipal Act (MA)

C. School Board

Composition

Tasks and

Powers

School Districts

Art. 54: Municipal Law (ML) Open official source

Where a political municipality performs elementary school tasks, it shall appoint a school board.

Art. 55: Municipal Law (ML) Open official source

1 The School Board consists of at least five members, including the School President. The Municipal Charter determines their number.

2 The School President is a member of the Municipal Executive. The Municipal Charter specifies whether they are appointed by the Municipal Executive or elected as part of the election of the members of the Municipal Executive or the School Board.

Art. 56: Municipal Act (MA) Open official source

1 The duties and decision-making powers of the school board are determined by education legislation.

2 The municipal code governs the financial powers of the school board.

3 In other respects, the school board is vested with the duties and decision-making powers of an independent commission.

Art. 57 : Municipal Law (ML) Open official source

1. **Parliamentary municipalities can divide their municipal territory into school districts.**

2. **The municipal regulations shall govern:**

a. **the territorial division,**

b. **the number of members, the composition, the duties, and the decision-making powers of the school board and the district school authorities,**

c. **the body responsible for the election of the district school authorities.**

**D. Audit and Business Audit Commissions**

**Audit Commission**

**a. Composition**

Art. 58: Municipal Law (ML) Open official source

1 The political communes shall appoint an auditing committee with at least five members. In communes with an assembly form of government, the communal constitution shall determine the number of members.

2 In communes with a parliamentary form of government, the parliament shall elect the members from among its own ranks.

3 The auditing committee of the political commune is also responsible for the school commune existing within its territory.

4 If a school commune encompasses the territory of several political communes, the communal constitution shall determine

a. the political commune whose auditing committee is responsible for it, or

b. how its auditing committee is composed of members of the auditing committees of the political communes.

Art. 59 : Municipal Law (ML) Open official source

1. The Financial Audit Commission examines the financial management and accounting from a financial policy perspective.

2. It examines the budget and the annual financial statements. Additionally, it examines other matters of financial significance that are decided upon by the voters or the municipal parliament, unless another commission is responsible for them.

3. The audit is conducted from the following perspectives

a. financial legality,

b. arithmetic accuracy,

c. financial appropriateness,

d. substantive appropriateness in parliamentary municipalities and in assembly municipalities that provide for a business audit.

Art. 60: Municipal Act (MA) Open official source

1 Parliamentary communes are obliged to conduct business auditing. This is carried out by the Audit Commission or the Business Auditing Commission.

2 Business Auditing Commissions consist of at least five members. The parliament elects these from among its own members.

3 In assembly communes, the municipal regulations may provide for business auditing. This is carried out by the Audit Commission.

Art. 61: Municipal Act (MA) Open official source

1 The Business Audit Committee exercises political control b. Duties

over the management of the municipality.

2 In particular, it examines the business report and

a. in parliamentary municipalities, the matters to be submitted to the

parliament, unless another committee is responsible for them,

b. in assembly municipalities, the matters to be submitted to the voters,

insofar as the municipal constitution provides for this.

3 The audit covers legality and expediency.

Art. 62: Municipal Law (ML) Open official source

**1 Financial Audit Commissions and Management Audit Commissions**

(These) commissions may

a. demand from the Municipal Council the production of the documents

necessary for their audit, Disclosure

of Documents

b. obtain, in consultation with the Municipal Council, the information

necessary for their audit from the municipal administration. and Information

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131.1

Municipal Act (MA)

2 The Municipal Council shall restrict the disclosure of documents and the

provision of information insofar as an overriding public or private interest so requires.

Responsible Entities

Guarantee

Part 3: Delegation of Tasks and Cooperation

Section 1: Principles

Art. 63: Municipal Act (MA) Open official source

1. The municipalities fulfill the tasks themselves that are necessary for their organization, autonomy, and capacity to perform.

2. Other tasks may be transferred to third parties or fulfilled in cooperation with other municipalities. The transfer of tasks to third parties may occur through

a. Contract,

b. Outsourcing.

Art. 64: Municipal Law (ML) Open official source

1. Ensuring the

performance of tasks

The municipalities shall ensure that tasks are performed lawfully and appropriately.

2. To this end, the municipalities shall ensure that they are informed of the necessary information, particularly invoices.

Definition

Legal forms

a. Municipal Institution

Section 2: Outsourcing

Art. 65: Municipal Law (ML) Open official source

An outsourcing occurs when a municipality permanently transfers one or more tasks to an institution or a legal entity under private law, and the latter plans, steers, and executes the fulfillment of these tasks under its own responsibility.

Art. 66 : Municipal Law (ML) Open official source

1 The municipality may establish an institution for the spin-off,

which possesses legal personality as well as its own personnel and financial

resources.

2 The institution shall have at least one executive board and one audit body.

3 In all other respects, the provisions concerning political municipalities shall apply,

insofar as they are compatible with the specific characteristics of the institution.

14

Municipal Act (GG)

Art. 67: Municipal Act (MA) Open official source

The municipality may, for the purpose of outsourcing

a. establish a legal entity under private law,

131.1

b. acquire an interest in an existing legal entity under private law,

c. transfer one or more tasks to an existing legal entity under private law.

b. Legal Entities under Private Law

Art. 68: Municipal Law (ML) Open official source

**Legal Basis for Outsourcing**

Outsourcing requires a legal basis in an enactment, which specifically regulates the following points

a. Type and scope of tasks,

b. Legal form of the body responsible for the tasks,

c. Financing,

d. Supervision,

e. In the case of an institution, its organization.

a. Content

Art. 69: Municipal Law (ML) Open official source

1. Regarding spin-offs of significant importance, the eligible voters decide at the ballot box. In other cases, the jurisdiction is determined by the municipal code.

2. Spin-offs are particularly of significant importance when they have major political or financial implications.

Art. 70: Municipal Act (MA) Open official source

1 If a decree is to be decided upon at the ballot box, it requires subsequent approval by the Government Council. The Government Council examines its legality.

2 Approval is a prerequisite for the decree to come into force.

3. Section: Cooperation

A. Legal Forms

Art. 71: Municipal Law (ML) Open official source

With an inter-municipal agreement, municipalities can agree that one municipality fulfills one or more tasks for another municipality or enables the latter to use public facilities.

Art. 72: Municipal Act (MA) Open official source

1 With a collaboration agreement, municipalities may agree to jointly Collaboration

fulfill one or more tasks within the framework of a simple partnership. agreement

2 Powers vested in the voters or the municipal parliaments of the

participating municipalities may not be transferred to the partnership.

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15

131.1

Municipal Act (MA)

3 For the rest, the provisions of the Code of Obligations14 concerning

the simple partnership (Art. 530 et seq.) apply mutatis mutandis as cantonal

public law.

Association of Municipalities

Art. 73: Municipal Act (MA) Open official source

1 Municipalities may unite to form special-purpose associations (Zweckverbände) with legal personality for the joint fulfillment of one or more tasks.

2 A special-purpose association must have at least the following organs

a. the eligible voters of the association's territory,

b. the member municipalities,

c. the association board,

d. the audit committee.

3 The statutes in accordance with Art. 92 para. 3 KV6 may also provide for a delegates' assembly.

4 Furthermore, the provisions concerning political municipalities apply, insofar as they are compatible with the specifics of the special-purpose association.

Joint Institution

Art. 74: Municipal Law (ML) Open official source

1 The municipalities may establish joint public institutions for the common fulfillment of one or more tasks. These institutions shall possess legal personality and their own personnel and financial resources.

2 The joint public institution shall have at least one executive board and one audit body.

3 Furthermore, the provisions concerning the political municipalities shall apply, insofar as they are compatible with the specifics of the joint public institution.

Legal

Entities of

Private Law

Art. 75: Municipal Act (GG) Open official source

The municipalities may, for the joint fulfillment of one or more tasks

a. establish a legal entity under private law,

b. participate in an existing legal entity under private law,

c. transfer one or more tasks to an existing legal entity under private law.

Contents

B. Legal Basis

Art. 76 : Municipal Law (ML) Open official source

1 The collaboration requires a legal basis that regulates the

following points

a. participating municipalities,

b. nature and scope of the tasks,

16

Municipal Act (GG)

c. legal form of the collaboration,

d. any legislative and decision-making powers,

e. financing and cost distribution,

f. oversight,

131.1

g. termination of the collaboration,

h. for the special purpose association (Zweckverband) and the joint public institution (gemeinsame Anstalt), the organisation.

2 For the joint public institution and the legal entity under private law, a joint supervisory body may be provided for. Each municipality shall be represented in this body.

Art. 77: Municipal Law (ML) Open official source

### 1 Approval of Municipalities for Autonomous Service Providers

In the case of special-purpose associations, joint public institutions, and legal entities under private law, the enactment and fundamental amendments to their legal basis require the approval of all municipalities. For other amendments, the approval of the majority of municipalities suffices.

2 Amendments are considered fundamental if they regulate the following points

a. essential tasks,

b. basic principles of financing,

c. withdrawal and dissolution,

d. in the case of a special-purpose association, the participation rights of eligible voters and member municipalities.

Art. 78: Municipal Act (MA) Open official source

**1 Voting residents of the participating municipality decide on the conclusion and amendment of affiliation or cooperation agreements at the ballot box if:**

**a. Jurisdiction**

**a. for affiliation and cooperation agreements**

a. the municipality relinquishes sovereign powers,

b. the agreement results in expenditures for the municipality that must be approved at the ballot box.

**2 In other cases, jurisdiction is determined by the municipal articles of association.**

Art. 79: Municipal Act (MA) Open official source

The voters of each participating municipality shall decide by ballot on the legal basis for cooperation in the form of a special-purpose association, a joint institution, or a legal entity under private law.

Art. 80: Municipal Law (ML) Open official source

1 Approval

In the case of special-purpose associations, joint institutions, and legal entities under private law, the legal basis requires the approval of the Government Council. The Government Council reviews it for its legality.

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131.1

Municipal Act (MA)

2 The approval is a prerequisite for the legal basis to come into force.

Procedure

C. Duty to cooperate

Art. 81 : Municipal Act (MA) Open official source

1 The Government Council may obligate municipalities to collaborate in accordance with §§ 71–75 if important public interests so require.

2 It sets the municipalities an appropriate deadline for the enactment of suitable legal bases in accordance with § 76.

3 If the municipalities do not comply with this obligation within the deadline, the Government Council may enact the legal bases in place of the municipalities.

Cross-border

Collaboration

Attempts

D. Specific Types of Collaboration

Art. 82: Municipal Act (MA) Open official source

1 The cooperation of municipalities with municipalities

of other cantons requires a treaty between the cantons.

2 Therein, the law of another canton can be declared applicable.

Art. 83: Municipal Law (ML) Open official source

4th Part: Financial Budget

1st Section: Principles

1 The Government Council may, upon request of the municipalities, provisionally approve forms and structures of cooperation that deviate from ordinary legislation.

2 Trials shall be time-limited and evaluated.

Principles

of Budgeting

Structure of the

Budget

Art. 84: Municipal Act (MA) Open official source

1 Budget management is governed by the principles of legality, budget balance, economy, the polluter-pays principle, and the prohibition of earmarking municipal and property taxes.

2 The financial year corresponds to the calendar year.

Art. 85: Municipal Act (MA) Open official source

1 The budget and annual financial statements are structured according to tasks (functional classification) and presented using a uniform chart of accounts for public budgets.

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Municipal Act (MA)

131.1

2 The municipality may additionally provide for a classification by organizational units (institutional classification).

3 The Government Council regulates the functional classification and the chart of accounts. In doing so, it takes into account the requirements of financial statistics and ensures comparability and transparency.

Art. 86: Municipal Act (MA) Open official source

1 The accounts shall be kept for the entire household of the municipal

unit as a single entity. They consist of

a. the main accounts, including special funds,

b. the special accounts.

2 The revenues of the municipality shall flow into the general municipal

budget. Excluded from this are revenues that, due to their intended purpose, must be allocated to a special fund or managed as a special account.

Budget

Art. 87: Municipal Act (MA) Open official source

1 Special financing is conducted when funds are earmarked for a specific purpose due to a legal basis.

2 It is permissible for

a. Autonomous businesses (or self-financing operations),

b. Funds provided for by superior law,

c. Reserves from administrative areas with a global budget according to

Art. 88: Municipal Act (MA) Open official source

1. **Proprietary Undertakings**

Proprietary undertakings are administrative units managed according to the principle of economic self-sufficiency.

2. The municipality establishes proprietary undertakings if

a. it is obliged to do so by superior law; or

b. the municipal assembly or the municipal parliament decides it.

3. Operating profits and operating losses are carried forward to special financing accounts. Their balance is determined by the requirements of cost-causal operational financing.

4. Section 93 applies mutatis mutandis.

Art. 89: Municipal Act (MA) Open official source

1. **Creation of reserves from global budgets**

If an administrative unit with a global budget concludes its financial year better than budgeted, the municipal assembly or the municipal parliament may, upon approval of the annual accounts, decide to form a reserve.

2. Reserves are available to the administrative unit in addition to the budgeted global credit and are to be used for the economical fulfilment of its tasks.

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131.1 Municipal Law (GG)

3. If an administrative unit with a global budget concludes its financial year worse than budgeted, reserves are dissolved to cover the deficit.

Art. 90: Municipal Law (ML) Open official source

1 If future investment projects are included in the financial and planning budget, they can be pre-financed up to the amount of the anticipated net investments.

2 The amount of a pre-financing will be decided as a matter of principle by the municipal assembly or the municipal parliament.

3 Contributions to the pre-financing shall be decided with the budget until the year the investment good comes into use. They must not lead to an expenditure surplus in the budget.

4 The accumulated funds will be released over the useful life of the investment good starting from the commencement of its use.

5 If an investment project is abandoned or has not been pursued for five years, the already accumulated funds must be released.

Art. 91: Municipal Act (MA) Open official source

1 Special accounts are maintained for the management of funds

a. in the interest of third parties,

b. from donations and testamentary dispositions with a specific

purpose.

2 If the managed funds are insignificant, the municipal executive

can waive the maintenance of a special account.

3 The purpose restriction shall be amended if it has become outdated or

ineffective. The competent body shall be determined according to

the competence regulations for commitment credits. The decisive factor is

the total amount of the managed funds.

Section 2: Management of the Financial Household

A. Budgetary Balance

Art. 92 : Municipal Law (ML) Open official source

18 1 The municipal tax rate shall in principle be determined in such a way

that the income statement of the budget is balanced.

2 Annually, an expenditure surplus up to the amount of the budgeted

depreciation on administrative assets plus 3% of the

tax revenue may be budgeted.

20

Municipal Act (GG)

131.1

3 If financial assets exceed external liabilities, a deviation from

para. 2 may be made, and an expenditure surplus up to the amount of the difference

may be budgeted.

Art. 93 : Municipal Law (ML) Open official source

**1 Accumulated Deficits (Bilanzfehlbetrag)**

Expenditure surpluses (Aufwandüberschüsse) that are not covered by unrestricted equity (zweckfreies Eigenkapital) are reported in the balance sheet as an accumulated deficit.

**2 An accumulated deficit must be amortized within a maximum of five years.** The corresponding amortization installments (Tilgungsquoten) shall be budgeted. They shall be measured in such a way that no accumulated deficit remains after five years.

Art. 94: Municipal Law (ML) Open official source

The results for the assessment of the household balance Information

and the change in equity, as well as the key figures for

interest burden and investments over the last ten years are

disclosed in the budget and annual accounts.

B. Financial and Task Plan

Art. 95: Municipal Act (MA) Open official source

**1 The Financial and Task Plan** serves for medium-term purpose and

planning and control of finances and tasks.

**2** It is laid down annually for at least the following four years.

The first planning year corresponds to the budget submission.

**3** It contains, in particular

a. the key financial and economic data,

b. the investment planning,

c. the planned income statement,

d. the planned balance sheet,

e. the planned cash flow statement.

**4** For the control of tasks, an account structured functionally or institutionally

over the planning years must be prepared.

Contents

Art. 96: Municipal Law (ML) Open official source

1 The municipal executive decides on the financial and tasks plan.

2 It submits it to the municipal assembly or the municipal parliament for information simultaneously with the budget proposal.

3 The financial and tasks plan is publicly displayed.

C. Budget

Art. 97: Municipal Act (MA) Open official source

The budget determines the financing of tasks for the next financial year.

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131.1

Principles

Municipal Act (GG)

Content

Global Budget

Procedure

a. Municipalities

b. Special-

purpose associations

Art. 98: Municipal Act (MA) Open official source

The budget is based on the principles of **annuality**, **qualitative, quantitative, and temporal commitment**, **completeness**, **comparability**, and **gross presentation**.

Art. 99: Municipal Act (MA) Open official source

1 The budget comprises

a. the income statement,

b. the investment statement.

2 Sections 124 and 125 apply to the income statement and the investment statement.

3 For administrative areas with a global budget, the budget shall show the budget appropriation as well as the services and assessment criteria.

4 For foreseeable expenditures for which, at the time of the resolution on the budget, the legally binding approval of the voters or the municipal parliament is still pending, the budget appropriations shall be included with a blocking note. They remain blocked until the approval is legally binding.

Art. 100: Municipal Act (MA) Open official source

d. Pre-financing of investment projects.

financing

a. in

general

Art. 101: Municipal Act (MA) Open official source

1 The Municipal Council prepares the budget proposal and, in particular, justifies significant changes compared to the previous year's budget.

2 The Municipal Assembly or the Municipal Parliament adopts the budget. The tax rate is adopted in the same assembly or session.

3 The budget and tax rate must be adopted by the end of the year at the latest. If no legally binding resolutions are available, the Municipal Council is authorized to make the expenditures essential for ordinary and economical administrative activities.

Art. 102: Municipal Law (ML) Open official source

The budget is decided by

a. the Delegates' Assembly, provided the special-purpose association has this body,

b. the municipal councils of the member municipalities in other cases.

22

Municipal Act (MA)

131.1

3. Section: Expenditures and Investments

A. Approval of Expenditures

1. General

Art. 103: Municipal Act (MA) Open official source

**1 Committed expenditure**

Expenditure is considered committed if the municipality is obliged to incur it by virtue of a legal provision, a decision of a court or supervisory authority, or a prior resolution of the competent bodies or authorities, and if no significant discretionary scope remains for the municipality in terms of subject matter, time, and location.

2 Otherwise, the expenditure is considered new.

Art. 104: Municipal Act (MA) Open official source

1 New expenditures require a commitment credit and

a budget credit.

2 The municipal regulations govern whether and to what extent the

municipal executive, the school board, and an independent commission

are authorized to approve new expenditures in the current financial year

without a budget credit. The municipal regulations define an annual total

amount for new one-time and recurring expenditures.

Tied and

new expenditures

Approval of

new expenditures

Art. 105: Municipal Law (ML) Open official source

Gebundene Ausgaben setzen einen Beschluss des Ge-

meindevorstands, der Schulpflege oder einer eigenständigen Kommis-

sion und, soweit die Ausgabe voraussehbar ist, einen Budgetkredit

voraus.

Bewilligung

gebundener

Ausgaben

2. Verpflichtungskredit

***

Tied expenditures require a resolution by the municipal executive, the school board, or an independent commission and, insofar as the expenditure is foreseeable, a budget appropriation.

Approval

of Tied

Expenditures

2. Commitment Credit

Art. 106: Municipal Act (MA) Open official source

1. The commitment credit is the authorization to incur financial obligations for a specific purpose and up to a certain amount.

2. It is decided

a. for a single project as an object credit,

b. for a program as a framework credit for the total expenditures and as object credits for the expenditures of the individual parts of the program.

3. The resolution on the framework credit determines the competence for the division into individual object credits.

Commitment Credit

a. Definition and Forms

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131.1

b. Competence

Municipal Law (GG)

Art. 107 : Municipal Act (MA) Open official source

1 The Municipal Code determines, based on monetary limits, the authority for the approval of commitment credits by

a. the electorate at the ballot box,

b. the municipal assembly or the municipal parliament,

c. the municipal executive,

Supplementary credit

d. the school board.

2 The Municipal Code may also provide for the authority of independent commissions.

3 The monetary limits are to be set in such a way that the electorate decides on all projects of significant financial importance at the ballot box.

Art. 108: Municipal Act (MA) Open official source

1. If a commitment credit is insufficient, an additional

a. Scope of application

b. Competence

c. Assessment

d. Forfeiture and revocation

credit must be obtained.

2. In the event of a significant change in purpose, a new commitment credit must be obtained.

Art. 109: Municipal Law (ML) Open official source

1 If the municipal regulations do not provide for a stricter rule, the competence for approving supplementary credits shall be determined by the competence framework for commitment credits. The amount of the supplementary credit shall be decisive.

2 If the total amount of the commitment credit and the supplementary credit exceeds the competence of the body that decided on the commitment credit, the competence for the supplementary credit shall be determined by the amount of the total sum.

Art. 110: Municipal Act (MA) Open official source

1 New expenditures for a specific purpose that are factually and

temporally related or mutually conditional shall be included in the

same commitment credit.

2 The commitment credit may be decided as a balance between expenditures

and revenues if the contributions of third parties are legally

determined in their amount or if it is approved subject to

certain Leistungen Dritter (third-party services/contributions).

Art. 111: Municipal Act (MA) Open official source

1 A commitment credit expires when its purpose is achieved or the project is abandoned.

2 If a commitment credit approved at the ballot box is not claimed, the municipal assembly or the municipal parliament decides on its revocation. In other cases, the body that approved the commitment credit decides on its revocation.

24

Municipal Act (MA)

131.1

Art. 112: Municipal Law (ML) Open official source

1 The Municipal Council carries out an ex-post control and control of commitment credits.

2 For commitment credits approved by the voters or the Municipal Parliament, the Municipal Council draws up a statement of accounts after the completion of the project.

3 This requires the approval of the Municipal Assembly or the Parliament.

4 The Municipal Council approves the statement of accounts if the Municipal Charter provides for it and there is no credit overrun.

Statement of Accounts

3. Budget Appropriation

Art. 113 : Municipal Law (ML) Open official source

The budget appropriation authorizes the municipal executive to charge the annual statement of accounts for the designated purpose up to the specified amount.

Art. 114: Municipal Law (ML) Open official source

1. Budgetary appropriations shall be approved upon the establishment of the budget.

2. Jurisdiction shall be determined in accordance with §§ 101 and 102.

Art. 115: Municipal Law (ML) Open official source

**1 Supplementary Credit**

1 If a budget appropriation is insufficient, a supplementary credit must be obtained.

2 Competence is determined by Sections 101 and 102.

3 The obtaining of a supplementary credit may be waived if

a. the exceeding of the budget appropriation is covered in terms of amount by the commitment credit or

b. the municipal council, the school board, or an independent commission according to Section 104 para. 2 has the authority to approve expenditures of the corresponding amount outside the budget.

Art. 116 : Municipal Law (ML) Open official source

1 The body responsible according to §§ 128 and 129 approves credit

overruns together with the annual financial statements.

2 The municipal board justifies significant credit overruns.

overrun

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131.1

B. Investment Transactions

Municipal Act (GG)

Competence

Art. 117: Municipal Act (MA) Open official source

1 Investments of financial assets are generally decided by the Municipal Council.

2 The municipal assembly or the municipal parliament is responsible

a. for a book value to be determined in the municipal regulations when disposing of and investing in financial properties,

b. in other cases provided for in the municipal regulations.

Section 4: Accounting and Reporting

A. General

Purpose

Art. 118: Municipal Act (MA) Open official source

The accounting should present the asset, financial, and earnings situation in accordance with the actual circumstances.

Principles

Art. 119: Municipal Act (MA) Open official source

17 1 Financial reporting shall be governed by the principles

of understandability, materiality, reliability, comparability,

going concern, consistency, accrual, and gross presentation.

provisions.

2 The municipalities may delimit the resource equalization over time.

Purpose and

Content

B. Annual Financial Statements

Art. 120: Municipal Act (MA) Open official source

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

2 They contain, in particular

a. the balance sheet,

b. the income statement,

c. the investment statement,

d. the cash flow statement,

e. the notes.

3 For administrative areas with a global budget, the annual financial statements also show the services rendered and the financial resources used for them.

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Municipal Act (GG)

131.1

Art. 121 : Municipal Act (MA) Open official source

**1 Balance Sheet**

The balance sheet contains on the assets side the assets, on the liabilities side the external capital (liabilities) and the equity.

**a. In General**

2 The assets are divided into financial assets and administrative assets.

3 Financial assets comprise those assets that can be realised without impairing the performance of public duties.

4 Administrative assets comprise those assets that directly serve the performance of public duties.

5 Obligations towards special accounts are allocated to external capital (liabilities).

Art. 122 : Municipal Law (ML) Open official source

1. Equity comprises restricted and unrestricted equity.

2. Restricted equity comprises

a. commitments and advances to special funds of municipal enterprises in accordance with § 88,

b. funds within equity,

c. reserves from administrative units with global budgets in accordance with

Art. 123: Municipal Act (MA) Open official source

1. Municipalities may increase net assets or reduce net debt by making contributions to the reserve.

2. Contributions shall be budgeted. They may not lead to an expenditure surplus in the budget.

3. The reserve shall be used to cover expenditure surpluses.

Art. 124: Municipal Act (MA) Open official source

1 The income statement contains the expenses and income of a financial year.

2 The income statement by type of expense and income comprises in particular

a. the result from operating activities,

b. the financial result,

c. the extraordinary result.

Income Statement

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131.1

Municipal Act (GG)

3 The extraordinary result comprises

a. contributions to and withdrawals from global budget area reserves,

b. contributions to and dissolution of pre-financings,

c. contributions to the reserve.

Investment Statement

Art. 125: Municipal Law (ML) Open official source

1. **Administrative Assets:** The investment statement includes all expenditures and revenues for assets that are capitalized within administrative assets.

2. **Financial Assets:** The investment statement includes all expenditures and revenues for property, plant, and equipment within financial assets.

Cash Flow Statement

Art. 126: Municipal Act (MA) Open official source

The cash flow statement provides information on the origin and

use of funds. It is divided into operating, investing, and financing activities.

Appendix

Art. 127: Municipal Law (ML) Open official source

The Appendix

a. designates the accounting framework applied for financial reporting and justifies deviations,

b. summarises the accounting principles, including the significant accounting and valuation principles,

c. designates the organisational units covered by the annual financial statements,

d. contains further information for assessing the asset, financial, and earnings situation.

Procedure

a. Municipalities

Art. 128: Municipal Act (MA) Open official source

1 The municipal executive prepares the annual financial statements.

2 These are approved by the municipal assembly or the municipal

parliament within six months of the end of the financial year.

3 The municipal executive submits the annual financial statements,

the resolutions of the financial audit commission, and those of the municipal

assembly or the municipal parliament to the district council.

b. Special-

purpose associations

Art. 129: Municipal Act (MA) Open official source

The annual accounts are approved by

a. the Delegates’ Assembly, provided the special-purpose association has this body,

b. the municipal councils of the member municipalities in other cases.

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Municipal Act (GG)

C. Accounting and Asset Transfer

131.1

Art. 130 : Municipal Act (MA) Open official source

1 Assets are recognized if

a. they generate future economic benefits or their use is intended for the

fulfillment of public tasks, and

b. their value can be reliably determined.

2 Liabilities are recognized if

a. their origin lies in a past event,

b. their fulfillment will certainly or probably lead to an outflow of resources, and

c. their value can be reliably determined.

3 Immaterial assets and liabilities do not need to be recognized. The Government Council regulates the details in an ordinance.

Art. 131: Municipal Law (ML) Open official source

1 Positions of financial assets are to be recognized at fair value. Real estate within financial assets is to be revalued at least once per legislative period.

2 Positions of administrative assets are to be recognized at acquisition cost less depreciation.

3 The Government Council shall regulate the method for valuing financial assets and administrative assets in an ordinance.

Art. 132: Municipal Law (ML) Open official source

1 The impairment of administrative assets through use is accounted for by linear depreciation over the assumed useful life.

2 If a permanent impairment of value is foreseeable for an item of administrative assets, its carrying amount is adjusted.

3 The Government Council shall regulate the assumed useful life of asset categories in an ordinance.

Art. 133 : Municipal Law (ML) Open official source

1 The transfer of assets between financial assets and administrative assets occurs at book value.

2 Assets are sold to third parties at fair value. The value can be set lower if there is an overriding public interest.

Accounting

a. Accounting principles

b. Valuation principles

c. Depreciation and impairment

Asset transfer and asset disposal

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131.1

D. Annual Report

Municipal Law (GG)

Art. 134: Municipal Law (ML) Open official source

1 The Municipal Council submits with the business report

an account of the most important developments and transactions of the

past year.

2 In parliamentary municipalities, the business report is approved by the

parliament, and in assembly municipalities whose audit commission

has business auditing powers, by the municipal assembly within six months

after the end of the financial year.

3 In other assembly municipalities, the business report is

voluntary and is brought to the attention of the voters.

E. Accounting

Principles of

Bookkeeping

Fixed Asset

Accounting

Internal

Allocations

Inventory Management

Record Retention

Art. 135: Municipal Law (ML) Open official source

The accounting is based on the principles of completeness, correctness, timeliness, and verifiability.

Art. 136 : Municipal Law (ML) Open official source

The fixed assets of financial assets and administrative assets are maintained in an asset accounting system.

Art. 137 : Municipal Law (ML) Open official source

1 Internal allocations are credits and debits between administrative units.

2 They are made when necessary for the determination of expenses and revenues or for efficient service delivery.

Art. 138: Municipal Act (MA) Open official source

1 The municipalities shall prepare annual inventories of assets and property.

2 Inventories of assets shall contain the capitalized assets, while inventories of property shall contain the non-capitalized assets, inventories, and stock.

Art. 139: Municipal Act (MA) Open official source

1 The following retention periods apply

a. 50 years for budget, annual financial statements and business report,

b. 30 years for accounting and inventory,

c. 10 years for accounting vouchers.

2 The documents can be stored electronically.

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Municipal Act (MA)

F. Financial Information

131.1

Art. 140: Municipal Law (ML) Open official source

The Government Council determines key figures that the municipalities must report in the financial and task plan, in the budget, and in the annual financial statements.

Art. 141: Municipal Law (ML) Open official source

1 The Directorate for Municipal Affairs (Directorate) publishes annual statistical data on the financial situation of the municipalities.

2 The municipalities provide the necessary accounting and planning data for this purpose. The Cantonal Government determines the type, scope, and transmission of the data.

Section 5: Auditing of Accounts and Books

Art. 142: Municipal Law (ML) Open official source

1. The municipalities submit their financial statements to an auditing body for a financial technical audit.

2. The provisions of this section also apply to public institutions and special-purpose associations, insofar as they are compatible with their specific characteristics.

Art. 143: Municipal Law (ML) Open official source

1 The auditing body examines whether the accounting and financial reporting comply with the legal provisions and the regulations of the respective municipality.

2 The subject of the audit includes in particular the annual financial statements, the accounting of selected administrative areas, and financial transactions.

3 The audit is carried out annually. The accounting of individual administrative areas is subjected to an in-depth audit alternately according to their importance.

4 The audit is carried out in accordance with generally accepted auditing standards. The Government Council determines the applicable norms in an ordinance.

Art. 144: Municipal Act (MA) Open official source

1 The municipalities commission private entities or the financial audit office

control of a municipality with the financial-technical audit.

2 They may designate the Audit Committee in the municipal regulations

commission as an audit body, provided it meets the requirements for

independence and expertise.

a. Inventory

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131.1

b. Expertise

and Reputation

c. Independence

d. Audit

report

e. Reporting

obligation

Municipal Law (GG)

Art. 145: Municipal Act (MA) Open official source

1 The individuals involved in the financial audit (auditors) possess the necessary professional expertise and an impeccable reputation within the meaning of Article 4 paragraph 1 of the Federal Act of 16 December 2005 on the Admission and Supervision of Auditors (RAG)15.

2 The leadership of the financial audit requires the following qualified professional expertise

a. training within the meaning of Article 4 paragraphs 2 and 3 RAG15 and

b. two years of professional experience in auditing the accounts of legal entities under private or public law.

3 Municipalities that designate the Audit Committee as the auditing body (Section 144 paragraph 2) may set lower requirements for professional expertise in their municipal ordinances.

Art. 146 : Municipal Law (ML) Open official source

1 The auditing body and the auditors must be independent of the

mandating municipality.

2 The auditors and persons superior to or closely associated with them

may not, in particular,

a. belong to the municipal parliament or any authority of the mandating

municipality,

b. have any employment or other contractual relationship with the mandating

municipality.

3 Municipalities that designate the audit committee as the auditing

body (Art. 144 para. 2) may stipulate lower independence requirements

in their municipal regulations.

Art. 147: Municipal Act (MA) Open official source

1 The Audit Office shall provide the Municipal Council, the Audit

Commission, and the District Council with a comprehensive report

on the conduct and results of the financial audit.

2 Following the audit of the annual financial statements, it shall also prepare a

short report. This report shall contain

a. the audit result,

b. the recommendation for approval or non-approval of the

annual financial statements,

c. the confirmation that the legal requirements for the auditors

have been met.

3 The short report shall form part of the annual financial statements.

Art. 148: Municipal Act (MA) Open official source

The heads of the financial audits report all criminal offences of which they become aware during the audit to the competent authority.

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Municipal Act (GG)

131.1

Art. 149: Municipal Act (MA) Open official source

1 The municipal executive board and the audit committee shall determine the auditing body by concurrent resolutions. In case of disagreement, the district council shall decide.

2 The municipal regulations may stipulate the sole responsibility of the audit committee, the municipal assembly, or the municipal parliament for the appointment of the auditing body.

Art. 150: Municipal Law (ML) Open official source

1 The Audit Office may

a. demand from the Municipal Council the surrender of documents necessary for its audit, and

b. with the consent of the Municipal Council, obtain from the municipal administration the information necessary for its audit.

2 The surrender of documents and the provision of information also include special categories of personal data and tax data.

3 The Audit Office shall document access to special categories of personal data and tax data and the purposes pursued thereby. Data collected for the audit shall be destroyed ten years after the completion of the audit.

Information

Part 5: Changes in the Composition and Territory of Municipalities

Section 1: Changes in Composition

A. Forms of Changes in Composition

Art. 151: Municipal Act (MA) Open official source

1 With an initiative in the form of a general suggestion,

the municipal executive can be requested to examine mergers.

Merger of

Municipalities

a. Initiative for the

2 If the initiative is accepted, the municipal executive is obligated to examine mergers and to inform the municipal assembly or the municipal parliament about them.

examination of

mergers

3 Otherwise, the procedure is governed by the provisions regarding the treatment of initiatives in the form of a general suggestion according to the Law on Political Rights⁹.

Art. 152: Municipal Act (MA) Open official source

1. Communities that wish to merge shall conclude an agreement.

2. This agreement shall regulate, in particular

a. whether a new community is formed or if one community absorbs other communities or parts of communities;

b. the transitional arrangements;

c. the transfer of legal relationships;

d. the establishment of a transitional authority that can propose the community constitution and budget.

b. Merger Agreement

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131.1

Municipal Act (MA)

Art. 153: Municipal Act (MA) Open official source

1 The voters of each participating municipality shall approve the agreement on the merger. This requires the approval of the Government Council, which examines its legality. The approval is a prerequisite for the agreement to enter into force.

2 The entire body of voters of the participating municipalities shall adopt the municipal constitution of a new municipality.

3 The merger of school districts is permissible if the new school district performs all tasks in the area of school and education. The Government Council may grant exceptions if special circumstances require it.

Art. 154: Municipal Act (MA) Open official source

1 The dissolution of a school district and the taking over of its duties by the political municipality shall be decided by the eligible voters at the ballot box.

2 School districts and political municipalities shall coordinate the procedure. The municipal councils shall submit a joint proposal to the eligible voters.

B. Support

Art. 155: Municipal Act (MA) Open official source

The Canton supports mergers of municipalities with advice and financial contributions, if the merger

a. results in a appropriately defined municipality,

b. considers the interests of other municipalities and the Canton.

Art. 156 : Municipal Law (ML) Open official source

**1 The Canton shall make a contribution to the project costs for the

preparation of a merger.**

**2 The Government Council shall regulate the amount of the contribution and the

eligible costs in an ordinance.**

Art. 157 : Municipal Law (ML) Open official source

1 The Canton makes a lump-sum contribution to the costs

of the reorganization of a merged municipality.

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Municipal Act (GG)

131.1

2 The Government Council regulates the amount of the contribution in an ordinance. In doing so, it considers

a. the varying effort arising from the merger of political municipalities, as well as from the merger of school municipalities and the assumption of school responsibilities by political municipalities,

b. the number of participating municipalities.

Art. 158: Municipal Law (ML) Open official source

1. **Cantonal Debt Relief Contribution for Amalgamated Municipalities**

The Canton shall make a debt relief contribution to an amalgamated municipality for each municipality involved in the amalgamation.

2. The contribution shall reduce the net debt per inhabitant of the individual participating municipalities to a level corresponding to an average indebtedness.

3. Contributions shall be made for participating municipalities that have a maximum of 5000 inhabitants.

4. If the territory of a participating municipality corresponds to the territory of the amalgamated municipality, no contributions shall be made.

5. The Government Council shall regulate the extent of the debt relief and the staggering of the contributions according to the population size of the individual participating municipalities in an ordinance.

Losses in

Art. 159: Municipal Law (ML) Open official source

1 The canton shall provide a merged political commune with a contribution for four years to offset losses in resource equalization and in demographic and geographic-topographic special burdens equalization pursuant to the Financial Equalization Act of July 12, 2010.

2 The assessment of the contribution shall take into account the difference between the financial equalization contributions before the merger,

a. that were paid to the participating communes and

b. that would have been due to the participating communes assuming their merger.

3 The Government Council shall regulate the calculation of the contributions in an ordinance. The contribution shall decrease during the contribution period.

2. Section: Changes in Territory

Art. 160: Municipal Law (ML) Open official source

1 In the event of changes in municipal territory, boundaries are redefined

between municipalities without altering their existing structure.

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131.1

Municipal Act (MA)

Agreement

Competence

2 Political municipalities and school municipalities coordinate the changes

to their territories.

Art. 161: Municipal Law (ML) Open official source

1 The municipalities shall regulate the course of the boundaries and the

legal consequences of the territorial alteration in a contract.

2 The contract requires the approval of the Government Council. The

latter shall examine it for its legality. Approval is a prerequisite

for the contract to come into force.

Art. 162: Municipal Law (ML) Open official source

1 The electorate shall decide on the contract at the ballot box if the territorial changes are of considerable importance for the communities involved. In all other respects, the municipal code shall regulate competence.

2 Territorial changes are in particular of considerable importance if they affect an area or population size that is essential for the development of the municipality.

Supervised

Part 6: Supervision and Legal Protection

Section 1: Supervision

Art. 163: Municipal Law (ML) Open official source

**Subject to cantonal supervision are:**

**Organizations**

a. Municipalities,

b. Institutions,

c. Special purpose associations.

**Cantonal supervisory authorities**

Art. 164 : Municipal Act (MA) Open official source

1 General supervision is exercised by the District Councils and the

Cantonal Council.

Reporting

Supervision in the

case of

administrative

offences

a. Competence

2 Expert supervision is governed by special statutory provisions.

Art. 165: Municipal Act (MA) Open official source

The District Council reports annually to the Government Council on the exercise of supervision.

Art. 166: Municipal Law (ML) Open official source

1 If irregularities occur in a supervised organization, they must be remedied by the competent body of that organization.

2 The District Council intervenes if the competent body fails to take the necessary measures to remedy the irregularity.

3 In justified cases, the Government Council can act instead of the District Council.

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Municipal Act (GG)

Art. 167: Municipal Law (ML) Open official source

The cantonal supervisory authority intervenes if

a. there are indications of clear legal violations, or

b. the proper management or administrative activity is otherwise jeopardized.

131.1

b. Preconditions

Art. 168 : Municipal Law (ML) Open official source

1 The cantonal supervisory authority may, in particular,

a. issue directives,

b. take precautionary measures,

c. revoke unlawful orders, decisions, and enactments,

d. issue substitute orders and carry out substitute performances,

e. impose administrative fines,

f. temporarily suspend or remove from office a member of an authority who repeatedly or seriously violates official duties, if this is in the public interest.

2 The Government Council reserves the right

a. to withdraw the right to self-administration from a supervised organization and to appoint a governing body, if the proper fulfillment of tasks cannot be ensured otherwise,

b. to set a municipality's tax rate if a municipality has not set it by the end of March.

c. Measures

Art. 169: Municipal Law (ML) Open official source

If a cantonal supervisory authority takes measures, it generally imposes the costs of the proceedings and the measures on the supervised organization.

2. Section: Legal Protection

Art. 170: Municipal Law (ML) Open official source

1. Reconsideration

If tasks are assigned for independent execution, reconsideration may be requested

a. by the full authority in the case of orders and decrees from members or committees of an authority,

b. by the municipal executive in the case of orders and decrees from subordinate commissions,

c. by the assigning authority in the case of orders from municipal employees.

2. If a subordinate commission assigns tasks to a member or a committee, the municipal executive is responsible for reconsideration.

of Decisions

a. in

General

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131.1

Municipal Law (ML)

b. Procedure

Further Appeal

by the

Municipality

3. Participation in the decision subject to reconsideration does not constitute a ground for recusal.

4. The possibility to request reconsideration must be indicated in the decision.

Art. 171: Municipal Law (ML) Open official source

1. The request for re-evaluation must be submitted in writing within 30 days of notification or publication. It must contain an application and a justification.

2. The running of the period and the submission of the request have a suspensive effect.

3. The authority reviews the order without restriction and makes a new decision. The decision will be reasoned.

4. An appeal against the new evaluation is permissible in accordance with the Administrative Justice Act12.

Art. 172: Municipal Law (ML) Open official source

1 If a decision of the voters, the municipal assembly or the municipal parliament has been overturned or amended in an appeal procedure, the following body shall decide whether the municipality should, for its part, pursue the appeal

a. in parliamentary municipalities, the municipal parliament,

b. in assembly municipalities, the municipal executive board after consulting the financial audit commission.

2 The decision of the body responsible under subsection 1 can be submitted subsequently if the municipal executive board has already lodged the appeal.

Enforcement

Amendment

of existing

law

Continued validity

of enactments

and orders

7. Part: Final Provisions

Art. 173: Municipal Law (ML) Open official source

Communes, institutions, and special-purpose associations shall undertake the necessary adjustment of their law within four years of the entry into force of this Act.

Art. 174: Municipal Law (ML) Open official source

The current law shall be amended in accordance with the Annex.

Art. 175 : Municipal Act (MA) Open official source

The right of municipalities and their ordinances, which were adopted in a procedure valid under the Municipal Act of June 6, 1926, remain in force. Their amendment is governed by the provisions of this Act.

38

Municipal Act (MA)

131.1

Art. 176: Municipal Law (ML) Open official source

The existing primary school districts and secondary school districts according to the Municipal Act of June 6, 1926 are considered primary and school districts within the meaning of this Act.

Art. 178: Municipal Law (ML) Open official source

**School districts, whose territory does not coincide with the territory of one or several political municipalities, must adjust their territory to that of the political municipalities within four years of the entry into force of this law.**

Art. 179: Municipal Law (ML) Open official source

1. On January 1st of the year following the entry into force of this Law, based on the opening balance sheet, municipalities shall prepare an opening balance sheet as follows

a. Financial assets shall be revalued at fair market values.

b. Provisions and accrued/deferred items shall be revalued at nominal values.

c. Administrative assets may be revalued taking into account their acquisition or production costs, no later than from 1986.

2. If the municipality foregoes a revaluation of administrative assets, the book value of administrative assets shall be distributed among the determined residual book values of installations and components and depreciated linearly over their remaining useful life. The regulation in the Ordinance of the Government Council according to § 132 para. 3 shall apply mutatis mutandis.

3. Value changes resulting from revaluations shall be allocated to the relevant special financing account for self-financing enterprises.

Art. 180: Municipal Law (ML) Open official source

1 Concerning the revaluation of the balance sheet in accordance with § 179, a balance sheet

adjustment report shall be prepared.

2 The auditing body in accordance with § 144 shall examine the balance sheet adjustment report.

It shall record the results in an audit report.

3 The Municipal Council shall approve the balance sheet adjustment report.

4 It shall submit the balance sheet adjustment report together with the audit

report to the District Council and the Directorate by the end of August of the financial

year and inform the Audit Commission.

The Directorate may undertake a review of the balance sheet adjustment

and demand corrections.

balance sheet

adjustment report

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131.1

Municipal Act (MA)

Ordinance

Art. 181. The Ordinance to the Municipal Law is subject to the Mu- : Municipal Law (ML) Open official source

approval of the Cantonal Council.

1 OS 72, 183, 382.

2 Effective date: January 1, 2018.

3 ABI 2013-04-19.

4 Repealed by judgment of the Federal Supreme Court of April 3, 2017 (2C_756/2015).

5 Correction of June 19, 2017 (OS 72, 382).

6 LS 101.

7 LS 131.11.

8 LS 132.1.

9 LS 161.

10 LS 170.4.

11 LS 171.1.

12 LS 175.2.

13 LS 177.10 ff.

14 SR 220.

15 SR 221.302.

16 For text, see OS 72, 183.

17 Version in accordance with Act of March 18, 2019 (OS 74, 147; ABI 2019-02-01). In force

since April 1, 2019.

18 Version in accordance with Act of May 27, 2019 (OS 74, 255; ABI 2019-04-18). In force since

June 1, 2019.

19 Version in accordance with Act on Administrative Investigations of February 22, 2021

(OS 76, 447; ABI 2018-07-20). In force since January 1, 2022.

20 Version in accordance with Act on Political Rights of May 9, 2022 (OS 77, 403;

ABI 2021-07-16). In force since October 1, 2022.

40

Municipal Act (MA)

Appendix

The following acts are amended as follows

1. The Municipal Act of June 6, 1926 (LS 141.1): . . .16

2. The State Contributions Act of April 1, 1990 (LS 132.2): . . .16

131.1

3. The Act on Political Rights of September 1, 2003

(LS 161): . . .16

4. The Liability Act of September 14, 1969 (LS 170.1): . . .16

5. The Act on the Organization of the Government Council and the

Cantonal Administration of June 6, 2005 (LS 172.1): . . .16

6. The District Administration Act of March 10, 1985 (LS 173.1): . . .16

7. The Administrative Justice Act of May 24, 1959

(LS 175.2): . . .5, 16

8. The Act on the Organization of Courts and Authorities in Civil

and Criminal Procedure of May 10, 2010 (LS 211.1): . . .16

9. The Introductory Act to the Swiss Civil Code of

April 2, 1911 (LS 230): . . .16

10. The Introductory Act to Child and Adult Protection Law

of June 25, 2012 (LS 232.3): . . .16

11. The Introductory Act to the Federal Act on Debt Enforcement

and Bankruptcy of November 26, 2007 (LS 281): . . .16

12. The Penal and Corrections Act of June 19, 2006

(LS 331): . . .16

13. The Public School Act of February 7, 2005 (LS 412.100): . . .16

14. The Civil Protection Act of March 19, 2007 (LS 522): . . .16

15. The Police Organization Act of November 29, 2004

(LS 551.1): . . .16

16. The Tax Act of June 8, 1997 (LS 631.1): . . .16

17. The Planning and Building Act of September 7, 1975

(LS 700.1): . . .16

18. The Cantonal Geoinformation Act of October 24, 2011

(LS 704.1): . . .16

19. The Introductory Act to the Water Protection Act of December

8, 1974 (LS 711.1): . . .16

20. The Road Act of September 27, 1981 (LS 722.1): . . .16

21. The Introductory Act to the National Roads Act of March

24, 1963 (LS 722.2): . . .16

22. The Water Management Act of June 2, 1991 (LS 724.11): . . .16

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131.1

Municipal Act (MA)

23. The Act concerning the Assignment of Private Rights of November

30, 1879 (LS 781): . . .16

24. The Hospital Planning and Financing Act of May 2, 2011

(LS 813.20): . . .16

25. The Introductory Act to the Federal Acts on Old-Age

and Survivors' Insurance and Disability Insurance

of February 20, 1994 (LS 831.1): . . .16

26. The Social Assistance Act of June 14, 1981 (LS 851.1): . . .16

27. The Building Insurance Act of March 2, 1975

(LS 862.1): . . .16

28. The Agriculture Act of September 2, 1979 (LS 910.1): . . . 16

29. The Cantonal Forest Act of June 7, 1998 (LS 921.1): . . . 16

30. The Act on Hunting and Bird Protection of May 12, 1929

(LS 922.1): . . .16

42

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