Local Authorities in Cyprus

Municipal Law

Summary Guide of the Municipal Law

By Athos Germanos
Secretary, Union of Cyprus Municipalities
 

Introduction

The establishment and operation of municipalities in Cyprus is governed by the Municipal Law, approved in October 1985 (N. 111/85) to replace existing legislation. Since then the House of Representatives has voted an additional 27 Laws to amend the basic Law of 1985.

It should be pointed out from the start that this Guide does not aim to be a substitute of the official text of the Municipal Law, which every interested person can refer to for detailed information on specific issues provided in the Law. However, one would expect that the Summary Guide will be a useful tool, particularly as a point of reference to prospective candidate mayors and new mayors and municipal councilors. These guidelines also aim to offer any other interested person, wishing to be facilitated through the provisions of the Law, general information about the way municipalities are run.

The Structure of the Law

The Municipal Law comprises 11 parts (144 articles in total) which relate to specific topics and appear under the following titles:

1. Part One: Introductory Provisions

This part, which consists of the first two articles, cites the title of the Law (article 1) and the legal interpretation of various terms encountered in the text of the Law (article 2).

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2. Part Two: Establishment and Abolition of Municipalities

This Part stipulates that the municipalities existing on the date this Law came into force shall be deemed as having been established in accordance with the provisions of this Law and shall continue to operate in accordance with its provisions (article 3).

Another important provision, included in this part, refers to the carrying out of a plebiscite in a town, an improvement area, village or group of improvement areas or villages with a population of over 5000 inhabitants, among the registered voters of these areas, to ascertain whether they wish to declare their area a municipality (article 4). If the result of the plebiscite is in favour of declaring the area a municipality, then the Council of Ministers shall declare the said area a municipality by issuing a decree which is published in the Official Gazette of the Republic. The application of the provisions of the Municipal Law in the newly established municipality takes immediate effect. At the same time, the Council of Ministers appoints a municipal committee whose term of office cannot exceed six months under any circumstances. The municipal committee is made up of five persons, one of whom is designated president, and is appointed to exercise temporarily the office of mayor and municipal councilors until elections take place to elect the mayor and the municipal council of the newly established municipality.

The above article was amended in 1992 to give the Council of Ministers the authority and the competency to order a plebiscite in improvement areas, villages or groups of improvement areas and villages with less than 5000 inhabitants, provided the Council is satisfied that an area has the financial capability to operate effectively and satisfactorily as a municipality.

Article 5 refers to the possibility of a merger of one municipality with a neighbouring municipality, improvement area or village, after a plebiscite among the registered voters of the affected municipality, improvement area or village, to ascertain their wishes concerning this merger.

Article 6 provides for the abolition of municipalities when their population is below 4,000 for the past three consecutive years.

Article 7 defines the legal status the municipalities have as legal persons. According to this article all municipalities are Legal Persons of Public Law and have all the properties of such persons.

Article 7 provides for the change in the name of a municipality and article 8 provides for the process of redefinition, alteration, extension or limitation of municipal boundaries.

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3. Part Three: Townspersons

This part (article 9) explains and defines the persons considered to be townspersons. It may be noted that any citizen of the Republic who normally resides within the municipal boundaries of a municipality is automatically a townsperson of this municipality. Article 10 refers to the preparation and maintenance of a register of townspersons.

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4. Part Four: Municipal Authorities and Their Elections

This section (articles 11 to 42) deals with various issues relating to municipal elections. It also outlines some basic points in order to give an overall picture of municipal elections issues.

a. General municipal elections take place every five years, following an order by the Minister of Interior that shall be published in the official Gazette of the Republic. Elections take place any day during the month of December and the five-year term in office of municipal councilors begins on the first of January, the month after elections take place.

b. Should a municipal council assume its duties after the first of January of the year in which general elections were carried out, the term of office of this municipal council begins on the first day of the month, immediately after the election month and is equal to the remaining period of the term of office of other councils elected in the past general municipal elections.

c. Every council comprises the mayor and the councilors and their number varies between 8 and 26 (excluding the mayor), depending on the number of voters of each municipality. The deputy mayor is included in the number of councilors mentioned above.

d. Elections for the mayor and the councilors take place on the same day but separately. Two ballot boxes are used for this purpose, one for the election of a mayor and one for the election of municipal councilors.

e. In the election for a mayor, the candidate who obtains the most valid number of votes among the candidates, without placing any limit in the percentage of votes a candidate should obtain, shall be declared mayor.

f. For the election of municipal councilors, the candidates shall run either as members of coalitions or as independent candidates and the distribution of seats shall take place in accordance with the provisions which apply for the House of Representatives. Voters also have the right to express their preference for a specific candidate by marking crosses of preference, which cannot surpass one cross for every four or less councilors, depending on the total number of councilors.

g. Subject to the provisions of article 13, the right to vote in a municipality is afforded to citizens who have completed their 18th birthday, who are townspersons of this municipality and are registered in the electoral register the Ministry of Interior has for the purpose of municipal elections. The right to vote in municipal elections is compulsory just at it is in parliamentary elections.

h. Subject to the provisions of articles 15 and 16, all citizens who have the right to vote, provided they have completed their 25th birthday, have the right to be elected to the post of mayor and municipal councilor. No person may be elected if he is mentally unfit, bankrupt and has not been reinstated or has been convicted in the five years prior to the elections of a criminal offence which is punishable or which involves moral depravity. Ministers, deputies, judges, employees of the broad civil service, persons serving in the police or the military, persons occupying a religious post or having any contractual connection with the municipality for the execution of works or the rendering of services on payment, may stand for election to the post of mayor or municipal council but in the event of being elected, they cannot take up their post unless they resign their office or post or give up their contractual obligations or responsibilities to the municipality.

i. The elected council shall elect by secret ballot among its members, in its first meeting, a councilor who shall be the deputy mayor and who may retain this post until the expiration of the term of office of the council which elected him.

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5. Part Five: Administration of Municipalities

This part deals with various issues concerning the administration of municipalities. Article 43 provides that the convening of the meetings of the council and the work during these meetings shall be governed by regulations issued for this purpose by the council. It also provides that a council should apply the regulations included in the Second Schedule of the Law until the council issues its own regulations.

The role of the municipal committees

This part deals with the establishment and operation of various municipal committees. The role of these committees, with the exception of the management committee which is set up on the basis of a special provision in the Municipal Law, is consultative and not executive.

The management committee

This committee, set up under the provisions of article 44 of the Law, is the top committee of the municipality. It should be clarified that the competencies of this committee are those defined explicitly in article 47 of the Law. Specifically, the management committee carries out the duties referred to in article 47 of the Law and which are outlined below as these are set out by the Law:

a. Prepares the budgets of the municipality and submits them, at the appropriate time, to the council for approval.

b. Prepares the annual report and the annual accounts of the municipality and submits them to the council for approval.

c. As soon as the annual accounts of the municipality are finally audited by the Auditor General of the Republic, it causes the notification of the annual report in such a manner as the council shall at any time decide.

d. Assists and advises the mayor in the exercise of his powers and the performance of his duties.

e. Coordinates the work of the various committees appointed by the council.

f. Performs such other duties as shall be entrusted to it by the council or the mayor.

The management committee is appointed by the council and its members must necessarily be members of the council. The number of the members of the management committee cannot be any less than one third but no more than half of the total number of councilors. The mayor and the deputy mayor shall be members of the management committee by reason of their posts, in accordance with the specific provisions of article 44. The mayor chairs the meetings of the committee and in his absence or if he is unable to be present, he shall be replaced by the deputy mayor. The council can, subject to the provisions of article 44, change from time to time the composition of the management committee, dismiss existing members and appoint new members and fill all vacant posts therein.

The convening of committee meetings and the work carried out during such meetings are governed by regulations issued by the council for this purpose. If no such regulations have been issued, then the rules which apply to the meetings of the council shall apply, mutatis mutandis, until such regulations are issued. Half the members of the management committee plus one, including the mayor if he is present, shall constitute a quorum at committee meetings. The decisions shall be taken by majority vote and in case of equal votes the chairman of the committee shall have a second or the casting vote.

Other Committees

Other committees may be established if the council, which has the authority, takes a decision to this effect, in accordance with article 45. The Law does not define in detail either the objective or the number of such committees in order to give the biggest possible chance and flexibility to the council to decide. The members of these committees are appointed by the council and it is possible to appoint persons non members of the council. However, as a general rule, the members of the committees are council members. The committees may be general or special and the number of the members of each committee is decided by the council which, as mentioned earlier, appoints the committee members.

The only restriction stipulated by the Law on the appointment of members of the committees, as a reservation to paragraph (1) or article 45 and which in many cases is very difficult to be determined in numbers with precision, is that in the appointments to the committees there shall be chosen councilors belonging to all parties, coalition of parties, combination of independent candidates and independent candidates, proportionately as far as this is possible, to their numerical representation in the council.

As far as the establishment and operation of the committees, the following shall apply subject to article 45 of the Law:

a. The council may, from time to time, change the composition, dismiss existing and appoint new members and fill any vacant posts in any such committee.

b. Half the number of the members of a committee plus one shall constitute a quorum.

c. The acts and work of any such committee are submitted to the council for approval.

d. The chairman of each committee is appointed by the council and must be a member of the management committee. The mayor may attend the meetings of any such committee and in such cases, he shall preside over such meetings and shall be considered a member of the committee.

e. The council shall regulate the convening of the meetings of the committees.

f. The decisions shall be taken by simple majority of the members of the committee. In case of an equal vote, the chairman of each committee shall have a second or the casting vote

Minutes of council and committee meetings

The town clerk shall keep the minutes of meetings of the municipal council and the various committees and he, in addition to any other duties entrusted to him, shall also be responsible for the safekeeping of documents and archives of the municipality, as directed by the municipal council. However, as several committees are set up and it is not possible for the town clerk to sit on all the committee meetings, he may authorize other municipal officers, with the mayor’s approval, to act on his behalf for the keeping of minutes of the committees.

Competencies of the mayor

This section of the Law outlines in detail the competencies of the mayor. More specifically, article 46 provides that the mayor shall be the executive authority of the municipality (the only one) and shall represent the municipality in all official activities. The same article defines specifically the competencies of the mayor and stipulates that in case he is absent or incapacitated, he shall be replaced by the deputy mayor. Following are the competencies of the mayor provided in article 46 (1) (a) to (i) as they appear in the Law:

a. Represents the municipality before the courts and any other authority of the Republic.

b. Prepares the agenda of the meetings of the council and convenes such meetings.

c. Presides over the meetings of the council, the management committee or the committees thereof of which he is a member or which he attends.

d. Executes the decisions of the council.

e. He is in charge of all the services of the municipality which he guides, directs and controls.

f. Orders the collection of municipal revenues and issues financial orders against the budgets or approved credits, as these were adopted by special decisions of the council, subject to paragraph (1) of article 66.

g. Signs, authorizes any officer of the municipality to sign any municipal regulation issued under the present Law or any license granted under this Law.

h. Acts as a Marriage Officer as from 1st April 1986 under the Marriage Law.

i. Exercises any other competence or authority entrusted to him by the present Law or by any municipal regulation issued on the basis of this Law or any other law.

The interpretation of articles relating to the administration of the municipalities, especially in relation to the competencies of the mayor and the municipal council, has led at times to circumstances which caused problems to several municipalities. As a result of this, it is deemed useful to clarify the following points on this matter in order to answer some queries and disperse any doubts:

a. The mayor, as specifically stipulated in article 46 of the Law, is the only Executive Authority of the municipality.

b. The municipal council "legislates" (approval of municipal regulations) appoints officers, approves the budgets, decides about the execution of development projects, drafts out policy on the basic aspects of the activity and mission of the municipality, but does not have an executive role because this is the exclusive competency of the mayor, who is the only Executive Authority of the municipality. The mayor, when participating in the meetings of the Municipal Council and chairing them, has a "parliamentary" role similar to the one the rest of the members of the council have but in all other occasions, his role, being the most substantive, is executive.

c. The municipal service, headed by the mayor who guides, directs and exercises control over it, is the body used by the mayor as the municipality’s Executive Authority to execute the decisions of the municipal council. Furthermore, the municipal service, through its own hierarchy deals on its own with all those issues considered to be related solely to the service itself without the intervention of the mayor, except to get guidance or supervision from the mayor.

d. The importance of the post of deputy mayor is that he replaces the mayor when he is incapacitated or absent, as provided by paragraph (2) of article 46. In the presence of the mayor, the deputy mayor shall have the same rights and obligations as the other municipal councilors. The only distinction the Law makes for the deputy mayor, compared with the rest of the municipal councilors, is that he participates in the Management Committee so that he is informed about the Committee’s work when he acts in the place of the mayor.

The benefits of the mayor and the councilors

In accordance with article 52, the mayor shall receive an annual stipend and the deputy mayor and the councilors shall receive such compensation or allowances as the municipal council shall decide and vote for. These will have to be approved by the Council of Ministers as well. When the mayors retire, they are entitled to a pension from the municipality, as provided by the relevant regulations which the municipal council shall issue in accordance with the same article

Municipal officers

Articles 53 to 64 refer to the municipal officers and can be summarized as follows:

a. The posts of the municipal service for each municipality shall appear in the ordinary budget of the municipality with the corresponding salary scale for each post.

b. The municipality shall proceed with the preparation and approval of Municipal regulations which shall prescribe the procedure to be followed for filling vacant posts, the general terms of service of municipal officers, their duties and obligations, the exercise of disciplinary power and any other related matter. It should be noted that these Regulations refer only to the officers and not to the workmen of the municipality.

c. Article 54 provides the council with the authority to proceed, among other items, with the creation of all or some of the following senior posts:

  • Town clerk
  • municipal engineer
  • municipal treasurer
  • municipal medical officer
  • municipal sanitary inspector
  • head of any department declared by the council as independent

d. With regard to the qualifications of municipal officers for appointment, their scheme of services, their rights and obligations and their salaries, in general terms, what applies for the public servants applies for the municipal officers too. This however does not mean that there are no differences, bearing in mind that a municipality by its very nature is a body with many peculiarities in relation to the work it has to perform.

e. The Law makes a clear distinction between officers and workmen. The appointment of workmen is governed by article 56 and is carried out by a committee consisting of members of the council, appointed by the council and presided by the mayor.

f. Article 61 of the Law gives the right to the municipalities to enter into contracts with one another to enable rendering of services by an officer of one municipality to be offered to another or other municipalities.

g. Article 61 A safeguards the continuity of service and benefits of officers and workmen of Local Authorities which are declared municipalities.

Property and contracts of the municipalities

Articles 62 and 63 relate to the movable and immovable property of municipalities and article 64 to the contracts made in the name of a municipality. With regard to the immovable and movable property of the municipality, the following shall be noted:

a. When new municipalities are declared, all preexisting property and obligations of Local authorities shall be incorporated into the new municipalities.

b. The immovable property of the municipality shall be registered in the books of the Lands Office.

c. The Council may decide for the sale or exchange of immovable property of the municipality, only after the approval of the Council of Ministers. The Council may also decide for the mortgage, or leasing or hiring of immovable property of the municipality for a period exceeding ten years, only after the approval of the Minister of Interior.

d. The Council may, for the purposes of this Law and subject to the provisions of this Law or any other Law, improve or develop in any way every movable or immovable property possessed by or belonging to the municipality and create public enterprises.

e. The Council may decide for the sale or exchange of any movable property of the municipality.

With regard to signing of contracts in the name of municipalities, the following may be noted:

a. Contracts shall be made in writing and bear the signatures of the mayor and two councilors authorized by the council for this purpose. Contracts incidental to the ordinary work of current business of the municipality may be, subject to the provisions of the Contract Law, made in writing or orally as the case may be, and signed only by the mayor.

b. The Council may decide for the leasing of any movable or immovable property of the municipality, the contracting of loans and their terms and conditions as well as any inheritance, bequest or donation.

c. Certain contracts, which exceed the term of office of the Council that has entered into them, are subject to the approval of the Minister of Interior.

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6. Part Six: Budgets, Finances and Accounts

This part refers to the finances of the municipalities, in particular to the budgets and accounts, the municipal fund and the municipal fee on immovable property.

Budgets

With regard to the municipal budgets, the following can be noted in summary form:

a. The municipality shall prepare two budgets. The first is the "Annual Current Estimate" of revenue and expenditure and the second the "Development Estimate", both of which shall be prepared in good time to be submitted to the Council of Ministers for approval by the 31 October of the year preceding the financial year they relate to. The financial year of the municipalities begins on 1 January of each year. The two estimates shall be prepared by the management committee and once they are approved by the municipal council, they shall be submitted through the District Officer to the Minister of Interior, who shall then submit them with any suggestions and observations to the Council of Ministers for approval. Copies of the approved estimates shall be sent by the municipal council to the Auditor General of the Republic and the House of Representatives for their records.

b. The Annual Current Estimate includes the ordinary revenue and expenditure of the municipality. The most important revenue comes from various municipal fees, rights and taxes imposed by the municipality, the most important of which are the professional tax, the refuse tax, municipal tax on immovable property, overnight hotel accommodation, tolls, spectacle charges, right to issue construction permit and division of land plots, rights to issue town planning permits, water charges (wherever this is applicable) and parking charges (from municipal car parks and parking metres). The ordinary revenue also includes various other means of revenue of minor significance as well as the annual state grant. Expenditure includes the regular operational expenses of the municipality, the most important of which is the pay roll of the staff of the municipality and their benefits (pension fund and medical fund etc.). Other moneys relating to expenditure include interest on municipal loans, expenses for the maintenance of roads, municipal buildings and vehicles and municipal/operational expenses (office paper, telephone and electricity bills etc).

c. The "Development Estimate" includes expenditure for development projects the municipality is planning to carry out during the year concerned and the funding of such expenditure, normally done through loans and or special state grant. The level of this state grant, allocated by the government, varies depending mainly on the nature of the project and the financial situation of the municipality.

d. The council of each municipality may, without any further approval, spend an amount equal to 20% of the foreseen and approved amount of any fund of the estimates, provided that for this additional amount, funds will be saved from any other foreseen and approved funds of the estimates.

e. The municipal council may, by 31 May of the year for which the estimate has been approved, submit to the Council of Ministers for approval a revised estimate, if it considers that the circumstances necessitate such a move.

f. The municipalities get an annual grant, through the Union of Municipalities, which suggests to the government its distribution. Recently the government has accepted a demand by the Union of Municipalities to link the annual state fund given to the municipalities as a percentage of various state tax revenue, considered to be a very positive development for the financial independence of the municipalities.

Town fund

Articles 68 to 72 deal with the town fund each municipality keeps and explain the basic procedures that have to be applied for the collection and pay outs carried out by the municipality and in general the management of the municipality’s money.

Municipal rates of immovable property

Articles 73 to 79 refer to the imposition of municipal rates of immovable property, which are essentially a form of taxation and can be imposed on the owners of immovable property within the municipal boundaries of each municipality. Immovable property, specifically referred to in article 75, shall be excluded from these rates. Such property includes cemeteries, churches, public hospitals, buildings held in trust, public schools, state or municipal immovable property etc)

In the past, municipal rates of immovable property were collected by the Inland Revenue Department and then given to the municipalities. But in 1993, this Department refused to continue collecting the above-mentioned rates and since then they are collected separately by each municipality on the basis of tax lists, prepared by the Land Registry Office.

Municipal rates of immovable property, which is an annual taxation, shall be paid by the owners of immovable property between 30 June and 30 September of the year they refer to. If they are not paid by the 30 September, then a charge equal to the maximum interest allowed at the time (9%) shall be added to it. If the owner refuses to pay the due amount including the additional charge within 30 days as of 30th September, it is possible for the municipality, as provided by article 78, to take legal action against that person. Article 79 provides that the Council of Ministers has the authority to exempt certain areas from the payment of these rates and this shall be published in the official Gazette of the Republic.

Accounts and Audit

Articles 80, 81 and 82 refer to the keeping and audit of accounts of the municipalities and stipulate that all moneys collected and paid by the municipality shall be registered and presented in the accounts of the municipalities, on the basis of the principles of accounting of accrued income and expenses and of the historical value. Each municipality shall keep proper accounts, books and statements which shall be prepared in accordance with the appropriate principles of accounts and models.

The accounts, the financial transactions and in general the financial management of the municipalities shall be audited by the Auditor General. The final accounts of every municipality for each year shall be ready no later than the 30 April of the following year, as provided in article 81. Once these accounts are certified by the mayor and the municipal treasurer (or financial director wherever this applies), they shall be submitted to the Auditor General of the Republic for audit. After the audit, which relates to the legality of the accounts only, the Auditor General of the Republic shall submit the audited accounts, with the relevant report, to the municipal council, the House of Representatives and the Minister of Interior, who shall cause their publication in the Official Gazette of the Republic. After the publication of the audited accounts in the Official Gazette, these shall be considered closed and after the expiration of one month from the date of their publication, nobody can question them for any reason, except on grounds of dishonesty or fraud or to recover arrears of revenue.

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7. Part Seven: Competencies of Municipalities

Articles 83, 84 and 85 outline the competencies of the municipalities, the duties and powers of the municipal councils. Article 83 deals with the general competency of the municipality for local affairs of the area. Article 84 refers in detail to the duties of the municipal council and article 85 to the powers of the municipal council in relation to the exercise of certain competencies.

Article 84, which refers to the duties of the municipal council, tackles town planning, water supply systems, sewer systems and systems for the drainage of rain water, the construction, maintenance, lighting and naming of streets, the cleanliness and good appearance of the municipal area, the protection of public health, the establishment and operation of cemeteries, the control in the exercise of professions, the establishment and operation of resting schemes and institutions, the establishment and operation of Slaughter houses (in conjunction with the Slaughter Houses Law which is a separate law), the regulation and control of theatres as well as the issue, suspension or revoke all the licenses provided by the Municipal Law. As far as town planning powers are concerned, it must be pointed out that there exist separate legislation, the 1972 Town Planning Law, put into effect in 1990. Subject to this law and the powers the Minister of Interior has transferred to four Municipalities since the Law came into effect (Nicosia, Limassol, Larnaca and Paphos), these municipalities act as Town Planning Authorities whereas for the areas of the remaining municipalities the Town Planning Department acts as the planning authority.

Article 85 deals with the powers of the municipal council and refers to the loans and in general the funding of the municipality (under certain conditions and terms), the acquisition of immovable property, the establishment of municipal markets, light industry areas, places of entertainment (football grounds, swimming baths, parks etc.), the promotion of cultural and intellectual activity (theatres, museums, libraries, cultural activities etc). This article also refers to the power of municipal council to impose spectacle duty, fees of hotel overnight stay and charges on horse-racing betting. Furthermore, the article deals with the power of the municipal councils to offer provident and pension funds to the town clerks and workmen of the municipality.

The above paragraphs contain mere references to the duties and powers of the municipal councils, referred to in articles 84 and 85 of the Law. Due to the importance of these two articles of the Law, as they outline and forge the mission of the municipality, it is recommended that every interested person wishing to have detailed information should refer to the said articles of the Law. It should also be made clear that the municipalities exercise other important competencies and authorities provided by other legislation, apart from the Municipal Law, such as the Streets and Constructions Law and the Food (Control and Sales) Law, whose provisions are not included in this guide, which covers only the Municipal Law. The sewer systems are governed by special legislation, Sewer Systems Law (N.I/1971) according to which the sewerage boards operate as independent bodies and the municipal councils are the administrative councils of these bodies, which deal with issues relating to the construction and operation of sewer systems.

Cooperation/Contracts of the municipality and other local authorities

Article 86 refers in detail to the possibility accorded to a municipality to enter into a contract with another local authority or authorities to carry out projects for common benefit and to undertake jointly to provide services, as defined in paragraph (3) of the present article, when it is considered that such a project would be to the benefit of both or more contracting parties. The provisions of the present article shall not be confused with the provisions of article 61 because, though these two articles appear to be similar, they refer to different issues.

Municipal Bye-laws

Article 87 deals with the issue and the process of approval of municipal bye-laws, which are a very important component in the proper and smooth running of the municipalities. Until very recently, most municipal bye-laws issued by the municipal councils had to be approved by the Council of Ministers and the House of Representatives, as stipulated in article 87 of the Law. This caused long delays and after lengthy and persistent efforts by the Union of Municipalities, the House approved legislation in April 1996 which amended the Municipal Law so that municipal bye-laws need only be approved by the cabinet and not by the House as well. Municipal bye-laws determining the fees and the rights do not need the approval of the House either.

Control and Regulation of Traffic

Article 88 refers to the powers of the municipalities to control and regulate the traffic on roads within their municipal boundaries. Control and regulation of traffic is carried out to the extent clearly outlined in the present article and the relevant municipal bye-laws provided by this article, issued by the municipal council "with the consent of the Chief of Police."

The municipal council can appoint municipal traffic policemen, who are municipal clerks, to better implement the provisions of article 88 and the relevant regulations issued subject to the present article. The duties of the traffic policemen are determined by the council with the agreement of the Chief of Police. Their duties are rather limited and deal basically with parking and reporting those who park illegally.

Digging up streets

Article 89 refers to one of the most important and exclusive powers the municipalities have. According to this article nobody has the right to intervene in any street without the prior written permission of the municipality. This means that all public service authorities, such as the Electricity Authority or the Telecommunications Authority, or the Water Boards, that need to dig up a street, usually to work on their networks, shall have to address themselves firstly to the municipality and secure the necessary permit, which is subject to specific terms. Roads are repaired by the municipality and the cost this repair work entails shall be undertaken by the public service authority which did the digging. This cost is estimated on the basis of costs already agreed between the Union of Municipalities, the Ministry of Communications and Works and the Public Service Authorities and which is known by the name "Unitary Prices". These costs are reviewed from time to time to reflect real costs.

Dangerous Buildings

Article 90 refers to the power of the council to take measures and to the procedure to be followed for taking such measures in cases where it is established that a certain building within the municipal boundaries is dangerous for those living in it or the passers-by or those living in neighbouring buildings.

Nuisances

Articles 91 to 102 outline in detail the nuisances and the powers of the council to take measures to eliminate such nuisances, including the procedures that shall be followed in such cases.

Trade or professional licences

Article 103 stipulates that any person who keeps a business within the municipal limits shall first obtain a licence from the municipality. The municipality has been granted the authority to impose relevant fees, depending on each case, subject to the Fifth Schedule of the Law, which is new and has been incorporated in the Law on the basis of the last amended legislation, adopted in April 1996.

Articles 104 to 108 refer to the professional tax, imposed on all the categories of persons, legal or natural, employees, self-employed, companies etc. Professional tax is imposed subject to the Third Schedule of the Law, as provided in article 105. As it can easily be established by this Schedule, the professional tax employees pay is estimated on a scale, depending on their annual salary, and the tax all other categories pay (professionals, self-employed, companies etc.) has a ceiling, set out in legislation. The municipality decides on the basis of certain criteria the exact amount of tax to be paid by each person.

For the employees, it should be also noted that employers have the obligation, subject to article 105, to submit at the beginning of each year a list of their employees, their salaries and if requested by the municipality, to deduct from the salary of their employees the corresponding tax, which is then paid to the municipality.

Certain persons shall be exempt from paying professional tax, as clearly stated in article 104. These are ministers, members of the House of Representatives regarding the exercise of their parliamentary duties, judges and persons performing only religious duties.

Article 111 refers to hawking, which needs a special permit from the municipality. This permit can be for a period of one, three, six, nine or twelve months and the municipality determines the fees to be paid for obtaining such a permit.

Licences for theatres and places of recreation

Articles 112 to 117 refer to theatres, cinemas, luna parks and places of recreation, which need a special permit from the municipality to operate. The terms set out by the law for granting such licences, as described in the fourth schedule of the Law, basically relate to the suitability of the place and the building as far as its operation and the safety of those inside the building are concerned. The terms also refer to the need not to cause nuisance to those living nearby such places.

To issue such a permit, the municipality shall have a series of certificates from the technical services of the municipality, the Fire Services and the Department of Electrical and Mechanical Services. Irrespective of the issue of a permit for the operation of such buildings, in cases where it is established at a later stage that the building does not fulfill the terms of the relevant permit, the municipality can, following a specific but time-consuming procedure, revoke this permit. The operation of places of recreation is also governed by the Recreation Places Law (N.29/85) which governs their operation from a different perspective.

Weighs and Tolls

Articles 118 to 123 refer to the power of the municipalities to impose fees for weighing and tolls. Weighing fees are imposed by the municipality when it offers facilities to weigh goods, in the cases where the purchaser of these goods demands this facility from the vendor of the goods. This usually happens with regard to various agricultural produce (grapes, potatoes) and cereals. Although in the past the weighing fees were a significant income for the municipalities, their economic clout has been reduced a great deal in the past several years.

Tolls are imposed subject to article 122 on goods that are transported within the municipal boundaries of the municipality. Goods on which weighing fees are paid are exempt from toll fees. Toll fees continue to be an important source of revenue for the municipalities of Nicosia, Limassol, Larnaca and Paphos since paying these tolls is linked to the operation of the municipal markets.

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8. Part Eight: Offences and Legal Procedure

This part of the Law (articles 124 to 130) refers to various offences and the legal procedure that is followed in order to sue and impose a sentence on the offenders (warrants etc.)

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9. Part Nine: Criminal Provisions

This part of the Law (articles 113 to 137) deals with the representation of the municipality before the Court, the legal fees paid by the municipality, the publication of Municipal Regulations in the official Gazette of the Republic and the additional encumbrance imposed by the municipality when municipal taxes, fees or tolls are not paid on time. This part stipulates that no natural or legal person of public or private law, including the government, shall be exempt from any municipal taxes, fees or tolls if this is not provided for specifically in the Municipal Law or the Regulations. It also provides that the municipalities shall be exempt from paying stamp duty and any tax or fee paid subject to the Motor Vehicles and Traffic Law. Finally, it provides for the way notices and orders are issued which are addressed to natural or legal persons, owners of occupiers of premises.

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10. Part Ten: Temporary Provisions

This part (articles 138 to 139A) refers to various temporary provisions of the law, which have to be observed because of the situations created by the occupation of territory of the Republic of Cyprus by Turkish occupation troops, and provides for the appointment by the Council of Ministers of "municipal committees" for refugees municipalities. This authority, accorded to the cabinet, was exercised only in 1986 and in 1991 the mayors and the councilors of refugee municipalities assumed their posts on the basis of the provisions of the Third Schedule of the law, which applies to non-occupied municipalities. This was achieved with consensus among the parties who agreed to back the specific candidates who were unopposed (with the exception of one case where elections were held).

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11. Part Eleven: Transitional Provisions

The last part includes article 140 which provides for the abolition of the Municipal Laws of 1964 right through to 1984.

It is also provided that the municipal regulations, issued subject to the provisions of the abolished municipal Law will continue to be effective until new regulations are issued by the municipalities, subject to the provisions of the new law.

Article 140 is followed by the seven schedules of the Law:

  • First Schedule: Warrant of election (article 22)
  • Second Schedule: Regulation of meetings and business of the Council (article 43)
  • Third Schedule: Professional Licences (articles 104 and 105)
  • Fourth Schedule: Form of licence for use of a building for certain purposes (article 113)
  • Fifth Schedule: Fees for overnight hotel accommodation etc. (article 85)
  • Sixth Schedule: Refuse Fees (article 84)
  • Seventh Schedule: Licences of professional premises (article 103)

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