HANDBOOK FOR MUNICIPAL SERVICES PERFORMANCE MANAGEMENT SYSTEM

Republika e Kosovës Republika Kosova-Republic of Kosovo Qeveria - Vlada - Government Ministria e Administrimit të Pushtetit Lokal Ministarstvo Administracije Lokalne Samouprave Ministry of Local Government Administration HANDBOOK FOR MUNICIPAL SERVICES PERFORMANCE MANAGEMENT SYSTEM MARCH 2013

This publication was funded by the United States Agency for International Development (USAID), Democratic and Eff ective Municipalities Initiative Program in Kosovo. The views expressed in this publication do not necessarily refl ect the views of the United States Agency for International Development or the United States Government.

CONTENTS 1. FOREWORD...4 2. LEGAL REQUIREMENTS...5 2.1 The Constitution of the Republic of Kosovo...5 2.2 The Law on Local Self-Government...5 3. MUNICIPALITIES...7 3.1 Mayors...7 3.2 Process (background) of setting up the municipal performance management system...8 3.3 Review of indicators...11 3.4 Directors of Municipal Administration...12 3.5 The municipal performance coordinator...13 3.6 Certifi ed offi cers...14 4.1 Division for Municipality Performance...15 4. MINISTRY OF LOCAL GOVERNMENT ADMINISTRATION...15 4.2 Officials of the Division for Municipality Performance...16 5. REPORTING...17 5.1 Data collection in municipality...17 5.2 Data reporting to MLGA...18 5.3 Data processing at MLGA...18 5.4 Drafting Municipality Performance Report...19 6. ADVANCEMENT OF THE MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM...20 6.1 Municipal Services Indicators web link...20 6.2 Expansion of system with new services and review of municipal performance indicators...21 7. INCENTIVE FUND FOR MUNICIPALITIES...22 ANNEXES...23 Handbook for Municipal Services Performance Management System 3

1. FOREWORD The Ministry of Local Government Administration, in close cooperation with and supported by USAID through it s Democratic Effective Municipalities Initiative (USAID DEMI), through this handbook summarizes and elaborates all applicable rules and procedures in the process of developing the municipal performance management system. These rules and procedures have to do with quality monitoring of service provision that municipalities provide for their citizens. Municipal services performance management handbook addresses exclusive competence of municipalities in certain fi elds of provision of municipal services, which are envisioned by law and are also within the mandate of municipalities and municipal bodies. The goal of this handbook is: Provision and elaboration of the unique methodology for measuring municipal services To provide opportunities to compare the performance of municipal services with other municipalities To provide opportunities to measure performance of services in order to improve those services Considering that the process of developing municipal performance management system is a very specifi c process and a challenge for local institutions, as well as taking into account long and continued engagement of MLGA, municipalities of the Republic of Kosovo and USAID programs (USAID EMI and USAID DEMI), which were inseparable part of this process from the very beginning up to now, through this handbook, they will have the opportunity to have a clear and detailed overview for the entire process of setting up the municipal performance management system as well as the way to advance the system in the following years. When we add to this the lack of experience of local and central institutions in the fi eld and the inability to gain knowledge from regional countries, the handbook will be of special nature in development of the municipal performance management system and its further development. The handbook also contains parts related to defi nition of responsibilities for all stakeholders of the system with the sole purpose of making it more operational and easier to manage. The Handbook also includes the legal requirements for setting up the system, which is in the mandate of the MLGA as well as the way forward in advancing, supplementing and reviewing the system, which is already installed and operational. 4 Handbook for Municipal Services Performance Management System

2. LEGAL REQUIREMENTS 2.1 The Constitution of the Republic of Kosovo The Constitution of the Republic of Kosovo, in Chapter X, Articles 123 and 124 respectively, defi ne general principles for local self-government. The activities of the local self-government institutions are based on the Constitution of the Republic of Kosovo. Local Self-Government is based on the principle of good governance, eff ectiveness and effi ciency in provision of municipal public services. In this framework, the Ministry of Local Government Administration monitors the quality of provision of services that a municipality provides for its citizens. 2.2 The Law on Local Self-Government The functioning and organization of local government in the Republic of Kosovo is based on the Law on Local Self-Government as a basic law of the fi eld. The Ministry of Local Government Administration, based on the Constitution of the Republic of Kosovo, Law on Local Self-Government, sectorial laws and other by-laws, is mandated to monitor the performance of the municipalities. In this regard, the mandate of the Ministry of Local Self-Government, defi ned in Regulation of the Government of the Republic of Kosovo no. 02/2011 on Administrative Tasks and Responsibilities of the Offi ce of the Prime Minister and Ministers, Annex XII, item vii, includes oversight of quality of municipal services off ered by municipalities for their citizens. Handbook for Municipal Services Performance Management System 5

Services performance system has the following goals: Developing the methodology for measuring municipal services Opportunity to compare performance of service provision with other municipalities Increase of satisfaction of citizens with municipal services Use of results of the system/performance in drafting action plans for improving provision of municipal services SIAP It is important that the role of performance management of municipal services is seen as useful by both sides, both municipalities and MLGA and it is in the interest of citizens. This responsibility is determined by the Law on Local Self-Government, Chapter X, dealing with Relationships between central and local government. Based on the mandate that MLGA has in relationship to municipalities, and in order to competently exercise this responsibility, the Ministry of Local Government Administration has established the Division on Municipality Performance, to provide support for municipalities in providing municipal services for their citizens, ensuring that the system for municipal performance measurement is sustainable. 6 Handbook for Municipal Services Performance Management System

3. MUNICIPALITIES 3.1 Mayors Since the beginning of the process for setting up the municipal performance management system, municipality mayors of the Republic of Kosovo, as the highest decision-making body in the municipality, have played a key role by supporting the process for setting up service performance management system. Support from the highest executive body in the municipality for the entire process is of special importance considering that the system is a new methodology developed in the region, as well as taking into consideration that through the system, municipality mayors have an opportunity to have a realistic picture for provision of services to their citizens and the level of providing those services. This assists executive bodies in the municipality to defi ne needs-based municipal priorities and it serves the municipality in directing capital investments. Also, the system facilitates drafting and justifying budget requests of the municipality. The performance report of municipalities for municipality mayors is a good ground to direct municipal strategic planning. Constantly, during setting up the system, municipality mayors were informed for any action that the Ministry of Local Government Administration, together with USAID support programs (USAID EMI and USAID DEMI), undertook in relation to setting up the municipal services performance management system. Performance management system also assists municipal assembly in easier direction of municipal policies by providing a clear picture for members of municipal assemblies. The system assists decision-making bodies in the municipality to address issues of municipal directorates, for specifi c issues and fi elds. Also, the system through its data can be used for economic analyses and comprehensive assessments. Handbook for Municipal Services Performance Management System 7

3.2 Process (background) of setting up the municipal performance management system The most important part in the process of setting up the Performance Management System is its implementation in practical work. Considering the lack of experience in the fi eld of performance measurement and assessment, this posed a serious challenge for the institutions of the Republic of Kosovo, in this case for MLGA and municipalities. Also it must be mentioned that our country is in a much higher level regarding this fi eld when compared to regional countries. The following section provides a graphic presentation of the process in setting up the performance management system. MLGA selects main WG members and trains them Main WG drafts full list of functions to be measured and prioritizes fi rst three groups Expert working groups develop INDICATORS, which are presented to the audience (including AMK) New sub-groups are established to develop new indicators and they are trained Main WG meets again and decides for 3-4 functions to be measured MLGA REPORTS for data performance measurement MLGA and municipalities collect data for indicators every year Expert WG present indicators to main WG and MLGA Main WG approves Indicators and recommends them to MLGA Minister Minister approves list of indicators for fi rst three indicators MLGA includes indicators in monitoring scheme and develops the MATRIX Training of MLGA staff on indicators Training of municipalities for performance measurement of services 8 Handbook for Municipal Services Performance Management System

Initially a high level Working Group was established, which included senior MLGA officers, municipality officers, representatives of the Association of Municipalities of Kosovo (AMK) and representatives of the publicly-owned enterprises (POE). This working group met for the fi rst time on September 25, 2008. During the fi rst meeting, it was recommended to start with measurement and assessment of three areas (functions) that are a responsibility of municipalities. After this, Expert Groups were established, mainly composed of municipality offi cials who were adequate and responsible persons for specifi c areas. Expert Groups then determined results and developed indicators for certain areas, which then were recommended to the Main Working Group (MWG), which in turn approved the indicators developed by Expert Groups. Later, the MLGA Minister approved the list of indicators for the fi rst three selected areas. After this, joint trainings have started for MLGA officials, municipality officers, AMK representatives and POE representatives. After the completion of trainings, a table was designed for municipalities where they would report the data for indicators of defi ned areas and MLGA, based on those data, drafted the annual report on performance of municipalities. Main Working Group convened again and defi ned four new areas to measure and assess performance. Expert Groups were established for the new areas as well, which developed indicators for specifi c areas. In cyclical way, the joint activity of all stakeholders continued until all fi fteen areas were defi ned, and results and indicators were developed. Then, MLGA, in close cooperation with and supported by USAID DEMI worked with municipalities to assign municipal offi cers, who were selected to work with the performance management system, according to service type. In order that these municipal officers are fully prepared for using the system, MLGA and USAID EMI held a series of workshops with these offi cers. These workshops served to explain entire performance management system, the role of the system and methodology of use. Upon completion of these workshops, all participating officers were certifi ed to use the performance management system. During this process, MLGA was supported by USAID programs, initially by USAID Effective Municipalities Initiative (USAID EMI) and later by USAID Democratic Effective Municipalities Initiative (USAID DEMI), through: Development of performance system Expertise and training, and Financial and logistics support in organizing meetings, workshops and trainings. The process of development of municipal performance management system is a dynamic and continued process, which is intended to become as operational as possible in service of municipalities on one hand, and in the interest of citizens of the Republic of Kosovo on the other. During 2012, MLGA in close cooperation with USAID DEMI program installed a special link in its offi cial website titled Indicators of Municipal Services which will serve for data reporting by municipalities for the municipal performance management system. This advanced level of communication with municipalities, which simultaneously does reporting and processing of Handbook for Municipal Services Performance Management System 9

data, has enabled collection of opinions of citizens on the services provided by municipalities. The link will enable citizens to see data for their municipality and to give their opinions whether they are satisfi ed with the service provision. Continued engagement of senior municipal offi cials, including the municipality mayors and Director of Administration and their continued support for the system has yielded proper results, which have shown a better management of the process of setting up the municipal performance management system in provision of services. Municipal performance management system in provision of services includes 15 municipal services and the entire system contains 154 result indicators. Services in the system include: Administrative services Social welfare Culture, Youth and Sports Local emergency Urban planning Parks and Squares Roads Sidewalks Public transport Public parking Public lighting Water supply Sewage Waste collection Waste disposal The following graph presents practical functioning of the municipal services performance management system from the moment of data collection from certifi ed officers for the system up to allocation of incentive funds based on results that municipalities present. The graph describes all the steps that are included in the municipal services performance management system. 10 Handbook for Municipal Services Performance Management System

Monitoring of implementation plan Certifi ed offi cer Data collection Certifi ed offi cer Drafting and Publishing Performance Report MLGA Data processing MLGA Data reception at MLGA Web link Tracking management plans Allocation of incentives Certifi ed offi cer MLGA and Donors Data analysis and drafting of plans for improving indicators services Certifi ed offi cer Filling out the database Certifi ed offi cer Accepting collected data Coordinator Data verifi cation Director of Administration and directors of respective services Data presentation to Municipality Mayor Filling in data in MLGA web link Coordinator 3.3 Review of indicators After drafting two Annual Performance Reports for Municipalities of the Republic of Kosovo, and after an analysis of the process for setting up the municipal performance management system, the need was identifi ed to reduce the number of indicators. Considering that for a large number of indicators the data needed to be collected in institutions outside the municipality, it was necessary to undertake actions towards reducing the number of indicators. After a joint intensive work among MLGA offi cials, in close cooperation with USAID EMI and USAID DEMIprograms and municipal offi cials, by organizing joint workshops where all indicators for all specifi c areas were elaborated, and where full agreement was achieved to signifi cantly reduce the number of indicators. This joint work resulted with a quality change in municipal performance management system and in its advancement. Furthermore, in order to advance the municipal services performance management system, USAID DEMI developed forms to verify indicators and to calculate result indicators, which forms were incorporated by MLGA in its website. Therefore, now there is an online municipal services performance management system. The online system enables municipalities to enter the data online, to compare their performance with that of other municipalities in provision of services, and it also allows municipalities to make analyses of service performance in order to improve services for citizens. Handbook for Municipal Services Performance Management System 11

After the revision, the municipal performance management system in service provision includes 15 municipal services and the entire system contains 90 result indicators. Annex 1 of the handbook includes: a. The full List of Results and Result Indicators for 15 Municipal Services b. Tables with Results, Indicators, evidence and sources of evidence for performance measurement of 15 Municipal Services, and c. Forms for taking evidence of indicators and calculating result indicators 3.4 Directors of Municipal Administration Directors of Administration of the Municipalities of the Republic of Kosovo are main officials that coordinate the work and create communication links between municipal institutions on one hand and the Ministry of Local Government Administration on the other. Besides, directors of administration coordinate activities within the municipality and they report to the Municipality mayors for all activities that have to do with the performance management system. Directors of Administration played an important role in setting up and operationalization of the system. Knowing that the system includes a large number of areas that are a responsibility of municipalities and which are based on the Law on Local Self-Government, directors of administration dealt with coordination of activities within different directorates, as part of the municipality. Considering that a large part of the data are collected outside municipal institutions, but which have to do with services offered to the citizens, then the role and importance of directors of administration in coordination and operationalization of the system is irreplaceable. Also, the system has enabled municipal directors of administration to make it easier for them to implement strategic plans for the municipality and to create an important basis for all the data within the municipality, which are linked to services with citizens. Therefore, through this Handbook, municipal directors of administration, besides tasks that were already defi ned, also includes performance management system as a requirement that is of meaningful importance for the municipality in creating a clear overview not only for municipal officers, but also for citizens of the municipality, as well as for all works and activities related to the municipality. 12 Handbook for Municipal Services Performance Management System

3.5 The municipal performance coordinator In order to operationalize and further advance municipal performance management system, it was needed to assign a municipal officer in the position of municipal performance coordinator who would coordinate the work among municipal officers of different directorates, who are certifi ed for the performance management system. Assigning municipal coordinators has positively affected the reporting of municipal data. This was refl ected in the accuracy of data and also in the time management for reporting municipal data as required by MLGA. During the entire process, the practice has shown that assigning municipal coordinators for municipal services performances is necessary, for the fact that communication with one municipal officer in charge for specifi c issues in the municipality guarantees higher effi ciency of the offi cer. The municipal coordinator was assigned by the Director of Municipal Administration. Municipal coordinator is required to: Cooperate with the group of certifi ed officers for municipal performance, within the municipality, in all municipal directorates; Provide necessary guidance for the group of certifi ed officers, for the time of reporting and format of reporting; Takes care that the collected data are reported timely. Before putting the collected data in the website, the coordinator verifi es the collected data from municipal officers. In case of identifying eventual mistakes, if he/she notices that the data is not in line with the actual situation, the coordinator returns the data to the responsible office to revise them. The coordinator reports every time to the Director of Municipal Administration, and through him or directly he/she may ask for additional instructions from the MLGA, Division for Municipality Performance respectively. The coordinator is responsible for the safety aspect of the website where the data is entered, and manages the account that is ascribed to him/her. Report to the Director of Municipal Administration in case of entering the data on the website, and in this case the director informs MLGA for putting in the required data. Handbook for Municipal Services Performance Management System 13

3.6 Certifi ed officers Upon beginning to set up the performance management system, there was a need to engage municipal offi cers, who would be involved in providing the data for indicators of specifi c areas. For this purpose, after organization of joint workshops with MLGA, municipal officers, POE representatives and the supporting project, municipal officers of all municipalities were certifi ed for all the fi elds in which performance measurement and assessment would take place. This has affected capacity building in these areas, among MLGA officials, municipal officers and POE representatives. These certifi ed officers have contributed in setting up municipal performance management system, and now the data collection is done professionally and in line with MLGA requirements. Municipal certifi ed officers are required to: Collect data within respective municipal directorate, including data from publicly owned enterprises; Analyze data before entering data in the system Develop the database for specifi c areas, according to municipal directorates; Continued update of the data during the year; Cooperate with the municipal coordinator for municipal services performance; In cases of getting data from institutions outside the municipality, they need to verify them before sending them to the municipal coordinator; Use of indicators (performance results) in developing Service Improvement Action Plans (SIAP) 14 Handbook for Municipal Services Performance Management System

4. MINISTRY OF LOCAL GOVERNMENT ADMINISTRATION 4.1 Division for Municipality Performance The Division for Municipality Performance, as part of the Department on Local Self- Government, was established as per the MLGA mandate in order to support municipalities of the Republic of Kosovo in the field of performance measurements and assessment in provision of municipal services to citizens. The Ministry of Local Government Administration is continuously involved in advancing cooperation with the municipalities in order to develop a more efficient system of self-government. Regarding the developed system, it must be noted that the MLGA has cooperated with other stakeholders who were part of the process in setting up the system. This includes the Association of the Municipalities of Kosovo, especially the representatives of the collegium of municipal directors, POE representatives, and always having the support of the USAID EMI and USAID DEMI programs. The Division for Municipality Performance, in addition to active participation from the beginning of the process, starting from the Main Working Group up to putting up the link on the MLGA website, has been an inseparable part of the work for setting up, developing, and advancing the system and it has given a great contribution in this direction. The municipal performance management system is operational now, and it has seen improvements since its establishment. In this regard, officials of the Division for Municipality Performance has drafted three annual reports on municipality performance, which are a good ground for orienting investments of the MLGA in certain areas of municipal level of government. Also, the municipalities of the Republic of Kosovo can clearly see where the shortcomings are and where the municipality has seen advancement in provision of services. Advancement of this system to the level where it can be tracked on daily basis through the special link installed enables extracting clear overviews for all municipalities of the Republic of Kosovo, for all areas and services that are part of the system. Handbook for Municipal Services Performance Management System 15

4.2 Officials of the Division for Municipality Performance Offi cials of the Division for Municipality Performance are part of the process for setting up the performance management system, starting from the beginning of developing the Division in May 2008. Offi cials of Division for Municipality Performance have participated in the initial joint work for setting up the system, starting from participation in the Main Working Group, active participation in Expert Groups, attending trainings with all relevant stakeholders of the system up to establishment and installing of the link on the website for the performance management system. Requirements of the offi cials of Division for Municipality Performance, as part of Department of Self Government, include: Developing the database for all municipalities of the Republic of Kosovo and updating the data for a certain period of time; Taking care of the website, which serves only for municipal performance management system; Continued communication with municipalities, communication with responsible offi cers that are part of the process. These include: municipality mayor, director of municipal administration, municipal performance coordinator and municipal certifi ed offi cers; Collecting data from municipalities timely and accurately; Analysis and assessment of data reported by the municipalities; Drafting regular reports for municipality performance; Care for part of the work dealing with expression of opinions of citizens in relation to services provided by municipalities; Care for organizing joint trainings with key stakeholders of the process; Care for provision of supporting projects, to ensure continuity of the process; A special task that must be mentioned for officials of the Division of Municipality Performance is the activity for collecting opinions of citizens for the quality of municipal services. This part of the work is of special importance because in addition to data that are provided by municipal institutions, citizens opinion is part of activities that completes the process that is already established. Citizens opinions or the part of the report where these data will be presented are planned to be provided from the official MLGA web link, where the performance management system is located. The link will enable citizens, in addition to viewing data for specific services of each municipality, to give their opinions and comments for those data. 16 Handbook for Municipal Services Performance Management System

5. REPORTING The most important part of the process in setting up the performance management system is data reporting from municipality officials. The reported data and their accuracy present the actual situation in each municipality of the Republic of Kosovo. At the same time, this enables drafting of the regular report for the performance of municipalities, which presents the data for all services included in the performance system, for all indicators, which includes all municipalities. This type of reporting and report drafting enables municipalities and all process stakeholders to see how their municipalities have advanced their services from year to year and at the same time comparisons can be made between different municipalities at different time periods. Therefore, the importance of data reporting is very big because it will directly serve municipalities to have an easy access and where the ways of service provision can be seen. Furthermore, the importance of data reporting is also crucial in directing investments of municipalities, Ministries and donors for respective services, i.e. investment plans focused on performance results. 5.1 Data collection in municipalities After the end of the calendar year, municipal officials, who have been assigned as coordinators for the performance of municipalities, are required to collect data from all municipal directorates by getting support from certifi ed offi cers of performance. At the time when data are collected from the coordinator, the municipality, before reporting the data to MLGA, needs to inform the Director of Administration, who in turn needs to brief the Municipality Mayor regarding data collected for all services. Accuracy of the data collected is a special importance because it represents actual situation of the municipality and for this reason senior officials need to be aware of this activity constantly. Handbook for Municipal Services Performance Management System 17

5.2 Data reporting to MLGA The data collected by the coordinator for all indicators and services included in the system have to be reported to MLGA. These data have to be reported to the MLGA web link: Indicators of Municipal Services. Reporting of these data must not pass the deadline of 20 days after the end of calendar year. Before reporting the data, the coordinator needs to inform the director of municipal administration for reporting of these data. At the moment of beginning of entering municipal data that is collected by municipal offi cers, DMP officers start monitoring municipal data in the web link, where they can see them at any time. Reporting deadline is the same for all municipalities of the Republic of Kosovo. Municipal coordinators together with certifi ed officers are responsible for accuracy of data entered into the web link. Also, municipal coordinators are responsible for respecting reporting timelines. 5.3 Data processing at MLGA Upon ending of reporting timelines for municipalities, MLGA considers that the web link needs to be closed and at the same time extract municipal data, to generate them into table formats for all municipalities of the Republic of Kosovo. After entering data into a joint table for all municipalities, offi cials of the Division for Municipality Performance start the work on processing the data. First, the checking is done whether data has been reported from all municipalities and whether all indicators have been included. Second, an analysis is done to compare current year data with those of previous years which shows and assures us whether the data is accurate. After collecting data from the municipalities and initial analysis, the process of report writing on municipality performance starts by the Division for Municipality Performance. Web link is activated again after publication of the report. 18 Handbook for Municipal Services Performance Management System

5.4 Drafting Municipality Performance Report Upon completion of the data verifi cation phase by municipal officers, officials of the Division for Municipality Performance, as part of the Department for Local Self-Government, start to draft the municipality performance report, which is drafted annually. After the municipality performance report is completed after the end of each calendar year, it is drafted during the fi rst two months of the following year. Annual municipality performance report is composed of two parts, which are the most important in its drafting process. The report contains reported data by the municipalities, as the most important part, which presents the data and where changes from year to year in provision of services by municipalities can be seen. In addition, the report contains the data where citizens expressed their opinions on quality and effi ciency of services provided by municipalities. Citizens opinions complete the report and give it a great signifi cance. Municipal data are huge and added care is needed to draft municipal performance report, in order that the data is described well and in details and that it represents the realistic picture of service provision in each municipality. Also, municipality performance report ranks municipalities that have offered services for their citizens, and the ranking is done based on the percentage of specifi c municipal services provided. This assists in comparing municipal data on one hand and surveying citizens on the other. The importance of the Municipality Performance Report is signifi cant not only for municipalities but also for MLGA and potential donors. Financial funds that are allocated as incentive funds either from MLGA or donors and they are exclusively based on Performance Report of municipalities. Therefore the performance management system has multiple signifi cance for municipalities. Municipalities can see their data from one period of time to the other and see their progress, but they can also directly get fi nancial funds from the system, by reporting their data timely and accurately. Lastly, after drafting the report, a ceremony is organized for its publication. Report publication is done through a public ceremony. All municipal representatives and different local and international organizations, media representatives, representatives of the Government of the Republic of Kosovo and civil society are invited to the ceremony. Handbook for Municipal Services Performance Management System 19

6. ADVANCEMENT OF THE MUNICIPAL PERFORMANCE MANAGEMENT SYSTEM 6.1 Municipal Services Indicators web link The municipal performance management system is an instrument that measures and assesses provision of services that municipalities offer for their citizens. MLGA s goal, in close cooperation with USAID DEMI program and municipalities, is to continue the pace of the system in the future making the performance management system as operational and user-friendly as possible for all. Furthermore, municipalities will be offered a good ground not only for reporting but also for analyzing and improving services, while MLGA will be enabled to easily and effi ciently monitor performance of municipal services. Putting the link at the offi cial MLGA website for municipal services indicators has helped advancement of the system to a very high level. After installment of the link, there will be a higher engagement of the MLGA and municipalities to maximize its operationalization. Some of the municipalities have already started entering the data in the link. Knowing that the process is dynamic, it constantly requires full engagement for continued advancement of the system. 20 Handbook for Municipal Services Performance Management System

6.2 Expansion of system with new services and review of municipal performance indicators Inclusion of new fi elds that are a responsibility of municipalities and which are based on the Law on Local Self-Government can be done after a proper analysis of the system and joint discussions and assessments of offi cials in charge in the process. After achieving a satisfactory level of application of municipal performance management system, it is possible to add and include new fi elds for performance assessment. Inclusion of new fi elds must be done through a joint process of MLGA and municipalities, including specialized offi cials for respective fi elds, in order that expected results are determined and indicators are developed, which must be easily measurable. Also, after periodic analysis of results and reported data by municipalities, the opportunity to review certain indicators could be pursued. This could be a result of law amendment in specifi c areas, which are included in the system. In any scenario, changing, reformulating and reviewing indicators must be a well-thought process and a joint process of key stakeholders of the system. Handbook for Municipal Services Performance Management System 21

7. INCENTIVE FUND FOR MUNICIPALITIES Performance Management System will be focused on results. Results actually represent achievements of the municipality. Irrespective of the size of the municipality, results offer a clear overview of the performance. Experience has shown that the system functions successfully only when it produces useful information and when the system is easily administered. This system offers MLGA a good basis to monitor municipal performance of all municipalities based on the reported data, while it offers municipalities an opportunity to see which services are offered at a higher level, which are services that citizens are satisfi ed with, and also which are services that municipalities need to improve. It is in the interest of municipalities to have a fair competition among them in achieving good results in provision of services and that affects fi nancial gains of municipalities, by absorbing incentive funds either from government grants or different donors. The Ministry of Local Government Administration, with the purpose to support municipalities in advancing the system, has supported municipalities with incentive funds, using its own methodology, as well as through partnership with incentive initiatives organized by USAID through their Effective Municipalities Initiative and Democratic Effective Municipalities Initiative programs. This tradition is aimed to be continued in the future, where the incentive fund of the MLGA and potential donors will be used for municipalities that have shown good performance in provision of municipal services. 22 Handbook for Municipal Services Performance Management System

ANNEXES A. Full list with Results and Results Indicators for 15 Municipal Services 1. Administrative Services Result 1 Provision of high quality administrative services % of cases reviewed during the year Result 2 Satisfaction level of citizens with administrative services % of satisfi ed citizens, or very satisfi ed citizens with administrative services 2. Social and Family Welfare Result 1 Indicator # Indicator #3 Healthy Families # of cases of persons with disabilities that are employed by municipal institutions # of requests for accommodation/shelter of social welfare cases and persons in need # of families put in collective shelters Result 2 Indicator #2 Quality of services # of cases included in the social assistance scheme # of complaints for social assistance Result 3 Level of satisfaction of citizens with social services % of citizens satisfi ed with social services provided by Social Welfare Center 3. Culture, Youth, Sports Result 1 Indicator #2 Indicator #3 Indicator #4 Increased participation # of municipal activities for: a. Youth b. Sports c. Culture # of municipal cultural institutions (municipal libraries, culture centers, etc.) # of sport clubs # of youth centers Result 2 Quality of services # of sport facilities in municipal areas a. rural b. urban Handbook for Municipal Services Performance Management System 23

Indicator #2 Indicator #3 # of facilities for youth activities in municipal areas a. rural b. urban # of facilities for cultural activities in municipal areas a. rural b. urban Result 3 Level of citizen satisfaction % of citizens satisfi ed with: a. rural youth activities b. sport activities c. cultural activities 4. Management of local emergencies Result 1 Level of citizen satisfaction with provision of emergency services % of satisfi ed citizens or very satisfi ed citizens with fi refi ghting service and other emergency services Result 2 Indicator #2 Indicator #3 Increased protection of persons & property # of emergency cases, natural disasters (fi res, fl oods, earthquakes etc.) value of lost property during emergency cases average annual arrival time of fi remen to the scene expressed in minutes 5. Urban planning (planning, constructing, repairing construction) Result 1 Indicator #2 Indicator #3 Indicator #4 Well-planned municipality Year of approval, amendment or supplement of municipal development plan Year of approval, amendment or supplement of urban development plan % of area/urban area covered with regulatory plans % of citizens who are very satisfi ed and somewhat satisfi ed with the current functioning of municipality planning Result 2 Indicator #2 Efficient service of construction inspection % of citizens who are very satisfi ed and somewhat satisfi ed with current functioning of municipality in implementation of regulations/law on construction and control of construction standards (illegal construction) % of decisions executed by construction inspection Result 3 Indicator #2 Efficient service in issuing construction permits % of requests reviewed for construction permits, during the year % of citizens very satisfi ed or somewhat satisfi ed with efficiency of issuing construction permits 24 Handbook for Municipal Services Performance Management System

6. Parks and squares Result 1 Indicator #2 Indicator #3 Increased quality of parks and squares Area of parks/squares per capita in square meters (m2) % of citizens satisfi ed or very satisfi ed with parks and squares % of citizens who report that they use parks and squares Result 2 Indicator #2 Creation of healthier environment # of citizens who participate in environmental municipal activities % of municipal parks with access to drinking water 7. Roads Result 1 Indicator # 2 Indicator #3 Quality of services % of km of roads included in municipal plan for cleaning/washing % of local asphalted roads % of km of roads included in municipal plan for winter maintenance Result 2 Level of citizen satisfaction % of citizens satisfi ed with: a. level of cleaning in roads b. road conditions c. horizontal and vertical road signs 8. Sidewalks Result 1 Indicator #2 Indicator #3 Quality of services % of covered sidewalks (asphalt, cubes, concrete) % of km of sidewalks included in the municipal plan for summer/winter maintenance number of places for access of persons with disabilities in sidewalks Result 2 Indicator # 1 Indicator #2 Level of citizen satisfaction % of citizens satisfi ed with maintenance and sidewalk repair % of citizens satisfi ed with sidewalks that are walkable (free of vehicles/retailers/terraces/waste/etc.) 9. Municipal public transport Result 1 Level of citizen satisfaction with municipal public transport services % citizens satisfi ed or very satisfi ed with public transport services within the territory of the municipality Result 2 Indicator #2 Result 3 Higher access of citizens (coverage) with municipal public transport % of villages included in municipal public transport % of citizens who use municipal public transport Provision of high quality services of municipal public transport Handbook for Municipal Services Performance Management System 25

% of citizens satisfi ed with timely arrival to certain destination Result 4 Provision of safe services of municipal public transport % of bus stops equipped with proper signaling 10. Public parks Result 1 Pedestrian/citizen safety % of citizens satisfi ed or somewhat satisfi ed with parking safety Result 2 Indicator #2 Increase of service quality % of public parking with horizontal and vertical signs # of total public parking spots Result 3 Indicator #2 Indicator #3 Indicator #4 Fulfi lling citizens needs / Level of citizen satisfaction with the service % of level of citizen satisfaction with: - provision of areas for public parking - adequate signs for public parking - location of parking spots % of public parking with reserved parking spots for persons with disabilities Number of parking spots reserved for persons with disabilities Number of parking spots reserved for TAXI 11. Public lighting Result 1 Citizen safety % of citizens who state that they feel safe or somewhat safe during night (due to road lighting) Result 2 Adding public lighting in entire municipality % of km of roads with public lighting in: a. urban areas b. rural areas Result 3 Level of citizen satisfaction with public lighting % of citizens satisfi ed or somewhat satisfi ed with public lighting of roads and public spaces 12. Water supply Result 1 Indicator #2 Drinking water supply for all citizens in the municipality % of households included in the water supply system % of settlements included in water supply system 26 Handbook for Municipal Services Performance Management System

Result 2 Level of citizen satisfaction with drinking water supply % citizens satisfi ed or very satisfi ed with drinking water supply Result 3 High quality drinking water supply for citizens number of water samples tested Result 4 Continued water supply for citizens # supply per hours/days with drinking water: No hour 1-4 hours 5-10 hours 11 or more hours Continuously Result 5 Indicator #2 Stable and sustainable water supply % of water fee payments % of invoiced produced drinking water 13. Sewage Result 1 Indicator #2 Health and environment protection % of households connected to sewage system - urban - rural % of settlements in the municipality that have sewage system Result 2 Indicator # 2 Level of citizen satisfaction % of citizens satisfi ed or somewhat satisfi ed with sewage % of citizens who agree with the level of rates determined for sewage service 14. Waste collection Result 1 Increase of quality of waste collection service % of waste collection timely according to envisioned schedule Result 2 Level of citizen satisfaction with waste collection service % of citizens satisfi ed or very satisfi ed with waste collection service Result 3 Coverage of entire territory of municipality with waste collection services Handbook for Municipal Services Performance Management System 27

Indicator #2 % of households that have access to waste collection service % of settlements included in waste collection service Result 4 Stable and sustainable provision of waste collection service % of payments made 15. Waste disposal Result 1 Indicator #2 Environment protection % of citizens who classify waste Quantity of waste disposed in disposal per capita kg/year Result 2 Indicator #2 Level of citizen satisfaction with disposal management % of citizens satisfi ed with waste disposal management 28 Handbook for Municipal Services Performance Management System

B. Table with Results, Indicators, Evidence and Source of Evidence for performance assessment of 15 Municipal Services Municipal Service: Administrative Services Result Indicator Necessary evidence Source of evidence I. Provision of high quality administrative services II. Level of citizen satisfaction with administrative services 1. % of cases reviewed during the year 1. % of citizens satisfi ed or very satisfi ed with administrative services Overall number of cases within the year (requests and complaints) Number of cases reviewed within the year Number of surveyed citizens Number of citizens who state that they are satisfi ed or very satisfi ed with administrative services Municipal service for administrative services Municipal archive Municipal Service: Social & Family Welfare Result Indicator Necessary evidence Source of evidence I. Healthy families II. Quality of services 1. number of cases of persons with disabilities that are employed by municipal institutions 2. number of requests for accommodation/shelter of social cases and persons in need 3. number of families settled in collective shelters 1. number of cases included in social assistance scheme 2. number of complaints for social services Number of cases of persons with disabilities who are employed by municipal institutions Number of requests for accommodation/shelter of social cases and persons in need Number of families settled in collective shelters Number of cases included in social assistance scheme Number of complaints for social assistance Municipal service for social welfare Municipal service for social welfare and other relevant services Municipal service for social welfare and other relevant services Municipal service for social welfare and municipal administration Municipal archive Municipal service for social welfare and municipal administration Municipal archive III. Level of citizen satisfaction with social services 1. % of citizens satisfi ed or very satisfi ed with social services provided by Social Welfare Center Number of Citizens who state they are satisfi ed or very satisfi ed with social services provided by SWC Handbook for Municipal Services Performance Management System 29

I. Increase of participation Municipal Service: Culture, youth and sports Result Indicator Necessary evidence Source of evidence 1. number of activities for: a. youth b. sports c. culture 2. Number of municipal cultural institutions (municipal libraries, cultural centers, etc.) Number of activities for:: a. youth b. sports c. culture Number of municipal cultural institutions (municipal libraries, cultural centers, etc.) 3. number of sport clubs Number of sport clubs 4. number of youth centers Number of youth centers Municipal service for Youth, Sports and Culture Municipal service for Youth, Sports and Culture Municipal service for Youth, Sports and Culture Municipal service for Youth, Sports and Culture 1. number of sport facilities in municipal areas: a. rural areas b. urban areas Number of sport facilities in municipal areas: a. rural areas b. urban areas Municipal service for Youth, Sports and Culture II. Quality of services 2. number of facilities for youth activities in municipal areas: a. rural areas b. urban areas Number of facilities for youth activities in municipal areas: a. rural areas b. urban areas Municipal service for Youth, Sports and Culture 3.number of facilities for cultural activities in municipal areas: a. rural areas b. urban areas Number of facilities for cultural activities in municipal areas: a. rural areas b. urban areas Municipal service for Youth, Sports and Culture III. Level of citizen satisfaction 1. % of citizens satisfi ed with: a. youth activities b. sport activities c. cultural activities Number of citizens who state they are satisfi ed or very satisfi ed with: a. youth activities b. sport activities c. Cultural activities Municipal Service: Local emergencies Result Indicator Necessary evidence Source of evidence I. Level of citizen satisfaction with provision of emergency services II. Increased protection of persons & property 1. % of citizens satisfied or very satisfied with firefighting service and other emergency services 1. Number of emergency cases, natural disasters (fi res, fl oods, earthquakes, etc.) 2. Value of lost property during emergency cases 3. Average time needed to arrive to the scene expressed in minutes Number of citizens who state they are satisfied or very satisfied with firefighting service and other emergency services Number of emergency cases, natural disasters (fi res, fl oods, earthquakes, etc.) Value of lost property during emergency cases in Euro Number of emergency cases, for which teams were required to go to the scene immediately Total time of arrival to the scene for all emergency cases expressed in minutes Shërbimi komunal i cili merret me menaxhimin e emergjencave lokale Municipal service that deals with local emergency management Municipal service that deals with local emergency management 30 Handbook for Municipal Services Performance Management System