1. GENERAL

Under Austrian local government law, the Federal Constitutional Act (B-VG) is based on the „principle of the unitary municipality“ and thus prescribes a uniform type of municipality for the organisational law of the federal states (Article 116 B-VG). Regardless of size, population or economic significance, all municipalities are therefore subject to the same legal framework. The various designations used in practice (such as „market town“, „town“ or „urban municipality“) are purely declaratory in nature and do not confer any special status under organisational law.

There is, however, one exception: the „statutory town“ or „town with its own statute“. It has its own organisational law („town law“ or „statute“) enacted by provincial law. Such statutory cities are characterised by the fact that, in addition to the tasks of local government, they also perform those of district administration (i.e. the tasks of the district authorities) – they therefore have a dual function as both a local authority and a district administrative body. This makes the statutory city the only – albeit one provided for under federal constitutional law – special organisational type within the uniformly structured local government system.

2. LEGAL BASIS

The constitutional basis for statutory cities is set out in Article 116(3) of the Federal Constitutional Act (B-VG). According to this provision, a municipality with at least 20,000 inhabitants may, upon application, be granted its own municipal charter by provincial law – provided that this does not jeopardise provincial interests.

The detailed legal framework is, in principle, a matter for the federal states. In accordance with Article 115(2) of the Federal Constitutional Law (B-VG), municipal law is to be regulated by federal state legislation, unless federal competence is expressly provided for. Accordingly, the organisation, powers and duties of the individual statutory cities are set out in more detail by specific provincial laws in the form of their own municipal laws or city statutes. An example of this is the „Krems City Charter 1977“ (LGBl 1010-0 as amended by LGBl 1010-12), sections 1 and 2 of which provide as follows:

The provisions of the Federal Constitutional Act (B-VG) thus form the general legal framework, whilst the specific details of the legal status and organisation of each statutory city are determined at provincial level.

3. HOW MANY TOWNS WITH STATUTORY STATUS ARE THERE?

There are currently 15 statutory cities in Austria. Broken down by federal state, from east to west, they are as follows:[1]:

• Burgenland: Eisenstadt, Rust
• Vienna: Vienna
• Lower Austria: Wiener Neustadt, St. Pölten, Krems on the Danube, Waidhofen on the Ybbs
• Styria: Graz
• Carinthia: Klagenfurt, Villach
• Upper Austria: Linz, Steyr, Wels
• Salzburg: Salzburg
• Tyrol: Innsbruck
• Vorarlberg: not a statutory city

Although Vienna is also a city with its own charter, it occupies a special position from a constitutional point of view (there’ll be a separate ‘Trivia Bite’ on this later).

[1] Statutory towns which do not meet the requirements of Article 116(3) of the Federal Constitutional Act (B-VG) are regarded by the B-VG as having been „historically established“. Thus – according to legend – Rust was granted town rights under Maria Theresa granted because sweet wine („Ruster Ausbruch’) was supplied to the Viennese court; as the town was unable to pay for it, town rights were granted in return (which entailed economic advantages such as the right of staple).

4. WHAT’S THE POINT OF IT ALL?

The distinctive feature of a statutory city lies in the concentration of administrative powers: it not only carries out the duties of a local authority but also performs the duties of the district administration. Tasks which, in other local authorities, are carried out by the district administration can therefore be dealt with within the „city administration“. This consolidation of municipal and district administration shortens administrative procedures and centralises responsibilities. At the same time, the city’s own municipal law enables an organisational structure that is tailored to the broader scope of responsibilities and the specific needs of a larger entity.

However, the status of a statutory city also entails additional responsibilities. Taking on district administration leads to a significantly broader remit and consequently requires more staff, financial resources (even if the additional costs are partially offset by the financial equalisation scheme) and an efficient administrative organisation. It is precisely for this reason that the granting of a city’s own municipal charter requires that no state interests are jeopardised and that the city in question is capable, particularly in terms of staffing and finances, of fulfilling the additional tasks on a long-term basis. The status of a statutory city thus entails, on the one hand, greater administrative autonomy and consolidated powers, but, on the other hand, also greater responsibility and a higher administrative burden.

5. TO PUT IT INTO A NUTSHELL

The Federal Constitutional Act (B-VG) establishes the principle of the unitary municipality: the same organisational model applies to all municipalities. The only exception is statutory cities – they are both a municipality and a district administrative authority. Their constitutional basis is set out in Article 116(3) of the Federal Constitutional Act (B-VG), whilst their specific organisation is governed by provincial laws. There are currently 15 statutory cities in Austria.

We are also happy to offer our legal expertise to statutory cities, advising them on both the performance of local government duties and matters relating to district administration. Score points with us too!