K1.1 Development of the municipality

Municipal development coefficient

The level of development of municipalities shows the differences between municipalities, where both economic factors (added value, income tax), social indicators (aging index, unemployment,...), as well as cultural aspects (cultural monuments) and natural features are taken into account. It is suitable as an indicator for the needs of municipalities' health profile analyses, because it simultaneously encompasses various aspects of municipal functioning and living and partially explains some of the factors that affect the health of residents.

The level of development of the municipality is determined by the government on the proposal of the ministry responsible for finance, for a period of four years, based on the index of the development risk of the municipality, calculated on the basis of:

• indicators of the development of the municipality (gross added value per employee, income tax per inhabitant and number of jobs per number of active population of the municipality),
• indicators of the threat of the municipality (the aging index of the municipality's population and the rate of registered unemployment and the level of employment in the area of the municipality), and
• indicators of development possibilities (equipment of the municipality with communal infrastructure and cultural infrastructure, including cultural monuments accessible to the public, the share of Natura 2000 areas in the municipality and an indicator of the population of the municipality).

Relative number (the average for Slovenia is 1.00).

1. The values of individual indicators (as input data for the level of development of municipalities) are standardized as follows:
   Standardized value of the indicator for the municipality
   
   $=\frac{(Actual value of the indicator for the municipality)-(Minimum value of the indicator)}{(Maximum value of indicator)-(Minimum value of indicator)}$
2. For the indicators population aging index of the municipality, the rate of registered unemployment in the territory of the municipality, the provision of cultural infrastructure (cultural monuments and public cultural infrastructure facilities), the share of Natura 2000 areas in the municipality and the population of the municipality, the standardized value of the indicator is used by subtracting the standardized value indicator from a value of 1.
3. The development coefficient of the municipality is the ratio between the value of the arithmetic mean of the standardized values of the indicators in the municipality and the value of the arithmetic mean of the standardized values of the indicators in the country, whereby the coefficient of the average development of municipalities in the country is 1.00.
4. The development coefficient of the municipality is calculated as follows:
   Coefficient of development of the municipality
   
   $=\frac{(Sum of s\tan dardized indicator values in the municipality)⁄(Number of indicators)}{(Sum of s\tan dardized values of indicators in the country)⁄(Number of indicators)}$
5. The development coefficient of the municipality is rounded up to two decimal places.

Ministry of Finance.

Data are generally published every two years and are available from 2009 (2009/10) onwards

1. Ministry of Finance ( http://www.mf.gov.si/si/delovna_podrocja/lokalne_skupnosti/izracuni/ ).
2. Municipal Financing Act (Official Gazette of the Republic of Slovenia, No. 123/2006).
3. Regulation on the methodology for determining the development of municipalities (Official Gazette of the Republic of Slovenia, no. 102/12 and 96/14).

The level of development of municipalities is a composite indicator prepared for the purpose of financing municipalities. The calculation of the indicator for municipalities is published on the website of the Ministry of Finance.