Veliko Turnovo municipality is an administrative centre encompassing the town of Veliko Turnovo and 37 rural districts (mayoralties), with a territory of 883 sq. m. and population of approximately 105 000. The town is situated in the central part of northern Bulgaria at the foot of the Balkan mountain range (Stara Planina) upon river Yantra. It is a crossing point of all major and important routes connecting Northern and Southern, as well as Eastern and Western Bulgaria. In the neighbouring town of Gorna Oryahovitsa, situated 7 km. Away from Veliko Turnovo, there is an airport and the biggest railway station in Northern Bulgaria.

Veliko Turnovo is considered a remarkable historical, cultural and tourist centre due to its rich cultural and historical heritage, unique architecture and ecologically clean environment.

Sustainable development is not only a District and Municipality authorities' prerogative, but one that refers to the whole community, represented by a number of NGOs.

Main part of municipality's economy stands for the industry, represented by electronics, electro-mechanical industry, as well as food, furniture and textile industries.

Private companies predominate commercial sector, and there is a tendency of an increase, along with the privatisation process.

In 1997, Veliko Turnovo became the first town in Central and Eastern Europe to be awarded with European UnionSpecial Distinction for Central and Eastern European Sustainable city. That award serves as an approval for the efforts of generations of bulgarians and citizens of Veliko Turnovo to preserve their town, and also as a unique opportunity for the town to carry out transition process towards European values and become a major partner in European development strategy.

Owing to its remarkable monuments of material and spiritual culture, Veliko Turnovo stands out as a centre of numerous high-ranking national and international culturaland scientific events.

Security of tenure of different forms of property is an index of inhabited localities' stage of development. That is why house-distributing is conducted via market mechanism that regulates supply and demand, as supply exceeds demand to a great extent. Legal frame does not limit the right for an adequate house.

Data presented in that category show a considerable decrease in free-contract house-renting demand.

Concerning 5 year period, subject to observation, there is a tendency of increase of the traditionally high percentage of house owners.

There are no legal or social obstacles in real estate tenure for the households on local level governed by women.

Loan access is directly related to every family member's income. That is why, a tendency for a smaller non-mortgage loans access is on hand.

Access to basic services remains as one of most important areas of development. Two major facts have been cleared out in that category

1. City structure blueprint, that guarantees proper territory restructuring is to be on hand.

2. Easy access to main public services,m such as 100% access to water supply, 97,60% of households possess sewerage, 100% of households are electrified, 96% possess telephone.

Society creates rules, which, according to the education, healthy way of life, social integration and security stand out as an index for the stage of citizen society development.

As for the region of Veliko Turnovo, percentage of literate people is traditionally high. Differences in literacy percentage in categories primarey and higher education between men and women does not refer to gender inequality.

There is a slight increase in children's death rate due to the folowing reasons:

• diminished population's consumption ability
• inferior and unhealthy nutrition
• difficulties in providing medical treatment in domestic conditions

Some major groups of criminative factors could be distinguished as one of the most important ones, influencing condition and dynamic state of criminality in Veliko Turnovo municipality. Capital crimes /homicides, robberies, rapes/ are closely related to social and psychological factors, as a society's changing system of values; either a beginning or initiating a social reaction, attitude and condemnation towards negative acts.

Foundations and social organisations strive to support and cooperate in handling security and social order problems.

Prominent tendency of poor households increase is a result of the most municipality enterprises' bad financial state and condition. And that fact refers to the increase of persons meeting requirements for social support.

Another reason for socially supported persons' increase is the demographic factor and mainly – constant annual increase of pensioners. It is a well-known fact that most of the socially supported people are of gipsy origin. That is why, the problem of inequal social groups' social integration is posed quite seriously. Work on NGOs' projects, concerning work with social groups in inequal position, turn out to be a priority in partnership policy of Veliko Turnovo municipality. Projects aiming at improving material conditions of inequal groups are supported.

There is no problem about gender equality, and there are no obstacles for the women concerning education opportunities and acquiring different posts and offices, as well as real estate tenure and different services access.

Veliko Turnovo municipality works jointly with Social Practices Centre on "Democratic Net" programme for implementing "Ombudsman" project. The importance of that project is of special significance due to the fact that yet, in Bulgaria there is no legal act that introduces the position of the social mediator.

"Future for Bulgaria" foundation funded "Bridges" project, in which Veliko Turnovo municipality participates jointly with 13 municipalities. The idea for the project was mainly owing to the insufficient citizens' information for their rights as participants in local government.

Existence and functioning of geographically balanced structures are an important index for a ceratin community development measurement. After a data processing in category "Urban Population Accretion" the following features deserve a proper attention:

• negative natural accretion
• population reserves relatively the same figures – about 90, 000
• urban population prevails over the rural population
• migration processes are on hand: from villages towards town.

As a major necessity for human life, clean water access is an important distinguishing feature for the level of development. Clean water consumption in Veliko Turnovo shows a tendency of a slight increase. Although, 100% of households have access to tap water, there is a strong necessity of reconstruction of the water supply system, to eliminate leakage and im prove the quality of potable water.

There are no serious problems with air pollution for the town of Veliko Turnovo. Main pollutants in Veliko Turnovo are power sections of industrial enterprises, automobile transport, and households on central heating. \Technology process plays a main role for the sustainable development. It is not only a question of pollution control. First of all, enterprises should change their attitude towards way of production in order to acquire sustainability. The first step is pollution control, i. e recycling.

Product management is concentrated not only on pollution control minimizing while producing but also on the whole ecological impact, connected to the ultimate product cycle. All these efforts are naturally leading to the third main step for achieving sustainable production, based on clean technology. According to these principles Veliko Turnovo municipality conducts various activities aimed at forming a new culture and attitude towards environment in society.

Gas supply plan is of significant importance for Veliko Turnovo. Gas supply concession was suggested for the period of 15 years and the town would enjoy a cheap and ecologically clean fuel.

The municipality executes activities concerning management of solid waste disposal on its territory. "Localities ecology" department at the municipality keeps statistics on these activities and reports them regularly to the state officials.

New measures aiming at improving population's quality of life include planning and building of a new regional depot for solid waste disposal. A 15 year concession for solid waste disposal and recycling was given away.

Contemporary urbanization processes of territories and specific features of the region of Veliko Turnovo municipality from a seismological point of view, impose working out building regulations which have to be based upon risc evaluation and map design for the risc regions. Building planning and project are to be conducted in accordance with the legal regulations for anti-earthquake building /8th grade on MShpK?, fire department instructions, etc.

Existence of a municipal committee and its function on coping with disasters breakdowns and catastrophes suggests working out of a plan focusing on risc factors prevention.

In the process of national economy's restructuring from a centrally planned economy towards market oriented one, city economy marks a decrease in its development mainly due to the different beats of privatization process and numerous difficulties in finding strategic investors.

Local income decrease is a result from the shut down of large enterprises.

Also, there is a decrease in municipality income, derived according to the Natural Person Assessing Tax. Despite that fact, quality of service on local level is raising up due to the fact that the municipality liberated itself from certain activities that could be conducted by the private sector.

After a thorough analysis of municipality's state, the following thesis concerning its budget could be derived.

• there is an increase of municipality own income and attracted funds, for the sake of the state funds
• concerning expenses, Veliko Turnovo municipality has a relatively big part in them, and there is a tendency towards their increase. Expenses are aimed mainly at: healthcare, education, social sphere, and they do not diminish the opportunities of handling other typical municipality's expenses.

Veliko Turnovo municipality's prosperity is at comparatively low level, according to the country – for the year 1998, average month income per capita was about 123 BGN, while expenses are almost equal to income. The rate of the unemployed in Veliko Turnovo municipality for the year 1993 stands for 8,1% of the economically active population. Unemployment analysis, according to Labour Burau in the end of 1998, show a trend for increasing the unemployed, who are and the one who are not entitled to compensations. Also, there is an increase of the relative part of the unemployed who are entitled to compensation, and a decrease of the same part of the unemployed, who are not entitled to compensation.

There is a constant tenedency which directly corresponds to the high percentage of people engaged in informal sector: for the year 1993 – 33,5%, and for the year 1998 – 36%, which are mainly due to the structural and cyclical unemployment. Inability of implementing an expansive fiscal policy, i. e. tax decrease corresponds to various difficulties because of different treaties with IMF, IMF's policy and, respectively – government's policy is conservative for the time being

Veliko Turnovo municipality, along with the nongovernmental sector are jointly working for implementing the tasks, incorporated in the Town Development Programme. The main goals are: achieving a greater transparency of local authorities and more intensive citizen participation in the decision making process.

Veliko Turnovo municipality, together with the municipality council participate in the "Citizen participation in the decision making process" project. The project is implemented by the regional department of the Bulgarian Union for fair elections and citizen rights, and is financed by Local government reform foundation.

Veliko Turnovo municipality participates jointly with Bankya municipality, regional centre of the Council of Europe, Veliko Turnovo, and Institute for legal and sociological researches, Sofia, in a joint project of working out a local charter for young people's participation in local government.

Veliko Turnovo municipality also works jointly with the Social Practices Centre on "Dem Net" programme for implementing a pilot project "Ombudsman". The importance of that project is additionally underlined by the fact that, yet in Bulgaria there is no legal act that introduces the institution of the social mediator. The main problem is connected with overcoming the already acquired stereotypes /both by administration and citizens/ by the idependent mediation of the ombudsman.

"Future for Bulgaria" foundation financed "Bridges" project, in which Veliko Turnovo municipality is a pilot one, alongside with other 13 municipalities. One of the main reasons for that project is the insufficient information for the citizens, concerning their rights as participants in local government.

Veliko Turnovo municipality possesses enormous experience in the field of international cooperation. Veliko Turnovo has 8 twin-towns: Toledo, Krakow, Asti, Seres, Poltava, Tver, Nish, Kolonya twar. Experience exchange is an important element in these contacts in decision making strategic planning, as well as defining communities' main problems.

1997, the first regional centre of the Council of Europe started work in Veliko Turnovo. The centre offers great opportunities for contacts and information and also works in close cooperation with local authorities.

Main part of town's policy is its participation in international projects. A good example for that is Veliko Turnovo's cooperation with UNDP, in "Beautiful Bulgaria" and "Beautiful Veliko Turnovo" programme.

As a recognition for the active local authorities' programme and the nongovernmental sector – Veliko Turnovo received in Bruxelles in 1997, Sustainable City special award.

Municipality's main task is a sustainable balanced development by encouraging tourism and industrial high technologies. A balanced relation between urbanization and ecological conditions will bring to achieving that strategic point. It is mainly stressed upon economical usage of natural resources, preservation of biodiversity and integration of all social, economic and ecological conditions.

Poverty has a very negative impact over living conditions in town and thus one of the main concerns of local authorities is decreasing poverty. Data clearly show that there is a trend for Veliko Turnovo in raising the number of poor households which are entitled to social compensation. Poor households increase corresponds to the growing unemployment. That is why all the measures aimed at diminishing and eradication of poverty are linked to a greater extenct to the relative part of the unemployed, compared to the whole structure of employment.

A municipality's programme for employment was worked out, and it was considered with the unemployment structure, and aimed at the category of the constantly unemployed.

Further activity of Veliko Turnovo, concerning Veliko Turnovo's international cooperation is defined by the priorities, which is suggested by the municipality development strategy until 2006, and according to the sustainable development principles. They are aimed at long-term programmes for local development, as well as town's participation in various areas of international cooperation and implementing partner's experience.

Municipality actively participates in a number of international programmes which aim at a further development of the town as a sustainable inhabited locality.

Cooperations are conducted in different areas such as energy efficiency, ecology, social integration, cultural and historical heritage preservation.