Transformation of the municipality structure in the context of war and the need for reconstruction: Lessons from Mykolaiv
In times of war, an effective city council is the foundation of resilience and rapid crisis response. The quality of its work determines how the city overcomes challenges, recovers, and transforms. Clearly defined powers, distinct areas of responsibility, elimination of duplication, and the separation of control and internal audit functions might significantly reduce corruption risks and are key to ensuring transparency and accountability and a more effective city administration.
To strengthen the city’s managerial capacity, EY Ukraine conducted a comprehensive functional assessment of 34 executive bodies of the Mykolaiv City Council and developed a draft of updated structure with EUACI’s support.
Based on the findings, the Mayor’s team proposed an updated structure of the executive bodies. Key changes include:
- Reducing the number of managerial positions and minimizing the number of budget holders.
- Streamlining departments — merging units, eliminating overlapping functions, and clearly defining areas of responsibility.
- Gradual centralization of back-office functions — accounting, HR, procurement, and legal support.
- Strengthening internal audit and introducing a transparent employee motivation system.
- Advancing digital transformation — transitioning to a unified IT architecture and simplifying management processes.
These changes represent a shift toward a new management culture where efficiency, accountability, and teamwork form the foundation of the City Council’s daily work.
Implementation is already underway: the departments of architecture and land resources have been merged, an internal audit function has been established, and the creation of an Internal Audit Service and an Inspection Service for Public Amenities has begun.
Mykolaiv is among the first cities in Ukraine to undertake such a comprehensive structural reform, tailored to the realities of war and the challenges of recovery. This experience can serve as a model for other communities.
Any local council can benefit from these tools: the Functional Assessment Guide contains the methodology, checklists, questionnaires, and practical instruments for self-assessment and structural reform.
