Abstract
Management at the level of a territorial municipal unit is a challenging task that requires concerted efforts of the federal, regional authorities and bodies of local self-government. Within the concept of separation of the powers between different levels of management it is necessary to ensure financial sufficiency in order for the bodies of local self-government to function. Search for the missing links in the chain of legal documents will facilitate a transition from antagonistic relationships between the federal and municipal authorities to the balanced action. This will increase the efficiency of the municipal management and, ultimately, the quality of life through-out the nation.