towards the maintenance and improvement of the water system). Other forms of taxation or fines (e.g. parking fees) can be used wherever the government deems necessary. Extraordinary revenue originates from sources like loans, inheritances, auctions, rents and fines. Income generation is not limited to traditional service sources. Local governments can also initiate or participate in entrepreneurial activities that include a wide range of possible partnerships. Each year communities and municipalities formulate their budgets in terms of expected revenues and expenses. Financial management and auditing is then based on this plan. History of community and municipal governments In 1831, the first governor of independent Greece, Ioannis Kapodistrias administratively reorganized the Peloponnese into seven departments and the islands into six. These departments were then subdivided into provinces and, in turn, into towns and villages. Opponents of these reforms later assassinated Capodistrias. The Constitution of 1952 (article 99) clearly identified the administrative role of municipal and community authorities. The Constitution of the Hellenic Republic was established in 1975 and in article 102 stated that the first level of government were those of communities and municipalities. Law 1416 was passed in 1984 to reinforce municipal authority over local government. In 1986, the Constitution was modified with the addition of articles 101 and 102 that established local government parameters and relationships. Presidential Decree 410 (Municipal and Communal Code) codified the legislation concerning municipalities and communities in 1995. Law 2539 in 1997, named “Ioannis Kapodistrias,” took 441 municipalities and the 5382 communities and merged them into 900 municipalities and 133 communities. Newly merged municipalities and communities could further subdivide their territory into municipal or communal departments to give some local authority to merged areas. Law 2647 in 1998 transferred responsibilities from the State to local authorities. Law 3852 in 2010, named “Kallikratis,” took the 900 municipalities and the 133 communities and merged them into 325 municipalities. The new municipalities can subdivide their territory into municipal or local communities. See also List of municipalities of Greece (2011) Administrative divisions of Greece References External links Structure and Operation of Local and Regional Democracy in Greece Recent Administrative Reforms in Greece: Attempts Toward Decentralization, Democratic Consolidation and Efficiency CityMayors article Subdivisions of Greece Greece 3 Municipalities, Greece