Subdivisions of Switzerland difficulties maintaining the civil services they need to perform the duties they are required to do. In an effort to reduce expenses, many municipalities are combining together (through mergers or the creation of special-purpose districts). This restructuring is generally encouraged by the cantonal governments and the rate of these unions is increasing. "Cities" ("villes" or "Städte") are the municipalities with more than 10'000 inhabitants or smaller places which had medieval town rights. There is no specific designation for smaller communities such as "village" or "town". Some subdivisions that exist are: Subdivisions of Switzerland The Swiss Confederation comprises the 26 cantons
Municipalities of Switzerland municipal parliament, depending on the size of the municipality, and on cantonal and municipal law. In some cantons, foreigners who have lived for a certain time in Switzerland are also allowed to participate in municipal politics. As at the cantonal and federal level, citizens enjoy political rights, including direct democratic ones, in their municipality. Municipalities are financed through direct taxes (such as income tax), with rates varying more or less within a framework set by the canton (see Taxation in Switzerland). As among the cantons, there is a tax transfer among the municipalities to balance various levels of tax income.