Transcript Slide 1

BUFFALO CITY METROPOLITAN
MUNICIPALITY
P R E S E N T AT I O N T O T H E N C O P
SESSION 3: BUILDING THE
C APAC I T Y OF LOC AL GOV ERNMENT
T O A C C E L E R AT E S E R V I C E D E L I V E R Y
A City Growing with You
BUFFALO CITY METRO : A CITY IN A REGION
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LOCALITY
•
Buffalo City Metro land area is 2,515km² with 68km of coastline
• Buffalo City Metro is the key urban center of the eastern part of Eastern
Cape Province
• Corridor of urban areas from the “port city” of East London to the east
through Mdantsane and reaching Dimbaza in the west.
• East London is the primary node and dominant economic hub.
• King William’s Town area is the secondary node and functions as a
regional service center with Bhisho as the Provincial Administrative hub.
• Contains a wide ban of rural settlements on either side of the urban
corridor
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METRO REGIONAL PROFILE
• Urban regions extend well beyond the border of the
municipality & have a much larger environmental and
economic footprint
• Two major urban areas i.e. NMMM & BCMM in Eastern Cape
and both port cities
• BCMM influence stretches far beyond our municipal borders
• Includes the greater Amatole Region as far as the O.R .
Tambo Region
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DESCRIPTION OF MUNICIPAL TYPE
Buffalo City is a category ‘A’ municipality
A category ‘A’ municipality is described as an
area that can reasonably be regarded as A conurbation featuring Areas of High Population Density;
 An Intense Movement of People, Goods
and Services;
 Extensive Development; and
 Multiple Business Districts and Industrial
Areas
 A Centre of Economic Activity with a
Complex and Diverse Economy;
 A Single Area for which Integrated
Development Planning is desirable; and
 An area having strong Interdependent Social
and Economic Linkages between its
Constituent Units.
BCMM METRO IN BRIEF
•
Establishment (per s12 of Municipal
Structures Act): Provincial Gazette
Extraordinary No 2565 of 16 May
2011
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No of Wards: 50 Wards
•
No of Councillors: 100 Councillors
(50 Wards/ 50 PR)
•
Municipal Type: A municipality with a
mayoral executive system combined
with a ward participatory system
•
Seat of Council: East London, City
Hall
A City Growing with You
LEADERSHIP
SOCIO-ECONOMIC PROFILE : A
SNAPSHOT
A metro population of around 1,000,000
 75 % of the population in urban areas
 25 % of the population in rural settlements
Demographic
 41% of population
is aged 19 or below
 52 % of population is
aged between 20 &
59 years of age
 Relatively youthful
population requires
facilities & economic
opportunities
85 +
80 - 84
75 - 79
70 - 74
65 - 69
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
30 - 34
25 - 29
20 - 24
15 - 19
10 - 14
5-9
0-4
12 10 8 6 4 2 0 2 4 6 8 10 12
Community Survey 2007
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SOCIO-ECONOMIC PROFILE : A
SNAPSHOT
Income
Household Distribution (%) per income group
5%
4% 2%
Less than R500 per month
7%
R500 - R1000
9%
R1001 - R3500
7%
33%
R3501 - R6000
R6001 - R11000
15%
R11001 - R16000
R16001 - R30000
18%
R30001 - R50000
R50000 +
42% less than R3500 / month
(ECSECC Estimates for 2009)
Economic Sectors contributing to Buffalo City’s GDP
- 2010
Taxes - Subsidies
11%
Agriculture
1%
Mining
0%
Manufacturing
16%
Electricity
1%
Construction
3%
Community services
25%
Real GDP = R33 993m
Trade
11%
Transport
7%
Finance
25%
Finance & Community Services account for 50 % of Buffalo City’s GDP
(ECSECC)
LABOUR MARKET STATUS
• Figure below indicates that in Buffalo City in 2007: a proportion of
37% of the working-age population were employed, 24%
unemployed and 39% not economically active.
Not economically
active
39%
Employed
37%
Unemployed
24%
AREAS FOR CAPACITY BUILDING
• Adverse Opinion (2010/2011) arising from Auditor General’s
audit.
• Staff not expert and knowledgeable in the implementation of the
prescribed Accounting Standards. Examples include Property,
Plant and Equipment, Asset Registers, Valuations of Assets and
Investment Properties, etc.
• Valuation Roll not complete and up-to-date i.e. aligned to billing
cycle.
• Inability to report accurately on irregular expenditure.
• Inadequate monitoring / review processes over key financial and
related controls.
AREAS FOR CAPACITY BUILDING
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The Internal Audit coverage is inadequate and the Unit is poorly resourced in
terms of numbers, skills and qualifications.
•
Inadequate Supply Chain Management functionality.
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Management capacity is compromised resulting in an inadequate control
environment.
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Management applies a reactive as opposed to a proactive approach to matters.
•
Inadequate understanding of compliance framework resulting in a disregard of
legislated requirements.
•
Performance Management System considered flawed.
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Long turn-around times on development proposals.
•
Computer network although fairly stable is in need of upgrading.
AREAS FOR CAPACITY BUILDING
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The full functionality of the financial management system does not have the
required functionality to comply fully with the requirements of the Accounting
Standards.
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No asset maintenance system in place.
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Many systems operate manually.
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Silo management style compromises integrity of systems.
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Systems not reduced to writing and in a number of instances systems previously
in operation appear to have been discarded.
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Inadequate systems for the collation of Performance Information.
•
Micro Structure is currently being designed and continues under a hybrid of the
old and new macro Structures.
AREAS FOR CAPACITY BUILDING
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Regional economy is underprivileged and predominantly rural.
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Challenges with billing of all consumers.
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A level of grant dependency i.e. inability to generate sufficient funds for own
infrastructure development.
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Aging infrastructure.
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Substantial maintenance backlogs.
KEY STRATEGIC FOCUS AREAS FOR THE METRO
DURING THE 2011-16 TERM
Institutional
restructuring and
stabilization
Bridging the digital
divide
Improving
performance,
compliance;
processes and
systems
Improving governance
Building citizen
confidence
Building sustainable
communities
Improving
intergovernmental
relations
Job creation
Financial Viability and
Sustainability