Download - BUFFALO CITY METROPOLITAN MUNICIPALITY
BUFFALO CITY METROPOLITAN MUNICIPALITY
PRESENTAT ION TO THE NCOP
S E S S I O N 3 : B U I L D I N G T H E C A PA C I T Y O F L O C A L
G O V E R N M E N T T O A C C E L E RAT E S E RV I C E D E L I V E RY
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
B C M M M E T R O I N B R I E FBuffalo 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.
•Establishment (per s12 of Municipal Structures Act): Provincial Gazette Extraordinary No 2565 of 16 May 2011
•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
8Community Survey 2007
SOCIO-ECONOMIC PROFILE : A SNAPSHOT
Income
42% less than R3500 / month
(ECSECC Estimates for 2009)
2% 7%
33%
18%
15%
7%
9%
5% 4%
Household Distribution (%) per income group
Less than R500 per month
R500 - R1000
R1001 - R3500
R3501 - R6000
R6001 - R11000
R11001 - R16000
R16001 - R30000
R30001 - R50000
R50000 +
Economic Sectors contributing to Buffalo City’s GDP - 2010
Agriculture1%
Mining0%
Manufacturing16% Electricity
1%
Construction3%
Trade12%
Transport7%Finance
25%
Community services
25%
Taxes - Subsidies 11%
Real GDP = R33 993m
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.
Employed 37%
Unemployed 24%
Not economically active 39%
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
• The Internal Audit coverage is inadequate and the Unit is poorly resourced in terms of numbers, skills and qualifications.
• Inadequate Supply Chain Management functionality.
• Management capacity is compromised resulting in an inadequate control environment.
• 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.
• Long turn-around times on development proposals.
• Computer network although fairly stable is in need of upgrading.
AREAS FOR CAPACITY BUILDING
• The full functionality of the financial management system does not have the required functionality to comply fully with the requirements of the Accounting Standards.
• No asset maintenance system in place.
• Many systems operate manually.
• Silo management style compromises integrity of systems.
• Systems not reduced to writing and in a number of instances systems previously in operation appear to have been discarded.
• 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
• Regional economy is underprivileged and predominantly rural.
• Challenges with billing of all consumers.
• A level of grant dependency i.e. inability to generate sufficient funds for own infrastructure development.
• Aging infrastructure.
• Substantial maintenance backlogs.
KEY STRATEGIC FOCUS AREAS FOR THE METRO DURING THE 2011-16 TERM
Institutional restructuring
and stabilization
Improving governance
Improving intergovernmental relations
Job creation
Building citizen
confidence
Bridging the digital divide
Improving performance, compliance;
processes and systems
Building sustainable
communities
Financial Viability and Sustainability