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