BUFFALO CITY METROPOLITAN MUNICIPALITY PRESENTATION TO THE NCOP SESSION 3: BUILDING THE CAPACITY OF LOCAL GOVERNMENT TO ACCELERATE SERVICE DELIVERY A City Growing with You

BUFFALO CITY METRO : A CITY IN A REGION 2

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 5

DESCRIPTION OF MUNICIPAL TYPE BCMM METRO IN BRIEF 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. 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 8 Community Survey 2007

SOCIO-ECONOMIC PROFILE : A SNAPSHOT Income 42% less than R3500 / month (ECSECC Estimates for 2009)

Economic Sectors contributing to Buffalo City’s GDP 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.

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 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

ADOPTED MACRO STRUCTURE FOR THE METRO Council Executive Mayor’s office Municipal Manager Strategic & Monitoring Unit Budget & Treasury Directorate Corporate Services Directorate Municipal Services Directorate Development & Spatial Planning Directorate Infrastructure Directorate Economic Development Directorate Speaker’s office