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FIVE-YEAR STRATEGIC PLAN 2016/17 - 2020/21

BUFFALO CITY METROPOLITAN DEVELOPMENT AGENCY FIVE-YEAR STRATEGIC PLAN 2016/17 - 2020/21

Table of Contents

Official sign-off ...................................................................................................................................5Foreword by the Executive Mayor ....................................................................................................6Foreword by the Board Chairperson................................................................................................7Introduction by the Chief Executive Officer ....................................................................................8PART A: STRATEGIC OVERVIEW.....................................................................................................9

1. Establishment of the BCMDA.............................................................................................102. Vision statement ..................................................................................................................113. Mission statement ...............................................................................................................114. Goals & Objectives ..............................................................................................................115. Guiding values .....................................................................................................................126. Strategic Analysis ...............................................................................................................127. Legislative mandate ............................................................................................................138. Situational analysis .............................................................................................................14

8.1 BMCDA’s operating environment ....................................................................................14

8.3 Organisational environment.............................................................................................15

8.3.1 Governance structures .................................................................................................15

8.3.2 Organisational arrangements .......................................................................................16

9. Description of the Strategic Planning Process ................................................................1710. Strategic Outcome Oriented Goals of the BCMDA ..........................................................19

PART B: ANNUAL PERFORMANCE PLAN 2016/17 ......................................................................2511. Summary strategic objectives by programme .................................................................2612. Financial Considerations ....................................................................................................33

12.1 Financial Resources Mobilisation Approach .................................................................33

12.2 BCMDA Budget 2016/17 – 2020/21 ..............................................................................34

13. Risk management................................................................................................................34

List of Figures Figure 1. Approved BCMDA mandate……………………………………………………………………..10

Figure 2. Vision of the BCMM and MGDS 2030 Strategic Pillars………………………………………13

Figure 3. BCMDA Board and Sub-committee Structure…………………………………………………16

Figure 4: Approved BCMDA Interim Organizational Structure………………………………………….17

Figure 5. BCMDA Strategic Planning Process…………………………………………………………...18

List of Tables Table 1: Strategic Alignment……………………………………………………………………………….19

Table 2: Key Risks & Migration…………………………………………………………………………….35

3


Acronyms & Abbreviations

AG Auditor General

APP Annual Performance Plan

BCMDA Buffalo City Metropolitan Development Agency

BCMM Buffalo City Metropolitan Municipality

CEO Chief Executive Officer

CFO Chief Financial Officer

ECDC Eastern Cape Development Corporation

ECSECC Eastern Cape Socio-Economic Consultative Council

ECPTA Eastern Cape Parks & Tourism Agency

IDP Integrated Development Plan

MGDS Metro Growth & Development Strategy

MTREF Medium-Term Revenue & Expenditure Framework

MTSF Medium-Term Strategic Framework

SCM Supply Chain Management

SOC State Owned Company

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Official sign-off

It is hereby certified that this Strategic Plan:

1) Was developed by the management of the Buffalo City Metropolitan Development Agency

(BCMDA) under the guidance of the BCMDA Board

2) Takes into account all the relevant policies, legislation and other mandates for which the

BCMDA is responsible

3) Accurately reflects the strategic outcome oriented goals and objectives which the BCMDA will

endeavour to achieve over the period 2016/17 to 2020/21

4) Was approved at a BCMDA Board meeting held on 27 June 2016

Ms Vicky Ntsodo Chief Financial Officer Signature: ______________________________

Mr Gcinumzi QotywaChief Executive Officer (Accounting Officer) Signature: ______________________________

Mr Tembinkosi BonakeleChairperson BCMDA Board Signature: ______________________________

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Foreword by the Executive MayorLocal government is the heartbeat of government as it is the space where the service delivery takes place and therefore it is important that it is at the cutting edge of developing innovative ways to improve the lives of our people. It is with this understanding that the Buffalo City Metropolitan Municipality (BCMM) continues to strive to outperform its previous record in terms of service delivery. We continue to be humbled by the trust that our people have on us to improve their lives through providing clear, decisive and ethical leadership.

Our understanding therefore is that unless we adopt progressive plans and mechanisms to grow the economy of this city, the dream of a better life for our people will remain that, a dream. It is on this basis that the city has resuscitated its development agency with a

view to have a vehicle that will play a significant role in driving economic transformation in our shores. The resuscitation of the agency is but one of the ways through which we hope to exploit the economic opportunities that continue to stare at us given our location. In our Metro Growth Development Strategy (MGDS) 2030 and other strategic documents of the city we have continued to make the point about the opportunity to position our city as a logistics hub. Our location along the coastline remains a competitive advantage given the potential presented by the ocean economy.

Furthermore, the tourism potential of our city is undisputed and we have already acknowledged the enormous opportunities it presents. It must also be mentioned that the city has vast pieces of land and/or properties that are either unused or underutilised. As a developmental city, it is therefore our intention that as we continue to expand the economic base of the city we also look at our assets and the potential they have to contribute in realizing the idea of a better life for our people. Therefore in resuscitation the development agency, we are of the firm view that it should play a leading role in the development of tourism infrastructure, ensure property management and commercialisation, as well as demonstrate clear contributory role in the socio-economic development of this city and its people.

I therefore wish the board and staff of this newly established agency, Buffalo City Metropolitan Development Agency all the best as they navigate the development arena in the near future. I further want to commit our undisputed support as the leadership of the city at both political and administrative level in ensuring the success of the agency in its mission.

Cllr Xola Pakati(BCMM Executive Mayor)

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Foreword by the Board ChairpersonBuffalo City, just like all other metros in the country, belongs to a league of premier cities in South Africa and therefore the expectations of its citizens for high quality service and better standard of living continue to increase. However, the demands for the services of this city probably stretch far more than other metros because it has to cater for both its urban and rural population, given its location. This rural-urban characteristic of the metro provides ample opportunities, which stretch across a lot of economic sectors. It is for this reason that in determining the mandate of the agency, the city broadened the mandate to explore development opportunities in defined areas of Tourism, Property Management and Commercialisation as well as Socio-economic development predecessor.

Even though investment attraction is not directly spelt out in the mandate as the responsibility of the agency, it remains an implied function for all government institutions charged with economic development of some form. In our case, as BCMDA board and staff we have accepted as fact that the city will never have enough resources for the development of the city. In fact, it is not necessary for the city to have all these resources hence the implied responsibility to attract investors to contribute in the economic transformation of the city. In this regard, BCMDA has been in contact with various state funding institutions and has set our clear processes of engaging with potential investors in areas where city assets are made available to the agency for development and/or rehabilitation.

It must also be mentioned that much as the provision of basic services is at the core of what local government should do, local economic development is an equally important task for this sphere of government. In this regard, we have made the call and we support the initiatives of the city to increase its investment towards economic infrastructure and thereby create an enabling environment for business to thrive.

I know that the road to the reestablishment of the agency has not been easy, but the visionary leadership of the city as well as commitment of the founding board of directors was a very strong enabler. I in particular thank the management and staff of the agency under the leadership of the CEO who went beyond the call of duty to get the agency in a state of readiness to implement projects.

As the Chairperson and on behalf of the entire board of BCMDA and staff I would like to commit the agency to the delivery on this strategic plan, and continue to hope for uninterrupted support from the leadership of the city.

Mr Tembinkosi Bonakele (Chairperson: BCMDA Board)

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Introduction by the Chief Executive OfficerThe need to fastrack economic development has been at the centre of the reestablishment of the agency by the Buffalo City Metropolitan Municipality. In order to ensure that the contribution of the agency in the development of the city is streamlined, the council approved a three pronged mandate for the agency i.e. Property Management and Commercialisation; Tourism as well as Socio-economic development. In terms of property management and commercialisation, the agency will lead the development of identified pieces of land and rehabilitation of identified municipal properties and commercialise them. On the tourism aspect, the agency will focus on the tourism infrastructure so as to ensure improved tourist numbers and spend in the city. In respect of socio-economic development, the agency will facilitate processes towards the establishment of City

Improvement Districts (CIDs) as well as any other socio-economic interventions in line with the corporate social investment policy of the agency.

In developing the five year strategic plan of the agency it became important to align with the city priorities as defined in the Metro Growth Developement Strategy (MGDS) 2030 emanating from the summit that took place towards the end of 2015 calendar year. The MGDS envisages a developmental city anchored on five pillars i.e. an innovative and productive city; a green city; a spatially transformed city; a connected city; as well as a well-governed city.

For the ensuing five years with effect from 2016/17, BCMDA has defined four outcome oriented goals and ten strategic objectives and both the goals and the objectives align perfectly with the MGDS pillars. In this regard the agency has mapped out its contribution to the growth of the metro and aligned it with all but one of the MGDS pillars. The exact scope of work for the agency is governed by the Service Delivery Agreement (SDA) and the Land Availability Agreement determined by the parent municipality as amended from time to time. It is only through this clear enunciation of the functions of the agency that any real contribution of this agency will be felt within the communities of the metro.

It is my sincere hope and wish that the support demonstrated by our parent municipality, at all levels, will continue given the reliance of the success of this agency on that support. I would further want to express my appreciation to the Board of Directors for their confidence in me and the guidance provided thus far leading to the finalisation of this strategic document. The diligence and dedication of the current BCMDA staff has taken the agency to this point, for which I am greatful and I have no doubt that as we continue to navigate this development space their sharp minds, creativity and willingness to learn and improve, will continue to drive the agency towards the right direction.

Mr Gcinumzi Qotywa (Chief Executive Officer: BCMDA)

8

PART A O


PART A: Strategic Overview 1. Establishment of the BCMDA

The Buffalo City Metropolitan Development Agency (BCMDA) is a municipal entity wholly owned

by the Buffalo City Metropolitan Municipality and established in terms of S76 of the Municipal

Systems Act, 32 of 2000, as amended. BCMDA, is in essence a successor to the Buffalo City

Development Agency that was established by the Municipality in 2004 a non-profit company.

When the board was dissolved in 2009 all its functions reverted to the Municipal Manager.

Due to the evolution of the legislation over time, there was therefore a need to convert the non-

profit to a profit company. This was one of the immediate priorities of the new Board of Directors

as appointed with effect from 01 February 2014. At the same time, the Buffalo City Municipality

had attained the metropolitan status in 2011 and it has been revising its own organisational

structure to align to the metro requirements. All this led to the incorporation of the Buffalo City

Metropolitan Development Agency, with a new and invigorated mandate.

The primary mandate of BCMDA is to attract investors into Buffalo City and increase economic

growth through tourism, economic and social development as well as property management and

commercialisation. The mandate of the agency as approved by the council on 11 December

2015 appears as figure 1 below.

Figure 1. Approved BCMDA mandate

Economic and Social DevelopmentTo conceptualise, plan and execute catalytic socio-economic development project

TourismTo serve as a tourism agency of the Municipality

Property Management and CommercialisationTo acquire, own, and manage land and buildings and/or rights to land and buildings necessary to enable it to achieve its aims and objectives

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The BCMDA is established as a juristic person operating as a municipal entity, which has been

classified in terms of the Municipal Finance Management Act. As an entity of the BCMM, the

BCMDA thus extends the BCMM’s capability with respect to the identification, planning, and

implementation of development projects for the benefit of the entire municipal area. It also

extends the City’s capability with respect to the management and commercialisation of land and

properties belonging to the City or its partners as well as associated project management and

development services.

2. Vision statement

A city that is more welcoming and competitive with ample opportunities to invest, work, play

and live.

3. Mission statement

Building a better Buffalo City through facilitating and undertaking development initiatives for

the benefit of all the citizens of the city.

4. Goals & Objectives

The outcome oriented goals of the agency are as follows:

• A stable and fully capacitated agency to deliver on its mandate efficiently and effectively

• Improved number of tourists and tourism spend in Buffalo City

• Efficient, productive and sustainable management of land and buildings

• Improved socio-economic benefits within Buffalo City

The above goals will be achieved through the following strategic objectives:

• Equitable and sound corporate governance

• Adequate and appropriately skilled staff

• Efficient and effective information technology and knowledge management service

• Effective board secretariat and legal support

• Effective brand management and communication

• Tourism opportunities exploited in high value products

• Inner City Regeneration

• A well-developed beach front

• Effective open space management

• Job creation

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5. Guiding values

As BCMDA we will strive to perform our functions in a professional and transparent manner

guided by the highest levels of integrity whilst delivery high quality products and services and

accountable to our stakeholders. The BCMDA has therefore defined the following guiding

values in its operations:

Performance

Professionalism

Integrity

Quality

Accountability

Transparency

6. Strategic Analysis

The South African State of the Cities Report for 2011 defines the resilient city as one that is able

to chart a different path in solving complex and unanticipated problems. It involves adapting and

shaping development in order to improve the City’s position through structural change. If we are

to promote resilience through structural change that achieves greater equality in Buffalo City, then

the restructuring of city form must be a priority for Buffalo City.

In forging ahead with aggressive development for the Buffalo City, the BCMM engaged in a long-

term planning process involving all key stakeholders and relevant state institutions. A product of

this all-inclusive and involving process was the BCMM 2030 Metro Growth & Development

Strategy. In his opening remarks in the MGDS 2030, the Executive Mayor acknowledges that “as

a facilitator for Local Economic Development, it is expected of us to create a conducive

environment for economic growth and development through establishing enabling environment

for business to do business in our Metro.”

The BCMM 2030 Metro Growth & Development Strategy (MGDS 2030) responds to the multiple

challenges and uncertain futures faced by the city. To cope with change, the Buffalo City aims to

strengthen the adaptive capacity of the City and its citizens, so that it may become more resilient

to potential and unpredictable futures. Rather than develop a blueprint plan for the future, the

MGDS lays the foundation for multi-sectoral and integrated responses to the challenges the city

faces. Figure 2 below is illustrate the strategic pillars of the MGDS 2030.

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Figure 2. Vision of the BCMM and MGDS 2030 Strategic Pillars

Some of the findings in the diagnostic analysis of the NDP revealed that the legacy of apartheid

continues to dominate the national context. The inequality and divisions based on race and class

continue to affect all sectors of society. Some stubborn problems persist – including low levels of

education, income inequality, chronic poverty and crippling unemployment, which continue to

plague South Africa. There is evidence that these conditions have not improved substantially over

the last decade.

BCMM for instance is the second smallest metro (out of eight in the country) with a population

size of 755, 200 people, according to Statistics South Africa. However, it is the second highest in

terms of unemployment at a rate of 35.1% using the strict definition. Being the second highest in

terms of young people at 26% of the population this metro is equally the second highest in terms

of youth unemployment at 45.1%. It is also worth noting that this metro has the lowest population

growth at 0.69%. The population growth statistic is probably an indictment on a metro with such

a good weather, good location along the Indian Ocean and being part of a province with such a

variety of cultural heritage. To compound matters, the global financial downturn, climate change

and energy insecurity are driving multiple hardships worldwide, impacting on South African

growth prospects.

7. Legislative mandate

The Local Government: Municipal Systems Act, 32 of 2000, is the main legislation making

provision for the establishment of municipal entities and sets out the objects, roles, powers and

duties of the Agency. The core policy approaches underpinning municipal entities and the

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source of the BMCDA mandate and functions are reflected through the following policy

documents and legislation.

The Constitution of South Africa, 1996 (Act No. 108 of 1996)

Local Government: Municipal Systems Act, 32 of 2000

Local Government: Municipal Systems Amendment Act, 44 of 2003

Local Government: Municipal Finance Management Act, 56 of 2003

Companies Act, 71 of 2008

The National Development Plan, Vision for 2030, National Planning Commission,

November 2011

Buffalo City Metropolitan Municipality 2030 Metro Growth and Development Strategy,

November 2015

Buffalo City Metropolitan Municipality Integrated Development Plan 2016/17-2020/21

In approving the mandate of the BCMDA on 11 December 2015, the BCMM council also resolved

that the Agency shall be empowered to take any such actions within its scope of authority to

further its mandate, including, but not limited to:

• To conduct regular communications with all stakeholders.

• To launch, manage and/or monitor any study that may be necessary to further the

objectives of the Agency.

• To negotiate, enter into and administer contracts in furtherance of its objectives.

• To collect income, raise, receive and hold funds, or receive guarantees, from any lawful

source, for the purposes of the BCDA and to manage administer and disburse those

funds in pursuance of the objects of the BCDA and for administrative purposes in

accordance with the terms and conditions determined by the BCDA.

• To conduct and operate any financial assistance, subsidy or incentive programme

necessary to ensure the most advantageous development projects for the Municipality.

8. Situational analysis

8.1 BMCDA’s operating environment

As a municipal entity the BCMDA has close proximity to the parent municipality and this should

assist in ensuring the approval of development plans and the provision of bulk infrastructure

where needed. Currently, however, like most municipalities, BCMM has a challenge of

competing demands. The main challenge every municipality has to deal with is the need to

balance infrastructure expenditure between three competing needs:

• The need for infrastructure that supports economic growth;

• The need for infrastructure that addresses service backlogs; and

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• The need to maintain and refurbish existing infrastructure.

To compound the challenge, below are some of the realities of the local government sphere,

even though BCMM is trying to find ways of getting out of this quagmire:

Access to bulk Infrastructure: Municipalities are responsible for developing and financing

bulk infrastructure, the costs of which are traditionally recouped through imposing

development charges. In some cases bulk infrastructure development is not occurring in a

manner that supports and unlocks land for development. Bulk infrastructure is either not

available either because of a lack of funding or as a result of planning delays. In the short

term, this affects the ability of developers to obtain service agreements for new developments

and in some cases leads to broken agreements that threaten project feasibility and developer

sustainability. In the medium to long term, it threatens the overall development of the

municipal spaces and thereby continue to put the pressure on the state to provide jobs

whereas serviced land would assist to attract investors..

Rehabilitation of the infrastructure network in existing formal areas including the capacity to densify: Municipalities in South Africa are not making adequate provision for the

long-term preventive maintenance, refurbishment and eventual replacement of their

infrastructure. In the medium term this impacts on the sustainability of existing business and

in the long term on the ability to attract investors.

Extended period for municipal planning and proclamation approvals: There is an

extended period for municipal planning and proclamation approvals due to onerous

regulatory requirements and inadequate capacity within municipalities. This increases the

cost of development and undermines the viability of projects.

Land use municipal regulation: There are extensive delays in respect of zoning approvals

and issuing, which may lead to further delays in any development.

The compact city: South African cities are characterised by an inefficient and inequitable

spatial structure which comprises very low densities, the poor located on the periphery of the

city often in areas that are marginalised and a lack of cost effective transport systems.

Increasingly there is recognition that the spatial intervention to address this issue is linked to

the creation of affordable transportation networks that link low income residential areas to

cities. Another related issue here is the neglect in the management of open spaces in the

poor areas resulting into proliferation of dump sites.

8.3 Organisational environment

8.3.1 Governance structures

The governance of the Agency is entrusted to board of directors which is composed as follows:

15


• Five independent non-executive directors

• Two council nominated representatives i.e. a councillor and an official as non-participating

observer members

• One executive Director i.e. Chief Executive Officer

• Permanent Invitee i.e. Chief Financial Officer

The BCMDA Board has considered and approved the Board Charter in line with King III Report

on Good Governance. However, given the size of the board, its committees are not necessarily in

line with King III even though all the functions have been covered in the current committees.

The structure of the Board and its sub-committees is illustrated below:

Figure 3. BCMDA Board and Sub-committee Structure

The BCMDA currently utilizes the BCMM Audit Committee as provided in the Municipal Finance

Management Act and all the external audits are conducted by the Auditor General in line with Section

92 of the MFMA.

8.3.2 Organisational arrangements

Since the appointment of the Chief Executive Officer on 01 November 2015, the actual establishment

of the agency has ensued in earnest. In this regard the BCMDA board approved the interim

organisational structure in December 2015 and a revised version in May 2016, and a process of

recruiting to fill the structure has resumed. The figure below details the BCMDA’s current interim

organizational structure as approved. It is hoped that once the agency has been fully operational and

the strategy approved, a process of developing a permanent organizational structure will ensue.

BCMDA Board

Governance Committee

Organisational Committee

Project Development &

Investment Committee

Audit Committee

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The BCMDA’s organisational structure is based on the following principles:

• An executive management committee made up of the Chief Executive Officer (CEO),

Chief Financial Officer (CFO), Executive Manager: Development Facilitation, and Executive

Manager: Corporate Services.

• In order to ensure compliance to all governance prescripts, the office of the CEO is further

staffed with the Company Secretary & Legal Services Manager.

• The Development Facilitation unit is envisaged as the hub for all the development work. In

this regard, it is anticipated that the organizational structure is mainly going to grow in this

area as human resources to deal with various agency mandate areas will be sourced and

housed in this division or other divisions to be established in line with the mandate.

• Other administrative departments are responsible for functions such as supply chain

management, finance, human resources, marketing and communications.

9. Description of the Strategic Planning Process

The BCMDA contributes to the realisation of the human development process through ensuring a

good working relationship or collaboration with various other stakeholders. In giving effect to the

Figure 4: Approved BCMDA Interim Organizational Structure

17


functions and mandate of the Agency and the prevailing needs, priorities and expectations in the

human economic and social development space the Agency undertook a comprehensive strategic

planning process to align its focus and activities with the new MGDS 2030. The process comprised

a board inception strategic planning workshop attended by senior BCMM officials with various

stakeholders and state entities including:

• Eastern Cape Socio-Economic Consultative Council (ECSECC)

• Eastern Cape Development Corporation (ECDC)

• National African Federated Chamber of Commerce & Industry (Nafcoc)

• Border Kei Chamber of Business (BKCoB)

Further direct engagements took place with other stakeholders and entities such as the Eastern Cape

Parks & Tourism Agency with a view to ensure alignment. Other engagements took place with the

political and administrative leadership of the BCMM in a Mayoral Lekgotla led by the Troika and

attended by all portfolio heads as well as all senior managers of the BCMM. Thereafter, the board

convened a one day strategic planning session to crystallise and consolidate all the views and ideas

that came from al the engagements mentioned.

Figure 5. BCMDA Strategic Planning Process

BCMDA Draft Strategic Plan (2016/17 - 2020/21)

Analysis of the documents

including MGDS & IDP

Engagemenet with external

stakeholders i.e. business

community & other state institutions

Engagement with BCMM political and

administrative leadership

Analysis of the documents

including MGDS & IDP

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10. Strategic Outcome Oriented Goals of the BCMDA

This sections deals with the goals of the organization and demonstrate how they link with the high

level strategic pillars of the MGDS. Furthermore, it details the strategic objectives as well as the

performance indicators together with the expected performance over five years.

Table 1: Strategic alignmentMGDS 2030 Strategic Pillar

BCMDA Outcome Oriented Goal BMCDA Strategic Objective

A Well Governed City A stable and fully capacitated agency to deliver on its mandate efficiently and effectively

• Equitable and sound corporate governance

• Adequate and appropriately skilled staff

• Efficient and effective information technology

and knowledge management service

• Effective board secretariat and legal support

• Effective brand management and

communication

Innovative & Productive City

Improved number of tourists and tourism spend in Buffalo City

• Tourism opportunities exploited in high value products

A Spatially Transformed City

Efficient, productive and sustainable management of land and buildings

• Inner City Regeneration• A well-developed beach front

A Green City Improved socio-economic benefits within Buffalo City

• Effective open space management• Job creation

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t sy

stem

in

plac

e &

in

use

20


MG

DS

Stra

tegi

c Pi

llar:

A W

ell G

over

ned

City

BCM

DA:

Out

com

e-O

rient

ed G

oal:

A st

able

and

fully

cap

acita

ted

agen

cy to

del

iver

on

its m

anda

te e

ffici

ently

and

effe

ctiv

ely

Stra

tegi

c O

bjec

tive

Obj

ectiv

eSt

atem

ent

Perfo

rman

ceIn

dica

tor

Base

line

Targ

ets

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

man

agem

ent

syst

emPe

rcen

tage

im

plem

enta

tion

of a

n El

ectro

nic

Doc

umen

t M

anag

emen

t Sys

tem

Nil

Doc

umen

t Bu

sine

ss

Proc

esse

s

Proc

urem

ent

of th

e se

rvic

e pr

ovid

er a

nd

auto

mat

ion

of

proc

esse

s

100

% (a

ll ag

ency

pr

oces

ses

auto

mat

ed)

100

% (a

ll ag

ency

pr

oces

ses

auto

mat

ed)

100

% (a

ll ag

ency

pr

oces

ses

auto

mat

ed)

Effe

ctiv

e br

and

man

agem

ent &

co

mm

unic

atio

n

Ensu

re th

at th

e br

and

of th

e ag

ency

is

pro

perly

m

arke

ted

and

prot

ecte

d

Perc

enta

ge

impl

emen

tatio

n of

the

mar

ketin

g st

rate

gy

Nil

Mar

ketin

g st

rate

gy

deve

lope

d an

d 10

%

impl

emen

ted

60%

Impl

emen

tatio

n of

the

mar

ketin

g st

rate

gy

100

%

Impl

emen

tati

on o

f the

m

arke

ting

stra

tegy

100

%

Impl

emen

tati

on o

f the

m

arke

ting

stra

tegy

100

%

Impl

emen

tati

on o

f the

m

arke

ting

stra

tegy

Effe

ctiv

e bo

ard

secr

etar

iat a

nd

lega

l sup

port

Prov

isio

n of

all

boar

d se

cret

aria

t su

ppor

t fun

ctio

ns

and

lega

l ser

vice

s to

the

agen

cy

Num

ber o

f boa

rd &

co

mm

ittee

mee

tings

or

gani

zed

and

reco

rded

1716

1616

1616

Perc

enta

ge

impl

emen

tatio

n of

boa

rd

reso

lutio

ns

90%

100

%10

0 %

100

%10

0 %

100

%

Perc

enta

ge o

f boa

rd

secr

etar

iat f

unct

ions

and

le

gal s

uppo

rt m

atte

rs

deal

t with

as

per

legi

slat

ed ti

me-

fram

es

Nil

100

%10

0 %

100

%10

0 %

100

%

Perc

enta

ge

impl

emen

tatio

n of

lit

igat

ion

mat

ters

at

tend

ed to

with

in ti

me-

fram

es

Nil

100

%10

0 %

100

%10

0 %

100

%

21


MG

DS

Stra

tegi

c Pi

llar:

Inno

vativ

e &

Pro

duct

ive

City

BC

MD

A: O

utco

me-

Orie

nted

Goa

l: Im

prov

ed n

umbe

r of t

ouris

ts a

nd to

uris

m s

pend

in B

uffa

lo C

ity

Stra

tegi

c O

bjec

tive

Obj

ectiv

e St

atem

ent

Perf

orm

ance

In

dica

tor

Bas

elin

eTa

rget

s20

15/1

620

16/1

720

17/1

820

18/1

920

19/2

020

20/2

1To

uris

m

oppo

rtuni

ties

expl

oite

d in

hig

h va

lue

prod

ucts

Ensu

re

deve

lopm

ent

of

tour

ist

site

and

the

m

arke

ting

of s

uch

to

attra

ct to

uris

ts

Num

ber o

f tou

rist

attra

ctio

n ac

tiviti

es

impl

emen

ted

Non

e1

11

11

Perc

enta

ge

deve

lopm

ent o

fthe

W

ater

wor

ld a

s a

leis

ure

tour

ist s

ite

Wes

t Ban

k Lo

cal

Spat

ial

Dev

elop

men

t Fr

amew

ork

in

plac

e

20 %

(D

esig

ns

deve

lope

d an

dap

prov

ed)

50 %

(C

onst

ruct

ion

in p

rogr

ess)

100

%

(Upg

rade

d w

ater

wor

ld in

op

erat

ion)

100

%

(mai

nten

ance

)10

0 %

(m

aint

enan

ce)

22


MG

DS

Stra

tegi

c Pi

llar:

A Sp

atia

lly T

rans

form

ed C

ity

BC

MD

A: O

utco

me-

Orie

nted

Goa

l: Ef

ficie

nt, p

rodu

ctiv

e an

d su

stai

nabl

e m

anag

emen

t of l

and

and

build

ings

Stra

tegi

c O

bjec

tive

Obj

ectiv

e St

atem

ent

Perf

orm

ance

In

dica

tor

Bas

elin

eTa

rget

s

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Inne

r City

R

egen

erat

ion

Impl

emen

tatio

n of

pr

ogra

mm

es a

nd

initi

ativ

e to

revi

ve

the

East

Lon

don

& Ki

ng W

illiam

’s

Tow

n C

BDs

Num

ber o

f City

Im

prov

emen

t Dis

trict

ses

tabl

ishe

d

Appr

oved

fe

asib

ility

stud

y1

21

--

Perc

enta

ge

Dev

elop

men

t of t

he

slee

per s

ite

Appr

oved

Loc

al

Spat

ial

Dev

elop

men

t Fr

amew

ork

Partn

ersh

ip

agre

emen

t si

gned

40 %

C

onst

ruct

ion

com

plet

e

80 %

C

onst

ruct

ion

com

plet

e

100

%

Con

stru

ctio

n co

mpl

ete

100

%

mai

nten

ance

Aw

ell-

deve

lope

d be

ach

front

Faci

litat

e an

d im

plem

ent

initi

ativ

es a

nd

prog

ram

mes

to

revi

talis

e th

e ec

onom

ic

activ

ities

in th

e Ea

st L

ondo

n be

ach

front

(E

aste

rn B

each

)

Perc

enta

ge

deve

lopm

ent o

f the

M

arin

a G

len

site

Appr

oved

Loc

al

Spat

ial

Dev

elop

men

t Fr

amew

ork

Non

eN

one

Partn

ersh

ip

agre

emen

t si

gned

30 %

-D

esig

ns

appr

oved

and

co

nstru

ctio

n co

mm

ence

d

50 %

-C

onst

ruct

ion

50 %

C

ompl

ete

Perc

enta

ge

deve

lopm

ent o

f the

C

ourt

Cre

scen

t site

Appr

oved

Loc

al

Spat

ial

Dev

elop

men

t Fr

amew

ork

Non

ePa

rtner

ship

ag

reem

ent

sign

ed

30 %

-D

esig

ns

appr

oved

and

co

nstru

ctio

n co

mm

ence

d

50 %

-C

onst

ruct

ion

50 %

Com

plet

e

100

%

Con

stru

ctio

n 10

0%C

ompl

ete

Perc

enta

ge

deve

lopm

ent o

f the

Se

avie

w T

erra

ce s

ite

Appr

oved

Loc

al

Spat

ial

Dev

elop

men

t Fr

amew

ork

10 %

-Pa

rtner

ship

ag

reem

ent

sign

ed

30%

-Des

igns

ap

prov

ed a

nd

cons

truct

ion

com

men

ced

50 %

-C

onst

ruct

ion

50 %

Com

plet

e

100%

Con

stru

ctio

n10

0% c

ompl

ete

100%

mai

nten

ance

Perc

enta

ge

deve

lopm

ent o

f the

H

eroe

s Pa

rk s

ite

Appr

oved

Lo

cal

Spat

ial

Dev

elop

men

t Fr

amew

ork

Des

ign

and

oper

atio

n pl

an

appr

oved

Upg

radi

ng

of

the

park

co

mpl

eted

Mai

nten

ance

an

d op

erat

ion

Mai

nten

ance

and

op

erat

ion

Mai

nten

ance

an

dop

erat

ion

23


MG

DS

Stra

tegi

c Pi

llar:

A G

reen

City

BC

MD

A: O

utco

me-

Orie

nted

Goa

l: Im

prov

ed s

ocio

-eco

nom

ic b

enef

its w

ithin

Buf

falo

City

Stra

tegi

c O

bjec

tive

Obj

ectiv

eSt

atem

ent

Perf

orm

ance

Indi

cato

rB

asel

ine

Targ

ets

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

Effe

ctiv

e op

en s

pace

m

anag

emen

tPr

oper

man

agem

ent o

f ope

n sp

aces

to a

void

ille

gal d

umpi

ng a

nd to

enc

oura

ge re

crea

tiona

l ac

tiviti

es

Num

ber o

f eco

-par

ks

deve

lope

dan

d m

aint

aine

d0

11

11

1

Job

Cre

atio

n C

reat

ion

of j

obs

in t

he g

reen

ing

and

was

te

man

agem

ent s

pace

Fullt

ime

Equi

vale

nt

Jobs

crea

ted

040

8012

016

020

0

24

PART A P P

201 /17


PAR

T B

: An

nual

Per

form

ance

Plan

201

6/17

11.

Sum

mar

y st

rate

gic

obje

ctiv

es b

y pr

ogra

mm

e

The

follo

win

g ta

bles

illu

stra

tes

the

deta

iled

proj

ects

with

ass

ocia

ted

prop

osed

bud

gets

and

cum

ulat

ed ta

rget

s ov

er th

e fin

anci

al y

ear 2

016/

17. T

hese

will

be

adju

sted

in th

e ne

xt d

raft

of th

e SD

BIP

once

fund

ing

allo

catio

ns h

ave

been

mad

e an

d co

nfirm

ed.

Goa

l 1:A

sta

ble

and

fully

cap

acita

ted

agen

cy to

del

iver

on

its m

anda

te e

ffici

ently

and

effe

ctiv

ely

MG

DS

Pilla

r: A

Wel

l Gov

erne

d C

ity

2016

-202

1 ID

P K

PI: G

ood

Gov

erna

nce

and

Part

icip

atio

n

BC

MD

A St

rate

gic

Obj

ectiv

e: E

ffect

ive

Boa

rd S

ecre

taria

t and

Leg

al s

uppo

rt

Prog

ram

me

/ Pr

ojec

tPe

rfor

man

ceIn

dica

tor

Bas

elin

e (2

015/

16)

Targ

et

(201

6/17

)B

udge

t (2

016/

17)

Cum

ulat

ive

quar

terly

targ

ets

Q1

Q2

Q3

Q4

Boar

d &

boar

d co

mm

ittee

mee

tings

Num

ber o

f boa

rd &

com

mitt

ee m

eetin

gs

orga

nize

d an

d re

cord

ed17

16-

44

44

Boar

d re

solu

tions

Perc

enta

ge im

plem

enta

tion

of b

oard

re

solu

tions

90%

100%

-10

0%10

0%10

0%10

0%

Boar

d se

cret

aria

t fu

nctio

ns a

nd le

gal

supp

ort

Perc

enta

ge o

f boa

rd s

ecre

taria

t fun

ctio

ns

and

lega

l sup

port

mat

ters

dea

lt w

ith a

s pe

r leg

isla

ted

time-

fram

es

100%

100%

-10

0%10

0%10

0%10

0%

Litig

atio

n m

atte

rsPe

rcen

tage

impl

emen

tatio

n of

litig

atio

n m

atte

rs a

ttend

ed to

with

in ti

me-

fram

es10

0%10

0%-

100%

of a

ll le

gal

mat

ters

100%

of a

ll le

gal

mat

ters

100%

of a

ll le

gal

mat

ters

100%

of a

ll le

gal

mat

ters

26


MG

DS

Pilla

r: A

Wel

l Gov

erne

d C

ity

2016

-202

1 ID

P C

lust

er K

PI:

Mun

icip

al F

inan

cial

Via

bilit

y an

d M

anag

emen

t

BC

MD

A St

rate

gic

Obj

ectiv

e: E

quita

ble

and

soun

d co

rpor

ate

gove

rnan

ce

Prog

ram

me

/ Pro

ject

Perf

orm

ance

Indi

cato

rB

asel

ine

(201

5/16

)Ta

rget

(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

s

Q1

Q2

Q3

Q4

Fina

ncia

l M

anag

emen

tPe

rcen

tage

Exp

endi

ture

32%

99%

-22

.5%

22.5

%27

%27

%

Audi

t Pro

cess

esAu

dito

r –G

ener

al A

udit

Opi

nion

Unq

ualif

ied

Audi

t Rep

ort

Unq

ualif

ied

Audi

t Rep

ort

--

Unq

ualif

ied

Audi

t R

epor

tR

isk

Man

agem

ent

& In

tern

al A

udit

Perc

enta

ge Im

plem

enta

tion

of ri

sk

base

d in

tern

al a

udit

plan

Nil

Ris

k Ba

sed

Inte

rnal

Aud

it Pl

an

-Pr

ocur

emen

t of

ser

vice

pr

ovid

er

Dra

fting

of

Inte

rnal

Au

dit P

lan

50%

of p

lan

impl

emen

ted

50%

of p

lan

impl

emen

ted

Audi

t Man

agem

ent

Perc

enta

ge im

plem

enta

tion

of a

udit

reco

mm

enda

tions

from

all

audi

t re

ports

90%

90%

-20

%20

%25

%25

%

MG

DS

Pilla

r: A

wel

l Gov

erne

d C

ity

2016

-202

1 ID

P K

PI:

Mun

icip

al T

rans

form

atio

n &

Org

anis

atio

nal D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e: A

dequ

ate

and

appr

opria

tely

ski

lled

staf

f

Prog

ram

me

/Pr

ojec

tPe

rfor

man

ceIn

dica

tor

Bas

elin

e (2

015/

16)

Targ

et(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

sQ

1Q

2Q

3Q

4Va

canc

y M

anag

emen

tPe

rcen

tage

vac

ancy

rate

on

fund

ed

post

s56

%20

%45

%35

%20

%20

%

Empl

oym

ent E

quity

Perc

enta

ge o

f wom

en42

%50

%50

%50

%50

%50

%Pe

rform

ance

M

anag

emen

tPe

rcen

tage

impl

emen

tatio

n of

PM

DS

Nil

100%

100%

100%

100%

100%

27


MG

DS

Pilla

r: A

Wel

l gov

erne

d C

ity

2016

-202

1 ID

P K

PI:

Mun

icip

al T

rans

form

atio

n an

d O

rgan

isat

iona

l Dev

elop

men

t

BC

MD

A St

rate

gic

Obj

ectiv

e:

Effic

ient

and

effe

ctiv

e in

form

atio

n te

chno

logy

and

kno

wle

dge

man

agem

ent s

ervi

ce

Prog

ram

me

/Pr

ojec

tPe

rfor

man

ceIn

dica

tor

Bas

elin

e (2

015/

16)

Targ

et(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

sQ

1Q

2Q

3Q

4El

ectro

nic

Doc

umen

t M

anag

emen

t Sys

tem

Perc

enta

ge im

plem

enta

tion

of a

W

eb-b

ased

Ele

ctro

nic

Prog

ram

me

Man

agem

ent S

yste

m

Nil

Mas

ter

Syst

ems

Plan

in p

lace

--

-D

raft

Mas

ter

Syst

em p

lan

deve

lope

d an

dpr

esen

ted

to

Exco

Mas

ter

Syst

ems

Plan

ap

prov

ed b

y bo

ard

Perc

enta

ge im

plem

enta

tion

of a

n El

ectro

nic

Doc

umen

t Man

agem

ent

Syst

em

Nil

Busi

ness

Pr

oces

ses

Doc

umen

ted

--

Dra

ft bu

sine

ss

proc

ess

docu

men

t for

al

l age

ncy

proc

esse

s

Appr

oved

Bu

sine

ss

Proc

esse

s D

ocum

ent

-

MG

DS

Pilla

r: A

Wel

l gov

erne

d C

ity

2016

-202

1 ID

P K

PI:

Mun

icip

al T

rans

form

atio

nan

d O

rgan

isat

iona

l Dev

elop

men

t

BC

MD

A St

rate

gic

Obj

ectiv

e: E

ffect

ive

bran

d m

anag

emen

t & c

omm

unic

atio

n

Prog

ram

me

/Pr

ojec

tPe

rfor

man

ceIn

dica

tor

Bas

elin

e (2

015/

16)

Targ

et(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

sQ

1Q

2Q

3Q

4M

arke

ting

& C

omm

unic

atio

nsPe

rcen

tage

impl

emen

tatio

n of

the

mar

ketin

g st

rate

gyM

arke

ting

stra

tegy

de

velo

ped

& Im

plem

ente

d

-D

raft

mar

ketin

g st

rate

gy

deve

lope

d

Appr

oved

m

arke

ting

stra

tegy

10 %

of

prog

ram

mes

in

mar

ketin

g st

rate

gy

impl

emen

ted

28


Goa

l 2: I

mpr

oved

num

ber o

f tou

rists

and

tour

ism

spe

nd in

Buf

falo

City

MG

DS

Pilla

r: In

nova

tive

& P

rodu

ctiv

e C

ity

2016

-202

1 ID

P K

PI:

Loca

l Eco

nom

ic D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e:

Tour

ism

opp

ortu

nitie

s ex

ploi

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in h

igh

valu

e pr

oduc

ts

Prog

ram

me

/Pr

ojec

tPe

rfor

man

ceIn

dica

tor

Bas

elin

e (2

015/

16)

Targ

et(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

sQ

1Q

2Q

3Q

4To

uris

t Attr

actio

n Ac

tivity

Num

ber o

f tou

rist

attra

ctio

n ac

tiviti

es

impl

emen

ted

01

-1

–H

ost a

w

eeke

nd

long

tour

ist

attra

ctio

n fe

stiv

al

--

-

Leac

hes

Beac

h &

Wat

er W

orld

Perc

enta

ge d

evel

opm

ent

of th

e W

ater

wor

ld a

s a

leis

ure

tour

ist s

ite

Appr

oved

W

est B

ank

LSD

F

20 %

(Des

igns

de

velo

ped

and

appr

oved

)

Dev

elop

men

t &

appr

oval

of

the

deve

lopm

ent

mod

el

Sour

cing

of

deve

lopm

ent

partn

ers

Partn

ersh

ip

agre

emen

t si

gned

Des

igns

de

velo

ped

and

appr

oved

29


Goa

l 3: E

ffici

ent,

prod

uctiv

e an

d su

stai

nabl

e m

anag

emen

t of l

and

and

build

ings

MG

DS

Pilla

r: A

Spa

tially

Tra

nsfo

rmed

City

2016

-202

1 ID

P K

PI:

Loca

l Eco

nom

ic D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e:

Inne

r City

Gen

erat

ion

Prog

ram

me

/ Pr

ojec

tPe

rfor

man

ce

Indi

cato

rB

asel

ine

(201

5/16

)Ta

rget

(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

s

Q1

Q2

Q3

Q4

City

Im

prov

emen

t D

istri

cts

Num

ber o

f City

Im

prov

emen

t D

istri

cts

esta

blis

hed

01

-Pr

ocur

emen

t of a

C

omm

unity

Fa

cilit

ator

Com

mun

ity

Con

sulta

tions

Com

mun

ity

Con

sulta

tions

&

draf

t CID

pr

ogra

mm

e

1 C

ID

esta

blis

hed

and

appr

oved

Slee

per S

itePe

rcen

tage

de

velo

pmen

t of t

he

Slee

per S

ite

LSD

F Ap

prov

edPa

rtner

ship

ag

reem

ent

sign

ed

-D

evel

opm

ent &

ap

prov

al o

f the

de

velo

pmen

t m

odel

Sour

cing

of

deve

lopm

ent p

artn

ers

& si

gnin

g of

pa

rtner

ship

ag

reem

ent

Des

igns

dev

elop

ed

and

appr

oved

Site

occ

upat

ion

& pr

elim

inar

y ac

tiviti

es

30


MG

DS

Pilla

r: In

nova

tive

& P

rodu

ctiv

e C

ity

2016

-202

1 ID

P K

PI:

Loca

l Eco

nom

ic D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e:

A w

ell-d

evel

oped

bea

ch fr

ont

Prog

ram

me

/ Pr

ojec

tPe

rfor

man

ce

Indi

cato

rB

asel

ine

(201

5/16

)Ta

rget

(2

016/

17)

Bud

get

(201

6/17

)C

umul

ativ

e qu

arte

rly ta

rget

s

Q1

Q2

Q3

Q4

Mar

ina

Gle

n A

Perc

enta

ge

deve

lopm

ent o

f M

arin

a G

len

Site

Appr

oved

Be

ach

Fron

t LS

DF

Non

e-

--

--

Cou

rt C

resc

ent

Perc

enta

ge

deve

lopm

ent o

f th

e C

ourt

Cre

scen

t site

Appr

oved

Be

ach

Fron

t LS

DF

Non

e-

--

--

Sea

view

Te

rrace

Pe

rcen

tage

de

velo

pmen

t of

the

Seav

iew

Ter

race

si

te

Appr

oved

Be

ach

Fron

t LS

DF

10 %

-Pa

rtner

ship

ag

reem

ent

sign

ed

-D

evel

opm

ent &

ap

prov

al o

f the

de

velo

pmen

t m

odel

Sour

cing

of

deve

lopm

ent

partn

ers

Partn

ersh

ip

agre

emen

t si

gned

Dev

elop

men

t &

appr

oval

of t

he

deve

lopm

ent m

odel

an

d de

sign

sH

eroe

s Pa

rkPe

rcen

tage

de

velo

pmen

t of

the

Her

oes

Park

site

Appr

oved

Be

ach

Fron

t LS

DF

Des

igns

and

op

erat

iona

l pl

an a

ppro

ved

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evel

opm

ent &

ap

prov

al o

f the

de

velo

pmen

t m

odel

Proc

urem

ent o

f se

rvic

e pr

ovid

ers

Dra

ft de

sign

s an

d op

erat

iona

l pl

an in

pla

ce

Appr

oved

des

igns

an

d op

erat

iona

l pla

n

31


Goa

l 4: I

mpr

oved

soc

io-e

cono

mic

ben

efits

with

in B

uffa

lo C

ity

MG

DS

Pilla

r: A

gre

en C

ity

2016

-202

1 ID

P K

PI:

Loca

l Eco

nom

ic D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e: E

ffect

ive

open

spa

ce m

anag

emen

t

Prog

ram

me

/ Pr

ojec

tPe

rfor

man

ce In

dica

tor

Bas

elin

e(2

015/

16)

Targ

et

(201

6/17

)B

udge

t (2

016/

17)

Cum

ulat

ive

quar

terly

targ

ets

Q1

Q2

Q3

Q4

Eco-

Park

sN

umbe

r of e

co-p

arks

de

velo

ped

and

mai

ntai

ned

Appr

oved

Be

ach

Fron

t LS

DF

1-

Agre

emen

t with

BC

MM

of t

he

spec

ific

park

&

Sour

cing

of

fund

ing

Busi

ness

Pla

n in

pla

ceIm

plem

enta

tion

com

men

ced

1 pa

rk 9

0 %

co

mpl

ete

MG

DS

Pilla

r: A

gre

en C

ity

2016

-202

1 ID

P K

PI:

Loca

l Eco

nom

ic D

evel

opm

ent

BC

MD

A St

rate

gic

Obj

ectiv

e: J

ob C

reat

ion

Prog

ram

me

/ Pr

ojec

tPe

rfor

man

ce In

dica

tor

Bas

elin

e(2

015/

16)

Targ

et

(201

6/17

)B

udge

t (2

016/

17)

Cum

ulat

ive

quar

terly

targ

ets

Q1

Q2

Q3

Q4

Gre

enes

t M

unic

ipal

ity

Com

petit

ion

Proj

ect

Num

ber o

f Ful

ltim

e Eq

uiva

lent

(FTE

) Job

s cr

eate

d

Con

tract

with

D

epar

tmen

t of

Envi

ronm

enta

l Af

fairs

40R

2.5

mD

evel

opm

ent a

nd

appr

oval

of

busi

ness

pla

n

40-

-

32


12. Financial Considerations

12.1 Financial Resources Mobilisation Approach

BCMDA’s finances are structured in terms of development (capital) financing and operating (non-

capital) financing. In this regard it is anticipated that in the MTERF period the BCMM will fully fund

the operational budget of the BCMDA. Therefore the funding mechanism of the BCMDA is a follows:

a. Sources of BCMDA operating budget:

• An operating transfer received from the City to accommodate BMCDA’s non-development

based operations

• A 5-8 % development management fee on all projects including on the capital projects of the

BCMM.

• The NDPG does not make allowance for a development management fee, but will hopefully

allow BCMDA to recover the equivalent of one salary per project per year at a rate in 2016 of

R920 000 per project.

b. Sources of BCMDA development-based capital budgets:

• The BCMM (in respect of City-defined developments)

• Intergovernmental grants from other spheres of government including the National

Treasury.

• Other innovative (both public and private) options defined in respect of specific development

initiatives.

Even though the intention might be that, at one point BMCDA becomes financially self-sustainable

such that the development management fees cover all operating expenses. This is dependent on the

quantum of developments offered by the BCMM to BCMDA to implement, as there is a direct

correlation between the size of capital project budgets managed and fees earned. Given the current

public finance environment, where capital budgets are declining, it may be unlikely that the BCMDA

will achieve capital budget allocations to completely fund operations through development fees. There

is therefore a need for the city to continue to fund BCMDA operations even though it may be

substantially lower than 100% over time.

33


12.2 BCMDA Budget 2016/17 – 2020/21

Item Description Budget (Rand)

2016/17 2017/18 2018/19

Revenue 18 384 639 21 953 083 24 454 468

Interest Received 68 900 73 034 77 416

Operational Grant 18 115 739 19 401 957 20 708 898

Management Fees 200 000 0 0

Other Revenue 0 2 478 092 3 668 154

Expenditure 18 384 639 21 953 083 24 544 468

Remuneration of employees 12 225 335 15 806 900 18 205 640

Directors Fees 566 040 600 000 636 002

Depreciation & Impairment 393 399 393 399 393 399

Other Expenditure 5 192 365 5 145284 5 301 927

Finance charges 7 500 7 500 7 500

Net Surplus/Deficit 0 0 0

12.2.2 Capital budget

No capital budget was allowed by the parent municipality, at the time of budgeting. However, this

issue will be resolved during adjustment estimates.

13. Risk management

The BCMDA Board monitors risk through the Project Development and Investment Committee. The

Committee is responsible for evaluating development proposals with a view to making

recommendations for approval to the Board. This entails examining risks associated with the

proposed projects such as the risk financing, risk returns and risk profiles. Further, and primarily, the

Committee bears accountability for ensuring that, there is an effective risk management process and

system within the organisation. This approach does not relieve the BCMDA Board of its accountability

and responsibility in ensuring that, an adequate and effective risk management system and process

is in place, as the Board is expected to exercise the duty of care, skill, and diligence identifying,

assessing and monitoring risks as presented by the Project Development and Investment Committee.

It recommends to the Board risk strategies and policies that need to be set, implemented and

monitored.The BCMDA reviews its risk assessment on an annual basis.

The BCMDA has developed and is implementing a risk policy. The Board through its sub-committee

takes overall responsibility for risk in the BCMDA. Risk registers are in place to monitor risks on an

on-going basis. A Risk & Internal Audit Manager has been appointed to manage, consolidate and

34


monitor the systems and processes. Once approved by the board the risk and internal audit plans are

submitted to the BCMM Audit Committee for approval and monitoring of implementation thereof. The

Agency has identified the following key strategic risks over the next five years:

Table 2: Key Risks & Mitigation

# Risk Risk Description Mitigating Action

1 Inadequate programme and capital budget to fund the development initiatives

Lack of funding to undertake the development initiatives

Development of a fund raising and investment strategy

2 Lack of bulk infrastructure to support development

Budget misalignment leading to inadequate funding for bulk infrastructure to support development initiatives

Service Delivery Agreement between BCMM and BCMDA

3 Limited demand of BCMDA Services

Lack of understanding of BCMDA services and thereby limited demand for their services

BCMDA Marketing Strategy

4 Delay in planning approval process

Delays in the municipal approval processes leading to the withdrawal of potential funders or developers

Service Delivery Agreement between BCMM and BCMDA

5 Sustainability of the BCMDA Financial sustainability and Organisational sustainability arising from expectations and organisational growth

Diversifying funding streams

Growth plan and business model

6 Changes in political leadership and misunderstanding of the strategic plan of BCMDA

Changes in political leadership may lead to a misunderstanding of the mandate of the BCMDA and its strategic plan

Service Delivery Agreement between BCMM and BCMDA and continuous engagements with the parent municipality

7 Inadequate appropriately qualified personnel

In ability to attract appropriately qualified personnel due to perceived political leadership instability of the parent municipality

BCMDA Marketing Strategy

35


Notes

36

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