WB - Austria Urban Partnership Program Phase II
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1 WB - Austria Urban Partnership Program Phase II Sabine Palmreuther Sr. Operations Officer Catherine Farvacque-Vitkovic Lead Urban Specialist World Bank February 10, 2015 Vienna, Austria
2 Strengthening Local Government Capacity in South-East Europe Professionalization of LG officials Practical tools for city leaders Addressing the Demand Priority issues identified and vetted with clients and partners - Municipal finance - Urban planning and land management - Municipal service delivery (i.e. SWM) - Urban governance/anti-corruption - Social Accountability
3 Strengthening Local Government Capacity in SEE: WB - Austria UPP Where We Work in South-East Europe
4 Strengthening Local Government Capacity in South-East Europe OVERARCHING GOAL More livable and sustainable cities in South East Europe that provide a high quality of life for the citizens OBJECTIVES Support cities and local governments in South East Europe in a process of modernization and reform, in order to promote local development for inclusive and sustainable growth, and enhanced urban governance Foster effective, responsive and participatory city owned strategies to address problems of corruption, urban land development, and revenue management Supporting commitment of municipal champions to find innovative solutions to transform their cities Support urban development towards greater accountability and transparency of local governments in meeting citizen demands for services
5 Strengthening Capacities of Local Governments in SEE How it all comes together E-learning Global curriculum: World Bank e-institute Regional/local Partners: NALAS, LGAs City to City Dialogues Municipal finances Urban planning & land management E-Institute Content Wholesale partners In depth engagement LGs engage in self-assessments (by using different tools), and use the information for benchmarking/ monitoring, and public dialogue with citizens Anti-corruption capacity building Social Accountability Initiative Coalition building DIALOGUES
6 WB urban curriculum: With an Edge URBAN PLANNING AND LAND MANAGEMENT MUNICIPAL FINANCE AND GOVERNANCE EFFICIENT & INCLUSIVE SERVICE DELIVERY PUBLIC SAFETY AND RESILIENCY *Sustainable Urban Land Use Planning *City Mapping for Municipal Management *Municipal Finances: A Learning Program for Local Govts *City Leadership for Mayors *Municipal Self- Assessments *Upgrading Informal Settlements *Water Utility Reform *Integrated Urban Transport Planning *Urban Crime and Violence Prevention *Introduction to Disaster Risk Management *Safe and Resilient Cities E-learning curriculum delivered under the World Bank s E-Institute offered to a number of local government officials and urban practitioners in SEE (i.e. Sustainable Urban Land Use Planning, City Mapping for Municipal Management, Municipal Finances) Partner organizations instrumental in disseminating information about the learning programs and mobilizing a critical mass of participants, a key ingredient for sustainability NALAS and LGAs translating and customizing e-learning curriculum to local languages, to serve as wholesalers in SEE
7 MFSA Objectives Accountability - to promote financial self-assessment as part of the change management process of local administration Transparency - to help LG share information with other LGs, and to inform central government, LG Association and citizens about their situation (open data) Prioritization - to encourage municipal financial and technical departments (asset management, urban planning, strategic planning, mayor s office) to work together on strategic and capital investment planning anchored in financial realism Efficiency - to monitor and act on a set of key actions aiming at improving mobilization of local resources, rationalization public expenditures and improving financial management practices Access to external funding - to share common methodologies and international indicators and facilitate negotiations with banking institutions and external donors
8 MFSA Date Title Activities December 2011 Budapest, Hungary Improving Municipal revenues Presentation of the MFSA s objectives and methodology May 2012 Mavrovo, Macedonia June 2012 Tirana, Albania November 2012 Budva, Montenegro January 2013 Vienna, Austria June 2013 Dubrovnik, Croatia December 2013 Skopje, Macedonia Modernizing Local Public Expenditure Management Modernizing Legal and Regulatory Framework for Urban Planning in SEE Guided Urban Development: Reconciling Public and Private Interests Towards Greater Transparency and Accountability: A Mayor s Dialogue From Local Government Self- Assessment to Implementation From MFSA to Municipal Investment Programming Sharing of the MFSA preliminary findings Group discussion on the link between municipal finance and urban development Group discussion on the link between municipal finance and urban development Group discussions on investment budgeting. Discussion about the link between Urban Audit and MFSA
9 MFSA Outcomes 25 Cities/Municipalities of the Region actively contributed to the experience (ranging from small municipalities to capital cities) 15 Cities/Municipalities successfully prepared Financial Improvement Plan based on MFSA 13 Cities/Municipalities presented their data profiles in MFSA brochure More municipalities are ready to engage
10
11 Summarize through key data the institutional/administrative situation of the city, its demo-eco position and the main urban development issues Step 1: Provide your City profile
12 Step 3: Financial position Assess: Ability to generate growth savings and operating surplus To promote Capital Investment effort To strengthen Credit worthiness
13 Step 5: Performance measurement through Ratio analysis Stock ratios Credit worthiness Indebtedness Fiscal autonomy Capital investment effort Level of services etc. Flow ratio: Margin ratio Comparison ratios: based on revenues and expenditures items Benchmarks: To base on country specificities (national database?)
14 Step 6: Financial projections The 5Y financial projections are performed with the objective to measure impact of decisions on finance capacity and credit worthiness The main condition is to start with reliable and relevant historical data and formalize through assumptions the impact of policy decisions (expenses, borrowing, tax pressure, etc. ) Usually, several assumptions and scenarios are tested : past trends projections and projections on the basis of significant changes.
15 Step 8: Municipal Finance Improvement Plan The objective is to translate lessons learnt from the different steps of the MFSA into a few actions to be implemented by the municipality to improve its financial situation and its financial management. Actions that are not under full control of LGs can be mentioned if they are part of State reforms currently under discussion or if they are included in the current agenda of National Associations of Local Governments.
16 MFSA Brochure
17 Integration of MFSA and UA
18 Urban Audit
19 Urban Audit Framework
20 Urban Audit Regional context
21 Urban Audit Urban setting and Organization of the City
22 Urban Audit Urban setting and Organization of the City
23 Urban Audit Urban setting and Organization of the City
24 Urban Audit Urban setting and Organization of the City
25 Urban Audit Population trends and projections
26 Urban Audit Urban Economy
27 Urban Audit Urban Services (Infrastructure)
28 Urban Audit Table 7 - Municipal Assets
29 Urban Audit Urban Servises (ISPI tables)
30 Urban Audit Urban Services (ISPI as database)
31 Urban Audit Deficiencies and Needs
32 Urban Audit Proposed projects presentation
33 Urban Audit Criteria selection and validation
34
35 UPP II: Strengthening Local Government Capacity in South-East Europe Areas of Focus Integrate Municipal Finances Self-Assessment (MFSA); Land Use and Urban Planning Self-Assessment (UPSA); Urban Audit (UA); Social Audit (SA): Municipal Programs Investments+ capacity building Response to Flooding crisis: (1) exposure to fundamentals of DRM (e-course); (2) CoP on urban floods; (3) Local resilience Diagnostics. Foster central-local government dialogue for improved policy making: strengthen the dialogue between local governments, national associations of local authorities, and ministries.
36 Thank you! For more information:
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