By Nangamso Mabindla
14 June 2004

AN indication of the municipality's determination to make optimum use of its budget, Buffalo City's capital budget for 2004/05 presented by the executive mayor Sindisile Maclean on 10 June was the first to be aligned with the municipality's Integrated Development Plan (IDP).

Commenting on the achievement, Luvuyo Mosana, the councillor responsible for IDP, Budget Policy and Performance Management said now that the capital expenditure portion of the current financial year's R1.6-million budget had been aligned, the next target was to link the operational budget to the IDP.

"It took us some three years to be able to align the capital budget; now our next target will be to align the more difficult operational budget," he said.

According to Mosana, this was a major achievement for the municipality as Buffalo City produced its first IDP since the integration of the former East London TLC, King William's Town and Bisho.

Mosana added that one of the main reasons for the successful alignment was due to the municipality taking the IDP to the people for review. The review process helped ensure that Buffalo City Municipality's IDP was implementable and that the municipality would make the best use of its limited resources.

"The review process also strengthened the legitimacy of our budget. We were able to listen to people's concerns; from there we knew what was in our people's minds. Now we will have to deliver on those concerns," he said.

The different departments were also going to use the IDP as a scorecard to monitor their progress in project implementation and smooth service delivery. "People have told us their deepest concern; now the onus is on us to deliver on those concerns."

Another unique feature of the IDP was that it was the first Gamap (Generally Accepted Municipal Accounting Practice)-compliant budget. Chief financial officer Brian Shepherd said: "It is another milestone reached by the city; we adhere to the accepted municipal accounting practices."

Maclean commended the IDP-Budget team for producing the first Gamap-complaint budget, following a R64-million shortfall five months ago. He added that the municipality was one of the most financially balanced municipalities in the country.

In light of this success, the municipality was determined to face its next challenge. "We are putting structures in place to align the operational budget with the IDP; when we do that we will have a satisfactory IDP/Budget alignment this time next year," said Mosana.