WB - Austria Urban Partnership Program

Phase II

February 10, 2015 Vienna, Austria

Sabine Palmreuther Sr. Operations Officer Catherine Farvacque-Vitkovic Lead Urban Specialist World Bank

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

Strengthening Local Government Capacity in SEE: WB - Austria UPP

Where We Work 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

Strengthening Local Government Capacity in South-East Europe

Content

E-learning

• Global curriculum: World Bank e-Institute • Regional/local Partners: NALAS, LGAs

E-Institute Wholesale partners

DIALOGUES

City to City Dialogues

• Municipal finances • Urban planning & land management

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

Strengthening Capacities of Local Governments in SEE How it all comes together

WB urban curriculum: With an Edge…

URBAN PLANNING AND

LAND MANAGEMENT PUBLIC SAFETY AND

RESILIENCY

EFFICIENT & INCLUSIVE

SERVICE DELIVERY

MUNICIPAL FINANCE

AND GOVERNANCE

*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

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

MFSA Objectives

MFSA 2011-2013

Date Title Activities

December 2011

Budapest, Hungary

Improving Municipal

revenues

Presentation of the MFSA’s objectives and

methodology

May 2012

Mavrovo, Macedonia

Modernizing Local Public

Expenditure Management

Sharing of the MFSA preliminary findings

June 2012

Tirana, Albania

Modernizing Legal and

Regulatory Framework for

Urban Planning in SEE

November 2012 Budva,

Montenegro

Guided Urban Development:

Reconciling Public and

Private Interests

Group discussion on the link between municipal

finance and urban development

January 2013

Vienna, Austria

Towards Greater

Transparency and

Accountability: A Mayor’s

Dialogue

Group discussion on the link between municipal

finance and urban development

June 2013

Dubrovnik, Croatia

From Local Government Self-

Assessment to

Implementation

Group discussions on investment budgeting.

December 2013

Skopje, Macedonia

From MFSA to Municipal

Investment Programming

Discussion about the link between Urban Audit

and MFSA

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

MFSA Outcomes

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

Step 3: Financial position

Assess:

• Ability to generate

growth savings and

operating surplus

• To promote Capital

Investment effort

• To strengthen Credit

worthiness

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 ?)

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.

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.

MFSA Brochure

Integration of MFSA and UA

Urban Audit

Urban Audit Framework

Urban Audit – Regional context

Urban Audit – Urban setting and Organization of the City

Urban Audit – Urban setting and Organization of the City

Urban Audit – Urban setting and Organization of the City

Urban Audit – Urban setting and Organization of the City

Urban Audit – Population trends and projections

Urban Audit – Urban Economy

Urban Audit – Urban Services (Infrastructure)

Urban Audit

Table 7 - Municipal Assets

Urban Audit – Urban Servises (ISPI tables)

Urban Audit – Urban Services (ISPI as database)

Urban Audit – Deficiencies and Needs

Urban Audit – Proposed projects presentation

Urban Audit – Criteria selection and validation

• 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.

UPP II: Strengthening Local Government Capacity in South-East Europe Areas of Focus

Thank you!

For more information: www.seecities.eu

tnikolic@worldbank.org