Bilbao:Political Management based on Economic Stringency and Strategic Budgets

Municipality of BilbaoPopulation: 354.860 Per capita GDP: € 26.225

Metropolitan Bilbao Population: 953.152 Per capita GDP: € 32.924

Home to around half the population and economic activity of the Basque Country…

Basque countryPopulation: 2.172.175Per capita GDP: € 32.133

Álava

GipuzkoaBizkaia

Bilbao

Third City with best reputation in Spain…

The study identifies the best cities to live, work, visit, study

and do business.

A City that has reinvented itself…

Renovation of the City: Major investments in infrastructures…

An internationally recognized model

Bilbao is also an exemplary city that continually re-invents and evolves itself amidst dynamic changes, and serves as an inspiration to cities worldwide. The experience of Bilbao as a comprehensive "city project", incrementally executed through 25 urban projects over 25 years, has achieved a profound transformation of the city.

As a result of this extraordinary transformation, the model of urban, economic and sustainable revitalization of the City of Bilbao has been internationally recognized, as shown by its selection to participate in the Urban Best Practices Area at the Shanghai Expo 2010 and the reception of the Lee Kuan Yew World City Prize in recognition of its integrated and holistic approach in urban transformation.

THE PROJECT

2003 - 2011 1 Billion Euro investment

Zero Debt (as for April 2011)

Different phases in its political management ….

Structure and Team

Control of Resources

Planning

Implementation

Benefits

Re-definition

Benefits from a dual perspective: social and corporate….

2009: Less indebted City in Spain…

2011: the only large municipality at a national level that is DEBT-FREE…

2010: 20% reduce of the debt…

Project objectives

Design and steer a project for the future of Bilbao…

GENERAL OBJECTIVE

Manage the available resources effectively and transparently in conjunction with the citizens in response to their needs.

Strategic Planning Monitoring / Control Transparency

Zero Borrowing

1 2

5

3

Governance Plan 2007-2011

Strategic Budgets

Control Table and Indicator System

Efficiency and Austerity Plan

Citizen Participation4

Resources and Budget

Governance Plan 2007-2011

Monitoring of the Governance Plan

(2007 and 2008)

191.983 €

33.879 € 225.862 €TOTAL

Total budget…

Implementation of the project

Transfer of Political Objectives to Specific Action Plans, with their

respective Monitoring Indicators.

Transfer of Strategic Objectives for the Term of Office into Budgetary Commitments

Governance Plan 2007-2011 Strategic Budgets

Two tools for the strategic planning…

….

Mayor's Office

Urban Development

Traditional Structure

Culture Economy and

Finance

….

Budgets

Mayor's Office

Urban Development

Structure with Strategic Budgets

CultureEconomy

and Finance

Budgets

….

Establishment of Strategic budgets…

Implementation of a monitor and control system…

Governance Plan Indicators: STRATEGIC POINT 1: BASIC QUALITY SERVICES

Objective 1 – Street cleaning and Waste Management

City of Bilbao’s Civic Council

Neighbourhood Urban Observatory

Promoting the ICTs

Participation in the event organized by the International Transparency Foundation in 2008, 2009 and 2010

High level of transparency…MUNICIPAL TRANSPARENCY

2010 2009

Madrid 91,3 91,3Barcelona 88,8 90,0Valencia 38,8 43,8Sevilla 82,5 93,8Zaragoza 66,3 83,8Málaga 95,0 68,8Murcia 66,3 85,0Palma de Mallorca 91,3 53,8Las Palmas de G.C. 81,3 65,0Bilbao 100,0 97,5Alicante 57,5 73,8Córdoba 73,8 81,3Valladolid 65,0 70,0

AVERAGE 70,2 64,0

PUNCTUATION

GLOBAL ASSESSMENT

CITY

Area of Participation and District Councils.

Sectoral Councils.

Special plans for specific neighborhoods.

Sectoral participation through specific instruments.

Citizen´s participation…

Sustainability of the project

A long-term strategy…

FutureBudgetary

incomeAdjustment

policies

Municipal borrowing

Austerity and efficiency policies

Abandoibarra

Zorrozaurre

University in the San Mamés District

Green Belt

San Mamés Berria

Intermodal Station

Development of new projects…

Results

Bilbao City Council’s positive economic-financial situation

ZERO DEBT1

POSITIVE CITIZEN PERCEPTION OF MUNICIPAL

MANAGEMENT AND THE FUTURE OF BILBAO

Completion of emblematic projects for the city2

3 Increase in municipal transparency

Project results…

ZERO DEBT (As of April 2011)

Positive economic – financial scenario in 2011…

A success achived thanks to the committment aquired by all the Political staff and citizens…

Next steps

An ongoing project…

5,35 % reduction

Continue with a Zero Debt

Budget for 2012

Its last recognition:EPSA 2011 “European Public Service Awards”On November 17, 2011 the City of Bilbao was awarded with the European Public Service Award –EPSA 2011 in the theme Smart Public Service Delivery in a Cold Economic Climate, for its project on “Political Management based on Economic Stringency and Strategic Budgets”. The EPSA awards, recognize best practices at European level in the field of modernization of the public administrations.

Showcasing and Rewarding European Public Excellence www.epsa2011.eu©

Evaluation Summary Notes - EPSA2011108

www.epsa2011.eu©

Strengths of Project (I)

High innovation in the establishment of a governance plan and a strategic budget. This project links public service development and delivery to regeneration in an exciting and practical manner. It is bold example of political leadership focused on place to secure objectives and benefits for a city using the resources of a range of agencies. This should be an average step of planning and management but in implementation it is seldom found.

This project addresses Public Concerns on key topical issues which are pressing across Europe and especially in major urban areas that face the impact of global economic changes. Managing budget without debts (even more - pay debts back) is probably the topic number 1 on the agenda of European Public organisations. This project provides an example of this being achieved.

www.epsa2011.eu©

Strengths of Project (II)

All aspects and activities described in the project (strategies, budgetary policy, projects) support the sustainability of this project. There are plans for the next stages of the project which are driven by evidenced based analysis and engagement.

Objectives have been attained, proven impact and results are measurable and impressive. Results have been presented in a traceable and manifold way. Municipal debts erased by March 2011 and recreational area increased from 27 to 134 hectares.

High learning capacity is given as this comprehensive programme shows results and covers the main areas of municipal life. This project and the approach which underpins it would be applicable to many other cities. The principles, strategies and actions would be usefully adopted by others.

www.epsa2011.eu©

International EPSA 2011 Knowledge-Transfer Conference:

“Cities of Excellence in the Public Sector” The Innovation Front with their

New Practices and FormulasBilbao (ES) 4-5 June 2012