CITY CORPORATE CUM BUSINESS PLAN
FINAL REPORT
DEVAKOTTAI MUNCIPALITY August, 2008
Sponsored by
Tamil Nadu Urban Infrastructure Financial Services Limited
Government of Tamil Nadu
Consultants FICHTNER Consulting Engineers (India) Private Ltd. Chennai – 600 028
CONTENTS
I ABBREVIATIONS AND ACRONYMS II EXECUTIVE SUMMARY Page No 1 CONTEXT, CONCEPT AND CONTENTS OF CCCBP 1 1.1 Context of the Study 1 1.2 Objectives 1 1.3 Review meeting for Draft Final Reports 2
2 TOWN PROFILE, PHYSICAL PLANNING AND GROWTH MANAGEMENT 5 2.1 Regional Setting 5 2.2 Physical Features 5 2.3 Climate and Rainfall 5 2.4 History of the municipality 5 2.5 Demographic Features 6 2.5.1 Population and its growth 6 2.5.2 Population projection 6 2.5.3 Sex ratio and Literacy Rate 7 2.5.4 Density pattern 7 2.6 Occupational Pattern 7 2.7 Physical Planning and Growth Management 8 2.7.1 Land use and growth management 8 2.7.2 Growth Direction 9 2.7.3 Land Use Pattern 10
3 VISION AND STRATEGY 11 3.1 Stakeholders Workshop and Vision Statement 11 3.2 SWOT Analysis 12 3.3 Vision for Devakottai Town 12 3.4 Strategies for Economic Development 12 3.5 Urban Infrastructure 15 3.5.1 Vision 15 3.6 Performance and demand Assessment 16 3.7 Stratefies for Poverty Reduction and Slum Upgradation 18 3.8 Income Generation Activities 19
4 ORGANIZATIONAL STRUCTURE 21 4.1 Elected Body 21 4.2 Executive Body 21 4.2.1 General Administration 22 4.2.2 Engineering Department 22 4.2.3 Accounts Department 22 4.2.4 Public Health Department 23 4.2.5 Town Planning Department 23 4.3 Staff Strength Position and Vacancy Position 23 4.4 Issues In Human Resource 26 4.5 Organization Management 27 5 PHYSICAL & SOCIAL INFRASTRUCTURE 28 5.1 Physical Infrastructure 28 5.1.1 Water supply 28 5.1.2 Sewerage 33 5.1.3 Storm Water Drains 33 5.1.4 Improvement of Water Bodies 34 5.1.5 Solid Waste Management 34 5.1.6 Roads 37 5.1.7 Bus Stand 39 5.1.8 Bus Shelter 40 5.1.9 streetLights 41 5.2 Social Infrastructure 43 5.2.1 Slum Improvement 43 5.2.2 Medicare 45 5.2.3 Education 46 5.2.4 Parks and Play Fields 47 5.2.5 Public Convenience 48 5.2.6 Burial Ground / Crematorium 49 5.2.7 Market 49 5.2.8 Slaughter House 51 5.2.9 Urban Greenery 51 5.3 Other Projects 52 5.3.1 E - Governance 52 5.3.2 Remunerative Projects 53 5.3.3 Constuction of Municipal Buildings 54 5.3.4 Constuction of New Municipal Office Buildings 54 5.3.5 Updation of Database on GIS Platform 54 5.4 Proposals To Be Implemented By other Agencies 55
6 MUNICIPAL FINANCE 56 6.1 Introduction 56 6.2 Receipts 56 6.2.1 Property Tax 56 6.2.2 Profession Tax 58 6.2.3 Assigned Revenues 59 6.2.4 Revenue Devolution Funds in aid of revenue expenditure 59 6.2.5 Water Charges 60 6.2.6 Drainage Charges 62 6.2.7 Service Charges & Fees 62 6.2.8 Income from Properties & Other Income 62 6.3 Expenditure 63 6.3.1 Establishment Expenses 63 6.3.2 O&M Expenses – Water Supply 64 6.3.3 O&M Expenses – Street Lights & Others 64 6.3.4 Administration & Other Expenses 65 6.4 Summary of Finances 65 6.5 Key Financial Indicators 68 6.5.1 Resource Mobilisation Indicators 68 6.5.2 Fund Application Indicators 69 6.5.3 Liability Management Indicators 69 6.5.4 Overall Financial Performance Indicators 70 6.5.5 Efficiency Indicators 70
7 ACTION PLAN & POLICY INTERVENTIONS 72 7.1 Action Plan 72 7.1.1 Water Supply 73 7.1.2 Under Ground Sewerage 75 7.1.3 Solid Waste Management 77 7.1.4 Roads 79 7.1.5 Remunerative Project - PPP model 80 7.1.6 Implementation Stratery - Urban Governance 81 7.2 Capacity Building Programmes 82 7.2.1 Training to elected representatives 84 7.2.2 Training to ULB officers and Staff 84 7.3 Policy Interventions 87 7.3.1 Policy interventions at State level 89 7.3.2 Proposed reforms at Municipal level 91
8 CAPITAL INVESTMENT PLAN AND FINANCIAL SUSTAINABILITY 96 8.1 Capital Investment Plan 96 8.2 Other Projects and On Going Peojects 98 8.3 Means of Finance 98 8.4 Financial Sustainability 103 8.5 Bais c Assumption for Projections 104 8.5.1 Income 105 8.5.2 Expenditure 110 8.5.3 Collections 112 8.5.4 Annuity Factor 112 8.6 Project cash Flows and and FOP Results 113 8.7 Impact of Potential Improvements 121 8.8 Estimation of Borrowing and Investment Capacity 122 8.9 Key Indicators 123 8.10 Investment capacity without financial Reforms 123
9 ASSETS MANAGEMENT PLAN 125 9.1 Land and Building Assets 125 9.2 Infrastructure Assets 126 9.2.1 Water Supply 126 9.2.2 Other Assets 127 9.3 Asset Management In the Local Body Land Asset 127 9.4 Management Options 129 9.5 Proposed New assets 130
10 PUBLIC CONSULTATION MEETING 132 TABLES 2.1 Population Growth - 1951-2001 6 2.2 Comparative statement of projected population 7 2.3 Sex Ratio - 1971-2001 7 2.4 Occupational Pattern – Devakottai 2001 8 2.5 Existing land use 1991 – Devakottai 9 3.1 SWOT Analysis 12 3.2 Sector wise vision for Infrastructure Services 15 3.3 Performance Indicators for key Municipal Services 17 4.1 Staff Strength Position 23 4.2 Staff Strength Position – Section Wise 25 4.3 Additional Staff Required 26 5.1 Details of Existing OHTs 29 5.2 Details of Existing Bore wells 29 5.3 Estimated population and Water Supply Demand-2038 30 5.4 Water supply improvement proposal under UIDSSMT 31 5.5 Proposals- Water supply 31 5.6 Proposal – Solid Waste Management 37 5.7 Proposals – Improvement of Roads 39 5.8 Proposals - Road side furnitures 39 5.9 Proposals - Improvements in Bus stand 40 5.10 Salient features of Retro fit tube lights 42 5.11 Comparison of conventional tube lights with retrofit lights 42 5.12 Proposal – Street lights 43 5.13 Slum details 43 5.14 Existing facilities in slums 44 5.15 Slum improvement proposals 45 5.16 Proposed projects - Medicare 46 5.17 Proposed improvements in Daily market 50 5.18 Proposed improvements in Weekly market 51 5.19 Proposed Remunerative projects 54 5.20 Other project proposals 54 5.21 Proposals to be implemented by other Agencies 55 6.1 Property Tax Components 56 6.2 Property Tax Assessments 57 6.3 Property Tax Growth during last 6 years 57 6.4 Property Tax – Demand Collection % 57 6.5 Profession Tax – Growth during last 6 years 58 6.6 Profession Tax – Demand Collection % 58 6.7 Assigned Revenue – Growth & % of Total Income 59 6.8 Devolution Fund – Growth & % of Total Income 60 6.9 Water Tariff & Deposit 60 6.10 House Service Connections 60 6.11 Water Charges – Growth & % of Total Income 61 6.12 Water Connection Charges – Growth & % of Total Income 61 6.13 Water Charges – Demand Collection % 61 6.14 Service Charges & Fees – Growth & % of Total Income 62 6.15 Income from Properties & Other Income Total Income % of 62 6.16 Non Tax Income – Demand Collection % (Rs. in lacs) 63 6.17 Establishment Expenses – Growth & % of Total Expenditure 64 6.18 O&M Expenses (Water Supply) – Growth & % of Total Expenditure 64 6.19 O&M Expenses (Street Lights & Others) – Growth & % of Total Expt 65 6.20 Administration Expenses – Growth & % of Total Expenditure 65 6.21 Summary of Finances for last 6 years 65 6.22 Head-wise Income & Expenditure for last 6 years 66 6.23 Status of Borrowings as on 31.3.2007 (Rs. in lacs) 67 6.24 Status of Contributions & Grants 67 6.25 Resource Mobilisation Indicators 69 6.26 Fund Application Indicators 69 6.27 Liability Management Indicators 69 6.28 Financial Performance Indicators 70 6.29 Efficiency Indicators 71 7.1 Action plan for the proposed Water supply improvement scheme 73 7.2 Time line and Implementation strategy for Water Supply improvement project 74 7.3 Action plan for the proposed UGSS 75 7.4 Time line and Implementation strategy for UGSS project 76 7.5 Action plan for Solid Waste Management 77 7.6 Time line and Implementation strategy for SWM. 78 7.7 Action plan for Roads 79 7.8 Action plan for Commercial Complex and additional stalls in Market 80 7.9 Regional Technical Cell – Team of Specialists 81 7.10 Municipality - Departments and functions 83 7.11 Training for ULB staff 84 7.12 Reform Agenda for Mandatory Reforms –Devakottai Municipality 88 7.13 Reform agenda – Municipal Service Delivery 95 8.1 Projects to be Executed by Municipality 96 8.2 Projects to be carried out by Other Departments 98 8.3 Projects under Implementation by Municipality 98 8.4 Multi Year Investment Plan and Means of Finance 99 8.5 Consolidated Means of Finance 103 8.6 Property Tax Assumptions 104 8.7 Water supply Charges - Existing 106 8.8 House Service Connections - Percentage 106 8.9 Sewerage – Assumptions in collection of deposits 107 8.10 Sewerage – Deposits and Tariff 107 8.11 Bus stand - Assumptions 108 8.12 Market - Assumptions 109 8.13 Increase in Expenditure - Assumptions 110 8.14 Additional Operation and Maintenance charges 110 8.15 Provision of doubtful debts 112 8.16 Target assumed for tax collection 112 8.17 Annuity factor for new loans 113 8.18 Consolidated Income & Expenditure for next 20 years (up to FY 2028-29) 114 8.19 Consolidated Balance Sheet for next 20 years (up to FY 2028 – 29) 116 8.20 Summary of Borrowing and Investment Capacity 122 8.21 Key indicators based on Financial projections 123 8.22 Summary of Borrowing and Investment Capacity 124 9.1 Assets in Devakottai Municipality- Land and Building 125 9.2 Water supply asset details 126 9.3 Other assets 127 9.4 Proposed Use – Land Asset 128 9.5 New Assets for the year - 2009-10 to 2013-2014 130 10.1 Suggestions at Stakeholder Consultation Meeting 134
FIGURES 2.1 Regional Setting Map- Devakottai 5a 2.2 Town Map - Devakottai 5b 2.3 Population Growth 1971-2001 6 2.4 Occupational Pattern - 2001 8 2.5 Existing Land Use Pattern 9 2.6 Growth direction 9 4.1 Status of Municipal staff strength 24 4.2 Organizational structure of Bodinayakanu Municipality 24 7.1 Regional Technical Cell 82 7.2 Organogram of PPP Cell 90
ANNEXURES 1 Minutes of Meeting 2 Population Projection - Devakottai Municipality 3 Municipal Finance 4 Finance Operating Plan 5 Environment and Social Risk Assessment 6 Depreciation Statement 7 Draft Memorandum of Agreement 8 SFC Recommendations - Profession Tax 9 Consultative Process Meeting Abbreviation and Acronyms
ANM : Auxiliary Nurse Midwife BOT : Build, Operate and Transfer BPL : Below Poverty Line BSUP : Basic Services for Urban Poor CAA : Constitution Amendment Act CAGR : Compounded Annual Growth Rate CC : Cement Concrete CCP : City Corporate Plan CBED : Community Based Energy Development CDP : City Development Plan CFC : Central Finance Commission CIP : Capital Investment Plan CPHEEO : Central Public Health & Environmental Engineering Organization CPM : Consultative Process Meeting D&O : Dangerous and Offensive Trade DFR : Draft Final Report DPR : Detailed Project Report EAR : Environmental Assessment Report ECR : East Coast Road ESF : Environmental and Social Framework ETRP : Emergency Tsunami Reconstruction Project FY : Financial Year FOP : Financial Operating Plan GLR : Ground Level Reservoir G.S.T Road : Grand South Trunk Road Gm : Grams GoTN : Government of Tamil Nadu Ha : Hectares HP : Horse Power HSC : House Service Connection IHSDP : Integrated Housing & Slum Development Programme IPT : Intermediate Public Transport ISP : Integrated Sanitation program IUDP : Integrated Urban Development Project JNNURM : Jawaharlal Nehru National Urban Renewal Mission Kg : Kilogram Km : Kilometer LAP : Local Assistance Programme LCS : Low Cost Sanitation Ll : Lakh Litres LPA : Local Planning Area Lpcd : Liters Per Capital per day M : Metres MIAM : Municipal Infrastructure Asset Management ML : Million Litres MLD : Million Litres per day MSW : Municipal Solid Waste NGO : Non Governmental Organisation NH : National Highway Nos : Numbers OHT : Over Head Tank O&M : Operation and Maintenance PAP : Project Affected Persons PHC : Primary Health Center PPI : Pulse Polio Immunization PPP : Public Private Partnership PWD : Public Works Department SFC : State Finance Commission SH : State Highway SHG : Self Help Group Sq.km : Square Kilometers SST : Summer Storage Tank STP : Sewage Treatment Plant SWM : Solid Waste Management TEAP : Tsunami Emergency Assistance Project TNEB : Tamil Nadu Electricity Board TNRDC : Tamil Nadu Road Development Corporation TNSCB : Tamil Nadu Slum Clearance Board TNUDP : Tamil Nadu Urban Development Project TNUIFSL : Tamil Nadu Urban Infrastructure Financial Service Limited TPD : Tonnes Per Day TUFIDCO : Tamil Nadu Urban Finance and Infrastructure Development Corporation TWAD : Tamil Nadu Water Supply and Drainage Board UA : Urban Area UGD : Under Ground Drainage UIDSSMT : Urban Infrastructure Development Scheme for Small & Medium Towns ULB : Urban Local Body VAMBAY : Valmiki Ambedkar Awas Yojana WBM : Water Bound Macadem WSP : Waste Stabilization Pond WTP : Water Treatment Plant EXECUTIVE SUMMARY
DEVAKOTTAI MUNICIPALITY- CITY CORPORATE CUM BUSINESS PLAN
The objectives of preparation of City Corporate cum Business Plan (CCCBP) for ULBs are:
i. To assess the present status of infrastructure facilities available in the ULB and to suggest a comprehensive infrastructure plan with capital investment plan to meet the future needs. ii. To outline issues in revenue realization in the ULB and suggest measures for revenue enhancement & financial improvement in the ULB. iii. In consultations with stake holders and Council, suggest Action Plan and FOP to implement the infrastructure plan.
Town Profile and Growth Potential
Devakottai is a first grade municipal town situated in Sivaganga District. It is located on Pudukkottai- Devipattinam Road (NH-210). The town extends over an area of 12.42 sq.km holding a population of 40,497 (2001). The town is a service centre, to the surrounding 300 villages. Tertiary workers constituted 93% of the total work force in the town.
PHYSICAL INFRASTRUCTURE
Water Supply:
The source for water supply is the bore wells located within the municipal limits and the municipality supplies water daily at the rate of 83 lpcd. Old and damaged distribution line, low pressure in elevated areas, absence of distribution line in the extension areas of the town are some of the issues in the water supply system. For improvement of water supply, replacement of damaged distribution lines, construction of additional ground level sumps and OHTS, installation of new submersible pump sets are proposed at a cost of Rs.480.00 lakhs
Sewerage:
The town does not have an UGSS. Disposal of Sewage is usually by way of individual facility (Septic Tank) and the sullage is discharged through the open drains. The TWAD Board has taken up the preparation of DPR for the UGSS. The estimated cost for the UGSS will be Rs 3845.00 lakhs.
Storm Water Drains
The length of the storm water drain is 131.38 km against 95.68 km length of roads. To improve the existing situation, it is proposed to provide pucca covered drains along the existing roads and streets
i Devakottai at a cost of the Rs.225.00 lakhs. Besides, it is proposed to rehabilitate 19 Ooranies at a cost Rs.190.00 lakhs to improve the ground water level in the town.
Solid Waste Management
It is estimated that the town generates 15 MT of solid waste of which about 90% is collected every day. The main issue in Solid Waste Management (SWM) is non availability of site for compost yard. The Municipality has applied to the District Administration and TNPCB for NOC to use the land in Amaravathi Pudur for compost yard.
Inadequate infrastructure facilities, outmoded vehicles, low service level and absence of compost yard are the issues in SWM. Purchase of tricycle, Dumper placer with bins and development of compost yard are the proposal of the ULB to improve the present situation. The total estimated cost in Rs. 71.25 lakhs
Roads and Bridges
The municipality maintains 95.69 km length of roads, besides the Highways. BT roads constitute 63%, followed by earthen road 32% of the total network. Conversion of BT roads in to CC road (10 km), Conversion of earthen road in to B.T (30 km) and relaying of roads (60km) are proposed at a cost of Rs.501 lakhs. Further, the improvement of the existing bus stand is also proposed at a cost of Rs.75.00 lakhs.
Street Light
Of the total street lights (2235), 93.5% are tube lights and the rest are sodium vapour lamps. The provision of additional energy saver lights, sodium vapour lamps is proposed at a cost of Rs. 48.00 lakhs.
SOCIAL INFRASTRUCTURE:
Slum Improvement:
On slum improvement, the Municipality under IHSDP has proposed provision of basic amenities in 12 slums of the town at a cost of Rs.303.00 lakhs.
Medicare
The towns do not have a maternity centre. The Municipality has proposed construction of a maternity center at a cost of Rs.30.00 lakhs.
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Education
The Municipality maintains 4 elementary schools, 2 middle schools and one high school. The Municipality proposes improvements to educational institutions at a cost of Rs.50.00 lakhs
The improvement of parks, play grounds, daily market and other projects are proposed at a cost of Rs.242.50 lakhs
E-Governance
It is proposed to provide touch screens and computers at the cost of Rs. 7.00 lakhs.
Remunerative Projects
Towards remunerative projects, the municipality proposed construction of commercial complex, fish and mutton stalls at a cost of Rs.75.00 lakhs, Construction of new municipal office at a cost of Rs.60.00 lakhs and construction of staff Quarters and Traveler Bungalow at a cost of Rs.65.00 lakhs.
Municipal Finance
The total income of the municipality has increased from Rs.286.79 lakhs to Rs.472.25 lakhs during 2002-03 to 2006-07 and the total expenditure incurred is Rs.301.40 lakhs to 354.51 lakhs during the above period. it is observed that the Municipality has incurred surplus over the last 4 years, which is a very positive sign. But the surplus is more on account of assigned revenue and grants. Therefore the Municipality needs to undertake lot of fiscal reforms and full leverage of its assets over the next few years to improve its financial strength.
Capital Investment and Priority Projects In consultation with the stakeholders of the town and based on their vision statement, the priority projects with capital investment are given below.
Multi Year Investment Plan Total Year 1 Year 2 Year 3 Year 4 Year 5 S.No. Particulars (Rs. in lakhs) Physical Infrastructure 1 Water Supply 480.00 480.00 2 Sewerage 3845.00 745.00 1438.00 1662.00 3 Strom Water Drains 225.00 75.00 75.00 75.00 4 Water Bodies 190.00 60.00 65.00 65.00 5 Solid Waste Management 71.25 21.25 25.00 25.00
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6 Roads 514.00 30.00 30.00 113.00 170.00 171.00 7 Bus Stand 75.00 15.00 35.00 25.00 8 Bus Shelters 37.50 10.00 10.00 17.50 9 Street Lights 68.00 25.00 43.00 Social Infrastructure 10 Slum Improvement 303.00 100.00 100.00 103.00 11 Medicare 30.00 15.00 15.00 12 Education 50.00 50.00 13 Parks & Playgrounds 87.00 30.00 30.00 27.00 14 Public Convenience 20.00 20.00 15 Burial Ground / Crematorium 60.00 30.00 30.00 16 Market 93.00 43.00 50.00 18 Urban Greenery 2.50 1.25 1.25 Other Projects 19 E-Governance 7.00 7.00 20 Remunerative Projects Construction of Commercial Complex 60.00 60.00 Construction of Fish, Mutton & Chicken Stalls 25.00 25.00 21 Construction of Travelers Bungalow 20.00 20.00 Construction of Municipal Office Building 60.00 60.00 22 Updation of Database 45.00 45.00 23 Mobile Tax Collection Vehicle 8.00 8.00 Total 6436.25 1569.25 1826.00 2228.00 351.25 461.75
Reform Agenda The proposed municipal reforms are broadly classified under the heads of: 1. Reforms in Taxation • Assessing unassessed and under assessed properties • Implementation of Property tax revision 2. Reforms in resource mobilization • Implementing metered water supply connections • Pre-mobilization of deposits for the proposed UGSS project • Implementing graded tariff for UGSS • Implementation of Conservancy fee for SWM for hotels, marriage halls, industries and other commercial establishments • Pre-mobilization of deposit to meet capital cost of the commercial complex 3. Reforms in Privatisation of Municipal functions
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• Privatisation of Collection mechanism through private operators and SHGs • Privatisation of O & M of water supply system, O & M of the Sewer network & STP • Privatisation of door to door collection of solid waste in all wards • Privatisation of Compost yard management and produce of compost • Regularisation of parking areas & advertisement boards and collection of fees through private agencies and SHGs • Privatisation of O & M of street lights 4. Reforms in Audit and Accounting • Timely auditing of accounts - August 30th of next fiscal year • Appointing a private Chartered Accountant as consultant • Publishing audited statement in municipal website - September 30th of next fiscal year 5. Regular and mandatory capacity buildings sessions for elected representatives & municipal officials
FOP, Borrowing Capacity and Investment Capacity The borrowing capacity is based on the Income and expenditure projections including debt severing of existing loans as of financial year 2007. The summary of borrowing and investment capacity of the Devakottai Municipality is as follows Borrowing capacity (BC) Rs. 1422.29 lakhs Investment capacity (BC/0.50) (IC) Rs. 3386.89 lakhs Investment Requirement (IR) Rs. 6436.25 lakhs Sustainable investment Capacity = 53%
Assuming loans to be equivalent to 42% of investment, sustainable investment capacity works out to Rs. 3386.89 lakhs, which is about 53% of the total investment requirement. Based on the above, loans for the Municipality should be at the minimum level as the financials of the municipality are fragile. Loans for Remunerative projects like water supply and sewerage should be kept at the minimum level based on debt servicing capacity. The balance part of remunerative projects should be funded by way of grants. Devakottai municipality should leverage and utilize Grants from schemes like UIDSSMT and IHSDP to undertake all non-remunerative projects relating to roads, storm water drains, slum development, canal desilting etc. Devakottai should also consider involvement of private sector in implementing remunerative projects.
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
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CONTEXT, CONCEPT AND CONTENTS OF CCCBP
1.1 Context of the Study
The Government of India has received a loan equivalent to US $300 millions from the World Bank towards the cost of Third Tamil Nadu Urban Development Project (TNUDP III) which comprises, in turn a number of components including preparation of City Corporate cum Business Plans for eligible urban centres in Tamil Nadu. The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) of Tamil Nadu Urban Development Fund (TNUDF) is a financial intermediary which, interalia intends to assist select urban centres in strengthening and improving their resource positions for effective Capital Investment Management and delivery of urban services. TNUIFSL has identified urban local bodies which have good potential for implementation of such financial reforms immediately, and for such towns, TNUIFSL considered it essential to formulate City Corporate cum Business Plans (CCCBP). Incidentally, such urban local bodies had recently prepared the Vision Plans which encompass projects that were felt necessary, and it is broadly required now to assess the need and feasibility of these projects and while updating them, prepare Capital Investment Plan on a sustainable mode.
1.2 Objectives
The objectives of the study include: • Defining the directions of growth and up gradation of services relevant to economic activities and development. • Examination of the need for the projects identified by the Urban Local Bodies, and assessment of the demand in terms of gaps either as deficiency or as excess. • Studying the status of essential urban infrastructural services and outlining broadly the needs. • Defining specific rehabilitation and capital improvement needs of infrastructural facilities and services in all parts of the urban areas including slums. • Analysis of improvement techniques and methods to enhance the local bodies’ resource positions and improve the management system that would sustain the proposed rehabilitation programmes.
1 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
• Identification of reforms required in administration and service delivery system of the urban local body. • Studying improvements / changes required in the ULB setup to improve the O&M of assets. • Identifying measures to address overall growth measures including service needs in a sustainable mode.
1.3 Review meeting for Inception Reports
On submission of the Draft Final Report (Stage-III), the review meeting was held at TNUIFSL, T,Nagar, Chennai on 18.6.08 for Cluster II covering Periyakulam, Chinnamanur, Cumbum, Bodinayakanur, Usilampatti, Melur, Tirumangalam, Paramakudi, Devakottai, Aranthangi Municipalities. The minutes of the meeting and the consultants reply are given below:
2 City Corporate cum Business Plan Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
The consultants were asked to: Points raised in the minutes of meeting Reply / Remarks 1. According to the recent order by CMA, deposits and tariffs should be increased by The suggestions have been considered and applied to the FOP projections- 15% once in 3 years. Hence, the consultants were requested to consider the same in We have assumed increase @ 15% once in every 5 years in the financial the FOP. projections for property tax, profession tax, water and sewerage charges. This is based on the discussions we had in your office at the various meetings. 2. Rate of Taxation is proposed to be increased in all the towns and the expected The rate of taxation has been analyzed and updated for all the 10 towns - increase is in the range of 25% to 40%. Hence, it was informed to the consultants that 25% increase assumed in all towns based on Govt. notification. Besides in a gradual revision of tax from 25% in the first year, 30% in the second year, 35% in the certain municipalities with very low property tax rates we have third year and 40% in the fourth year and thereafter may be considered for the assumed further increase based on suggestion by RDMA in the meeting. purpose of FOP projections. 3. Maternity centers were suggested by the consultant in towns and it was clarified by Maternity homes in lieu of maternity centres have been suggested for RDMA that Maternity centers would be handled by maternity assistants and Maternity Paramakudi. homes will be handled by maternity doctors. Hence, the consultants were asked to study and suggest maternity homes wherever required. 4. The consultants were asked to revise the project cost with the latest figures available The project costs, project status have been updated after discussions with the with the ULB preferably with the current schedule of rates. respective Municipalities. 5. The consultants had considered improved scenario for preparation of FOP The two scenarios as suggested have been worked out and furnished in projections. In this regard, it was discussed that the consultants may give the base Chapter-8.The improvement in sustainability of projects due the proposed scenario as well in the report and indicate the improvements to the FOP between the reforms are given in percentage basis . two due to implementation of reforms suggested. 6. Wherever funds are tied up for projects, the consultants were asked to incorporate the The means of Finance for sanctioned projects have been incorporated means of finance in the FOP based on sanctions. accordingly. 7. It was discussed that UGSS projects may be considered only after implementation of Since done. Refer Chapter-7 Table 8.2 Multiyear Investment Plan. WS scheme and the consultants were asked to revise the priorities accordingly. 8. It was discussed that CWSS will be taken up by TWAD for implementation on a The suggestions have been considered and proposed accordingly for the parallel basis and hence the consultants were requested to consider CWSS projects respective towns. simultaneously in respective towns The points raised during the last meeting but not addressed by the consultants in the report are as follows: 9. Including 24 X 7 water supply proposal for Periyakulam municipality as water is The feasibility of the proposals was analysed by the Infrastructure specialist available in adequate. and the recommendations have been incorporated in the Draft Final and the Final Reports. 10. Including risk assessment and mitigation plan in the report specific to the town. Project specific, town specific risks and mitigation measures for key projects included in the Draft Final and the Final Reports.Refer Chapter-7. 11. Identifying and suggesting more improvements to Paramakudi municipality as plenty The list of ULB owned lands from Schedule -1 have been identified and of lands are available in the municipality unlike other municipalities. projects wherever feasible have been suggested and incorporated in the Draft Final and Final reports. Refer Chapter -9.
3 City Corporate cum Business Plan Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
Road map for City Corporate cum Business Plan Stage I Stage II Stage III Stage IV Inception Report Interim Report Draft Final Report Final Report
Town reconnaissance and Consultations and Finalization of Adoption by Council Data collection. Analysis CIP and FOP Modules : Modules : Modules : Modules: - Demand Assessment - Strategic Plan, - Policy interventions - Council Resolution - Rapid Urban Assessment - CIP and - Technical Assistance - MoA - Priority asset - Draft MoA management - FOP - Project risk, ESR Deliverables Deliverables Deliverables Deliverables 9 weeks 18 weeks 23 weeks 24 weeks
Present Stage
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TOWN PROFILE, PHYSICAL PLANNING AND GROWTH MANAGEMENT
2.1 REGIONAL SETTING
Devakottai Town is located in Sivagangai District. It lies 103 km east of Madurai and 120 Km North of Tiruchirappalli. The town is geographically located at 78º40’ east latitude and 9º37’ north longitude. The main roads radiating from the town lead to Karaikudi and Pudukkottai on the north and Ramanathapuram on the south. The regional setting of the town and the town map is shown in Fig 2.1 and 2.2
2.2 PHYSICAL FEATURES
The town is situated on the banks of the river Virusuliyar Devakottai Municipality is a Grade I Municipality with 27 administrative wards having an area of 12.42 sq.km. The major group of soil found in the town is black (10%) and red (90%). The under ground water table varies from 12m to 20m.
2.3 CLIMATE AND RAINFALL
The maximum temperature during summer is 39º c and minimum during winter is 20º c. The town gets major rainfall during the southwest monsoon period. The average annual rainfall received in the town is 770mm.
2.4 HISTORY OF THE TOWN/ MUNICIPALITY
Devakottai is the principal residence of Nattukottai Chettiars. The Tamil meaning of Devakottai was ‘Devi’ Goddess and ‘fort’ kottai. Devakottai was constituted in the year 1937 and subsequently upgraded as Grade I Municipality from 1998 (vide Govt., 85, M.A., & W.S., Department dated: 22.5.98).
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2.5 DEMOGRAPHIC FEATURES 2.5.1 Population and its growth The population of Devakottai Municipality has increased from 28,974 to 35,684 during 1971-81 and to 38128 in 1991. The population of the town as per 2001 census is 40497. Table 2.1 Population growth 1971-2001 Year Population Decadal Percentage Variation Variation 1971 28974 3450 - 1981 35684 6710 23.16 1991 38128 2444 6.85 2001 40497 2369 6.21 Source: Census of India 1971-2001
Fig.2.3 shows the variation in the population in the town during past 4 decades.
45000 40000 40497 35000 38128 35684 30000 25000 28974 20000 15000 10000 5000 0 1971 1981 1991 2001
Fig.2.3 Population Growth 1971-2001 2.5.2 Population projection Based on the growth rate for the past few decades, the future population of the town has been projected using various methods and are tabulated as below:
1. Projection by Arithmetical Increase Method 2. Projection by Geometric Increase Method
3. Projection by Incremental Increase Method
4. Method of least square ______
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Table 2.2 Comparative statement of projected population Sl. no. Method Projected Population for 2009 2024 2039 1 Arithmetical Increase 43570 49331 55093 2 Geometrical increase 43715 50452 58229 4 Method of Least Square 45021 51021 57021 Source: Analysis and calculations After a detailed analysis and comparison of each method, Method of least Square is found to be suitable and the population projections are based on the same. The details are given in Annexure-2. Therefore the projected population for Devakottai town is:
1. Base year 2009 - 45021 2. Intermediate year 2024 - 51021 3. Ultimate year 2039 - 57021
2.5.3 Sex ratio and literacy rate Table 2.3 gives the sex ratio of the town from 1971 onwards. It can be seen that the sex ratio of the town has been stable during the past decades. The literacy rate in the town is 78.3%.
Table 2.3 Sex Ratio - 1971-2001 Year Males Females Sex Ratio 1971 14300 14674 1026 1981 17904 17780 993 1991 19010 19118 1006 2001 19910 20587 1034 Source: Census of India 1971-2001 2.5.4 Density pattern The town has recorded an overall population density of 33 people per hectare for the year 2001. Maximum density occurs in the central area of the town and decreases towards the peripheral areas of the town.
2.6 OCCUPATIONAL PATTERN The economic base of the town is mainly of trading and allied activities. This town serves as a large commercial centre to its surrounding 300 villages. About 93% of working population is involved in tertiary activities according to 2001 census. ______
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The work force in the town constitutes 28% of the total population. The major work force is involved in the tertiary sector i.e., trade and commerce. The occupational pattern of the town is given in the table 2.4 below:
Table 2.4 Occupational Pattern – Devakottai 2001
Category of Workers % to total % to Main Total Population work force Total Workers 11365 28.06 Main Workers 10509 25.95 100 Cultivators 291 0.72 2.77 Agricultural labourers 229 0.57 2.18 Workers in household industries 223 0.55 2.12 Other Workers 9766 24.12 92.93 Marginal Workers 856 2.11 Non Workers 29132 71.94 Source: Census of India 2001
Primary Secondary 5% 2%
Tertiary 93%
Figure 2.4 Occupation pattern - 2001
2.7 PHYSICAL PLANNING AND GROWTH MANAGEMENT 2.7.1 Land use and growth management A survey of existing land use of Devakottai town was conducted during the year 1991. The break up of different land uses are presented in table 2.5
______
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Table 2.5 Existing land use 1991 – Devakottai Existing - 1991 S. N Name of use Extent in Hect % to developed area % to total area 1 Residential 470.280 70.82 36.25 2 Commercial 12.643 2.00 1.02 3 Industrial 4.984 0.78 0.40 4 Educational 38.658 5.76 2.95 5 Public and Semi Public 35.216 5.54 2.84 6 Roads 98.027 15.10 7.73 Total Developed area 639.808 100.00 51.19 7 Agriculture Wet 223.626 - 18.81 Dry 24.018 - 1.93 8 Vacant 244.737 - 19.71 9 Water bodies 109.811 - 8.36 1242.00 - 100 Source: Survey conducted by the office of the Deputy Director of Town and Country Planning, Sivanganga.
Residential 15% 6% Commercial 6% Industrial 2% Educational 1% 70% Public and Semi Public
Roads
Figure 2.5 Existing Land use pattern
2.7.2 GROWTH DIRECTION
The economic base of the town is mainly trading, agriculture and allied activities. This town serves as a commercial centre to its surrounding 300 villages. The major commercial and institutional developments are along the Thirupatthur road and Kandadevi road. The future growth directions are along the Thirupathur road and Kandadevi road. Figure 2.6 Growth direction ______
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2.7.3 LAND USE PATTERN
1. Commercial The area occupied by this use is 12.643 hectare which accounts for 2.0% of the developed area. Commercial use is mainly concentrated in the Southern part of Thirupathur road. The major economic activities of Devakottai town are trade and commerce.
2. Industrial Industrial use accounts to 0.78% of the developed area of the town. No large scale industry is existing in Devakottai town.
3. Education There are 8 primary schools, 13 middle schools, 4 High/higher secondary schools and one college in the town,accounting for 6% of the total developed area of the town.
4. Transportation The important roads radiating from the town are leading to Karaikudi and Pudukkottai on the North and Ramanathapuram on the south. The major road network of the town comprises of the following roads. i. Madurai - Devakottai road, ii. Sarugani - Devakottai road, iii. Devakottai – Devapattinam road, iv. Vattanam road.
The urban stretches of the above roads are maintained by the State Highway Department. Traffic congestion is seen in the central commercial part of the town. Traffic congestion are due to inadequate width of carriage way by illegal parking of vehicles, loading and unloading operation by commercial establishments, encroachments by shopkeepers and vendors.
The important road junctions within the town are 1. Tirupattur road - Elavankottai road (Ram Nagar) 2. Tirupattur road - Collage road 3. Thiyagigal road - Tirupattur road 4. Tirupattur road - Vattanam road ______
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3 VISION AND STRATEGY
3.1 Stakeholders Workshop and Vision Statement
The City Corporate Plan is a tool which adapts a corporate approach in planning and implementing projects in a participatory mechanism involving users, elected councilors, line agencies, private organizations, NGOs and CBOs. In this process, residents of various sections of the communities in the town were enquired into at random during reconnaissance survey and visits to all the sites of the projects identified by the Municipality and also otherwise suggested by the elders.
The broad purpose of stakeholders participation is to involve the stakeholders in the development plan for the city. The Vision Statement has been firmed up based on the feed backs received from the stake holders and expert survey of the municipal services for the perspective year of 2030.
The analysis and findings of the study are primarily based on secondary data collected from respective departments and during the course of the study, data gaps if any were supplemented through primary survey.
A detailed analysis to find out the existing status of each admissible sector, cross-referring the norms and standards, demand and gaps based on present and future service requirements is done. A SWOT analysis was done based on the data collected on the resources and consultation with the stake holders in the following section. Accordingly, interventions are suggested.
3.2 SWOT analysis
A SWOT (Strength, weakness, opportunities and threats) analysis illustrates the Stakeholders perception and the consultants’ analysis of the town. A brief SWOT analysis for Devakottai town is given below:
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Table 3.1 SWOT analysis
STRENGTH WEAKNESS
Strategic location and well connected with the nearby Lack of civic awareness on heritage and urban centers conservation
Important center for trade for nearby villages / towns Insufficient storm water drains Nearby Karaikudi 'The capital of Chettinad' Lack of parking space Virtual museum for heritage buildings Inadequacy and poor quality of roads Unique historicity and Old chettinad mansions Absence of Rail connectivity Presence of Water bodies Absence of heritage management OPPORTUNITIES THREATS Improving linkages to the town through railway Water logging in and around the town after heavy network rain. Effort to prepare heritage development plan Increase in out migration force Effort to enhance city landscape and recreational spaces Link roads are in bad shape Developing a tourist circuit connecting places of Traditional houses in the town under risk of tourist interest which will involve development of demolition by their owners due to high related infrastructure maintenance/repair required for the buildings The local crafts are a great opportunity for attracting businesses and shoppers. Threat to natural water bodies
3.3 VISION FOR DEVAKOTTAI TOWN Devakottai, located in Sivagangai district is 103 kms east of Madurai. Devakottai town is a traditional town of Nagarathar community, situated on the Pudukottai-Devipattinam Highway. It functions as a service center to cater to the needs of the surrounding village in the area. The vision for the town is “to achieve improved service levels and better quality of life for the citizens, to project Devakottai as tourism/heritage town with grandiose residences, temples and tanks”.
3.4 STRATEGIES FOR ECONOMIC DEVELOPMENT Devakottai town, being the principal residence of Nattukottai Chettiars, offers significant heritage and tourism potential. These heritage structures particularly chettinad houses can be seen in Karaikudi, Devakottai, Kanadukathan, Kothamangalam, Kuliparai and Pillayarpatti. The most famous Chettinad ______12 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______mansions in Devakottai is the Periya Minor's Veedu completed with Spanish tiled roof, Italian floor tiles and carved teak pillars. The Sri Meenakshi Sundareswarar Temple in Devakottai is famous for the 108 statues of Vinayakar.
To make use of the potentials in the town, the following actions need to be taken. 1. Capitalize on the tourism potential of the town The town should be developed as a tourist centre considering the potential in and around the town. The following activities can be included in the tourism package.
• Accommodations – The existing Nagarathar houses remain unoccupied most of the year and can be converted to national and inter national tourist accommodations. This would generate economy to the owners and provide employment opportunities to the local population.
• Heritage walk – The objective of the walk was to motivate citizens of Devakottai and other local and international tourists to walk and experience the heritage fortune. A one day circuit covering Chettinad houses, temples and tanks by walk. It is also necessary to establish tourism circuit in the region. Refer Places of interest given below. This heritage walk will help to achieve: • Developing ownership of City. • Better appreciation of culture and heritage. • Better Cleanliness & Hygiene Standards. • To develop the Tourism Industry to increase the employment.
• To increase the arrival & stay of tourists in Devakottai. • To identify various walk routes to promote tourism. •• To encourage public & private participation in Social Sector.
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• Heritage centre - Establishment of Heritage centre to show case and communicate the culture, arts and lifestyles of the chettinad.
• Chettinad cuisine - Chettinad cuisine is one of the spiciest and the most aromatic in India. Concepts of ‘cook and dine’ can form part of the tourism package.
2. Exploit the NRI and RI base for the improvement of the town • Formation of ‘Devakottai Infrastructure Improvement pooled fund’ and ‘Devakottai tourism development fund’. • Returns from the fund base as per market value. • Public private partnership venture for capital works.
Places of interest • "Arulmigu Karpaga Vinayagar" temple, Pillayarpatti is situated 32 km away from Devakottai. • “Sorna Kaleeswarar” Temple, Kalayarkoil is situated 28 km away from Devakottai. • “Arulmigu Shanmuganathar” temple, Kundrakkudi is situated 28 km away from Devakottai. • Kandadevi Temple: The Village Kandadevi is situated 3 km away from Devakottai Town. Here the Temple is called as Arulmigu Sowarna Moortheeswarar alias Siragilinathar. The Amman is called as PeriyaNayaki Amman. This is 350 years old Temple. The Temple is maintained by Sivaganga Devasthanam. It is here Hanuman told to Rama ‘Kanden Deviyai’. Hence this place is called as Kandadevi. • Karaikudi - This town is situated 13 km from Devakottai town known for its magnificent mansions constructed by the Chettiars - a community known as much for their prosperity as their hospitality. • Maruthupandiyar’s memorial - is located in Swedish Mission Hospital Campus, Tirupathur (33 km away from Devakottai) at the area of 414.80 sq.m.
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3.5 URBAN INFRASTRUCTURE
Infrastructure (physical and social) provision brings in social and economic development, particularly for women. Improved infrastructure reduces women’s work burden and gives them more time, increased more home-based economic activity, improved lighting and better road coverage increase mobility and security at night. Infrastructure provision is perceived to have a significant impact on health, reducing incidence of illnesses which are related to an unhygienic living environment. Thus, infrastructure plays an inevitable role in the economic development and social well being of the town.
3.5.1 Sector wise Vision
The sector wise vision for the key infrastructure services are as given in the table below:
Table 3.2 Sector wise vision for infrastructure services Sector Vision statement 1 Water Supply i. To check wastage and misuse of water ii. To generate more revenue for better operation & maintenance of the system and to supplement the capital works, in order to render the delivery of the service self sustaining over a period of time. 2 Sewerage and sanitation i. To provide coverage of the sewerage facilities or LCS measures for slum areas. ii. To maintain high level of environmental hygiene generally in the town and particularly the cleanliness of the water bodies 3 Storm water drainage and i. To improve condition of storm water drains to handle run off water improvement to water and prevent water stagnation. bodies ii. Rejuvenate water bodies and improve recharge of ground water. iii. To provide Rain Water Harvesting to improve the quality and quantity of Ground water. 4 Solid Waste management i. To provide a litter free town for the healthy living of the public. ii. To minimize the O&M expenditure of SWM iii. To involve private organizations to the extent possible
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5 Roads and Streets i. To provide safe, comfortable and speedy circulation network for the residents and traffic. ii. To relieve congestion by adopting a traffic management plan iii. To channelise by-passable traffic through arteries outside the town limit. 6 Street lighting i. To provide sufficient illumination to the town, for safety of the people and to adequately cope with the requirements of traffic. ii. To optimize the use of electricity by adapting energy efficient technology 7 Educational Institutions i. To provide comfortable conducive physical infrastructure and sound environment for the learning process 8 Medicare i. To make quality preventive and curative care available and accessible to the Public. ii. To support people for healthy living and environment.
3.6. PERFORMANCE AND DEMAND ASSESSMENT
To assess the indicators of performance in each sector of infrastructure, the existing levels of key Municipal services is benchmarked against their norms and standards to arrive at performance assessment index .The norms and standards are based on SFC recommendations, Planning Commission recommendations, UDPFI guidelines, CPHEEO manuals, Best practices etc.
The demand assessment for projects is arrived from the Stake holder consultative meetings, discussions with officials, field visits and service analysis. The improvement needs proposed are based on the demand and performance assessments with reference to short term and long term proposals for each sector.
The Performance assessment index for the existing status against the norms and standards for water supply, sewerage, drainage, solid waste, street lighting and social facilities are illustrated in the table below:
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Table: 3.3 Performance Indicators for key Municipal Services Sl Service Indicators Unit Normative Current No Standard Status Performance of Key Water Supply Service Indicators 1 Daily per capita supply Litres 120 83 2 Roads covered with distribution network Percent >100 65 3 Storage Capacity with respect to supply Percent 33 30 4 Property tax assessments covered by service Percent 85 52 connections 5 Proportion of non – domestic service connections Percent >5 2 Performance of Key Sewerage and Sanitation Service Indicators 6 Sewage contribution lpcd 100 66 Performance of Key Storm water Drainage Service Indicators 7 Road length covered with storm water drainage Percent 130 137 Performance of Key Solid Waste Management Service Indicators 8 Estimated waste generation per capita per day Grams 400 350 9 Waste collected as per the estimate of ULB (w.r.t. Percent 100 100 waste generation) Performance of Key Road Service indicators 10 Road density Km/sq.km 10-15 8 11 Per capita road length metres 1.75 0.5 12 Proportion of surfaced roads Percent 100 66.5 Performance of Key Street Lighting Service indicators 13 Spacing between lamp posts Metres 30 42 14 Proportion of (tube lights) w.r.t. total lights Percent 60 94 15 Proportion of high power lights to total lights Percent 40 6 Performance of Key indicators for Slums 16 Proportion of slum population to total city population Percent <10 32 Source: Analysis
From the above table, the gap in each infrastructure service is identified after comparison with the benchmarks and standards. The chapters that follow propose projects needed to ensure efficient delivery of the services.
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3.7 STRATEGIES FOR POVERTY REDUCTION AND SLUM UPGRADATION
Towards Building Successful Slum-Upgrading Strategies
• Youth groups can be very effective. Youth SHGs can be encouraged and made active participants in developmental activities. Unlike Women SHGs, which are formed originally for social empowerment, Youth SHGs can aim at both economic empowerment and social empowerment as the primary focus. The focus can be on skill training for increasing their employability and promotion of economic activities. Group formation: The SHGs can be formed with unemployed youth in the age group of 18 to 35 years. Each group may comprise 10 to 20 members drawn from the below poverty line population.
Youth SHGs can be beneficial in the following ways • To engage the communities in development activities through a dialogue with the active participation of the youth (men and women) with a sense of commitment and integrity
• To equip the youth by building their skills, capacity and capability in managing development, so that, they can help build the capacity of the citizens to manage the affairs of the community on their own.
• Infrastructure provision Infrastructure provision brings indirect social and economic development, particularly for women. Improved infrastructure reduces women’s work burden and gives them more time, increased space allows for more home-based economic activity, and lighting and better road coverage increase mobility and security at night. Infrastructure provision is perceived to have a significant impact on health, reducing incidence of illnesses which are related to an unhygienic living environment.
• Community halls are valuable for project work as well as for private and public social activities, however, halls are prone to capture and maintenance can be a problem. They can
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also be used as location for health camps, balwadis (pre-schools), vocational training and neighborhood committee meetings. They can be used by the community for a variety of occasion such as religious ceremonies, marriages, political meetings etc. conflicts over use and maintenance are common, and control over the hall give some individuals power in the community.
• Balwadis (pre-schools) benefit poor and working families, especially working mothers. If timings of balwadis are appropriate, then they have a positive effect on the lives of working women, freeing them of childcare and giving more time to women to do paid as well as non- paid work.
3.8 INCOME GENERATION ACTIVITIES a. Training can be undertaken in the following areas in all the regions: • Areas of functional capability development as tourist guides, • Skill upgradation of local craftsmen and artisans, • Chettinad metal crafts, handlooms and basket weaving • Chettinad culinary skills and service • Basket weaving and hand-woven technology for women empowerment, • Involvement of the local manpower for collection of house hold waste, vegetable /fruit waste, agro & forestry waste, etc. b. Upliftment of Trade and commerce There should be efforts to build a data base on the following areas in all the regions • Nature of internal trade; • Nature of services of wholesalers to manufactures and retailers; • Nature of retailers; • Nature and classification of the types of retailers; • Nature of forms of small scale and large scale retailers; and
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The following services can be offered to the people, among others for effective trade and commerce in all the regions:- • Identification of products which are produced locally. • Assistance for sourcing of the products and components; • Providing import/export and internal trade data at micro level • Providing on demand up to date information on trade to industries, Importers and Exporters, Chambers of Commerce, government departments, Export Promotion Councils, Embassies etc. • Providing product/process ideas to entrepreneurs based on the information collected through research.
Effective trade and commerce depends on • Empowering the people with socio-economic activities. • Training on management of income generating activities • Technology upgradation in existing industries. • Scientific land management programme for sustainable livelihood. • Reforms in land use planning on water resources, natural resources & sanitation.
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4
ORGANISATIONAL STRUCTURE
The organizational structure of the Devakottai Municipality generally consists of administrative and executive wings. 4.1 ELECTED BODY The Municipal Council, the political wing of the Devakottai Municipality consists of 27 elected councilors. Each Councilor represents one electoral ward. The Councilors in turn elect the Chairperson as head of the Municipal Council.
Administrative wing The administrative wing gives overall guidance to the municipal functions through set of committees. Three committees have been formed namely, Appointment Committee, Contract Committee and Taxation and Appeal committee consisting of the Chairman, the Municipal Commissioner and elected Councilors as members. Appointment Committee is a statutory committee, and the Chairman of the Municipality is also the Chairman of the committee. The Committee is responsible for making appointments for posts which fall under the purview of the Appointing Committee. Contract Committee is another statutory committee and quotation of works up to the value of Rs. 50,000/- is finalized by the Contract Committee. The Taxation Appeal Committee is responsible for hearing of appeals of the tax items.
4.2 EXECUTIVE BODY Executive Wing The executive wing is responsible for the Municipal operations and maintenance. The Commissioner is the administrative head of the executive wing and is supported mainly by 5 department heads in the Municipal operation and maintenance. The organization structure of the Municipality comprises of 5 functional departments namely, 1. General Administration 2. Engineering and Water Supply Department 3. Accounts Department 4. Public Health Department, and 5. Town Planning Department
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4.2.1 General Administration Devakottai Municipality is a First Grade Municipality. The Manager is the head of Administration next to the Commissioner in the section of General Administration, and he is responsible for general supervision and administration of the Office. All establishment matters are dealt by the General Administration Section. Manager Manager is the Head of General Section. His duty includes general supervision of the ministerial staff, and maintenance of discipline in the office premises, ' and to sign receipts for all remittances made in the Municipal Treasury to acknowledge registered tapals, Money orders etc on behalf of the Commissioner. The Manager is the custodian of the cash collected by daily-checking of Chitta and Cash and Petty cash, payment advance etc, and for the administration report by way of Annual Inspection of the office, checking of Personal Registers of all staff and subsidiary registers in respect of all the sections. All papers are routed through the Manager to the commissioner except the Engineering section and the Health section.
All matters relating, to the Establishment including public health, maintenance of Increment & Punishment registers, maintenance of service registers, register of Probationers; maintenance of temporary and permanent post sanction register, Pension & Gratuity for all Establishment Audit Register, issue of Office order, common office order book, maintenance of stock file, maintenance of personal register & audit objection register etc are looked up by the Manager.
4.2.2 Engineering Department The Municipal Engineer is the over-all in-charge of Engineering Section. The Municipal Engineer is controlling the Overseer, Work Inspector, and Road Mazdoor, Water works Superintendent, Wiremen, Helper and Fitter working in the section. The Municipal Engineer looks after the maintenance of roads, street lights, road laying, and construction of building, drainage, maintenance of parks, head works and municipal vehicles. The other subordinate officers are assisting the Engineer to look after the above works.
4.2.3 Accounts Department The Account Section is included in the General Section. The Accountant is the Head of the Wing controlling financial matters. It involves preparation of Budget and looks after the Accrual based Accounting System.
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4.2.4 Public Health Department Sanitary Officer is the overall in-charge of the Health Section. He looks after conservancy, sweeping streets, maintenance of drainage, controlling of epidemic diseases, ensuring of license to D&O trades, Birth and Death Registration and issuing of certificate to birth and death registration. Sanitary Inspector, Sanitary Supervisor and Sanitary Workers are assisting the Sanitary Officer. The Sanitary Officer is held responsible for the solid waste management. Pulse Polio Immunisation camps are conducted every year under the section.
4.2.5 Town Planning Department Town Planning Officer/Inspector is over all in-charge of the section. He looks after the work of preparation of Master Plan, Detailed Development Plan and maintains the land use registers as per the approved zoning uses. He is also responsible for licensing of plan approved, booking of unauthorized construction, approval of lay out plans with in the town limit, controlling and removing the encroachment in the town. The Town Planning Inspector helps in planning the future development of the town and allied works.
4.3 STAFF STRENGTH POSITION AND VACANCY POSITION As of now, there are 19 vacancies in the 150 sanctioned strength of the Municipal office. The vacancies are mostly under the Sanitation section.
Table 4.1 Staff Strength position Sanctioned Working No. of post S. No. Name of the department strength strength Vacant 1 General Section 25 23 2 Municipal Engineering and 2 Water Supply Service 20 13 7 3 Public Health 122 113 9 4 Town Planning 1 1 - 5 Others 1 - 1
Total 169 150 19
Source: Devakottai Municipality records
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Fig 4.1 Status of Municipal staff strength
122 140 113 120 100 80 60 25 20 23 40 13 1 20 1 0 Sanctioned Strength Working Strength
General Engineering Public health Town planning
MUNICIPALITY
Executive Body Elected Body
Commissioner Chairman
GENERAL: Financial ENGINEERING: Water Administration Supply, Road laying Vice Chairman and Budget & Accounts and Street lights
PUBLIC HEALTH: Sanitation, REVENUE: Tax Drainage Public Health, & Non Tax Ward Councilor Birth & death registration Collection
TOWN PLANNING: Planning, Designing and Approval
Fig 4.2 Organisational structure of Devakottai Municipality
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Table 4.2 Staff strength position – Section Wise
S.No Name of the post Sanctioned Working No. of vacant Strength Strength post General Section 1 Manager 1 - 1 2 Accountant 11 - 3 Assistant 3 3 - 4 Junior Assistant 10 10 - 5 Typist 1 1 - 6 Record clerk 1 1 - 7 Revenue Inspector 11 - 8 Revenue Officer - - - 9 Assistant Programmer 1 - 1 10 Watchman - - - 11 Revenue Assistant 6 6 - Total 25 23 2 Engineering Section 1 Municipal Engineer 11 - 2 Overseer 11 - 3 Work Inspector 11 - 4 Turn Cock 2 3 1 5 Electrician Grade - 2 1 1 - 6 Wireman 33 - 7 Fitter 1 - - 8 Helper 3- - 9 Driver 1- 1 10 Office Assistant 3 3 - 11 Wireman Helper 3 - - Total 20 13 2 Public Health Section 1 Office Assistant 1 1 - 2 Sanitary Inspector 33 - 3 Sanitary Supervisor 98 1 4 Field Assistant 1- 1 5 Driver 44 - 6 Maternity Assistant 22 - 7 Maternity Ayah 11 - 8 Cleaner 1 1 - 9 Sanitary Worker 95 90 5 RCPH 10 Pharmasist 1 0 1 11 Watchman 1 1 0 12 Medical Officer 11 0 13 Female Nursing Assistant 1 1 0 14 Male Nursing Assistant 1 0 1 Total 122 113 9 ______25 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Draft Final Report TNUIFSL ______
Town Planning Section 1 Town Planning Inspector 1 1 - Total 11 - Other M.H.O 1 - 1 Total 1- 1 Grand Total 169 150 14 Source: Devakottai Municipality records
4.4 ISSUES IN HUMAN RESOURCE Of the total vacancies of 14 posts, 9 posts are vacant in Public Health section of the municipality. Considering the present quantum of work in the municipality, 2 Assistant Engineering/Junior Engineer (One for water supply and Sewerage, one for Roads and Bridges), one sanitary supervisor, one Town Planning officer need to be filled up expediously.
In view of appointing Project management consultant for the proposed water supply and UGSS, Privatization of Solid waste management street light maintenance through ESCO/ Private agency, the various sections of the municipality need to be strengthening with the following Personnel
Table 4.3 Additional Staff Required Sl No Name of the Post Section No. of Personnel
1 Accounting for Infrastructure General 1 2 Assistant Engineer/ Junior Engineer Engineering 2 3 Overseer Engineering 2
4 Sanctioned Inspector Public Health 1 5 Town Planning Officer Town Planning 1
Total 7
Source: Analysis and discussions with Municipal officials
Besides appointing additional staff, in the existing staff in the Administrative, Engineering, Public Health, Town Planning sections of the municipality need to be given training in their respective field periodically to enhance the capacity building to take up new assignments.
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4.5 ORGANIZATION MANAGEMENT As may be seen from various sections of the report particularly relating to service deliveries, there are gaps of various sizes which result in a shortage in the delivery system. This could be over come by certain specific options:
In most of the service sections of the Municipality, there are only a few vacancies which could be filled up. A totally satisfactory system delivery of the services would require an efficient personnel management system. • The organization and delivery mechanism in some of the important personnel intensive service sectors have to be modernized. To mention the important few relate to solid waste management, where large number of workers and staff are involved, could be privatized. Scientific solid waste management need to be assigned to NGOs, voluntary organizations or even the respective resident associations in the various colonies. This is a remunerative venture as is proved in many places. This process not only will significantly reduce the burden of the Municipality in engaging workers and staff but also will improve its resource position. Privatizing the repair and maintenance of water supply, collection of taxes and fees and maintenance of public assets particularly sanitary and public health units is a well known option. This also could be taken up as joint venture between urban local body and private sector.
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5
PHYSICAL & SOCIAL INFRASTRUCTURE
Consultative process meeting and discussions were held with officials and stakeholders of Devakottai Municipality to assess key issues in the present levels of infrastructural services and its scope for improvement. The issues identified through Consultative process meetings, discussions, field visits and service analysis are outlined below:
5.1 PHYSICAL INFRASTRUCTURE
5.1.1 WATER SUPPLY i. Existing Status The main source of water supply to Devakottai Municipality is the bore wells located within the town. The water drawn from the bore wells is collected in 6 OHTs and distributed through public fountains and house service connections. The per capita supply of water is 83 litres per day. The details of water supply is as follows General details Population (2001) : 40497 Quantity of water supplied daily : 33 LL Per capita supply : 83 litres Length of Pumping main : 8 km Length of Distribution Main : 62.00 km Duration of Supply : Daily twice Hours of supply : 2 hrs everyday Number of Public fountains : 169
Water supply service connection: No. of House Service connections - 5862 No. of Domestic connections - 5750 No. of Commercial connections - 112 No. of Industrial connections - NIL No. of Hand pumps - 22
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The table 5.1 below shows the locations and capacity of existing OHTs in the town. Table: 5.1 Details of existing OHTs S.No Name of the OHT Capacity in lakh litres 1 Government Hospital road 6.00 2 Kandadevi road 1.90 3 Ramnagar 1.00 4 Pillayar Oorani Kulakkal 0.90 5 Anna Salai 0.60 6 Ammatchi oorani 0.60 Total 11.00
Source: Devakottai Municipal records
The town has 22 bore wells, which are the main source of water supply. The details of existing bore wells and the quantity of water pumped from each bore well is given in the table below
Table: 5.2 Details of Existing Bore wells Sl.No Location Quantity of water Motors(H.P) Pumping hours pumped daily (In LL) 1 Ramnagar - I 7.5 12 1.80 2 Thanicha Oorani Road 5 6 0.72 3 Ramnagar 3 rd 5 6 0.72 4 Near Union Office 15 10 2.10 5 Hospital Road 15 15 3.15 6 Annanagar near kaliammankoil 10 8 1.68 7 V.Oorani kulakkal 7.5 12 1.80 8 Kannadiar Street 5 8 0.96 9 Manthoppe street 5 8 0.96 10 Kandadeve Road 15 10 2.10 11 Pudur Agraharam 15 10 2.10 12 Saraswathi vasagasalai 6 8 0.96 13 Jeevanagar – l 4 15 2.70 14 Anna Salai 5 10 1.24 15 Kailasanathapuram 7.5 8 1.20 16 V.Oorani South 5 8 0.96 17 Bus stand Street 5 8 0.96 ______29 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
18 Nithyakalyanipuram 5 8 0.96 19 Near Valliappan Oorani 5 8 0.96 20 Jeevanagar – II 10 12 2.52 21 Ramnagar –II 7.5 8 1.20 22 Weekly Market 10 8 1.25 TOTAL 33.00 Source: Devakottai municipal records ii. Issues The issues in the water supply system are: • Old and damaged pumping mains • Inadequate daily supply – 83 lpcd • Low pressure water supply in elevated areas of the town. • Absence of sumps at OHT locations. At present water from the bore wells are drawn and directly stored in OHTs. Centrifugal pump sets have to be provided in the sumps. • Frequent faults in existing pump sets. • Absence of distribution mains in extension areas iii. Demand for water supply The population of the town is projected for the intermediate (2024) and ultimate (2039) years. The demand of water supply for the above periods is calculated as 6.40 MLD and 7.66 MLD respectively. As per the analysis, the intermediate and ultimate deficiency in water supply is 2.80 MLD and 4.06 MLD respectively. The details of the water supply demand are given in table below
Table: 5.3. Estimated population and Water Supply Demand-2038 Water demand Available supply Deficiency Year Population at 120 lpcd In MLD In MLD 2009 45021 5.40 3.3 2.10 2024 51021 6.12 3.3 2.82 2039 57021 6.84 3.3 3.54 Source: Analysis and computation iv. Improvement needs To meet the future demand, the components identified by the Municipality for improving the water supply system in the town are: ______30 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
• Improvement of sources and infrastructure facilities • Improvements of distribution main
Proposals by municipality The projects identified by the Municipality under UIDSSMT scheme is given below in table 5.4.
Table: 5.4 Water supply improvement proposal under UIDSSMT
Sl. Present stage of Estimate Amount Name of the Work No. work (Rs. in Lakhs)
1. Construction of overhead tank with 5 LL Amount sanctioned 30.00 capacity at Alagappa Oorani Park and work in premises progress
TOTAL 30.00 Source: UIDSSMT report, Devakottai
Besides this, the following proposals are suggested by the Municipality for improvement of water supply in the town. Table: 5.5 Proposals- Water supply Sl. Name of the work Estimated amount No Rs. in lakhs 1 Construction of RCC Ground level sump of 1.5 LL capacity at Hospital Road 10.00 including pump room and installation of centrifugal pump set. 2 Construction of RCC Ground level sump of 1.5 LL capacity at Kandadevi Road 7.00 including pump room and installation of centrifugal pump set. 3 Construction of 2 LL capacity OHT at Ramnagar 10.00 4 Construction of RCC Ground level sump of 1.5 LL capacity at Ramnagar OHT 9.00 including pump room and installation of centrifugal pump set. 5 Construction of RCC Ground level sump of 1.5 LL capacity at Pudur 4.00 Agaraharam OHT including pump room and installation of centrifugal pump set. 6 Providing new bore well and pump room at Pudur Agraharam 4.00 7 Construction of RCC Ground level sump of 1.5 LL capacity at Alagapurinagar OHT including pump room and installation of centrifugal pump set. 12.00
8 Construction of 5 LL capacity OHT at Annasalai and Construction of RCC 40.00
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Ground level sump of 1.5 LL capacity including pump room, installation of centrifugal pump set and providing new bore well. 9 Construction of 2 LL capacity OHT at Eraveseri with bore well and pump room 12.00 10 Construction of 2 LL capacity OHT at Ammachi Oorani and Construction of RCC Ground level sump of 1.0 LL capacity including pump room, installation of 20.00 centrifugal pump set and providing 2 number of bore wells. 11 Construction of 5 LL capacity OHT at Ayurvedic hospital and Construction of RCC Ground level sump of 1.50 LL capacity including pump room, installation 45.00 of centrifugal pump set and providing new bore well. 12 Removing the existing damaged distribution main and relaying the new main 37.50 line for 25 km length 13 Extension of distribution main to unserved area for 25 km length 37.50 14 Rehabilitation of all existing OHTs (6 nos) 5.00 15 Removing the existing damaged pumping main and relaying the new main line 10.00 of 8 km length. 16 Construction of existing damaged pump rooms 10.00 17 Providing compound wall, fencing arrangements to all OHT’s and pumping 15.00 rooms 18 Purchase of new submersible pumpsets and starters 8.00 19 Purchase of GI pipe and specials for bore wells 3.00 Total Rs.299.00 lakhs Annual O&M Rs.8.97 lakhs Source: Analysis and Discussion with municipal officials & stakeholders
The above listed water supply improvement proposals have been approved by the Municipal council and the proposal has been sent to CMA for approval. The Municipality has identified these projects to improve the existing water supply and to meet the present, intermediate and ultimate demand for water in the town. The total cost of the proposed projects is Rs.299.00 lakhs and the tendered value is Rs.480.00 lakhs. The above proposals has been studied and recommended for inclusion under CCCBP. The storage capacity of the OHTs during the ultimate stage will be around 32 LL against the demand of 68.42/3 = 22.80 LL and hence ok.
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5.1.2 SEWERAGE i. Existing status The town does not have an Under Ground Sewer System. Disposal of the sewage is normally by way of individual facilities and the sullage is through the open drains. The main mode of individual disposal in the town is through septic tanks, low cost sanitation units and through public / community toilets. ii. Improvement needs Proposals In order to improve the sanitation in the town, Under Ground Sewerage System is necessary with treatment facilities at terminal points. The DPR has been sent to TWAD for approval. Investigation charges have been fixed by the TWAD Board as Rs.11.39 lakhs. The council proposes to include the investigation charges under the total estimate of the scheme. Therefore the total estimated cost of the proposed Under Ground Sewerage System for Devakottai town is Rs.3845.00 lakhs.
5.1.3 STORM WATER DRAINS i. Existing status The total length of the existing drains is 131.378 km against the total road length of 95.680 km. The details of the existing drains are as follows Pucca drains Length in km % to total Covered pucca drains : 20.320 15.47 Covered damaged : 10.180 7.75 Uncovered drains : 51.168 38.95 Kutcha drains : 49.710 37.83 Storm water drain under construction Total : 131.378 km 100.00 ii. Issues The issues relating to the storm water drains are as follows: • Absence of Under Ground drainage system • Damaged drains in some parts of the town area • Overflow of sewage and storm water on the road surface further during monsoons Open drains
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• Stagnation of rain water during rainy seasons. • Open defecation still exists in some parts of the town. • Absence of drains in newly developed areas creating health hazards to the public iii. Improvement needs Proposals under CCCBP The Municipality has proposed the construction of drains (21.235 km length) and culverts at a cost of Rs.116.00 lakhs under UIDSSMT scheme and the work is in progress. Apart from the UIDSSMT proposals, the proposals for SWD improvements are • The existing pucca drains are open and they should be covered with RCC slabs with manholes at regular intervals. The total drain length that needs to be covered is 51.168 km. The estimated cost for covering the open drains with slabs is Rs.150.00 lakhs • Improvement to Kolakkal drain, as the water is drained into open ground which creates unhygienic condition. Thus Construction of pucca kolakkal drain will require Rs.75.00 lakhs. • Therefore the total cost required for SWD proposals is Rs.225.00 lakhs.
5.1.4 IMPROVEMENT OF WATER BODIES i. Existing status There are 19 Ooranies existing within the town. The ooranies are not used for recharging ground water. As a first step, 10 ooranies may be taken up for development. This project includes desilting, construction of retaining walls, provision of steps and construction of 500 m storm water approach channel for each oorani. The rough cost estimate for the proposed project is Rs.100.00 lakhs. The rest 9 ooranies can be improved as second phase. The approximate cost required to improve 9 ooranies (second phase) is Rs.90.00 lakhs. Therefore, the total cost involved in strengthening of water bodies is Rs.190.00 lakhs.
5.1.5 SOLID WASTE MANAGEMENT i. Existing status Devakottai Municipality generates 15 MT of solid waste. All the wards in the town are covered under door to door collection of solid waste. The garbage collected from the houses at their door steps are transported to the 24 collection points in the town with the available 70 number of push carts. The Spilling of Garbage ______34 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
segregated and recyclable plastic wastes are being sold out to the local buyers at Rs.1.50 per kg. From the collection points, the garbage is transferred and dumped at the compost yard located at Karaikudi Municipality limit.
The Municipality council has applied to the District collector for ‘enter up on’ Permission and to Pollution Control Board for a NOC to use the land in Amaravathi Pudur for compost yard. As soon as the permission is obtained, disposal of solid waste will be done in the available land in Amaravathi Pudur. The estimated cost for the proposal for improvement to the compost yard is Rs.50.00 lakhs. This proposal may be reviewed after the site is completely handed over by the
Revenue department to the Municipality. The details on solid New Compost Yard site waste management of the Municipality is given below Number of households - 12906 Number of wards - 27 Solid waste generation per day - 15 MT Per capita contribution -350 grams/day Solid waste collected - 15 MT Sanitary divisions - 3 Number of collection points - 24 Dumper Placer Lorries - 1 Dumper placer bins - 12 Mini lorry - 2 Pushcarts - 70 Tricycle -15
The Action plan taken by the Municipality for Solid Waste Management is listed below • Organisation of awareness program for segregation of waste • Regular interactions with NGO’s, resident welfare associations, merchants associations and others to encourage for undertaking awareness programs for segregation and proper collection of waste. • Organisation of door to door collection
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• A system for collection of waste from slums and quarters, restaurants, office complexes and commercial areas • Proper collection and utilization of waste from slaughter house, meat and vegetable markets • Ensuring that, bio medical waste and industrial waste are not mixed with domestic wastes. • Not to burn the waste • Waste deposited in storage facilities places not be exposed to open atmosphere. ii. Issues The issues relating to Solid waste management are summarized below: • Uncontrolled littering of waste along main roads and streets • Usage of old / slow moving vehicles cause delay in removal of solid wastes • Lack of adequate infrastructure in the transfer station • Lack of proper vehicles for secondary transportation • Non-availability of a proper compost yard and land fill site with infrastructure facilities iii. Improvement needs For better management of solid waste in the town the ULB has proposed for the privatisation of Solid waste management in 10 wards including Bus stand and Market. The cost involved in privatization of solid waste management for 10 wards is Rs.36.00 lakhs per annum. Various awareness programmes have been conducted in this town like wall paintings, video CD play in schools, essay, speech and drawing competition among school students, rallies, paper advertisements and hand outs distribution.
Alternative for Solid Waste Management At present, the solid waste generated daily in the town is about 15 MT. In future years assuming the per capita generation of solid waste in the town raises from 350 gm and 500 gm/day, there will be corresponding addition of 30% to 40% in solid waste management. Solid Waste Management is one of the principal sectors of expenditure in Urban Local Bodies. Hence, there is a need for scientific management of solid waste to cope with future demand. In places like Namakkal, Pondicherry, certain colonies in Chennai and some zones in other Corporations and towns the technology of vermin-composting is practiced through NGOs and private bodies. In Bangalore, Residents Associations are managing their solid wastes converting them into manure. ______36 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
In number of towns in Tamil Nadu and also elsewhere, Vermi composting using earth worms in the form of Tiger Worms or imported giant earth worms (of around 1 meter long) is in practice. Also using the cow dung, the garbage is converted into manure. Vermi composting engaging earth worms and worms generated in cow dung take 4 to 6 weeks to convert the garbage into manure. Of the Municipal waste in Tamil Nadu, minimum 60% of the waste is biodegradable. Of the organic waste, on conversion, nearly 30% by weight forms the manure. Incidentally, the manure generated from Municipal garbage is found to be richer in NPK values compared to the one available in the market. This has resulted in producing better yield of agricultural products both in quantity and quality.
Proposals under CCCBP The proposal details for solid waste management is given in the table below Table 5.6 Proposal – Solid Waste Management Sl No Description Amount (Rs. In lakhs) 1 Purchase of one Dumper placer lorry with ten bins 17.00 2 Purchase of 5 number of tricycles 1.25 3 Purchase of 6 number of dumper placer bins 3.00 4 Improvement works in compost yard 50.00 Total 71.25 Source: Analysis and Discussion with municipal officials & stakeholders
Therefore, an amount of Rs.71.25 lakhs is proposed for the improvement of solid waste management.
5.1.6 ROADS i. Existing status The total length of internal roads maintained by the Municipality is 95.689 kms besides the road maintained by N.H. and S.H Roads. Most of the roads have been laid before 5 to 7 years and most of the roads are damaged due to stagnation of storm water. The major roads in the town are i. Madurai - Devakottai Road ii. Sarugani - Devakottai Road iii. Devakottai - Ramanathapuram Road iv. Vattanam Road v. Devakottai - Trichy Road ______37 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
The break-up details of the roads maintained by Devakottai Municipality is as follows: Length (Km) % to total W.B.M. Road. 0.900 1.00 B.T. Road 59.980 63.00 C.C. Road. 3.730 4.00 Earthern Road 31.079 32.00 ------Total 95.689 100% ------
Road junctions Damaged Internal roads The important road junctions within the town are 1) Thiruppathur Road - Eluvankottai Road (Ram Nagar), 2) Thiruppathur Road - College Road, 3) Thiyagigal Road - Thiruppathur Road, 4) Thiruppathur Road - Vattanam Road. ii. Issues • 32% of the total Municipal roads are earthen roads • There is no proper road in extension area
• Stagnation of water in the road surface during rainy Road Upgradation work in seasons • Presence of pot holes along the roads where the vehicular traffic is significant. • Bituminous surface are worn out due to movement of heavy vehicles iii. Improvement needs Under the UIDSSMT scheme, improvement of road works for a length of 24.88 km which includes provision of CC roads (1.6 km) is proposed at a cost of Rs.299.00 lakhs. The amount for the work is sanctioned and 75% of work is completed. Further about 2 km of BT surface was proposed under part II scheme.
Proposals under CCCBP Apart from this, the access roads in extension areas and up-gradation of earthen roads need to be covered. Relaying of the existing damaged BT roads can be taken up after the completion of UGD. ______38 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
Therefore the proposals details are given in table 5.7 Considering the heritage tourism potential of the town, roadside furnitures like, sign boards, road side parks, medians, street name display board are proposed as given in table below Table 5.7 Proposals – Improvement of Roads Sl No Description Amount (Rs. In lakhs) 1 Conversion of BT road into CC road for a length of 10.00 km 50.00 2 Conversion of earthen road into BT roads for 30 km. 150.00 3 Relaying of roads (60km) in 3 phases 300.00 4 Construction of side platforms for 1 km length 1.00 Total Rs.501.00 Source: Analysis and Discussion with municipal officials & stakeholders
Table 5.8 Proposals - Road side furnitures S.no Description Amount (Rs. In lakhs) 1 Construction of medians and Road side parks 10.00 2 Signboards on main roads 1.00 3 Display of Street names 2.00 Total 13.00 Source: Analysis and Discussion with municipal officials & stakeholders
5.1.7 BUS STAND i. Existing status The existing bus stand is a C class bus stand located opposite to the Municipal office. The total extent of the bus stand is 0.83 hectare. About 163 buses are plying from this bus stand every day. The total revenue received from the bus stand is Rs.20.00 lakhs. The facilities available in the bus stand are given below: Number of bays - 13 Pay and use toilet - 1
Free urinal - 1 Bus stand - Entrance Waiting sheds - 2 Bore well & drinking water fountain - 1 Number of shops (R.C.C.roofed) - 40 Hotel - 1
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ii. Issues • The existing bus stand does not have adequate space for expansion and for accommodation of additional bus bays. • The bus stand does not have adequate facilities for the commuters.
View of Bus stand iii. Improvement needs Proposals under CCCBP The existing bus stand needs to be extended to meet the present demand. For this, a portion of existing daily market adjacent to the bus stand is proposed by the Municipality for expansion. The components identified for the improvement of bus stand is given in table below Table 5.9 Proposals - Improvements in Bus stand Sl No Description Amount (Rs. In lakhs) 1 Extension of bus stand with 15 number of additional bus bays 30.00 2 Construction of Shops (20 nos) 40.00 3 Construction of entrance and exit arches 5.00 Total 75.00 Source: Analysis and Discussion with municipal officials & stakeholders The total amount required for the proposed improvement in bus stand is Rs.75.00 lakhs.
5.1.8 BUS SHELTER i. Existing status There are 18 bus stops in the town, out of which only 4 are provided with bus shelters. The location and the existing condition of these four bus shelters are given below
Ram nagar - damaged condition St.Mary’s - good condition Othakadai - good condition Weekly market - good condition
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iii. Improvement needs Proposals under CCCBP Absence of seating arrangements, maintenance and advertisement boards / information boards are the issues identified. It is proposed to construct 15 number of new bus shelters with provision for seating, advertisement boards and number boards. The cost estimated for provision of 15 bus shelters (at Rs.2.50 lakhs each) is Rs.37.50 lakhs.
5.1.9 STREET LIGHTS i. Existing status The town is lit by 2235 street lights of which 93.5% of lights constitute tube light. Timer switches are not provided for the street lights to minimize the energy consumption. The break-up details of the street lights in the town are as follows
Sodium Vapour lamps - 145 (6.5%) Tube lights - 2088 (93.5%) ------Total 2235 ------ii. Improvement needs Energy savings in street lighting could be achieved through following ways, (a) by replacing existing conventional tube lights with energy efficient retrofit tube lights, (b) installing power saver devices and privatizing the operation and maintenance of street lighting. There are 2088 florescent tube light fixtures installed in Devakottai Municipality. These 40 Watt fluorescent tube lights with ballasts will consume an additional 10-13 watts. To reduce the energy consumption, 28 Watt T-5 retrofit tube lights have to be introduced in the place of existing conventional tube lights. Based on the best practices followed in other parts of country, retrofit tube lights are proposed in Devakottai also. The new tube-lights have a higher luminary rating, longer life span, lower failure rate and perform better under the highly fluctuating voltage that plagues the town's electricity supply. The salient features of retrofit tube lights are presented in the following table.
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Table 5.10 Salient features of Retro fit tube lights Description Value Tube type E+28 W Power Factor 0.95 Rated life of tube (burning hours) 18,000 Rated life of electronics (burning hours) 50,000 Stroking Voltage Less than 120 volts
The following table presents the comparison of present conventional florescent tube lights with proposed Retrofit tube lights. Table 5.11 Comparison of conventional tube lights with retrofit lights Description 40 Watts Tube Light Retrofit light Connecting load* (W) 52.5 30 Light output (Lm) 2450 2900 Annual energy consumption ** 211 120 (KWH) Energy charges @Rs. 3.50/- 738 422 Life of lamp (Hours) 4000 18000 * Including ballast loss of 12.5 W for conventional 40 Watts Tube lights. ** Calculated for 11 hrs daily average burning.
Proposals under CCCBP The proposals may be considered under the ESCO (Energy Saving Company- private sector) scheme, wherein the operation and maintenance of the street lighting system is privatized. The ESCO operates and maintains the system with energy saving techniques and devices for the stipulated period and shares the profit (upto 20%) with the Municipality. Under MLA Fund, 72 SV lamps was installed recently at a cost of Rs.4.85 lakhs. The components suggested for improvements of street lights are • Provision of additional street lights (energy saver lights) in newly developed areas. • Provision of additional Sodium vapour lamps in the town (at main access roads). • Provision of high mast lights in 1) Bus stand 2) Thiagigal road -Thirupathur road junction 3) Ram Nagar bus stop 4) Tirupattur road – Vattanam road junction and 5) Tirupathur road – college road junction.
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The proposal with cost details are given in the table below Table 5.12 Proposal – Street lights S.No Description of work Rs in lakhs 1 Provision of 300 energy saver lights (300 x Rs.1500.00 / Wire and bulb 5.00 sets in existing posts) 2 Provision of 100 Sodium lights (75 x Rs.500.00 / wire and bulb set only) 5.00 3 Provision of high mass lights (5 Nos) 25.00 4 Retrofitting of existing tube lights (in phases) 33.00 Total 68.00 Source: Analysis and Discussion with municipal officials & stakeholders The total cost required for street light proposals is Rs.68.00 lakhs.
5.2 SOCIAL INFRASTRUCTURE 5.2.1 SLUM IMPROVEMENT i. Existing status Devakottai Municipality has 12 slums spread over 27 wards. The total slum population is 10940, which is about 32 % of the total town population. The details of the slums are given below in table below Table 5.13 Slum details Sl.No. Name of the slum Population Households 1 Krishnarajapuram and Pharama colony 1000 200 2 Kailasanathapuram, 1340 268 3 Mohamadiarpattinam 700 140 4 Katturanipathai and Dr. Radhakrishnan street 750 150 5 Iravuseri 750 150 6 Keelakudieruppu 1350 270 7 Gandhinagar and Arunagiripattinam East 780 156 8 Panipulanvayal 815 163 9 Jeevanagar 970 194 10 Natarajapuram 575 115 11 Saraswathi vasagasalai (Corporation road) 1250 250 12 Lakshmipuram East and K.K.M. street. 660 135 Total 10940 2188 Source: Devakottai Municipal records
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The existing status of the infrastructure facilities in slums is detailed out in table below Table 5.14 Existing facilities in slums Sl. Pub. H.P Roads Drains ISP/VAMBAY No. Slum Name Fount. H.S.C 1 Krishnarajapuram and -- Pharama colony 5 4 50 Available Available 2 Kailasanathapuram, Existing road in Available 4 2 25 damaged condition. Partly covered 3 Mohamadiarpattinam Existing road in Available 5 2 40 damaged condition. Partly covered 4 Katturanipathai and Dr. Available Radhakrishnan street 3 1 40 -do- Partly covered 5 Iravuseri 50% of road good condition Balance 3 - 30 to be improved Not available Available 6 Keelakudieruppu 75% Available balance to be 4 - 30 Available constructed - - 7 Gandhinagar and Existing drain Arunagiripattinam East Existing road in damaged 4 2 40 damaged condition. condition -- 8 Panipulanvayal Existing road in 4 - -- damaged condition. Not available -- 9 Jeevanagar 5 1 30 Available Not available Available 50% of road good Natarajapuram condition Balance 10 5 1 25 to be improved Not available Available Saraswathi vasagasalai Existing road in 11 (Corporation road) 4 2 15 damaged condition Not available -- Lakshmipuram East Existing road in 12 and K.K.M. street. 5 1 20 damaged condition Not available -- Total 51 16 345 Source: Devakottai Municipal records
The new Integrated Housing & Slum Development Programme aims at combining the existing schemes of VAMBAY and NSDP for having an integrated approach in ameliorating the conditions of the slum dwellers, who do not possess adequate shelter. The basic objective of the scheme is to strive for holistic slum development with a healthy urban environment by providing adequate shelter and basic infrastructure facilities to the slum dwellers of the identified urban areas.
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ii. Improvement needs Proposals by municipality The Municipality has proposed to take improvement of slums under IHSDP for an estimated cost of Rs.303.00 lakhs. The cost abstract for the projects identified for slum improvement is given in table below. Table 5.15 Slum improvement proposals Sl. No. Name of the Slum Amount (Rs. In lakhs) BASIC AMENITIES 1. Krishnarajapuram and Pharama colony 10.10 2. Kailasanathapuram, 9.25 3. Mohamadiarpattinam 6.50 4. Katturanipathai and Dr. Radhakrishnan street 4.60 5 Iravuseri 11.50 6. Keelakudieruppu 6.95 7. Gandhinagar and Arunagiripattinam East 13.80 8. Panipulanvayal 13.25 9 Jeevanagar 9.50 10 Natarajapuram 8.50 11 Saraswathi vasagasalai (Corporation road) 13.25 12 Lakshmipuram East and K.K.M. street. 7.00 Sub Total 114.20 13 Shelter up gradation - 238 units 188.80 Grand total 303.00 Source: IHSDP report, Devakottai
5.2.2 MEDICARE i. Existing status The town has 38 hospitals and dispensaries. The Municipal maintained health facility functioning in the town is the Ayurveda hospital in Thirupatthur road and a maternity center in Gandhi road. The Ayurveda hospital building is very old and damaged. At present, the Ayurveda hospital is functioning in the Municipal office campus. The Municipal maternity center, which is in Gandhi road, is not functioning Old Municipal Ayurveda hospital
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now. About Rs.10.00 lakhs has been allotted for improvement of health center under part II scheme.
The list of health facilities in the town is as follows Government Hospital - 1 Private hospital - 12 Private dispensary - 10 Private clinical labs - 15 ii. Improvement needs Proposals by Municipality The improvements proposed in medicare are detailed out in the table below. The total estimated cost for the proposals is Rs.30.00 lakhs.
Table 5.16 Proposed projects - Medicare Sl No Description Amount (Rs in Lakhs) 1 Construction of new hospital Buildings 20.00 2 Provision of Water Supply arrangements and toilet facilities and flooring outside the building, seating 5.00 arrangements and beds 3 Purchase of furnitures and equipments 5.00 Total 30.00 Source: Analysis and discussion with municipal officials & stakeholders
5.2.3 EDUCATION i. Existing status The total number of existing schools in the town is 31, of which 7 are Municipal schools. Only 2 Municipal schools are functioning in Municipal own building. The rest are in rented premises. The details of the Municipal schools are as follows Elementary school - 4 Middle School - 2 High School - 1 Noon meal center - 2 Municipal rented school buildings - 5
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ii. Issues • 5 number of Municipal schools functioning in rented buildings • Inadequate play materials in the schools iii. Improvement needs Proposals under CCCBP Improvement works proposed up by the municipality at a cost of Rs.30.00 is in the stage of implementation. Apart from this, purchase of play materials and maintenance of buildings are the proposed improvements in schools and the total cost required for this is Rs.20.00 lakhs and the annual operation and maintenance cost is Rs.1.50 lakhs. Therefore, the total amount required for the improvement of educational facilities is Rs. 50.00 lakhs. This can be met out by the Education fund.
5.2.4 PARKS AND PLAYFIELDS i. Existing status
The town has 13 parks (including layout open Proposed Alagappa Oorani Park spaces) and one playground. The identified park areas and layout open spaces in the town are listed below 1. Thiyagigal park 2. Nethaji park 3. Gandhi park 4. Annanagar park 5. Annasalai park 6. Gnananandhagiri nagar 7. Somasundaran nagar Thiyagigal park – near Municipal office 8. Housing board 9. Vivekanandapuram
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10. Sivagangai Raja road 11. Jeeva nagar 12. Thanuchavadi road 13. Alagappa Oorani park and Play ground -1 (at Jeeva nagar) Except Thiyagigal Park, and Alagappa Oorani Park none of the open spaces in the town is maintained as green space. Thus all the open spaces excluding Thiyagigal Park and Alagappa Oorani Park are to be revamped and developed into parks and recreational spaces. iii. Improvement needs Proposals by Municipality The improvement of Alagappa Oorani Park is proposed by the municipality at a cost of Rs.118.00 lakhs and the works such as, leveling of ground and construction of compound wall are in progress. The proposal includes walk ways, play equipments for children, lighting arrangements, fountains, and landscaping. Amount for the proposal is sanctioned under Rashtriya Sam Vikas Yojana scheme and Tamil Nadu Tourism Development Corporation fund. The sanctioned amount (100% grant) is Rs.118.00 lakhs.
Proposals under CCCBP Lack of facilities and poor maintenance are the issues identified. The above listed layout open spaces may be developed into parks. For the development of the parks, the cost required will be Rs.85.00 lakhs. Construction of compound wall around the existing play ground is needed and the cost estimated is Rs. 2.00 lakhs. Therefore, the total cost required is Rs.87.00 lakhs.
5.2.5 PUBLIC CONVENIENCE i. Existing status The town has 7 public toilets maintained by the Municipality. The existing toilets are well maintained and good in condition. The breakup details of existing toilets are as follows Pay and use latrine : 2 ISP (maintained by SHG) : 2 ISP - VAMBAY : 1 Public toilet : 2 Total : 7 numbers
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ii. Improvement needs Proposals by Municipality To facilitate the public, 6 number of new toilets need to be constructed in the following areas 1. Kailasanathapuram 2. Saraswathi Vasaha Salai street 3. Krishnarajapuram 4. KKN street 5. Suruvinir road
6. Udayachi Public convenience near Daily market
The total cost required for the construction of 6 new toilets is Rs.20.00 lakhs and the annual operation and maintenance cost required is Rs.0.6 lakhs.
5.2.6 BURIAL GROUND / CREMATORIUM i. Existing Status The town has two community burial grounds within its limits. There is no burial ground maintained by the Municipality. For this purpose, a site of extent above 0.5 hectares has been identified within the Municipal limit. The proposed burial ground includes a proper compound wall with good access road, and also circulation road within the burial ground, well with pumping motor and a OHT, proper shelters at the entry points and burning huts, special tree plantation with flowering, ornamental and shady species, water taps, bathing and toilet facilities, shelter for the people accompanying the bodies, gasifier plant, a maintenance cell and a shed for security staff. The total estimated cost for the proposed works in new burial ground is Rs.60.00
5.2.7 MARKET i. Existing status The town has one daily market (4921 sq.m) at Thirupathur Road near the Municipal bus stand and another weekly market (5500 sq.m) at Kandadevi Road and the cattle market at Athankarai Road. ii. Issues The main issues experienced in the daily and weekly markets are as follows
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Daily market • Existing walkways are covered with thatched roof in daily market • Mud flooring • Squalid conditions during rainy season
Weekly market • Existing shops are covered with thatched roof with cut stone pillars • Absence of compound wall and public convenience View of Daily market • Absence of cattle sheds iii. Improvement needs
Proposals under CCCBP Construction of new shops by demolishing the existing thatched roof shops may be done in the daily and weekly market. The proposed improvement works in daily market and weekly market View of Weekly market is detailed out in the tables below.
Daily market Table 5.17 Proposed improvements in Daily market S.No Description Rs. in lakhs 1 Construction of 90 Nos. RCC roof stalls (Size 2.40m x 2.10m) 22.75 2 Repair of existing shops and existing infrastructure facilities 6.00 3 Providing cement pavement and SWD 10.00 4 Providing water supply arrangements 4.00 5 Improvement of toilets 2.00 6 Providing lighting arrangements 3.00 7 Contingencies and other unforeseen charges 2.25 Total Rs.50.00 lakhs Source: Analysis and discussions with municipal officials & stakeholders
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Weekly market Table 5.18 Proposed improvements in Weekly market S.No Description Rs. in lakhs 1 Construction of new shops (size 5’ x 6') -100 nos with R.C.C roof 15.00 2 Laying of cement pavement and drains 9.00 3 Providing water supply arrangements 3.00 4 Construction of compound wall around the market 7.00 5 Provision of lighting arrangements 3.00 6 Construction of toilets 3.00 7 Construction of two wheeler stand 3.00 Total Rs.43.00 lakhs Source: Analysis and discussions with municipal officials & stakeholders
Therefore the total cost required for the proposed improvements in daily and weekly market is Rs.93.00 lakhs.
5.2.8 SLAUGHTER HOUSE i. Existing status The Municipality has demolished the existing slaughter house for construction of a new one. Under the ‘modernization of slaughter house’ scheme under part II scheme 2007-08, it is proposed to construct a new modern slaughter house at a cost of Rs.16.00 lakhs. Work order was issued to the contractor. Site clearance is under progress. The annual Operation and maintenance cost is Rs.0.32 lakhs.
5.2.9 URBAN GREENERY i. Existing Status The road margins, urban open spaces, residential avenues and park areas are not provided with adequate greenery. Trees can be planted along the main roads namely Gandhi road, Kanagapuri Nagar road, Thanuchavadi road, Sivagangai Raja road, MM Nagar, Thillai Nagar and Ram Nagar. ii. Improvement needs Proposals under CCCBP Tree saplings can be planted along the above listed roads. These roads can be planted with 500 tree saplings with tree guards. The total cost required for this would be Rs.2.50 lakhs. The
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involvement of Educational institutions, private sectors and NGOs could be sought in planting and maintenance of trees. The annual Operation and maintenance cost is Rs.0.037 lakhs.
5.3 OTHER PROJECTS
5.3.1 E-GOVERNANCE i. Existing status E-governance at Devakottai Municipality is aimed to provide on-line citizen services, information to all hierarchies and monitor the performances. It is in practice that citizens are approaching the respective urban local bodies to pay their revenues, get certificates, approvals for construction of Building etc. By adopting E-governance, the above activities are simplified and made possible at their Information and Facilitation counter in the Municipality. By E-governance, the services of Devakottai Municipality have been made easy, transparent, accountable and quick. The citizens are be informed about their dues and thus the revenue generation is faster and easier. Citizen Services offered by the Municipality includes the following items:
Birth, Death, Property Tax, Water charges, Non-Tax (Lease Items), Profession Tax, Assets - Movable Property, Assets - Immovable Property, D&O and PFA (Trade licenses), Building Plan Approvals, Application /File Tracking, Over All DCB, Collection Details, On-Line Application of New Service Connection. The modules in online are as follows 1. Property Tax Payment 2. Water Charges Payment 3. Non-tax items - entry 4. Profession tax Payment 5. Issue of Birth & Death certificates 6. Building license issued – information. 7. Vehicle modules 8. Solid waste Management 9. Financial Accounts 10. Pay Roll 11. Grievances and 12. Stores and inventory
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ii. Improvement needs
Proposal under CCCBP The projects identified under e-governance are as follows Rs. in lakhs • Provision of touch screen with peripheral - 2.00 • Purchase of new computers (10 nos) with printer - 5.00 Total - Rs.7.00 lakhs
The amount required for the proposals is estimated as Rs.7.00 lakhs
5.3.2 REMUNERATIVE PROJECTS i. Improvement needs
The town has 2 Municipal owned shopping complexes. The vacant land in the municipality can be utilized for remunerative purposes. The old inspection bungalow, located in Ramnagar facing the Thirupathur road and the old Ayurveda hospital are in dilapidated condition. The extent of inspection bungalow site is around 8 grounds. This building may be demolished and in this site, a commercial complex may be constructed. The Ayurveda hospital site can be utilized for the construction of meat market and thus the fish Municipal shopping complex near stalls and mutton/chicken stalls functioning in the daily Bus stand market may be shifted here. The proposed buildings can be built as green buildings. Green buildings demonstrate efficient utilization of energy, sustainable and integrated use of both natural resources and clean and renewable energy technologies, and efficient waste management.
Proposals under CCCBP As such, the remunerative projects identified for Devakottai Municipality is as follows A. Construction of Commercial complex in old Travelers bungalow site B. Construction of Fish, mutton, chicken stalls in Old Ayurveda hospital campus
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Table 5.19 Proposed Remunerative projects Sl No Description Amount (Rs. In lakhs) 1 Construction of commercial complex with 60.00 50 shops and a mini restaurant 2 Construction of fish, mutton, chicken stalls 25.00 in old Ayurvedha hospital site Total 85.00 Source: Analysis and discussions municipal officials & stakeholders
5.3.3 CONSTRUCTION OF MUNICIPAL BUILDINGS i. Improvement needs Proposals under CCCBP The other projects identified in the Municipality are construction of commissioner and Municipal engineer quarters in the site opposite to Sivan koil and construction of staff quarters in Kandadevi road (old fire station site). The proposal components are detailed out in table below
Table 5.20 Other project proposals Sl No Description Amount (Rs. In lakhs) 1 Construction of commissioner quarters and Municipal 30.00 Engineer quarters 2 Construction of staff quarters in Kandadevi road - 6 nos 30.00 3 Construction of Travelers bungalow in Kandadevi road 20.00 Total 80.00 Annual O&M1.30 Source: Analysis and discussions municipal officials & stakeholders
5.3.4 CONSTRUCTION OF NEW MUNICIPAL OFFICE BUILDING The municipality has proposed to construct new municipal office building. The cost of the proposed project is Rs.60.00 lakhs.
5.3.5 UPDATION OF DATABASE ON GIS PLATFORM To date there is no entirely dependable and realistic database for the town, in the form of topography, updated base map, assessment of properties in their location, size, use and intensity, assets -lands and structures in their location, status, extent, and quality; topography, land parcels by
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town survey, numbers and sub divisions and so on. All these can be updated with cent percent precision using high resolution satellite imageries supplemented by cent percent primary survey or aerial photographs. All these with spatial and non-spatial data can be had on a GIS format which, on a click at any feature or site on the town map will provide the entire details including the description of the feature / address of the owner including tax paid etc. This is a one time comprehensive exercise to include the updated town map with town survey, land parcels, structures, service network, assets with the relevant details and description on a GIS format. In this ultra modern age, with high-tech interventions, this is considered a must for easy, efficient and flawless governance, administration and functional operation from local body level to the government level.
This project may cost about Rs. 45.00 lakhs including the cost of high resolution satellite imageries. This entire amount may be obtained as grants from the government and it will take maximum one year for completion.
5.4 PROPOSALS TO BE IMPLEMENTED BY OTHER AGENCIES To make use of the inherent potential of the resources in the town, there are certain proposals which can be implemented by other agencies. Implementation of these proposals will enhance the developments of the town. The proposals are put forward visualizing the optimal utilization of the available resources in and around the town.
Table 5.21 Proposals to be implemented by other Agencies Proposed capital Nodal Proposals Location Unit cost agency (Rs. in lakhs) Construction of South side border of 1 embankment along Virisal - 100.00 PWD Dept the town River Preparation of Heritage Devakottai town and 2 - 10.00 TTDC tourism development plan its surroundings Source: Analysis and discussions municipal officials & stakeholders
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6 MUNICIPAL FINANCE
6.1 INTRODUCTION Devakottai Municipality maintains a municipal fund for managing the finances of the Municipality. The accounts of the municipal fund were maintained on cash based single entry system till the year 1999-2000. From 1.4.2000 onwards, accrual based double entry book keeping system was implemented. The Municipality maintains accounts separately for General Fund, Water Supply and Sewerage Fund and Education Fund. This Section contains a description of the municipal finances, the sources and uses of funds, and an assessment of municipal finances based on important financial indicators.
6.2 RECEIPTS Receipts under the Revenue Account include taxes and fees, grants, water & sewerage charges, income from properties, service charges charges & fees and other income.
6.2.1 Property Tax Property Tax is the single largest tax revenue source and accounts for around 22% of the total revenue. This tax is levied on residential, commercial, industrial and vacant lands. The property tax is levied on the basis of Annual Rental Value of the property. The property tax is levied on the annual value of the property, which is determined on the basis of gross rent at which the property can be reasonably expected to be let out. The Municipality currently charges property tax @ 18.50% per annum on the basis of Annual Rental Value. The components of property tax are as below :
Table 6.1 Property Tax Components Particulars % (Per Annum) General 5.00% Scavenging 3.00% Lighting 2.00% Water Tax 4.50% Sewerage Tax 1.50% Education 2.50% Total 18.50%
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The total number of property tax assessments is 10897 Nos. the breakup of which is as below : Table 6.2 Property Tax Assessments Particulars Nos. Domestic 9144 Commercial 1635 Industrial 23 State Government Properties 95 Public Sector Undertakings - Total 10897
The total number of unapproved layouts in the Municipality is 172 nos. and there are no un- approved layouts for which property tax assessment is carried out. The last revision of Property Tax was carried out on 01.10.1998. The total property tax collections during the last 6 years ended 2006-07 is as below : Table 6.3 Property Tax – Growth during last 6 years Year Rs. in lakhs % Growth Rate 2002-03 61.52 - 2003-04 67.16 9.17% 2004-05 74.93 11.57% 2005-06 81.82 9.20% 2006-07 88.23 7.83%
It may be observed from the above that the average property tax collection is around Rs. 80 lakhs per annum and average growth over the years is around 10%. The demand and collection of property tax over the last 6 years is as below : Table 6.4 Property Tax – Demand Collection % (Rs. in lakhs) Property Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Demand - Current 60.06 65.86 72.72 81.28 88.86 88.23 - Arrears 41.65 37.37 25.08 33.37 32.89 31.64 Total 101.71 103.23 97.80 114.65 121.75 119.87 Collection - Current 49.63 59.12 64.60 72.16 79.88 79.87 - Arrears 14.70 18.45 4.89 8.81 7.50 4.84 Total 64.33 77.57 69.49 80.97 87.38 84.71 Collection % - Current 83% 90% 89% 89% 90% 91% - Arrears 35% 49% 19% 26% 23% 15% Total 63% 75% 71% 71% 72% 71%
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The current collection performance of property tax is very poor at around 90% and the arrears collection performance is around 25%. 6.2.2 Profession Tax Profession Tax is another source of revenue to ULB. Profession tax is a tax deducted from the salaries of the employees falling with in the Municipality and is collected from all registered organizations, companies or firms, public or private, individuals and State & Central Government Departments. Currently profession tax is deducted on a slab basis. The total number of profession tax assessments is 1383 Nos., out of which state / central / quasi Govt. employees comprise 987 Nos. and traders / self employed professionals 396 Nos. During the last 5 years, it has increased from Rs. 7.70 lakhs to Rs. 11.39 lakhs. It accounts for around 2.5 - 3% of the total revenue. The profession tax for the last 5 years is as below:
Table 6.5 Profession Tax – Growth during last 6 years Year Rs. in lakhs % Growth 2002-03 7.70 - 2003-04 7.82 1.56% 2004-05 9.31 19.05% 2005-06 10.33 10.96% 2006-07 11.39 10.26%
The demand and collection of profession tax over the last 6 years is as below : Table 6.6 Profession Tax – Demand Collection % (Rs. in lakhs) Profession Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Demand - Current 6.78 7.59 7.82 9.30 10.33 11.39 - Arrears 14.54 14.10 13.66 13.59 13.55 13.35 Total 21.32 21.69 21.48 22.89 23.88 24.74 Collection - Current 6.78 7.15 7.62 9.18 9.90 11.39 - Arrears 0.67 0.92 0.40 0.32 0.19 0.46 Total 7.45 8.07 8.02 9.50 10.09 11.85 Collection % - Current 100% 94% 97% 99% 96% 100% - Arrears 5% 7% 3% 2% 1% 3% Total 35% 37% 37% 42% 42% 48%
The Municipality has average current collection performance of 96% and the average arrears collection performance is only around 3% with huge arrears. ______58
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6.2.3 Assigned Revenues This item head comprises of income from Government of Tamil Nadu (GoTN) / State transfers of municipal income collected by the state line department. Transfers are in the form of municipality’s share of taxes levied and collected by GoTN from establishments / operations within municipal limits. Surcharge on transfer of immovable properties and entertainment tax are the major items on which these revenues are realized by municipality. This income varies from year to year. The items under this category accounted for nearly 10% of the total municipal revenue. The assigned revenue for the last 5 years is as below:
Table 6.7 Assigned Revenue – Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Assigned Revenue Duty on transfer of property 38.22 115.31 30.25 32.62 63.82 Entertainment Tax 1.18 - 5.75 0.50 0.22 Total 39.40 115.31 36.00 33.12 64.04 % of Total Income 13.74% 29.56% 11.26% 9.79% 13.56% % Growth - 192.66% (68.78%) (8.00%) 93.36%
It may be observed that Assigned Revenue has decreased over the last 5 years except 2006-07, where it has again increased. In case of entertainment tax, the Commercial Department collects entertainment tax from cinema halls functioning within municipal limit. The CT Department transfers 90% of total tax collection to municipality and retains 10% towards management charges. In case of Devakottai Municipality there are 3 theatres, but income from entertainment tax has reduced over the years.
6.2.4 Revenue Devolution Funds in aid of revenue expenditure Grants in aid of revenue expenditure got boosted up following the 74th CAA and the same is reflected in the Municipality Revenue. The item mainly comprises revenue grants and compensations from State Government under various heads. The regular grants include the SFC grants and others include aid grants, grants for services like roads, buildings, maternity and child welfare, public health, contributions for elementary and secondary schools and etc. Grants which are for specific purposes are adhoc in nature.
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This income varies from year to year. The items under this category accounted for nearly 25% of the total municipal revenue and has grown @ average rate of 30% p.a. The devolution fund and grants for the last 5 years is as below:
Table 6.8 Devolution Fund – Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Devolution Fund 73.57 96.70 70.32 96.20 116.26 Total 73.57 96.70 70.32 96.20 116.26 % of Total Income 25.65% 24.79% 22.00% 28.45% 23.56% % Growth - 31.44% (27.28%) 36.80% 15.65%
As per SFC recommendation, 12% of state revenue under Pool B is transferred to each local body based on formula recommended by SFC. The fluctuation in SFC grant is due to delay and deduction at source.
6.2.5 Water Charges The water charges and deposits collected by the Municipality are as below : Table 6.9 Water Tariff & Deposit Category Tariff Deposits Domestic Rs. 3/- per 1000 Litres Rs. 4000/- Commercial Rs. 6/- per 1000 Litres Rs. 6000/- Industrial Rs. 8/- per 1000 Litres Rs. 8000/-
The total number of house service connections (HSC) is 5132 nos., the breakup of which is as below Table 6.10 No. of House Service Connections Particulars Nos. Domestic 4968 Commercial 164 Industrial - Total 5132
The percentage of water supply connections to property tax assessments is around 47%. The Municipality should take steps to increase it to atleast 70-75%. This is possible because of adequate water supply in the town.
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The water charges for the past 5 years is as below : Table 6.11 Water Charges – Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Water Charges 21.48 19.33 19.60 19.81 21.86 Total 21.48 19.33 19.60 19.81 21.86 % of Total Income 7.49% 4.96% 6.13% 5.86% 4.63% % Growth - (10.01%) 1.40% 1.07% 10.35%
It may be observed that water charges account for around 6-7% of total income. There has been average no growth in water charges over the last 6 years. The water connection charges for the past 5 years is as below :
Table 6.12 Water Connection Charges – Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Water Connection Charges 2.41 5.09 29.50 2.69 38.79 Total 2.41 5.09 29.50 2.69 38.79 % of Total Income 0.84% 1.30% 9.23% 0.80% 8.21% % Growth - 111.20% 479.57% (90.88%) 1342%
It may be observed that water connection charges account for around 5% of total income. The growth of water connection charges over the years has been erratic with no definite pattern.
The last date of revision of water charges was in April 2000. The demand collection balance statement of water charges for the last 6 years is as below: Table 6.13 Water Charges – Demand Collection % (Rs. in lakhs) Water Charges 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Demand - Current 19.16 20.73 19.33 19.60 19.81 21.86 - Arrears 7.29 8.83 8.41 7.74 6.04 7.22 Total 26.45 29.56 27.74 27.34 25.85 29.08 Collection - Current 15.79 17.81 17.21 17.25 16.66 20.48 - Arrears 1.82 3.36 2.78 4.07 2.49 4.61 Total 17.61 21.17 19.99 21.32 19.15 25.09 Collection % - Current 82% 86% 89% 88% 84% 94% - Arrears 25% 38% 33% 53% 4% 64% Total 67% 72% 72% 78% 74% 86% ______61
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The municipality has good low collection performance, with current collection charges at around 88%. The arrears collection % is around 40%.
6.2.6 Drainage Charges The Municipality does not have Underground Drainage System and the households mainly have septic tank facility.
6.2.7 Service Charges & Fees The Municipality receives service charges and fees in the form of trade licence fees, building licence fees, fees for bays in bus etc. The income in the form of service charges and fees received during the last 5 years is as below :
Table 6.14 Service Charges & Fees – Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Service Charges & Fees 32.45 30.61 32.53 44.49 54.13 Total 32.45 30.61 32.53 44.49 54.13 % of Total Income 11.31% 7.85% 10.18% 13.16% 11.46% % Growth - (5.67%) 6.27% 36.77% 21.67% It may be observed that service charges & fees accounts for around 12-15% of the total income. There has been growth of around 20% over the last 5 years.
6.2.8 Income from Properties & Other Income The Municipality receives income by way of market fees – daily market, lease of land, rent on shopping complex & buildings, rent on bunk stalls, fees on pay & use toilets etc. Other income comprises interest from bank & investments, deposits lapsed, income from cable TV operations, project overhead expenses and interest apportioned misc. recoveries and other income.
The income from properties and other income received during the last 5 years is as below : Table 6.15 Income from Properties & Other Income–Growth & % of Total Income (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Income from Properties and other income 48.21 48.03 47.34 49.61 78.12 Total 48.21 48.03 47.34 49.61 78.12 % of Total Income 16.81% 12.31% 14.81% 14.67% 16.54% % Growth - (0.37%) (1.44%) 4.80% 57.47%
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It may be observed that income from properties and other income together accounts for around 15% of total income and the same has grown at average rate of 5% p.a.
The demand collection balance statement of income from properties and other income for the last 6 years is as below: Table 6.16 Non Tax Income – Demand Collection % (Rs. in lakhs) Other Income 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Demand - Current 30.74 60.50 62.57 65.26 72.65 73.68 - Arrears 29.82 19.45 26.05 24.47 18.68 19.99 Total 60.56 79.95 88.62 89.73 91.33 93.67 Collection - Current 27.23 51.49 60.68 63.36 69.84 71.30 - Arrears 12.98 2.39 3.45 4.68 1.50 1.82 Total 40.21 53.88 64.13 68.04 71.34 73.12 Collection % - Current 89% 85% 97% 97% 96% 97% - Arrears 44% 12% 13% 19% 8% 9% Total 66% 67% 72% 76% 78% 78%
On the average, the total current collection performance of other income is 95% and the arrears collection performance is around 15%. But the amount of arrears is nominal.
6.3 EXPENDITURE The revenue expenses mainly comprises of establishment charges, power charges for street lighting, water supply, repairs & maintenance and other revenue expenses on account of maintenance of roads, public health etc.
6.3.1 Establishment Expenses The major revenue expenditure incurred by the Municipality is establishment expenses comprising personnel cost and terminal benefits. The details of establishment expenses for the last 5 years is as below :
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Table 6.17 Establishment Expenses – Growth & % of Total Expenditure (Rs. in lakhs) Estb Expenses 2002-03 2003-04 2004-05 2005-06 2006-07 Personnel – Salaries 94.24 88.82 98.45 118.26 137.11 Terminal & Retirement Benefits 67.69 32.96 19.83 41.68 46.67 Total 161.93 121.78 118.28 159.94 183.78 % of Total Expt 53.72% 41.09% 42.19% 47.94% 51.84% % Growth - (24.79%) (2.87%) 35.22% 14.91%
The establishment expenses constitute around 50% of the total expenses. The establishment expenditure, which had marginally come down has started rising again from 2005-06.
6.3.2 O&M Expenses – Water Supply The next major share of expenditure goes for water supply and drainage works. The same accounts for around 18% of the total expenditure. O&M expenses on account of water supply comprises power charges of head works, pumping stations and booster stations, maintenance expenses for water supply works, vehicle maintenance etc. The O&M expenses on account of water supply for the last 5 years is as below :
Table 6.18 O&M Expenses (Water Supply)–Growth & % of Total Expenditure (Rs. in lakhs) O&M - Water Supply 2002-03 2003-04 2004-05 2005-06 2006-07 Power Charges 20.69 17.81 21.22 21.18 21.34 Maintenance Exps 1.00 0.79 3.57 3.01 1.82 Wages 1.28 3.83 5.27 4.35 - Others 0.36 - 0.01 0.27 - Total 23.33 22.43 30.07 28.81 23.16 % of Total Expt 7.74% 7.57% 10.73% 8.64% 6.53% % Growth (3.86%) 34.06% (4.19%) (19.16%)
The O&M Expenses – water supply constitutes around Rs. 25 lakhs per annum and the same has stabilized over the last 4-5 years.
6.3.3 O&M Expenses – Street Lights & Others The O&M expenses on account of street lights and others comprises power & maintenance charges on street lights & buildings, sanitary & conservancy expenses, vehicle maintenance, repairs & maintenance – buildings, roads and others. The expenses on account of street lights & others for the last 5 years is as below:
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Table 6.19 O&M Expenses (Street Lights & Others) – Growth & % of Total Expt (Rs. in lakhs) O&M – Street Lights & Others 2002-03 2003-04 2004-05 2005-06 2006-07 Operative Expenses 14.98 21.03 22.18 25.13 24.79 Repairs & Maintenance 2.95 2.98 7.64 12.09 12.38 Total 17.93 24.01 29.82 37.22 37.17 % of Total Expt 5.95% 8.10% 10.64% 11.66% 10.48% % Growth - 33.91% 24.20% 24.82% (0.13%)
The O&M expenses – street lights and others constitute around Rs. 30 lakhs per annum and the same has been growing @ 25% p.a.
6.3.4 Administration & Other Expenses Besides establishment and O&M expenses, administration expenses form the major part of revenue expenditure. The summary of administration expenditure over the last 5 years is given below : Table 6.20 Administration Expenses – Growth & % of Total Expenditure (Rs. in lakhs) Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Administration Expenses 13.85 23.12 16.87 24.87 34.58 Total 13.85 23.12 16.87 24.87 34.58 % of Total Expt 4.59% 7.80% 6.02% 7.46% 9.75% % Growth - 66.93% (27.03%) 47.42% 39.04%
The administration expenses comprise around 8% of the total expenditure. The administration expenses have been growing @ average rate of 40% p.a. over the last 5 years.
6.4 SUMMARY OF FINANCES We summarise below the finances of Devakottai Municipality for the last 5 years : Table 6.21 Summary of Finances for last 5 years (Rs. in lakhs) Audited Unaudited Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Income 286.79 390.11 319.58 338.18 472.25 Expenditure 217.76 191.34 195.12 250.94 281.71 Surplus before Int & Depreciation 69.03 198.77 124.46 87.24 190.54 Finance Charges 29.78 38.77 25.80 18.62 0.00 Surplus / (Deficit) before Depreciation 39.25 160.00 98.66 68.62 190.54 Depreciation 53.89 66.24 59.40 64.04 72.80 Net Surplus / (Deficit) (14.64) 93.76 39.26 4.58 117.74
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Note : The real autonomy of any organisation depends on its financial autonomy. Weak tax base, inadequate tariff level and poor collection performance have continued to be the salient features of local bodies in India. ¾ In the case of Devakottai Municipality, it is observed that the Municipality has incurred surplus over the last 4 years, which is a very positive sign. But the surplus is more on account of assigned revenue and grants. Therefore the Municipality needs to undertake lot of fiscal reforms and full leverage of its assets over the next few years to improve its financial strength. ¾ Prior to depreciation, the Municipality has incurred surplus for all the 5 years. But the surplus is more in the years where the devolution funds and grants are high. ¾ The summary of finances of the Municipality under the broad heads of income and expenditure for the last 5 years is as below : Table 6.22 Head-wise Income & Expenditure for last 5 years (Rs. in lakhs) Audited Unaudited Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 Income Property Tax 61.52 67.16 74.93 81.82 88.23 Profession Tax 7.70 7.82 9.31 10.33 11.39 Water & Drainage 23.94 24.48 49.15 22.61 65.08 Assigned Revenue 39.40 115.31 36.00 33.12 64.04 Devolution Fund 68.38 96.70 69.82 95.96 106.08 Serv. Chgs & Fees 32.45 30.61 32.53 44.49 54.13 Grants & Contributions 5.19 0.00 0.50 0.24 5.18 Sale & Hire Charges 0.00 0.01 0.07 0.00 0.00 Other Income 48.21 48.02 47.27 49.61 78.12 Total Income 286.79 390.11 319.58 338.18 472.25 Expenditure Personnel Cost 94.24 88.82 98.45 118.26 137.11 Terminal Benefits 67.69 32.96 19.83 41.68 46.67 O&M–Street Lights 14.98 21.03 22.18 25.13 24.79 O&M – Water 21.97 21.64 26.49 25.53 21.34 Repairs & Maintenance 5.03 3.77 11.22 15.37 14.20 Programme Expenses 0.00 0.00 0.08 0.10 3.02 Administrative Expenses 13.85 23.12 16.87 24.87 34.58 Finance Expenses 29.78 38.77 25.80 18.62 0.00 Depreciation 53.89 66.24 59.40 64.04 72.80 Total Expenditure 301.43 296.35 280.32 333.60 354.51 Surplus / (Deficit) (14.64) 93.76 39.26 4.58 117.74
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¾ It may be observed that establishment expenditure over the last 2 years have increased steeply, which has a bearing on surplus. Similarly no finance charges have been provided for the year 2006-07. ¾ Depreciation, which is a non-cash expenditure is also on the increasing trend over the years. ¾ The municipality’s own resources comprising property tax, profession tax and non tax revenue have on the average grown @ 10% p.a., which is a positive sign. But there is no growth in water charges, which is also a major source of revenue. ¾ But the growth in assigned revenue and grants is much more (around 25-30%) than the municipality’s own resources, which is the main reason for the surplus shown over the years. ¾ The total accumulated surplus of the Municipality as on 31st March 2007 stands at Rs. 608.66 lakhs. As against the same, the total fixed assets comprising land, buildings, plant & machinery, vehicles etc. stands at Rs. 1326.22 lakhs. Out of the total fixed assets, the value of land is Rs. 519.23 lakhs. ¾ The total loans of the Municipality as on 31st March 2007 stands as below :
Table 6.23 Borrowings of the Municipality (Rs. in lakhs) Loan from Purpose Rate of Interest O/s as on 31.3.07 Government Loan Road, Water Tank 13.5% 50.25 IDSMT Loan Road, Bus Shelter 10.50% 12.08 TUFIDCO Loan Special Roads 9.50% 14.72 TNUIFSL Loan Special Roads 9.50% 22.50 TNUDF Loan Special Roads 9.50% 40.50 Bank Loan Services 12% 11.00 Total 151.05
¾ As against the same, the contribution by Municipality, contribution by Government and Grants from Government as on 31st March 2007 stands as below :
Table 6.24 Status of Contributions & Grants Particulars Rs. in lakhs Contribution by Municipality 18.29 Contribution by Government 303.37 Grants from Government 65.36 Total 387.02
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¾ It is observed from the above that around 60-70% of the fixed assets excluding Land have been funded by means of Contribution and Grants from Government over the years and the balance from Loans. ¾ The average current collection efficiency of the municipality is good in all the cases with 90% efficiency in property tax, 96% in profession tax, 88% in water charges and 95% in non tax revenue. But the arrears collection % is poor and needs to be improved. ¾ The broad financial analysis of the Devakottai Municipality finances reveal that the Municipality has further scope for increasing its own sources of income and collection efficiency for servicing the additional borrowings in the future. ¾ To summarise, the overall income pattern of the Devakottai Municipality indicates both positive as well as negative trends. The positive trends are on the income side, where the Municipality has shown surplus for the last 4 years. Besides the current collection performance is good in all the case of own income of the municipality. ¾ On the negative side, the municipality is more dependent on assigned revenue and devolution funds to manage its finances. The surplus of the municipality is more on account of income from these sources. The arrears collection performance has to be improved. With the rising establishment costs, there is urgent need for the municipality to look at various mechanisms to improve its scope of own income to service the additional borrowings in the coming years. ¾ With more effective management of resources, there is scope for further enhancing credit worthiness and revenues of the Municipality.
6.5 KEY FINANCIAL INDICATORS A set of key financial indicators has been derived using the financial data procured from the Municipality for the assessment period. These indicators are used to assess the municipal performance with regards to resource mobilization, fund utilization, financial performance and collection efficiencies.
6.5.1 Resource Mobilisation Indicators These indicators summarise the performance of the Municipality with regards sources of funds. Devakottai Municipality derives about 63 percent of its revenue income from own sources, while grants account for just about 24 percent of the revenue income.
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Table 6.25 Resource Mobilisation Indicators Indicators Value Per Capital Income Rs. 1060/- p.a. Share of Own Sources in Total Revenue Income 62.88% Share of Property Tax in Total Revenue Income 18.68% Share of Revenue Grants & Subsidies in Total Revenue Income 23.56% Growth in Revenue Income 16.17% p.a. Growth of Own Sources of Revenue Income 17.71% p.a. Per Capital Own Income Rs. 667/- p.a.
6.5.2 Fund Application Indicators These indicators are a measure to ascertain the utilization from the municipal fund. Around 52% of the revenue expenditure is spent on establishment heads, only 17% for municipal assets and services, leaving around 31% utilized for debt servicing. Establishment expenditure accounts for about 39% of the total revenue generated by the municipality.
Table 6.26 Fund Application Indicators Indicators Value Per Capita Expenditure Rs. 796/- p.a. Share of Establishment Expenses in Total Revenue Expenditure 51.84% Share of O&M Expenditure in Total Revenue Expenditure 17.02% Share of Establishment Expenditure to Total Revenue Income 38.92% Growth in Establishment Expenditure 3.37% p.a. Growth in O&M Expenditure 10.93% p.a. Growth in Total Revenue Expenditure 4.40% p.a.
6.5.3 Liability Management Indicators These indicators are a measure to ascertain the utilization from the municipal fund regarding debt servicing. The ratio of debt servicing to revenue income is high at 26% during the assessment period. The per capita average debt outstanding works out to Rs. 339/- and the per capita outstanding debt to property tax demand is around 171% of the property tax demand for the current year. Table 6.27 Liability Management Indicators Indicators Value Per Capita Liability - Outstanding Debt per Capita Rs. 339/- - Outstanding Non Debt Liability per Capita - - Total Outstanding Liability per Capita Rs. 339/-
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As a proportion of Property Tax Current Demand - Outstanding Debt as % of Property Tax Demand 171% - Outstanding Non Debt Liability as % of Property Tax Demand - - Total Outstanding Liability as % of Property Tax Demand 171% As a proportion of Property Tax Own Revenue Income - Outstanding Debt as % of Own Revenue Sources 51% - Outstanding Non Debt Liability as % of Own Revenue Sources - - Total Outstanding Liability as % of Own Revenue Sources 51% Non Debt Liability as % of Total Liability - Debt Servicing Ratio 26%
6.5.4 Overall Financial Performance Indicators These indicators are a measure to assess the overall financial performance of the Municipality with regards operational performance and effective growth in revenue income and expenditure. The average operating ratio during the assessment period was 60%. The indicators of growth in per capita income and expenditure item heads indicate the effective growth, giving a performance measure relative to the growing population. Devakottai Municipality has demonstrated 12.42% annual growth in per capita revenue income during the assessment period, while the per capita revenue expenditure has grown at CAGR of only 1.73% during the corresponding period, which indicates that as population increases revenue fund will be surplus.
Table 6.28 Financial Performance Indicators Indicators Value Operating Ratio 59.65% Growth in Per Capita Own Revenue 13.83% p.a. Growth in Per Capita Grant 9.37% p.a. Growth in Per Capita Total Revenue Income 12.42% p.a. Growth in Per Capital Establishment Expenditure 0.79% p.a. Growth in Per Capita O&M Expenditure 7.66% p.a. Growth in Per Capita Revenue Expenditure 1.73% p.a.
6.5.5 Efficiency Indicators These indicators are essentially a measure to assess municipal efficiency with regards revenue base coverage and utilization. Devakottai Municipality has good collection performance both with regard to all its sources of income (property tax – 90%, profession tax – 96%, water charges – 88% and non tax income – 90%). The average population per residential assessment at 4.43 persons indicates that the property tax base has reasonably good coverage.
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Table 6.29 Efficiency Indicators Indicators Value Tax Collection Performance (Current) - Property Tax 90% - Profession Tax 96% - Water Charges 88% - Non Tax Income 95% No. of Property Tax Assessments per Tax Collection Staff 1557 Nos. Property Tax Demand per Assessment Rs. 746/- p.a. No. of Municipal Staff per 1000 Population 3.8 Nos. Annual Revenue (Own Source) per Municipal Staff Rs. 1.93 lakh p.a. Population per Residential Property Tax Assessment 4.43 persons
Note :The detailed financials of Devakottai Municipality comprising Income & Expenditure Statement, Balance Sheet, Demand Collection Balance Statement, and Growth in Income and Key Indicators for the last 6 years are given as Annexure – 3.
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7 ACTION PLAN & POLICY INTERVENTIONS
7.1 ACTION PLAN A City Corporate cum Business Plan (CCCBP) is essentially a road map to achieve a set of development objectives within a specific period. This CCCBP has identified and articulated the needs and aspirations of the citizens of concerned ULBs through a comprehensive consultative process involving a wide-ranging stakeholder representations from Government, parastatal, NGOs, citizen forums, institutions, commerce and related entities.
The responsibility now rests with Devakottai Municipality is to take the task forward and commence a development process to achieve a healthy and safe habitat. The following section presents an Action Plan and Implementation strategy for key infrastructural projects and reforms to be followed.
The Action Plan for Water Supply, UGSS, Solid Waste management, Roads, Major projects identified under Public private partnership with implementing agency, year of Implementation, current stage, proposed financing mix, O&M Plan and the expected outcome are detailed out in the Action Plan. Probable risks and mitigate measures for each major project in discussion with the key stakeholders of each Municipality has also been furnished.
The time line and implementation strategy for each of these projects with the various activities gives the project schedule and various steps involved. The risks and mitigate measures for all projects in general is given in Annexure – 5.
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7.1.1 Water Supply Table 7.1 Action plan for the proposed Water supply improvement scheme Proposals : Improvement to existing supply and distribution system Current Status : Awaiting approval from CMA Year of Implementing agency Investment & Financing mix [Loan: Outcomes Implementation Grants: ULB Contribution]
Municipality or Project Rs.480.00 lakhs Improvement in water supply, reduction in losses, 2009-10 Management consultants . & 60:30:10 Reduction in O&M. Operation & Maintenance Plan 1. Revenue enhancement through collection drives, metering, tariff rationalization and apportionment of property tax collected towards water supply fund to raise annual collection. 2. Creation of public awareness on water conservation and rain water harvesting practices through IEC activities. 3. Preparation of Status report on capital works under taken on a quarterly basis 4. Performance monitoring of water supply and distribution system .Initiation of energy audit, leak detection, Non-Revenue water, water quality, etc. if necessary. 5. Establishment of GIS inventory mapping and Management Information System. 6. Ensure preventive and break down maintenance of the proposed system. 7. Registration of break downs, complaints received and Action Taken Reports. 8. Effective tariff collection measures through spot billing. 9. Privatization of O&M of Water supply, treatment, distribution systems Project risks Mitigation measures 1 Inadequate capacity of Municipality to handle the project Appointing Project Management Consultancy for implementation. 2 Inadequate staff for O&M of WS system Privatisation of O&M for water supply and distribution Consolidating contract packages and calling tender at state level or National 3 Non - availability of suitable contractor due to the simultaneous level. execution of similar project in many ULBs nearby. Short listing of potential contractors at regional level and Tendering the contract in a planned manner. Source: Analysis and research
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Table 7.2 Timeline and Implementation Strategy for Water Supply Improvement Project
Sl.no Devakottai - Waster Supply Improvement Present Status 2009-10 2010-11 2011-12 2012-13 2013-14
Activity 12341234123412341234
1 Approval of the council for the project proposal Completed 2 Appointment of consultant for preparation of DPR Completed 3 Appointment of consultant for Project Management Completed 4 IEC activities & stakeholder consultation workshops 5 Preparation of DPR Completed 6 Approval/ Sanction of DPR (AS & TS) Under Progress 7 Arrangement of loans and Grants 8 Preparation of Tender Documents 9 Short listing potential contractors & calling for Tender 10 Pre-bid Meeting 11 Tender Evaluation 12 Award of work 13 Collection of Deposits 14 Project Implementation 15 Fixing meters for all HSCs 16 Preparation of final inspection reports 17 Preparation of statement of completion 18 Preparation of as built drawings 19 Training to ULB staff in O&M of the system 20 Appointment of private contractor for O&M
Legend Continuous activity Start to finsh of activity
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7.1.2 Under Ground Sewerage Table 7.3 Action plan for the proposed UGSS Proposals : Under Ground Sewage System + Sewage Treatment Plant Current Status : Awaiting CMA Approval Year of Implementing agency Investment & Financing mix Outcomes Implementation [Loan: Grants: ULB Contribution]
2009-2012 Project Management Rs.3845.00 lakhs & 53:30:17 Improved health conditions and UGSS Consultants/TWAD Environment
Operation & Maintenance Plan. 1. Creation of public awareness on the necessity of UGSS as a healthier option through IEC activities. 2. Apportionment of property tax collected towards Drainage fund, awareness creation on the need for tariffs and connection deposits for revenue mobilisation. 3. Exploring options for privatization, DBOT, DBOOT schemes for sewage treatment plants. 4. For good maintenance, preparing up to date plans for sewer systems showing the location of manholes and appurtenances, direction of flow, house service connections, grades of sewers etc are necessary. 5. Regular preventive and break down maintenance of the proposed system. 6. Create database on sanitation assets and ensure adequate upkeep of sanitation assets through encouraging community level participation and consumer forums. 7. Establishment of GIS inventory mapping and Management Information System 8. Registration of break downs, complaints received and actions taken.
Project risks Mitigation measures
1 Inadequate capacity of Municipality to handle the project Appointing Project Management Consultancy for implementation. 2 Inadequate staff for O&M of sewer network Privatisation of O&M for sewer system including STP 3 Non - availability of suitable contractor due to the simultaneous Consolidating contract packages and calling tender at state level or National execution of similar project in many ULBs nearby. level. Short listing of potential contractors at regional level and Tendering the contract in a planned manner. Source: Analysis and research ______75
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Table 7.4 Timeline and Implementation Strategy for UGSS project
Sl.no Devakottai - UGSS Present Status 2009-10 2010-11 2011-12 2012-13 2013-14 Activity 12341234123412341234 1 Approval of the council for the project proposal Completed 2 Appointment of consultant for preparation of DPR Completed 3 Appointment of consultant for Project Management Completed 4 IEC activities & stakeholder consultaton workshops 5 Preparation of DPR Completed 6 Approval/ Sanction of DPR (AS & TS) Under progress 7 Arrangement of loans and Grants 8 Preparation of Tender Documents 9 Short listing potential contractors & calling for Tender 10 Pre-bid Meeting 11 Tender Evaluation 12 Award of work 13 Collection of Deposits 14 Project Implementation 15 Preparation of final inspection reports 16 Preparation of statement of completion 17 Implementation of graded tariff 18 Preparation of as built drawings 19 Training to ULB staff in O&M of the system 20 Appointment of private contractor for O&M
Legend Continuous activity
Start to finsh of activity
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7.1.3 Solid Waste Management Table 7.5 Action plan for Solid Waste Management Proposals : Improvement in Solid waste Management Current Status : Concept stage Year of Implementing agency Investment & Next step Outcomes Implementation Financing mix 2009-12 Municipality Rs.71.25 lakhs & 12th DPR to be prepared Improved Environment SFC grants Operation & Maintenance Plan. An integrated solid waste management plan for the town involving the following process is needed: 1. The municipality must focus on revenue enhancement by privatizing of waste management of the following components: a. Primary collection b. Transfer to collection points c. Transfer to compost yard d. Segregation of waste and option of i. Selling scraps/recyclable waste. ii. Treatment of biodegradable waste iii. Transfer to identified regional land fill sites e. Compost yard management 2. The management of biodegradable waste as a revenue generating activity may involve, f. Vermi-composting g. Installation of bio-gas plant 3. Conducting IEC campaigns to facilitate effective waste segregation at source and proper disposal. 4. Implementing collection of conservancy fee for primary collection of waste and levy on residential, commercial and industrial establishments. 5. Involvement of voluntary agencies, SHGs in the various components of solid waste management on BOT, BOOT basis. Project risks Mitigation measures 1 Non-willingness to pay conservancy fees IEC activities through voluntary organisations, CBOs, Resident welfare organizations 2 Lack of public awareness and cooperation 3 Lack of bidders for the project Consolidating contract packages and calling tender at state level or National level. Short listing potential contractors at regional level & tendering the contract in planned manner 4 Opposition from existing sanitary staff Retaining the identified zones or reallocate existing sanitary staff for other municipal functions Source: Analysis and research ______77
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Table 7.6 Timeline and Implementation strategy for SWM
Sl.no Devakottai - SWM 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Activities 12341234123412341234 1 Approval of the council for the project proposal Completed 2 Appointment of consultant for preparation of DPR Municipality 3 IEC activities & stakeholder consultaton workshops 4 Preparation of DPR (Integrated SWM Action Plan) Completed 5 Approval/ Sanction of DPR (AS & TS) 6 Arrangement of loans and Grants 7 Preparation of Tender Documents 8 Short listing potential contractors & calling for Tender 11 Project Implementation 12 SWM conservancy fees (non domestic) 13 Implementation of Source Segregation 14 Implementation of door to door collection 15 Privatisation of Compost yard management 16 Production of sale of compost 17 Training to ULB staff in O&M of the system
Legend Continuous activity Start to finsh of activity
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7.1.4 Roads
Table 7.7 Action plan for Roads Proposals : Improvement of Roads Current Status : Concept stage Year of Implementing agency Investment & Financing mix Next step Outcomes Implementation Grants:ULB contribution
Municipality or Project Rs.501.00 lakhs & 90:10 Improvements in internal circulation, 2009-14 DPR to be prepared Management consultants. safe pedestrian movements,
Operation & Maintenance Plan. 1. The maintenance of the existing network of municipal roads involves: a. Routine maintenance – Filling of pot holes, repairing of cracks, maintenance of shoulders, upkeep of drains. b. Periodic maintenance – Renewal of wearing coat and preventive maintenance. c. Rehabilitation, strengthening and special repair – Overlay construction, reconstruction of pavement, widening of roads, repairs of damages caused by floods.
2. Traffic Operation and Management study involving widening and strengthening of road structure, removal of encroachments, construction of underpass / over bridges at crossings, study of city wide parking requirements, development of parking infrastructure, segregation of slow and fast moving vehicular traffic, proper realignment of road furniture and utilities, traffic signals with timers, critical junction improvements, establishment of regional linkages considering the future growth potential. 3. Provide duct for cables and other utilities along major roads to minimize digging. 4. Options for revenue generation involve track rent from cable, telecom, TNEB, lease from avenue trees etc. 5. Establishment of GIS inventory mapping and Management Information System.
Project risks Mitigation measures 1 Damages due to the implementation of water supply and UGSS project Speedy expedition of water supply and UGSS and relaying roads 2 Relocation of utilities such as water supply lines, electrical installations, To reduce inconvenience to the public, the utilities to be relocated telephone lines etc in shortest possible time after prior approval from agencies Source: Analysis and research
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7.1.5 REMUNERATIVE PROJECT - PPP model
Table 7.8 Action plan for Commercial Complex and additional stalls in Market Proposals : Construction of commercial complex and stalls in Market
Current Status : Concept stage
Year of Implementing agency Investment & Financing Next step Outcomes Implementation mix
2009-11 Municipality and Private Agency Build, Operate Own and Calling for EOI and Short listing Reduction in capital through PPP mode Transfer mode potential contactors for BOOT investment, O&M.
Technical assistance:
1. Orientation sessions for Municipal authorities and elected representatives on PPP modalities &options. 2. Public consultation/stakeholder meeting for the proposed project. 3. Technical assistance needed from PPP experts. 4. Legal and technical support for drafting, formulating and reviewing tender documents.
Project risks Mitigation measures Consolidating contract packages and calling tender at state level or National level. 1 Lack of bidders for the project Short listing of potential contractors at regional level and Tendering the contract in a planned manner.
2 Increased Organic waste generation from market Provision of basic facilities, Proper treatment and disposal, and regular cleaning
3 Lack of awareness and public co-operation for Public consultation meetings to gain trust of stake holders The proposed project Source: Analysis and research
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7.1.6 Implementation Strategy- Urban Governance The study recommends to the Govt. of Tamil Nadu that a Regional Technical Cell be established at the seven regions of the state with the following team of specialists Table 7.9 Regional Technical Cell – Team of Specialists S.No Specialists Functions 1 Legal Advisor / • legal matters related to projects, Contract Specialist • finalization of all contractual documents, • Arbitrations • Land acquisitions 2 Financial Advisor • Financial analysis • Risk Management analysis • Financial modeling of projects • Updating the financial projections 3 Infrastructure Engineers • Project planning and formulation • Preparation of DPR • Monitoring and management of projects 4 Architects and Urban planner • Assessing the growth direction • Regional linkages and its impacts • Feasibility and Design of projects 5 Social Development Expert • Sensitization of Women and youth SHGs • Training to ULB personnel, elected representatives and SHGs. • Formulating and implementing IEC activities for various developmental projects Source: Analysis and research
The Regional Technical Cell would also co-ordinate with the various parastatal and development authorities such as TWAD, TNEB, TNHB, H & RD, PWD and Town and Country Planning Authorities.
The components and functionalities of the Regional Technical Cell in represented in the Figure Below:
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Source: Analysis and research Fig: 7.1 Regional Technical Cell
7.2 CAPACITY BUILDING PROGRAMMES: Capacity Building and Training of Political and Administrative wings of ULBs are an important component in ULB administration. Training of public representatives and officers and staff of ULBs ______82
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The ULBs in the State by and large have following departments/sections with specified functions;
Table 7.10 Municipality - Departments and functions S.No Section Function 1 Engineering Water supply Drainage Roads & Bridges/Culverts Buildings (& Crematoriums) , Television Rooms , etc Street lights Parks& Play grounds 2 Town Planning Approval of land sub-division /Layouts Issue of Building Permit & Licenses Identification & Process of UAC& Deviated Construction Eviction of Encroachments Poverty Alleviation Programmes Approval of Installation & Issue of Licenses Town survey 3 Revenue Assessment of Vacant Land Tax & Property Tax Name transfer of titles Lease & rent of markets, stalls & Bunks Revenue collection Recoveries of loan 4 Public Health Birth & Death Registration & issue of certificates Prevention of epidemic diseases Clearing of drainage Street sweeping Solid waste Management Maternity & Child Health Family welfare , Family Planning & Medical Aids 5 General Administration & Accounts Computerization & E-governance Budgeting, Council Meeting , Public grievance, Citizen Charter Right to Information Act Source: Web site of CMA
Training needs to be imparted to elected representatives as well as to the officers & staff working in various sections of the ULBs. Training programmes need to be evolved depending upon whether they are Elected Representatives ( Mayors/Chair person, Deputy Mayor/ Vice chairman, councilors) or Senior level officers , Middle level officers and staff in various sections of the ULBs. 7.2.1 Training to elected representatives • Urban Governance, Management and Planning ______83
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• Environment management • JNNURM, UIDSSMT, IHSDP, IHSDP & Basic Services for Urban Poor. • Budget preparation • Visioning, goal setting, Planning • City Corporate Plan • Urban Development plans (Master plans, Detailed Development Plans) • Redressal of public grievances • Tender procedure • Tamil Nadu District Municipalities Act, Public Health Act, Town and Country Planning Act. • Crisis management and Stress management • E – Governance • Personality development • Motivation skill • Public - Legal Aspects • Written and Oral Communication skills
7.2.2 Training to ULB Staff Topics to be covered for training for various departments / sections of the ULBs
Table 7.11 Training for ULB staff S.No Topics to be Areas of training covered Engineering Water Supply Water Supply System Maintenance and Management Application of modern technology and development in water treatment process Preventive maintenance and leak detection in water distribution system and energy saving techniques Computer application in Water Treatment Plants Computer application for Water Distribution Management Maintenance of electrical and mechanical equipments Filter Operation Latest techniques in pumping and distribution system Yield test for water sources Operation & Maintenance of chlorinator (care and use of chlorinator) Rain Water Harvesting Water and waste water analysis Spot billing and collection mechanism Sewerage Maintenance of UGD Safety precautions in cleaning drains for blockage and repairs Computer Aided Design for sewer network ______84
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Modern practices in waste water management Mechanised Sewer maintenance and cleaning Preventive maintenance of sewage system Maintenance of electrical and mechanical equipments Spot billing and collection mechanism Storm water Design applications in storm water drains Drains Maintenance of Storm water drains Repairs of storm water drains Street Light Energy Saving Techniques Application of solar panel bulbs and appliances Maintenance of Street Lighting General Urban Environment Management Structural designs, hydraulic designs and AutoCAD applications Project Preparation, Project Appraisal Natural Disaster Management Recording of M books Project preparation and Estimate preparation Software application for Data Processing and estimation World bank tender procedure and Guidelines for engineering works PERT and CPM techniques Project planning, Scheduling and monitoring Soil testing Bid management and Contract Management Evaluation of technical and financial proposals submitted by consultants and contractors E-tendering Project Cost Center, Cost Benefit Analysis Basic Services to Urban Poor Levy of user charges Basic legal aspects Modalities in Privatisation for O&M and project proposals Right to Information Act Town Planning AutoCAD Application GIS and Remote Sensing Latest survey techniques for Application of GIS Application of GPS Survey, Land Measurement and Equipment Training Land acquisition procedure Methods for BPL survey Schemes – JNNURM, UIDSSMT, IHSDP Preparation of Master plans, Detailed Development Plans and Regional Plans Traffic Operation and Management Plan Modern techniques of Urban Management Layout Approval and building plan approval Public legal aspects Identification and process on unauthorized / unapproved/deviated constructions Eviction of encroachments E-approval for building plans and Installation plans Right to Information Act Public Health Preventive methods for epidemics and endemics ______85
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Low cost sanitation Organizing and sustenance of SHG and community development schemes Training of Animal birth control Destruction of stray dogs and pigs Solid waste Segregation techniques, Transfer from station, transport of waste to compost yard management Land fill and vermin composting Street sweeping, clearing of drainage Birth and Death registration and issue of certificates Medical Maternity and Child health Operation of maternity centers Family welfare activities, medical aids and family planning Medical Audit Revenue, Accounts and Administration Financial management and reforms for good Urban Governance Good urban governance for funding of infrastructure Management of Urban Finance Property tax evaluation Property tax administration and procedure Budgeting outcome budget, Estimation of funds Tax assessment methods, Tax revision of assessments, preparation of Income statement, Resource Mobilization, implementation and evaluation Tally Collection of Vacant land tax, Property tax Name transfer of titles, lease and rent for markets, stalls and bunks Recovery of loans Accrual Based Accounting System Methods of revenue improvement Assessment of tax under fair rent formula Reform of Property tax through GIS application Tariff fixation, Taxation E-Governance including e-tendering D&O trade licensing Right to Information Act E-Governance Oracle 9i – switching to windows 2007 Hardware systems Maintenance Networking, Server maintenance, HTML and Web Design and Software VB, Dot net network security, Backup/recovery General Tamil Nadu District Municipalities Act, Town and Country Planning Act, Public Health Act, Tender transparency Act, Government orders on schemes Training on Urban Environmental and Social Management Capacity Building for Community Development Society (CDS) Training on Entrepreneurship program Training on participatory planning Citizen charter Reform Agenda Obtaining accreditation such as ISO 9001/ISO 14000 for ULBs Right to Information Act Source: Analysis and research
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7.3 POLICY INTERVENTIONS
Current scenario in Tamil Nadu Subsequent to the 74th CAA in 1992, a series of steps to improve the financial status and thereby the performance levels of the Urban local bodies were initiated in the various states of India, including Tamil Nadu. The Government of Tamil Nadu, as a forerunner, has been initiating and implementing various Municipal reforms. The following are the key reforms implemented by the GoTN: 1. Devolution of funds: 3.5% of State’s total tax revenue passed on to urban local bodies. 2. State Finance Commissions: Three consecutive state finance commissions were setup for recommendations to Government. 3. Setting up of TNUDF: A successful private-public partnership initiative to tap the capital market. 4. Accrual Based Accounting System: The new accounting system has been implemented in all the urban local bodies. 5. Computerization and E-governance of select Municipal functions have been successfully implemented in all urban local bodies. 6. Urban indicators: Performance assessment of ULBs initiated by CMA 7. Revision of Property tax : With effect from April 1.2008, subject to a maximum of 1.25 times the existing tax structure. 8. Debt monitoring cell: It has been established with office of CMA with the objective of collecting financial information on individual ULBs, assisting them in making realistic financial projections and facilitating the Urban Local Bodies to access the Capital Markets by information dissemination from CMA office. 9. GIS for 5 urban local bodies: Consultancy for Preparation of Property mapping and Utility Mapping for Madurai, Coimbatore and Tiruchirappalli Corporations and Rajapalayam & Gobichettipalayam Municipalities has been initiated as a pilot project by the office of CMA. 10. ESCO Studies: TNUIFSL initiative for the Implementation of energy efficiency in Water pumping and Street lighting systems under performance contract. 11. Right to Information Act, GoI : An Act to provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority. ______87
City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
Table 7.12 Reform Agenda for Mandatory Reforms – Devakottai Municipality Sl.no 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Activity 1234123 4 1 2 3 4 1 2 3 4 1 2 3 4 A State level Initiatives i Zone wise Review & updation of guideline values as per market value ii Initiating GIS based tax mapping for all ULBs iii Reassessing unassessed & under assessed properties iv Rationalisation of stamp duty to below 5% Under progress v Enactment of Community participation law vi Legal framework for PPP projects vii Establishing regional resource centre at RDMA office viii Establishing PPP cell interfaced with TNUIFSL B Municipal level Initiatives 1 Revenue enhancement measures i Parking regularisation Plan ii Advertisements regularisation Plan iii Conservancy fees for Non-domestic assessments 2 Reforms in Privatisation i O&M of the supply and distribution system ii O&M of the Sewer network & STP iii Door to door collection of solid waste iv Compost yard management & sale of compost & scrap v O & M of Street lights vi Purchase of mobile collection vehicle vii Formation and sensitisation of youth & women SHGs viii Privatisation of tax collection mechanism thru SHGs 3 Reforms in audit and accounting i Appointing a private chartered accountant as consultant ii Closing & auditing of accounts (Aug 30) iii Publishing audited statement online(Sept 30)
Source: Analysis and research
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7.3.1 Policy interventions at State level
• Establishment of Tax Mapping using GIS to assess un-assessed and under- assessed properties in all ULBs. • Community participation law- enacting the “community participation law” that will make it mandatory for the government and its agencies to get the view of citizens, mainly residents’ welfare associations and other citizens’ groups, before starting any project. • Setting up a Regional Technical cell attached to the respective RDMAs office to assist the ULBs in Techno-legal issues like short listing potential contractors, consultants, project formulation , contract management, tender process, capacity building etc. • Zone wise review and upgrade Property guideline values in line with market prices. • Rationalization of stamp duty to below 5% as per JNNURM guidelines.
Policy intervention for PPP ventures:
1. Frame work law for PPP as in Gujarat, Punjab and Andhra Pradesh – Enabling and regulatory framework .Capacity building in public institutions and private sectors for handling PPP projects. Identification of bankable infrastructure projects. 2. Setting up a PPP cell at the State level and Creating database at the State level listing projects in various sectors of developmental activities for PPP participation
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City Corporate cum Business Plan for Tirumangalam Municipality FICHTNER INDIA Final Report TNUIFSL
Base source: www.pppinindia.com Fig: 7.2 Organogram of PPP Cell
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL
7.3.2 Proposed reforms at Municipal level
The proposed Municipal reforms are broadly categorized under the heads of:
1. Reforms in Resource Mobilisation 2. Reforms in privatisation initiatives 3. Reforms in Audit and Accounting 4. Reforms in Municipal service delivery
a. Reforms in Resource Mobilisation
i. Property tax reforms
• Empowering municipalities to collect double the property tax from commercial, office and fee collecting educational establishments. • Interfacing with the TNEB on the details of category and number of new service connections provided.(domestic or non-domestic) • Levying Vacant Land Tax as per the recommendations of Third State Finance Commission. Empowering the municipality to convert non-claimed lands to socially benefiting uses. ii. Profession Tax Reform
• Revising the profession tax based on the Third State Finance Commission recommendations .Refer Annexure-9.
iii. Water supply and sewerage charges
Approval of the Municipal council for the proposed tariff and deposit structure to enhance the public contribution and meet the entire O&M cost. Implementation of the proposed metering of water supply connections Implementation of graded tariff structure (UGSS) for domestic and non-domestic connections. Privatisation of Operation and Maintenance of the entire Water Supply and Distribution System. Privatisation of operation and maintenance of the UGSS. ______91
City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL iv. Solid Waste Management
1. Implementing collection of conservancy fee for primary collection of waste and levy on commercial and industrial establishments. 2. Revenue Generation from selling scrap after segregation at secondary collection point or compost yard at Rs.10-Rs.15 per Kg. 3. Revenue Generation from sale of compost at the rate of Rs.300 per Tonne. 4. Involvement of voluntary agencies, SHGs and private operators for the various components of Solid Waste Management on BOT, BOOT basis. vi. Parking Regularisation Plan
Inventory for all roadside parking areas. Initiating time based pay and park facilities for vehicles. The proposed parking fee structure is
◊ Bicycles - no tax ◊ Two wheelers - Rs.2.00 ◊ Light Vehicles - Rs.5.00 ◊ Heavy Vehicles - Rs.10.00
Vii Advertisement Regularisation Plan
• Identifying strategic locations such as bus shelters, road medians, for hoardings and poster places in Municipal area and levying advertisement tax at the rate of Rs.25 per sq.ft per annum. • To prepare an inventory of advertisement spaces within their limits with size and type. • Auctioning the entire rights to a single bidder on annual basis, who in turn can collect revenue from individual advertisers.
Viii Regularization of unapproved construction
Regularization fees for unapproved constructions at the rate of 5 times the existing building license fee.
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL xi. Collection of Annual Tract rent
From cable T.V operators - (Rs.3.00 per running metre) From Telecommunication service providers - (Rs.5.00 per running metre)
The urban local body may be empowered to collect the security deposits at Rs.10, 000 per operator and revise the tract rent every three years. The collection of tract rent and deposits can be handed over to Youth SHGs. x. Capacity assessment and capacity building Mandatory capacity building and orientation sessions for Municipal Authorities and elected representatives, for which suitable training programs, training manuals and networking with other stakeholders has been initiated by the CMA. b. Reforms in privatization initiatives i. Privatisation of Collection mechanism • Providing a computer fitted mobile van with online access to municipal database for spot billing and collection of all taxes. • Performance based incentives can be given to the private operators at the rate of 5% of total collection .The support of the Youth SHGs or Fan clubs can be sought for the purpose of collection with adequate sensitization programmes.
Privatisation of Collection of 1. Property tax 2. Profession tax 3. Water - Deposits and tariff 4. UGSS- Deposits and tariff 5. Advertisement spaces/rights as a single contract 6. Parking areas 7. Solid waste conservancy fees(Domestic and non-domestic) Creating database of all assessments, households and category of assessments: • Interfacing with cable operators to arrive at the number of households at ward/zone level. • Interfacing with the sub registrars and creating the database of available vacant lands within the ULB. ______93
City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL c. Reforms in Audit and Accounting
Timely Auditing should be performed with the use of private Chartered Accountants for routine audit and local audit to carry out proprietary audit. Closing all Auditing before September 30 of the next financial year and publishing the audited statement on the website. GoTN and CMA may focus to give technical assistance and training to ULBs for improving the accounting systems and practices. d. Reforms in Municipal service delivery
Privatizing the maintenance of Water Supply System including the distribution system All Head works and OHTs may be fitted with bulk water meter to assess the loss due to non revenue water and unaccounted water. Fixing flow control valves and meters for all water service connections. Conducting energy audits for water pumping machinery and street lights. Conducting leak detection studies, if transmission losses are more than 15%. The options for using available local sources (surface water) in lieu of capital intensive projects should be initiated. Ensuring 100% coverage of the water distribution network to the existing roads in the town. Ensuring 100% coverage of the UGD network to the existing roads in the town. Privatizing the operation and maintenance of UGSS and STP Privatization of Solid waste Management ensuring 100% collection efficiency and produce of compost. Initiating IEC activities through educational institutions and voluntary organizations. Provision of energy saving lights, and equipments like dimmer and timer switches to reduce energy consumption. Privatizing the maintenance of street lights. Levy Reasonable User Charges to recover Full O&M Cost of water supply, UGSS, SWM.
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Table 7.13 Reform agenda – Municipal Service Delivery
Sl. Benchmark Target Particulars Unit Existing No considered Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 INFRASTRUCTURE SERVICES
a Water Supply
i Net Supply per capita LPCD 120 83 90 120
HSCs - % of assessed ii % 85% 52 60 80 properties
Frequency of Supply - iii Hours 24x7 Daily 24 x 7 Hours per day
b Sewerage and Sanitation
i Access to UGD Network Yes/No Not available 100
Coverage of UGD network - ii % 100% Not available Period of implementation 100% % of road length
c Solid Waste Management Availability of Composting i Yes/No Not available yes facility Collection efficiency (% ii % 100 100 collected) Roads, Storm Water Drains, Street d Lights BT Roads /concrete roads- i % 100% 66.5 100 % of total road length Pucca closed storm water 137 (32% - ii drains - % of total road % 130% 137 covered drains) length Average spacing between iii metres 30 42 30 30 Street lights Source: Analysis and research
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8 CAPITAL INVESTMENT PLAN AND FINANCIAL SUSTAINABILITY
8.1 CAPITAL INVESTMENT PLAN The proposed projects for Devakottai Municipality taking in to account its resources and the existing shortfall in services are given below. The projects have been phased out taking in to account the time-span required for implementation of the project and the availability of the funds (loans, grants and municipality’s own resources) for the same.
Table 8.1 Projects to be Executed by Municipality (Rs. in lakhs) Funding S.N Particulars Pattern 2009-10 2010-11 2011-12 2012-13 2013-14 Total A Physical Infrastructure Facilities L:G:M I Water Supply a) Improvements to Water Supply 60:30:10 480.00 - - - - 480.00 II Sewerage a) New Underground Sewerage Scheme 53:30:17 745.00 1438.00 1662.00 - - 3845.00 III Strom Water Drains a) Covering of existing strom water drains 0:90:10 - - 75.00 75.00 75.00 225.00 IV Water Bodies a) Improvements to Water Bodies Grants - - 60.00 65.00 65.00 190.00 V Solid Waste Management Improvements to Collecting System and Compost Grants a) Yard 21.25 25.00 25.00 - - 71.25 VI Roads Improvements to Roads - CC Roads, BT Roads, 0:90:10 a) relaying of roads & construction of side platforms 30.00 30.00 100.00 170.00 171.00 501.00 b) Road Side Furnitures Grants - - 13.00 - - 13.00 VII Bus Stand a) Extension of existing bus stand and new shops 60:20:20 15.00 35.00 25.00 - - 75.00 b) Construction of 15 Nos. Bus Shelters Grants - - 10.00 10.00 17.50 37.50 VIII Street Lights Installation of energy saver lights, sodium lights, high Private a) mass lights and retrofitting of existing tube lights 25.00 43.00 - - - 68.00 B Social Infrastructure Facilities I Slum Improvement a) Improvements to Slums 0:90:10 100.00 100.00 103.00 - - 303.00 II Medicare Construction of new hospital buildings, provision of 0:50:50 a) new facilities and purchase of furnitures & - 15.00 15.00 - - 30.00 equipments III Education ______96
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Funding S.N Particulars Pattern 2009-10 2010-11 2011-12 2012-13 2013-14 Total Improvements to Schools, purchase of play materials Grants a) and maintenance of buildings 50.00 - - - - 50.00 IV Parks & Playgrounds Improvement of parks, construction of compound wall Grants a) for play ground - - 30.00 30.00 27.00 87.00 V Public Convenience a) Construction of 6 Nos. New Toilets 0:50:50 20.00 - - - - 20.00 VI Burial Ground / Crematorium a) Construction of New Burial Ground Grants - 30.00 30.00 - - 60.00 VII Market a) Construction of new shops and improvements to 0:0:50 43.00 50.00 - - - 93.00 50% Public daily and weekly market Contribution VIII Urban Greenary a) Plantation of 500 Nos. new saplings Grants - - - 1.25 1.25 2.50 C Other Projects I E-Governance a) Purchase of hardware and software Grants 7.00 - - - - 7.00 II Remunerative Projects a) Construction of Commercial Complex BOOT - 60.00 - - - 60.00 b) Construction of Fish, Mutton & Chicken Stalls BOOT 25.00 - - - - 25.00 III Construction of Municipal Buildings a) Construction of Commissioner and Municipal Engineer Quarters 0:50:50 - - 30.00 - - 30.00 b) Construction of staff quarters - - 30.00 - - 30.00 c) Construction of Travellers Bunglow - - 20.00 - - 20.00 IV Construction of Municipal Office Building a) Construction of New Municipal Office Building 0:50:50 - - - - 60.00 60.00 V Updation of Database a) Updation of Database on GIS platform Grants - - - - 45.00 45.00 VI Vehicles Mobile Tax Collection Vehicle Municipality 8.00 - - - - 8.00 Total 1569.25 1826.00 2228.00 351.25 461.75 6436.25
The initial building blocks of the Corporate Plan are the ‘elements’ required to sustain the town’s growth; public utility, urban environment, economic and social development, land use and transportation, municipal resources, urban governance and capital facilities. The projects in the plan were developed through a consultative process carried out between the Local Body Officials, Council Staff and Elected Officials, Public Interest Groups, Project Stakeholders and the local citizens.
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The projects have been prioritized in the following order: a) Water Supply b) Sewerage and Sanitation c) Solid Waste Management d) Storm Water Drains e) Urban Service for Poor (Slum Upgradation) f) Roads, traffic and transportation g) Street Lighting
8.2 OTHER PROJECTS AND ON GOING PROJECTS The details of projects identified to be executed by other departments / agencies and the ongoing projects that are being executed by the Municipality are given below :
Table 8.2 Projects to be carried out by other Departments (Rs. in lakhs) S.No Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total Funding By Construction of embank-ment a) along Virisal River - 25.00 25.00 50.00 - 100.00 PWD Preparation of Heritage b) Tourism Development Plan 10.00 - - - - 10.00 TTDC Total 10.00 25.00 25.00 50.00 0.00 110.00
Table 8.3 Projects under Implementation by Municipality (Rs. in lakhs) S.No Particulars Cost Grant Own Funds Funding Pattern a) Alagappa Oorani Park 118.00 118.00 - 100% Grant b) Slaughter House 16.50 8.25 8.25 0:50:50 c) Maternity Centre 10.00 10.00 - 100% Grant d) Under UIDSSMT Scheme - Roads 299.00 269.10 29.90 0:90:10 - Drains 116.00 104.40 11.60 0:90:10 - Water Supply 30.00 27.00 3.00 0:90:10 Total 589.50 536.75 52.75
8.3 MEANS OF FINANCE The means of finance for each individual project identified taking in to account whether the same is remunerative or non-remunerative and the availability of Grants from various sources is given below
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Table 8.4 Multi Year Investment Plan and Means of Finance (Rs. in lakhs) Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total A Physical Infrastructure Facilities 1 Water Supply Total Project Cost 480.00 - - - - 480.00 Add : Price Inflation @ 7% 33.60 0.00 0.00 0.00 0.00 33.60 Total 513.60 0.00 0.00 0.00 0.00 513.60 Means of Finance TNUIFSL Loan 250.74 0.00 0.00 0.00 0.00 250.74 Grant 154.08 0.00 0.00 0.00 0.00 154.08 Municipality Own Funds 108.78 0.00 0.00 0.00 0.00 108.78 Total 513.60 0.00 0.00 0.00 0.00 513.60 2 Sewerage Total Project Cost 745.00 1438.00 1662.00 - - 3845.00 Add : Price Inflation @ 7% 52.15 208.37 374.02 0.00 0.00 634.54 Total 797.15 1646.37 2036.02 0.00 0.00 4479.54 Means of Finance TNUIFSL Loan 443.94 967.09 1275.50 0.00 0.00 2686.53 Grant 239.15 493.91 610.81 0.00 0.00 1343.86 Municipality (Deposits from Public) 114.07 185.36 149.72 0.00 0.00 449.15 Total 797.15 1646.37 2036.02 0.00 0.00 4479.54 3 Storm Water Drains Total Project Cost - - 75.00 75.00 75.00 225.00 Add : Price Inflation @ 7% 0.00 0.00 16.88 23.31 30.19 70.38 Total 0.00 0.00 91.88 98.31 105.19 295.38 Means of Finance Grant 0.00 0.00 82.69 88.48 94.67 265.84 Municipality Own Funds 0.00 0.00 9.19 9.83 10.52 29.54 Total 0.00 0.00 91.88 98.31 105.19 295.38 4 Water Bodies Total Project Cost - - 60.00 65.00 65.00 190.00 Add : Price Inflation @ 7% 0.00 0.00 13.50 20.20 26.17 59.87 Total 0.00 0.00 73.50 85.20 91.17 249.87 Means of Finance Grant 0.00 0.00 73.50 85.20 91.17 249.87 Total 0.00 0.00 73.50 85.20 91.17 249.87 5 Solid Waste Management Total Project Cost 21.25 25.00 25.00 - - 71.25 Add : Price Inflation @ 7% 1.49 3.62 5.63 0.00 0.00 10.74 Total 22.74 28.62 30.63 0.00 0.00 81.99 Means of Finance Grant 22.74 28.62 30.63 0.00 0.00 81.99 Total 22.74 28.62 30.63 0.00 0.00 81.99 6a Roads ______99
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Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total Total Project Cost 30.00 30.00 100.00 170.00 171.00 501.00 Add : Price Inflation @ 7% 2.10 4.35 22.50 52.84 68.84 150.62 Total 32.10 34.35 122.50 222.84 239.84 651.62 Means of Finance Grant 28.89 30.91 110.25 200.55 215.85 586.46 Municipality Own Funds 3.21 3.43 12.25 22.28 23.98 65.16 Total 32.10 34.35 122.50 222.84 239.84 651.62 6b Roads Total Project Cost - - 13.00 - - 13.00 Add : Price Inflation @ 7% 0.00 0.00 2.93 0.00 0.00 2.93 Total 0.00 0.00 15.93 0.00 0.00 15.93 Means of Finance Grant 0.00 0.00 15.93 0.00 0.00 15.93 Total 0.00 0.00 15.93 0.00 0.00 15.93 7a Bus Stand Total Project Cost 15.00 35.00 25.00 - - 75.00 Add : Price Inflation @ 7% 1.05 5.07 5.63 0.00 0.00 11.75 Total 16.05 40.07 30.63 0.00 0.00 86.75 Means of Finance TNUIFSL Loan 9.63 24.04 18.38 0.00 0.00 52.05 Grant 3.21 8.01 6.13 0.00 0.00 17.35 Municipality Own Funds 3.21 8.01 6.13 0.00 0.00 17.35 Total 16.05 40.07 30.63 0.00 0.00 86.75 7b Bus Stand Total Project Cost - - 10.00 10.00 17.50 37.50 Add : Price Inflation @ 7% 0.00 0.00 2.25 3.11 7.04 12.40 Total 0.00 0.00 12.25 13.11 24.54 49.90 Means of Finance Grant 0.00 0.00 12.25 13.11 24.54 49.90 Total 0.00 0.00 12.25 13.11 24.54 49.90 8 Street Lights Total Project Cost 25.00 43.00 - - - 68.00 Add : Price Inflation @ 7% 1.75 6.23 0.00 0.00 0.00 7.98 Total 26.75 49.23 0.00 0.00 0.00 75.98 Means of Finance Private Sector 26.75 49.23 0.00 0.00 0.00 75.98 Total 26.75 49.23 0.00 0.00 0.00 75.98 B Social Infrastructure Facilities 1 Slum Improvement Total Project Cost 100.00 100.00 103.00 - - 303.00 Add : Price Inflation @ 7% 7.00 14.49 23.18 0.00 0.00 44.67 Total 107.00 114.49 126.18 0.00 0.00 347.67 Means of Finance ______100
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Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total Grant 96.30 103.04 113.56 0.00 0.00 312.90 Municipality Own Funds 10.70 11.45 12.62 0.00 0.00 34.77 Total 107.00 114.49 126.18 0.00 0.00 347.67 2 Medicare Total Project Cost - 15.00 15.00 - - 30.00 Add : Price Inflation @ 7% 0.00 2.17 3.38 0.00 0.00 5.55 Total 0.00 17.17 18.38 0.00 0.00 35.55 Means of Finance Grant 0.00 8.59 9.19 0.00 0.00 17.77 Municipality Own Funds 0.00 8.59 9.19 0.00 0.00 17.77 Total 0.00 17.17 18.38 0.00 0.00 35.55 3 Education Total Project Cost 50.00 - - - - 50.00 Add : Price Inflation @ 7% 3.50 0.00 0.00 0.00 0.00 3.50 Total 53.50 0.00 0.00 0.00 0.00 53.50 Means of Finance Grant 53.50 0.00 0.00 0.00 0.00 53.50 Total 53.50 0.00 0.00 0.00 0.00 53.50 4 Parks & Playgrounds Total Project Cost - - 30.00 30.00 27.00 87.00 Add : Price Inflation @ 7% 0.00 0.00 6.75 9.32 10.87 26.94 Total 0.00 0.00 36.75 39.32 37.87 113.94 Means of Finance Grant 0.00 0.00 36.75 39.32 37.87 113.94 Total 0.00 0.00 36.75 39.32 37.87 113.94 5 Public Convenience Total Project Cost 20.00 - - - - 20.00 Add : Price Inflation @ 7% 1.40 0.00 0.00 0.00 0.00 1.40 Total 21.40 0.00 0.00 0.00 0.00 21.40 Means of Finance Grant 10.70 0.00 0.00 0.00 0.00 10.70 Municipality Own Funds 10.70 0.00 0.00 0.00 0.00 10.70 Total 21.40 0.00 0.00 0.00 0.00 21.40 6 Burial Ground / Crematorium Total Project Cost - 30.00 30.00 - - 60.00 Add : Price Inflation @ 7% 0.00 4.35 6.75 0.00 0.00 11.10 Total 0.00 34.35 36.75 0.00 0.00 71.10 Means of Finance Grant 0.00 34.35 36.75 0.00 0.00 71.10 Total 0.00 34.35 36.75 0.00 0.00 71.10 7 Market Total Project Cost 43.00 50.00 - - - 93.00 Add : Price Inflation @ 7% 3.01 7.25 0.00 0.00 0.00 10.26 ______101
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Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total Total 46.01 57.25 0.00 0.00 0.00 103.26 Means of Finance Municipality Own Funds 46.01 57.25 0.00 0.00 0.00 103.26 Total 46.01 57.25 0.00 0.00 0.00 103.26 8 Urban Greenary Total Project Cost - - - 1.25 1.25 2.50 Add : Price Inflation @ 7% 0.00 0.00 0.00 0.39 0.50 0.89 Total 0.00 0.00 0.00 1.64 1.75 3.39 Means of Finance Grant 0.00 0.00 0.00 1.64 1.75 3.39 Total 0.00 0.00 0.00 1.64 1.75 3.39 C Other Projects 1 E-Governance Total Project Cost 7.00 - - - - 7.00 Add : Price Inflation @ 7% 0.49 0.00 0.00 0.00 0.00 0.49 Total 7.49 0.00 0.00 0.00 0.00 7.49 Means of Finance Grant 7.49 0.00 0.00 0.00 0.00 7.49 Total 7.49 0.00 0.00 0.00 0.00 7.49 2 Remunerative Projects Total Project Cost 25.00 60.00 0.00 0.00 0.00 85.00 Add : Price Inflation @ 7% 1.75 8.69 0.00 0.00 0.00 10.44 Total 26.75 68.69 0.00 0.00 0.00 95.44 Means of Finance BOOT Basis 26.75 68.69 0.00 0.00 0.00 95.44 Total 26.75 68.69 0.00 0.00 0.00 95.44 3 Construction of Municipal Buildings Total Project Cost 0.00 0.00 80.00 0.00 0.00 80.00 Add : Price Inflation @ 7% 0.00 0.00 18.00 0.00 0.00 18.00 Total 0.00 0.00 98.00 0.00 0.00 98.00 Means of Finance Grant 0.00 0.00 49.00 0.00 0.00 49.00 Municipality Own Funds 0.00 0.00 49.00 0.00 0.00 49.00 Total 0.00 0.00 98.00 0.00 0.00 98.00 Construction of Municipal Office 4 Building Total Project Cost - - - - 60.00 60.00 Add : Price Inflation @ 7% 0.00 0.00 0.00 0.00 24.15 24.15 Total 0.00 0.00 0.00 0.00 84.15 84.15 Means of Finance Grant 0.00 0.00 0.00 0.00 42.08 42.08 Municipality Own Funds 0.00 0.00 0.00 0.00 42.08 42.08
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Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total Total 0.00 0.00 0.00 0.00 84.15 84.15 5 Updation of Database Total Project Cost - - - - 45.00 45.00 Add : Price Inflation @ 7% 0.00 0.00 0.00 0.00 18.11 18.11 Total 0.00 0.00 0.00 0.00 63.11 63.11 Means of Finance Grant 0.00 0.00 0.00 0.00 63.11 63.11 Total 0.00 0.00 0.00 0.00 63.11 63.11 6 Vehicles Total Project Cost 8.00 - - - - 8.00 Add : Price Inflation @ 7% 0.56 0.00 0.00 0.00 0.00 0.56 Total 8.56 0.00 0.00 0.00 0.00 8.56 Means of Finance Municipality Own Funds 8.56 0.00 0.00 0.00 0.00 8.56 Total 8.56 0.00 0.00 0.00 0.00 8.56
The consolidated ‘Means of Finance’ for all the projects put-together is summarized below :
Table 8.5 Consolidated Means of Finance (Rs. in lakhs) Multi Year Investment Plan S.No. Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 Total I Project Cost Total Project Cost 1569.25 1826.00 2228.00 351.25 461.75 6436.25 Add : Price Inflation @ 7% 109.85 264.59 501.40 109.17 185.88 1170.88 Total 1679.10 2090.59 2729.40 460.42 647.63 7607.13 II Means of Finance Municipality Own Funds 305.24 274.09 248.09 32.11 76.58 936.12 (including Deposits from Public) Grant 616.05 707.43 1187.43 428.30 571.05 3510.27 TNUIFSL Loan 704.30 991.14 1293.88 0.00 0.00 2989.31 Private Sector 26.75 49.23 0.00 0.00 0.00 75.98 BOOT Basis 26.75 68.69 0.00 0.00 0.00 95.44 Total 1679.10 2090.59 2729.40 460.42 647.63 7607.13
8.4 FINANCIAL SUSTAINABILITY The sustainability analysis assumes that the Municipality will carry out reforms indicated as assumptions for financial projections. A Financial and Operating Plan (FOP) prepared which evaluates the Municipality Fund status for the Full Project scenario. The FOP is a cash flow stream of the ULB based on the regular Municipality revenues, expenditures and applicability of surplus funds to support project sustainability. The FOP horizon is determined to ______103
City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______assess the impact of full debt servicing liability resulting from the borrowings to meet the identified interventions. The proposed capital investments are phased over 5 years investment from FY 2009- 10 to FY 2013-14. The full project investment scenario is based on all the proposed investments identified for Devakottai Municipality and the requirement for upgrading the town’s infrastructure is estimated and phased based on the construction activity. Implications of this investment in terms of external borrowings required, resultant debt service commitment and additional operation and maintenance expenditure are worked out to ascertain sub-project cash flows. Revenue surpluses of the existing operations are applied to the sub-project cash flows emerging from full project investments – the Municipality fund net surpluses indicates the ULB’s ability to sustain full investments. FY 2009-10 is taken as the base year and FY 2028-29 is assumed as the reference year (20 years) to determine the net surpluses and whether the Municipality maintains a debt / revenue surplus ratio as an indication of the ULB’s ability to sustain investments.
8.5 Basic Assumptions for Projections : The FOP is based on a whole range of assumptions related to income and expenditure. These are critical to ascertain the investment sustenance and would also provide a tool to test certain specific policy decisions regarding revenue and expenditure drivers on the overall Municipality fiscal situation. This section elucidated the key assumptions adopted for the FOP scenario. The growth rates for the various heads of income and expenditure have been arrived based on the past growth rates and the future estimated population growth. Improvements to the existing current and arrears collection percentages have been assumed for the various revenues directly collected by the Municipality, which implies that the Municipality would have to improve its collection mechanism to sustain full investments. Given below are the various assumptions forming part of the FOP workings :
Table 8.6 Property Tax Assumptions Description Per Annum General Scavanging 5.000% ) 3.000% ) Revenue & Capital Fund Lighting 2.000% ) Water Tax 4.500% } Water Supply & Drainage Fund Drainage 1.500% } Education 2.500% ] Education Fund Total 18.500% ______104
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8.5.1 Income a) Property Tax The population of Devakottai Municipality is estimated to grow at around 1.5% p.a. Based on the same Property Tax Revenue are assumed to increase @ 1.2% per annum. The last revision of Property Tax was carried out on 1-10-98 and it is assumed that the next revision will be carried out in the current year. It is assumed that there will be an increase of 25% due to revision in 2008-09 & that revision would be done @ 15% every 5 years. It has also been established as per the Survey in 2002 that around 27% of the properties are unassessed and further 20-25% of the properties are unassessed. It is assumed that the same shall be set right and together these shall contribute to increase in property tax revenue by 10% from next year viz. 2009-10. The Property Tax income is divided between Revenue, Water Supply and Education Fund in the following ratio: b) Profession tax Income from Profession Tax is assumed to increase @ 3% per annum.The Profession Tax was last revised on 1.10.2003 and the next revision is due in 2008-09. It is assumed that every revision would contribute to 15% increase c) Assigned revenue Assigned Revenue comprises Entertainment Tax and Surcharge on Stamp Duty. It is assumed the same shall increase as under : Duty on Transfer of Property : 10% Entertainment Tax : 2% d) Devolution Fund Devolution Fund is also assumed to increase by 10% per annum e) Service charges and fees Service Charges and Fees are assumed to increase @ 5% per annum f) Grant and Contribution No Grant has been assumed in the financial projections. g) Sales and Hire charges Nil income assumed from Sales & Hire Charges.
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______h) Other Income Other Income comprising basically fees and other rental income are assumed to increase @ 5% per annum. i) Water Supply Charges The present connection charges/deposit and tariff for water are as below : Table 8.7 Water supply Charges - Existing Type of service connections Deposit Tariff Residential Rs. 4000 Rs.3.00 per 1000 litres Commercial Rs. 6000 Rs.6.00 per 1000 litres Industrial Rs. 8000 Rs.8.00 per 1000 litres
It is assumed that after completion of water supply improvements work, the house service connections will be equal to 80% of property tax assessments. The water charges shall be revised as below: Residential - Rs.60.00 p.m Commercial & industrial – Rs.100 p.m It is also assumed that the water connection charges shall be revised as under : Residential - Rs.5000 Commercial - Rs.7000 Industrial - Rs.10000
It is assumed that water charges shall be increased as below every 5 years : Residential - Rs.15.00 p.m Commercial & industrial – Rs.25.00 p.m It is assumed that water connection charges shall increase every 5 years as below : Residential - Rs.1000 Commercial & industrial – Rs.2000 The house service connection as % of property tax assessments is as below: Table 8.8 House Service Connections - Percentage House service Year 2004-05 Property tax assessments connections % Residential 9144 5750 63% Commercial 1635 112 6% Industrial & Govt. 118 0 0%
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The improvements in water supply shall result in increase in operation & maintenance by Rs.9.00 lakhs per annum. j) Drainage Charges The Municipality does not have Under Ground Sewerage System. A new underground sewerage system is proposed to be built at a cost of Rs.3845 lakhs. The implementation period is 4 years starting from 2009-10 to 2012-13. On completion of the scheme, it is assumed that around 70% of the property tax assessments would have sewerage connection. It is assumed that the scheme shall be completed 37% in 2010-11 and 43% in 2011-12. Deposits shall be collected as given below. The scheme will be partially operational from 2011-12 as given below and sewerage charges shall be collected from 2011-12:
Table 8.9 Sewerage – Assumptions in collection of deposits
Year Assumption 2011-12 30% of property tax assessments 2012-13 50% of property tax assessments 2013-14 onwards 70% of property tax assessments
It is assumed that the sewerage charges will be collected as below : Table 8.10 Sewerage – Deposits and Tariff Assessments Deposits (in Rs) Tariff (in Rs) Residential 5000 50 Commercial 10000 100 Industrial 15000 150
The new connection charges and tariff have been taken on average basis. It is assumed that the drainage charges shall be increased every 5 years as below : Residential - Rs.15/- Commercial & industrial – Rs.25/-
It is assumed that the connection charges shall be increased every 5 years as below : Residential - Rs.1000/- Commercial – Rs.2000/- Industrial - Rs.3000/-
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The O&M charges shall be Rs.75.00 lakhs per annum and the same shall increase @ 5% per annum. k) Solid waste Management It has been estimated that solid waste generation per day shall be around 15 MTs. 50% out of the same shall comprise Bio-degradable waste and the manure generation would be 1/3rd of the same. Thus the estimated saleable manure generation per day would be 2.5 MTs. The same shall increase @ 5% per annum.
The revenue from solid waste disposal shall be Rs.300.00 per MT. The same shall increase by Rs.50.00 every 5 years. The number of assets covered by solid waste management scheme shall be equal to 70% of property tax assessments. The conservancy fees collected shall be as below: Domestic - Rs.10.00 per month Commercial - Rs.25.00 per month Industrial/Government - Rs.40.00 per month
The same shall increase as below every 5 years ; Domestic - Rs.5.00/- Commercial/ Industrial/Government - Rs.10.00/- The cost of the scheme is Rs.71.25 lakhs and the O&M cost shall be equal to around 7.50% of project cost. The same shall increase @ 5% per annum.
l) Bus Stand Improvements to Bus Stand by extension of bus stand and construction of new shops would be undertaken for Rs.75.00 lakhs. The improvements shall result in increase in number of shops by 20 numbers. The rent and deposit collected from shops would be as below
Table 8.11 Bus stand - Assumptions
Shop Amount Rent Rs.2000 Deposit Rs.200000
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The rent shall increase @ 25% i.e by Rs.500/- every 3 years. It has been estimated that the income bus trips shall contribute to around Rs.5 lakhs per annum. The same shall increase @ 3% per annum. The O&M charges on Bus Stand shall be equal to 5% of project cost and the same works out to Rs.3.75 lakhs per annum. The same shall increase @ 5% per annum. m) Market Improvements to Markets shall be carried out at a cost of Rs.93.00 lakhs. The improvements shall result in increase in number of shops by 190 numbers. The rent and auction money collected from shops would be as below: Rent - Rs. 2000/- per month for 90 shops Rent – Rs. 1000/- per month for 100 shops Auction Money - Rs.75000/- each for 90 shops Auction Money – Rs. 40000/- each for 100 shops The rent shall increase @ 25% I.e by Rs.125.00 every 3 years. The O&M charges on market shall be equal to 5% of project cost and the same works out to Rs.4.65 lakhs per annum. The same shall increase @ 5% per annum. n) Commercial complex/Fish market The Commercial Complex / Fish Market shall be executed on BOOT basis over a period of 20 years. The total cost is estimated at Rs.85.00 lakhs. The facilities and income earned from the project will be as below ;
Table 8.12 Market - Assumptions
Description Nos. Rent per month Shops 50 Rs. 2000 Restaurant 1 Rs. 5000 Stalls 20 Rs. 500
The rent shall increase @ 25% every 3 years. The income from rent from the above shall be to the account of BOOT Operator for the first 12 years, which will take care of capital cost, interest and
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______returns. After 12 years the returns shall accrue to the Municipality. The annual O&M charges shall be equal to 5% of project cost and the same shall increase 5% per annum. o) Advertisements Bill Boards would be put at 20 places through out the Municipality. Rent shall be earned @ Rs.600.00 per Bill board per month. The rent shall increase @ 25% every 3 years. p) Parking Fees Parking Lots would be developed and income from parking is estimated at Rs.3.00 lakhs per annum. The same would increase @ 3% per annum.
8.5.2 Expenditure a) Increase in Expenditure The expenses are assumed to increase as under :
Table 8.13 Increase in Expenditure - Assumptions Parameters Assumption % Personnel Cost - Salaries & Others 8.00% Terminal & Retirement Benefits 5.00% Operative Expenses 5.00% Repairs & Maintenance 10.00% Program Expenses 2.50% Administrative Expenses 8.00% b) Operation and Maintenance The additional operation & maintenance expenses to be incurred are as below:
Table 8.14 Additional Operation and Maintenance charges
Ongoing Projects Rs. in lakhs Alagappa Oorani Park 3.54 Slaughter House 0.83 Maternity Centre 0.50 Roads 14.95 Drains 3.48 Water Supply 0.90
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New Projects (other than Sewerage & Water supply) Rs. in lakhs Strom Water Drains 4.50 Water Bodies 1.00 Solid Waste Management 5.35 Roads 15.00 Bus Stand 3.75 Slum Improvement 9.00 Medicare 0.75 Education 1.50 Parks 3.00 Public Convenience 0.60 Burial Ground / Crematorium 0.90 Market 4.65 Slaughter House 0.30 Urban Greenery 0.05 E-Governance 0.15 Commercial Complex / Fish Market - Municipal Building 1.30 New Municipal Building 1.50 Total 77.50 c) Power charges There will be a savings of around 40% in power charges due to installation of energy saving lights. As the same will be installed by private players, the savings in power charges have not been factored in the financial projections. It is assumed that the savings in power charges would be utilised towards returns of the private player towards capital cost and interest. d) Interest Interest on loan have been provided based on the sanction rate for each loan. Repayment of loans are based on the repayment schedule of each loan.
Sewerage & Water Supply Loan It is assumed that all new loan shall carry interest rate of 9.5% per annum. The loan from TNUIFSL shall be repaid over a period of 20 years with 5 years moratorium. Other Projects Loan It is assumed that all new loan shall carry interest rate of 9.5% per annum. The loan from TNUIFSL shall be repaid over a period of 10 years with 2 years moratorium.
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City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______e) Depreciation Depreciation is provided based on the rates adopted by the Municipality for previous years. f) Provision of doubtful debts Doubtful debts have been provided as under:
Table 8.15 Provision of doubtful debts Description % Assumed Revenue Fund 2% Water Fund 1% Education Fund 0%
8.5.3 Collections a. Income from tax The target assumed for the current and arrear collection of property tax, profession tax, rental/lease charges, water charges and drainage charges over next 5 years are given in the table below.
Table 8.16 Target assumed for tax collection S.No Description Present Status Target over next 5 years 1 Current Property Tax collection 90% 95% Arrear Property tax collection 27% 50% 2 Current profession tax collection 97% 100% Arrear profession tax collection 3% 40% 3 Current rental / lease collection 94% 95% Arrear rental / lease collection 12% 40% 4 Current water charges collection 88% 95% Arrear water charges collection 46% 60% 5 Current drainage charges collection Nil 80% Arrear drainage charges collection Nil 60% f) Other income The collection % of all other income is taken at 100% g) Others The collection % of all other items of income is taken at 100%
8.5.4 Annuity Factor
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The Annuity Factor for the new loans works out as under :
Table 8.17 Annuity factor for new loans Tenure 20 years 10 years Interest Rate 9.50% 9.50 Repayment Period 15 years 8 years Moratorium 5 2 years Repayment Factor 0.13 years 0.18 Conversion Factor Calculation a. Rate of Interest 9.5% 9.5% b. Repayment Period 15 8 c. Loan Amount 39.00 3.00 Conversion Factor 4.98 0.55 Total Conversion Factor 5.53
Note : Sewerage Loan works out to 39% of total project cost identified. Other Loans works out to 3% of total project cost identified.
8.6 PROJECT CASH FLOWS AND FOP RESULTS Detailed cash flows are worked out for each of the sub projects based on the assumptions with regards investment phasing, financing pattern, additional operation and maintenance expenditure and additional income out to proposed capital investments for the full project scenario. The net project cash flows are then loaded on the existing revenues to test their impact on the overall Municipality fiscal situation. a) Income and Expenditure projections Table captures the Income and Expenditure projections for the next 20 years with potential improvements and borrowings :
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Table 8.18 Consolidated Income & Expenditure for next 20 years (up to FY 2028-29) Rs. in lakhs S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 I Income a) Property Tax 90.44 113.04 124.35 127.46 130.64 133.91 154.00 157.85 161.79 165.84 169.98 b) Other Taxes 11.73 13.49 13.90 14.31 14.74 15.18 17.46 17.99 18.53 19.08 19.65 c) Assigned Revenue 36.39 39.99 43.95 48.30 53.09 58.35 64.14 70.51 77.51 85.22 93.69 d) Devolution Fund 105.56 116.69 116.11 128.36 127.72 141.19 140.50 155.31 154.54 170.84 170.00 e) Service Charges & Fees 70.32 38.43 78.90 87.87 150.32 185.64 200.71 248.12 255.71 287.36 294.72 f) Grants & Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 h) Other Income 40.90 41.43 48.86 49.58 52.88 56.71 60.40 61.51 65.84 67.12 87.83 Total Income 355.34 363.08 426.06 455.88 529.40 590.99 637.20 711.29 733.93 795.45 835.88 II Expenditure a) Personnel Salaries Cost 144.27 157.35 167.05 174.40 182.09 190.13 203.98 212.93 222.30 232.10 242.36 b) Terminal & Retirement Benefits 41.17 43.23 45.39 47.66 50.04 52.55 55.17 57.93 60.83 63.87 67.06 c) Operating Expenses 53.19 80.05 94.14 132.57 189.10 234.18 245.89 258.19 271.09 284.65 298.88 d) Repairs & Maintenance 16.91 18.60 20.46 22.50 24.75 27.23 29.95 32.95 36.24 39.87 43.85 e) Program Expenses 0.10 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.13 0.13 f) Administration Expenses 16.75 17.93 19.47 20.85 22.64 24.26 26.32 28.23 30.62 32.85 35.62 g) Finance Expenses 15.74 15.36 82.01 176.75 302.25 303.66 303.28 300.86 292.40 277.33 258.25 h) Depreciation 70.98 111.18 180.60 225.99 323.39 414.72 471.61 455.13 372.28 315.37 274.51 Total Expenditure 359.12 443.80 609.23 800.84 1094.37 1246.84 1336.33 1346.32 1285.88 1246.16 1220.68 Surplus / (Deficit) for the Year (3.78) (80.72) (183.18) (344.96) (564.97) (655.85) (699.13) (635.04) (551.95) (450.71) (384.80) Profit before Depreciation 67.19 30.46 -2.57 -118.97 -241.59 -241.13 -227.51 -179.91 -179.67 -135.34 -110.28
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Rs. in lakhs S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 I Income a) Property Tax 195.48 200.37 205.38 210.51 215.77 248.14 254.34 260.70 267.22 273.90 314.99 b) Other Taxes 22.60 23.28 23.98 24.70 25.44 29.25 30.13 31.04 31.97 32.93 37.87 c) Assigned Revenue 103.01 113.26 124.53 136.93 150.57 165.58 182.08 200.23 220.19 242.15 266.31 d) Devolution Fund 187.93 187.00 206.72 205.70 227.39 226.27 250.13 248.90 275.14 273.79 302.66 e) Service Charges & Fees 303.49 342.10 350.85 389.43 399.38 409.59 456.18 467.83 511.90 526.19 539.64 f) Grants & Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 g) Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 h) Other Income 90.07 95.13 97.23 103.05 115.01 149.94 153.20 159.81 166.64 185.10 188.97 Total Income 902.58 961.14 1008.70 1070.32 1133.56 1228.78 1326.07 1368.50 1473.07 1534.06 1650.43 II Expenditure a) Personnel Salaries Cost 259.99 271.41 283.35 295.85 308.94 331.39 345.94 361.18 377.12 393.81 422.39 b) Terminal & Retirement Benefits 70.42 73.94 77.63 81.51 85.59 89.87 94.36 99.08 104.04 109.24 114.70 c) Operating Expenses 313.83 329.52 345.99 363.29 381.46 408.16 428.57 450.00 472.50 496.12 520.93 d) Repairs & Maintenance 48.24 53.06 58.37 64.20 70.62 77.69 85.46 94.00 103.40 113.74 125.12 e) Program Expenses 0.13 0.14 0.14 0.14 0.15 0.15 0.16 0.16 0.16 0.17 0.17 f) Administration Expenses 38.23 41.45 44.51 48.24 51.82 56.15 60.34 65.36 70.27 76.10 81.84 g) Finance Expenses 239.82 221.37 202.87 184.65 167.38 150.35 133.17 115.66 98.67 81.14 65.03 h) Depreciation 244.06 220.61 202.03 186.94 174.39 163.74 154.54 146.47 139.27 132.79 126.88 Total Expenditure 1214.72 1211.49 1214.90 1224.84 1240.35 1277.49 1302.55 1331.91 1365.44 1403.11 1457.06 Surplus / (Deficit) for the Year (312.14) (250.35) (206.20) (154.52) (106.79) (48.72) 23.52 36.59 107.63 130.95 193.37 Profit before Depreciation -68.08 -29.74 -4.16 32.42 67.60 115.03 178.06 183.06 246.90 263.73 320.25 It may be observed from the above table that the Municipality has surplus prior to depreciation in 12 out of the future 20 years. But the cumulative cash flows are positive for all the years.
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Table 8.19 Consolidated Balance Sheet for next 20 years (up to FY 2028 – 29) Rs. in lakhs S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 I Liabilities a) Liabilities Loans 78.32 70.56 768.53 1767.70 3073.22 3061.26 3046.99 2986.32 2860.13 2647.52 2440.18 Contn from Municipal Fund 18.29 71.04 374.87 633.16 860.64 892.75 969.33 969.33 969.33 969.33 969.33 Contn from Government 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 Grant 80.08 616.83 1232.88 1940.32 3127.75 3556.05 4127.10 4127.10 4127.10 4127.10 4127.10 Capital Reserve 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 Accumulated Depreciation 525.19 644.37 824.98 1050.97 1374.35 1789.07 2260.69 2715.81 3088.09 3403.46 3677.97 b) Current Liabilities Reserve for Doubtful Collection 48.70 55.76 63.65 72.08 81.62 92.56 104.27 117.13 130.40 144.71 159.92 Library Cess Payable 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 GIS Contribution Payable 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Tender Deposits - Conts & Supp 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 Security & Deposit Others 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 Security Deposit Staff 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 Audit fees – payable 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 IT & ST Deduction – Cont 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Recoveries – Staff 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Accounts Payable 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 Other Recoveries 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Other payables 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Survey Charges Payable 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Contn to the CMDA/LPA Pay 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Inter Funds Transfer 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 c) Accumulated Surplus 661.43 645.96 533.13 354.68 -24.75 -475.17 -953.18 -1456.71 -1873.96 -2182.90 -2415.72 Total 2121.46 2813.98 4507.49 6528.35 9202.28 9625.98 10264.65 10168.43 10010.54 9818.68 9668.24
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Rs. in lakhs S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
I Liabilities a) Liabilities Loans 2233.83 2028.69 1826.55 1626.72 1428.38 1230.04 1031.70 833.36 635.02 436.68 238.34 Contn from Municipal Fund 969.33 969.33 969.33 969.33 969.33 969.33 969.33 969.33 969.33 969.33 969.33 Contn from Government 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 Grant 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 Capital Reserve 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 Accumulated Depreciation 3922.03 4142.64 4344.67 4531.61 4706.00 4869.75 5024.29 5170.76 5310.03 5442.82 5569.69 b) Current Liabilities Reserve for Doubtful Collection 176.30 193.77 212.15 231.44 252.26 274.78 298.84 324.10 351.07 379.18 409.87 Library Cess Payable 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 GIS Contribution Payable 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Tender Deposits – Conts & Supp 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 Security & Deposit Others 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 Security Deposit Staff 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 Audit fees – payable 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 IT & ST Deduction – Conts 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Recoveries – Staff 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Accounts Payable 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 Other Recoveries 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Other payables 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Survey Charges Payable 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Contn to the CMDA/LPA Pay 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Inter Funds Transfer 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 c) Accumulated Surplus -2565.39 -2636.24 -2658.86 -2625.57 -2523.74 -2350.52 -2100.07 -1810.87 -1445.24 -1050.68 -551.12 Total 9572.66 9534.75 9530.41 9570.08 9668.78 9829.93 10060.64 10323.23 10656.77 11013.89 11472.67
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Rs. in lakhs S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 I Liabilities a) Liabilities Loans 2204.82 2002.20 1802.58 1605.26 1409.45 1213.63 1017.81 821.99 626.17 430.36 234.54 Contrn from Municipal Fund 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 1007.16 Contrin from Government 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 353.62 Grant 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 4127.10 Capital Reserve 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 9.48 Accumulated Depreciation 3922.03 4142.64 4344.67 4531.61 4706.00 4869.75 5024.29 5170.76 5310.03 5442.82 5569.69 b) Current Liabilities Reserve for Doubtful Collection 186.07 204.99 224.95 246.13 269.09 293.92 320.73 348.96 379.40 411.40 446.23 Library Cess Payable 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 GIS Contribution Payable 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Tender Deposits 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 Security & Deposit Others 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 Security Deposit Staff 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 11.50 Audit fees – payable 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 IT & ST Deduction - Contractors 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Interest Payable Account 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recoveries – Staff 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Accounts Payable 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 Other Recoveries 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Other payables 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Survey Charges Payable 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Contrn to the CMDA Payable 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Inter Funds Transfer 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 60.35 c) Accumulated Surplus -2518.41 -2571.07 -2581.38 -2526.65 -2406.17 -2223.15 -1948.31 -1643.36 -1247.67 -826.92 -315.87 Total 9638.21 9622.46 9634.54 9700.06 9822.08 9997.86 10258.23 10542.06 10911.65 11301.36 11778.30
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Rs. in lakhs S.No Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 II Assets a) Fixed Assets 1326.22 1915.72 2797.67 3241.89 3935.26 4395.68 5043.31 5043.31 5043.31 5043.31 5043.31 b) Current Assets Stock 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Investment in Shares 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Property Tax Rec – Current 9.04 7.91 6.22 6.37 6.53 6.70 7.70 7.89 8.09 8.29 8.50 Property Tax Rec - Arrears 24.61 25.04 22.94 18.83 15.79 14.43 13.91 14.65 15.22 15.70 16.14 Profession Tax - Arrears 11.60 9.28 6.50 3.90 2.34 1.40 0.84 0.51 0.30 0.18 0.11 Lease Amounts Rec - Current 12.00 5.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Lease Amounts Rec - Arrears 8.00 5.00 3.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rent on Buildings - Current 0.52 0.51 0.54 0.54 0.57 0.57 0.60 0.60 0.63 0.63 0.66 Rent on Buildings - Arrears 6.77 5.93 4.96 4.01 3.15 2.46 2.04 1.82 1.69 1.64 1.61 Water Charges Rec - Current 2.54 1.92 3.36 3.78 4.43 4.54 4.66 5.97 6.12 6.27 6.43 Water Charges Rec - Arrears 2.19 3.64 3.55 4.79 5.70 6.71 7.23 7.55 8.99 9.71 10.15 Drainage Charges - Current 0.00 0.00 0.00 0.00 9.77 12.02 14.37 14.73 15.10 19.87 20.36 Drainage Charges - Arrears 0.00 0.00 0.00 0.00 0.00 9.77 15.93 20.75 23.03 24.31 29.59 Specific Grant Receivable 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 Staff Advances 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Interest Recoverable 8.00 5.00 3.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Advance to Suppliers & Conts 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Advance Recoverable – Exps 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Other Advance - Recoverable 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 Deposits Recoverable 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 Cable TV Collection – Rec 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 Inter-Fund Transfer 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 Others 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 c) Cash & Bank Balances 517.88 636.94 1463.66 3052.14 5026.65 4979.61 4961.97 4858.57 4695.98 4496.68 4339.28 Total 2121.46 2813.98 4507.49 6528.35 9202.28 9625.98 10264.65 10168.43 10010.54 9818.68 9668.24
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Rs. in lakhs S.No Particulars 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 II Assets a) Fixed Assets 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 5043.31 b) Current Assets Stock 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Investment in Shares 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Property Tax Rec - Current 9.77 10.02 10.27 10.53 10.79 12.41 12.72 13.04 13.36 13.70 15.75 Property Tax Rec - Arrears 16.57 18.06 19.05 19.79 20.42 21.00 22.91 24.17 25.12 25.92 26.66 Profession Tax Rec - Arrears 0.07 0.04 0.02 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 Rent on Buildings – Current 0.66 0.69 0.69 0.73 0.72 2.20 2.20 2.24 2.42 2.46 2.46 Rent on Buildings - Arrears 1.62 1.63 1.67 1.69 1.74 1.77 3.27 4.16 4.74 5.26 5.62 Water Charges – Current 6.59 8.10 8.30 8.51 8.72 8.94 10.69 10.96 11.24 11.52 11.80 Water Charges - Arrears 10.49 10.78 12.41 13.27 13.82 14.25 14.64 16.55 17.58 18.27 18.82 Drainage Charges Rec - Current 20.87 21.40 21.93 27.44 28.13 28.83 29.55 30.29 36.67 37.58 38.52 Drainage Charges Rec - Arrears 32.20 33.75 34.90 35.89 41.80 44.85 46.77 48.26 49.60 56.51 60.19 Specific Grant Receivable 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 34.73 Staff Advances 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Advance to Suppliers & Conts 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 Advance Recoverable – Exps 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Other Advance - Recoverable 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 Deposits Recoverable 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 26.50 Cable TV Collection – Rec 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 Inter-Fund Transfer 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 65.47 Others 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 c) Cash & Bank Balances 4238.42 4194.88 4185.76 4216.81 4307.22 4460.27 4682.48 4938.16 5260.65 5607.27 6057.45 Total 9572.66 9534.75 9530.41 9570.08 9668.78 9829.93 10060.64 10323.23 10656.77 11013.89 11472.67 The full projects investment scenario indicates that Devakottai Municipality would end up with a positive cumulative cash surplus of Rs. 6057.45 lakhs by the end of FY 2028-29 (after 20 years)
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8.7 IMPACT OF POTENTIAL IMPROVEMENTS Devakottai’s ability to improve on its financial performance hinges primarily on its ability to sustain and improve on the revenue growth noticeable in recent years.
Specific interventions with respect to revenue realization and cost management are detailed in Section 5 of the report. On ‘Full Project Investment Scenario’ basis, Devakottai’s own revenues (comprising taxes, user charges and other income) could grow from Rs. 214 lakhs in FY 2006-07 to Rs. 1081 lakhs by FY 2028-29, implying an absolute growth of 20%. Devakottai has vast potential for increasing its own income given the growth achieved in the last few years. Areas for revenue enhancement in own revenue include :
¾ Property Tax – through an enhanced revision in ARV, widening assessee base and closer scrutiny. Besides periodic increase (every 5 years) in property tax rates. ¾ Professional Tax – sustaining a higher assessment growth. ¾ User Charges – periodic increases in user charges for water connections and sewerage connections. The Municipality could generate additional Rs. 800 lakhs of income per annum by FY 2028-29 by providing water connections to 80% of property tax assessments and sewerage connections to 70% of property tax assessments.
Devakottai also needs to explore scope for private sector participation for development of remunerative projects and heritage preservation / city beautification projects that have been identified by Devakottai. While there is potential for expenditure control in certain areas (as in the case of energy costs and leakage in water supply), the focus of cost management should be to shift expenditure from administration to better asset management and service levels. We have not factored in any cost reduction in the FOP and have assumed that any savings generated from cost reduction would go into augmenting service levels and better asset management. A comprehensive energy audit is required, given that 75% of its operations and maintenance expenditure is spent on electricity charges. Plugging leakage in the water supply network and installation of timers and energy savers on the street light network are important interventions needed in the context of Devakottai’s high power costs.
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8.8 ESTIMATION OF BORROWING AND INVESTMENT CAPACITY We have arrived at the borrowing capacity based on the income and expenditure projections including debt servicing of existing loans as of FY ending 2007. We have arrived at the borrowing capacity of Devakottai Municipality as the minimum of : ¾ 30% of revenue projections ¾ Primary Operating Surplus (Surplus before Interest and Depreciation) The overall financing mix has been arrived to include 42% Loans, 46% Grants and 12% own funds. The repayment period of loans has been taken at 5+15 years for Sewerage Loan and 2+8 years for other project loans. The above factors have been taken in to account for arriving at the Annuity Factor, which has been applied on the lowest of the above to arrive at the overall borrowing capacity and investment capacity. Table 8.20 Summary of Borrowing and Investment Capacity Borrowing Capacity Rs. 1422.29 lakhs Investment Capacity (BC/0.42) Rs. 3386.89 lakhs Investment Requirement Rs. 6436.25 lakhs Sustainable Investment Capacity % - IC / IR 53% At an aggregate level, assuming loans to be equivalent to 42% of investment, sustainable investment capacity works out to Rs. 3386.89 lakhs, which is about 53% of the total investment requirement. Thus the priority projects that can be taken up by the municipality are given in the table below Table 8.21 Priority projects Amount S.N Projects Priority % in Lakhs Water Supply, UGSS, Solid Waste Management, Bus Stand, Street Lights, Slum, Medicare, Public 1 A 5137.25 79.81 Convenience, Burial Ground, Market, E-Governance, Remunerative Projects Storm Water Drains, Roads, Bus Shelter, Construction 2 of Municipal Building, Construction of Municipal Office B 916.50 14.23 Building Improvement of Water Bodies, Urban Greenery, 3 Education, Park and Play fields, Updation of Database, C 382.50 5.94 Vehicles Total 6436.25 100
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Based on the above, loans for the Municipality should be at the minimum level as the financials of the municipality are fragile. Loans for Remunerative projects like water supply and sewerage should be kept at the minimum level based on debt servicing capacity. The balance part of remunerative projects should be funded by way of grants. Devakottai should leverage and utilize Grants from schemes like UIDSSMT and IHSDP to undertake all non-remunerative projects relating to roads, storm water drains, slum development, canal desilting etc. As suggested earlier in the report, Devakottai should also consider improvements to private sector in implementing remunerative projects.
8.9 KEY INDICATORS The key Indictors of the Municipality based on the financial projections works out as below :
Table 8.22 Key indicators based on Financial projections Minimum Maximum Average Existing (2001-02 to 2006-07) Operating Ratio 0.62 0.93 0.77 Debt Service Ratio 5% 14% 9% Category 1 Short Term (2009-10 to 2013-14) Operating Ratio 1.01 1.46 1.30 Debt Service Ratio 19% 57 % 43% Category 3 Long Term (2009-10 to 2028-29) Operating Ratio 0.81 1.46 1.07 Debt Service Ratio 14% 60% 37% Category 3 Note : 1 – Financially Sound; 2 – Financially Fragile; 3 – Financially Insolvent
It may be observed that the Municipality is financially fragile despite the various reforms being carried out to increase its revenue.
8.10 INVESTMENT CAPACITY WITHOUT FINANCIAL REFORMS We also carried out the exercise of arriving at the Investment and Borrowing Capacity in the scenario where the following financial reforms are not being undertaken by the Municipality : ¾ No increase in property tax rates every 5 years.
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¾ No exercise is being carried out by the Municipality for bringing the un-assessed and under assessed properties in to property tax net. ¾ No increase in profession tax rates every 5 years. ¾ No increase in Water and Drainage chares every 5 years. ¾ No increase in manure prices collected from Solid Waste Management ¾ Conservancy fee on solid waste management is not collected after 5 years. ¾ No additional income from parking fee and advertisement. ¾ Increase in collection efficiency is not considered and the present collection rates continue.
In such a scenario, the Investment and Borrowing Capacity works out as below :
8.23 Summary of Borrowing and Investment Capacity Borrowing Capacity 0 Investment Capacity (BC/0.42) 0 Investment Requirement Rs. 6436.25 lakhs Sustainable Investment Capacity % - IC / IR 0
Thus both the investment and borrowing capacity works out negative in case the financial reforms are not carried out. It can thus be concluded that the Municipality cannot consider taking up the projects identified in the City Corporate Plan incase the financial reforms for augmenting its own sources of revenue are carried out by the Municipality.
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9
ASSETS MANAGEMENT PLAN
Management of municipal assets is an essential part of urban management activity. This asset management has the objective of defining and describing the key elements, and principles of a Municipal Infrastructure Asset Management (MI-AM) System. This chapter will deal with the elements that are essential in an asset management program for movable and immovable infrastructure, more specifically road networks, water supply networks, pumping, storage, treatment facilities and storm water drains. Immovable assets are of great importance as the indicators for the Municipality’s financial worth which would help in its borrowing capacity and credit worthiness. Devakottai Municipality owns the following movable and immovable assets:
9.1 LAND AND BUILDING ASSETS There are remunerative and non-remunerative assets of the municipality on which the municipality incur considerable expenditure for operation and maintenance. The commercial complexes in the town, Shops in the bus stand, Markets, Slaughterhouse, Pay and Use toilets, etc are all remunerative. Non-remunerative assets of the municipality are the burial ground, public toilets, compost yard, parks and playfields etc, which are listed below.
Table 9.1 Assets in Devakottai Municipality- Land and Building Asset No. Area Location
Bus Stand 1 0.83 hectares Opposite to municipal office Parks & Play Fields 13 - 1. Thiyagigal park 2. Nethaji park 3. Gandhi park 4. Annanagar park 5. Annasalai park 6. Gnananandhagiri nagar 7. Somasundaran nagar 8. Housing board 9. Vivekanandapuram 10. Sivagangai Raja road 11. Jeeva nagar 12. Thanuchavadi road ______125 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______
13. Alagappa Oorani park and Play ground -1 (at Jeeva nagar)
Public Convenience 7 - - Municipal owned school s 2 - - Medicare 2 Ayurvedha hospital – Tirupathur road Maternity center – Gandhi road Noon meal centers 8 - - Market 2 Weekly market – Kandadevi road Daily market – Tirupathur road Source: Devakottai Municipal Records
9.2 INFRASTRUCTURE ASSETS Infrastructure Assets will include all movable and immovable equipments and properties including water supply, drainage, sewerage, solid waste management, roads, street lighting etc. Unlike other assets of the municipality, these assets undergo constant use, wear and tear, addition, repair etc. This correspondingly changes their values and hence a constant value updating is necessary.
9.2.1 Water Supply The water supply assets basically comprise of all the assets from the headwork’s, treatment plant, sump, transmission mains, pumping mains, feeder mains, distribution mains and sub mains, including all valves, connections, meters and all related facilities for the efficient delivery service of water. Table 9.2 Water supply asset details S.No Asset Units
1 Pumping main 8 km 2 Distribution Main 62 km 3 Service reservoirs 6 nos 4 Bore wells 22 nos 5 Public taps 169 nos 6 Hand Pumps 22 nos 7 Motors 7.5 HP – 4 nos 5 HP – 9 nos 15 HP – 4 nos 10 HP -3 nos 6 HP – 1 no 4 HP – 1 no Source: Devakottai municipal records ______126 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______
9.2.2 Other Assets Other assets of the municipality include drains, solid waste management facilities and street light arrangements. Table 9.3 Other assets S.No Asset type Units
STORM WATER DRAINS 131.378 km 1 covered pucca drains 20.32 km 2 Kutcha 49.710 km SOLID WASTE MANAGEMENT 3 Tricycle 15 4 Push carts 70 5 Mini lorry 2 6 Dumper placer bin 12 7 Dumper placer lorry 1 STREET LIGHTS 2235 nos 8 Tube Lights 2088 nos. 9 Sodium Vapour Lamps 145 nos. Source: Devakottai municipal records
9.3 ASSETS MANAGEMENT IN THE LOCAL BODY – LAND ASSETS The management of assets in the municipality is at the initial stage where, only the assets are listed and status is described. Invariably, the management component is missing as to the techniques and methods of managing the assets either in improving their state and value or in sustaining them with a growth motive. There is no enough attention by the municipality to make use of sustaining their immovable assets for raising loans or improving its borrowing capacity. It requires an overall approach outlining the alternative options of maintaining and managing the assets in a worthwhile mode. The value of the land varies from location to location and time to time on various factors. It is invariably found that, the value of the municipal land depends upon the value and use of the adjacent land and market force. These differences need a practical moderation to estimate the true credit worthiness of the local body. Devakottai Municipality has furnished a statement on land assets and their values for March 2006- 07 is given in Annexure 4. The rate of increase of the Municipal land in its value vis-à-vis that of the
______127 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______adjacent private land at the various locations will be useful in drawing up a reasonable assets management technique.
The proposals for the efficient utilization of land assets is given in the table below: Table 9.4 Proposed Use – Land Asset Location of Land Asset Area Present Use Proposed Use
Thiyagigal park -- Park Improvements proposed Nethaji park -- Not efficiently used Park Gandhi park -- Not efficiently used Park Annanagar park -- Not efficiently used Park Annasalai park -- Not efficiently used Park Gnananandhagiri nagar -- Layout open space Park Somasundaran nagar -- Layout open space Park Housing board -- Layout open space Park Vivekanandapuram -- Layout open space Park Sivagangai raja road -- Not efficiently used Park Jeeva nagar -- Layout open space Park Thanuchavadi road -- Not efficiently used Park Alagappa Oorani park -- Park Proposed Remunerative park Daily Market 4921 sq.m Market (Damaged) Market Complex Weekly Market 5500 sq.m Market (Damaged) Market Complex Site Behind Weekly Market - Slaughter House Slaughter House (Damaged) Ram Nagar - Inspection 8 grounds not in use Commercial Complex bungalow Thirupathur road-Old Dilapidated building Meat and Fish Market Ayurveda hospital Site opposite to Sivan koil - Vacant unused land Commissioner and Municipal Engineer Quarters Old Fire station – - Not in Use Municipal Staff Quarters Kandadevi Road Kandadevi road - Vacant Land Travelers Bungalow
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9.4 MANAGEMENT OPTIONS The foregoing account of the movable and immovable assets of the Municipality includes basically lands part of which are occupied by construction of structures for various uses. The structural elements in the form of buildings including OHTs, flow elements relating to essential services such as water supply, drainage, UGD, street lights and the like are designed with a design life time. The lands however as a base have no such limiting factor in terms of time. Thus the super structures and the constructed elements below the ground are depreciating in their values as they age. But the lands both constructed and un-constructed keep appreciating in the standard and market values. In fact, the rate of appreciation of the lands is of great significance from the point of worthiness of the concerned local body and, it is invariably much faster in its appreciating value compared to the rate of depreciation of structures imposed on them. Also, the rate of depreciation standardized for various items of the structures is much more than the actual while taking into consideration the life time of such structures till the point of their condemnation.
The assets particularly the lands owned by the local body could be used for borrowing loans showing them as the properties of the local body and / or leasing where possible. Certain land parcels may be leased / rented for private uses for a specific period of time. Moreover, the rate of depreciation may have to be considered from the actual life time of such structural elements instead of taking their design life time for valuation. Rationalizing both the aspects as mentioned may give the real value and worthiness of the assets of the local body. This may require a comprehensive re- look item-wise, pertinent to the locality and for valuating in terms of both appreciation and depreciation.
Generally, the assets of the local body, particularly the lands are rarely maintained and their values in the management of the resources of the local body are little considered. There must be a scientific approach town wise to evolve a dynamic model of the changing values of the assets both in terms of appreciation and depreciation from time to time, particularly when sizable developments take place. It is important to keep in view that as per the objectives of the devolution of functions and powers to the urban local bodies under the 74th Constitutional Amendment Act, the value of the lands and properties are necessarily to be assessed depending on their location, land use and intensity of development over a time scale. In order to systemize the highly dynamic factor of values of the properties under local body, it is essential for an efficient management of the total assets owned by local body.
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The suggestions for the improvement of land asset management are listed below: 1. Create up to date land asset register with details on location, extent, value etc. 2. Establishment of GIS inventory mapping and database management system for Municipality owned lands. 3. Use of land assets for borrowing loans from capital market. 4. Identifying the most remunerative activity by public–private participation, BOT, BOOT initiatives. 5. Lease or rent out of land parcels for a period of time. 6. Removal of encroachments or in non-critical sites levy of rent on Municipal land parcels. 7. Explore possibilities of acquiring additional land parcels for Municipality in peri-urban areas. 8. Asset creation by acquiring lands in peri-urban areas.
9.5 PROPOSED NEW ASSETS Since every year there is an addition to such assets, an indication of the values is a must in calculating the present values and also projecting to the future. In the absence of any trend, the values of the structural assets have become difficult to be computed. However, the values of the proposed projects in the form of assets both for structural elements and certain movable items are indicated in the statement.
The assets creation by way of the projects proposed under CCCBP for implementation in the years to come are indicated with the capital investment values as in table below:
Table 9.5 New Assets for the year - 2009-10 to 2013-2014 S.No Project Items Estimated capital cost (in lakhs) Physical Infrastructure 1 Water Supply 480.00 2 UGSS 3845.00 3 Storm Water Drains 225.00 4 Water bodies 190.00 5 Solid Waste Management 71.25 6 Roads 501.00 Roadside furniture 13.00
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7 Bus Stand 75.00 8 Bus shelter 37.50 9 Street Lights 68.00
Social Infrastructure 10 Slum improvement 303.00 11 Medicare 30.00 12 Education 50.00 13 Parks and Playfields 87.00 14 Public Convenience 20.00 15 Burial Ground 60.00 16 Market 93.00 17 Urban Greenery 2.50 18 E-Governance 7.00 19 Remunerative Projects 85.00 20 Construction of Municipal Buildings 80.00 21 Construction of new municipal office building 60.00 22 Updation of Database - GIS 45.00 23 Mobile tax collection van 8.00 Total 6436.25 Source: Analysis and calculation
All these assets are elements that drive the business plan and ensure the timely availability of resources to sustain the assets in an acceptable condition for better service delivery. In addition to increasing the revenue potential, it is equally important to manage the assets in terms of their maintenance and rehabilitation. This would ensure reducing costs, improving reliability, and ensuring sustainability. Hence it is imperative for the municipality to have a highly simplified approach with a long-term schedule of delivery of actions and a set of short-term measures.
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The City Corporate Plan is a tool which adapts a corporate approach to plan and implement projects in a participatory mechanism involving users, elected councilors, line agencies, private organizations, NGOs and CBOs. In this process, residents of various sections of the communities in the town were enquired into at random during reconnaissance survey and visits to all the sites of the projects identified by the Municipality and also otherwise suggested by the elders. The broad purpose of stakeholders participation is to involve the stakeholders in the development plan for the city.
As an initial stage, the Councillors, the Chairman and the Municipal Officials were individually discussed with and the ward and town level requirements relating to, especially the Municipal services and other promotive projects have been gathered. The next stage of this exercise in preparing the CCCBP for the town, as an underlining essential principle of consultation with the beneficiaries of the plan, a stake holder consultative meeting at the town level was initiated under the guidance of the RDMA, Madurai at the meeting held at RDMA office at Madurai with the participation of the commissioners of all concerned Municipalities.
The stakeholder Consultation meeting for Devakottai was set for 9.2.08 and was successfully completed, with the participation of the stake holders. The stake holders includes 1. Councillors of the town Council including the Chairman 2. Municipal officials including the Commissioner 3. NGOs, CBOs, Clubs, Associations, ______132 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______
4. Representatives from educational institutions 5. Representatives from the health sector 6. Government offices located in the town, 7. Town elders, ladies’ forums, SHGs The context, concept and contents of the CCCBP was explained to them by the FICHTNER project team leaders.
The stakeholders have been invariably very co-operative and practical about the needs of the town at ward and town levels. During the meeting, participants were asked to describe the vision for a desired future of their town. The participants were given a chance to comment on the strategic options put forth in broad terms and on the local strength and weaknesses affecting city’s future development. These comments were considered while developing strategic options for the plan.
Following the presentation on the information about the CCPBP, each participant were given an opportunity to express his views and was asked to give his suggestions in the given questionnaire format The outcome of the consultative process in the form of their requirements, comments, suggestions and opinions for the future, the orientation of the plan structure has been treated. Thus, the outcome of this exercise in the form of Corporate Plan is conscious consent and with the approval of the town Council and other stakeholders of the town.
This plan focuses largely on the totally implementable urban infrastructure and other projects to adequately meet the present and future demands of the growing town. The attendant results and concomitant effects in terms of town’s economic development, societies’ standard of living, improvement in the living environment, equality in the access to the necessary services, facilities and amenities for all the
______133 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______sections of people largely sub-serving alleviation of the urban poverty element, on the completion of the project proposals. After the workshop, consulting team organized the discussion points and the written portion based on which the vision for the town was arrived. The suggestions of the stakeholders are listed and a sample copy of the questionnaire is annexed for reference. (Annexure - 9).
Table 10.1 Problems Highlighted at Stake Holders Consultative Meetings No Major Issues raised Solution initiatives 1 An integrated heritage tourism plan combining the nearby Tourism development Plan studies proposed. TTDC collaboration with towns of heritage importance taking guidance of District private sector is suggested. Gazetteer should be prepared.
2 A new daily market, should be constructed in the Vellaiyan Ooanies ,Kulams and Kuttais are assets to the Municipality. Rejuvenation and Oorani protection of 19 ooranies in the Municipality is proposed. 3 The existing bus stand should be expanded to meet the Proposal for extension of bus stand is future need. included 4 Ooranies should be desilted and proper inlets and outlets Proposal for improvement of water should be constructed. bodies is included (Section 5.1.4.i)
5 In each street end street name display board should be Proposal for p0rovision of street provided furnitures is included (Section 5.1.6.iii)
6 Existing weekly market is to be reconstructed. Proposal for reconstruction is included (Section 5.2.7.iii)
7 Pathways, fencing and basic amenities should be provided Proposals for improvements in parks is in all parks included (Section 5.2.4.iii)
8 Fish stalls, mutton stalls and chicken stalls in the existing Proposal for Fish stalls, mutton stalls and market should be shifted to defunct Ayurveda hospital chicken stalls in the old Ayrvedha campus site hospital site is included (Section 5.3.2.i)
9 Railway line connecting Devakottai. Representation to be given to Railway Authorities. 10 Existing Inspection bungalow should be utilized for a Commercial complex proposed commercial complex on used in a better manner. 11 Parking spaces should be identified in the main spots of Parking management Plan proposed main roads for parking of autos. Source: Feedback from Public consultation meeting and analysis
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Suggestions of stakeholders consultative process meeting held at Devakottai on 09.02.2008
1. Sub collector, Sivagangai District 1. An integrated heritage tourism plan may be drawn combining near by towns of heritage importance, taking guidance of District Gazetteer 1862.
2. Chairman of Devakottai Municipality 1. A new daily market should be constructed 2. Expansion of existing daily market is not essential
3. Dr. Devasena, Ward No 12 1. Underground drainage system should be implemented 2. Road facilities should be improved 3. Environment should not be affected by pollution
4. Ms. Sikappi Anandam, Ward No .16 1. Priority should be given for implementation of underground drainage system and black topping of the roads. 2. All street lights should burn.
5. Mr. Maru. M. Erasu 1. Railway line should be extended to Thondi port via Devakottai. 2. Special economic zone should be developed in between Karaikudi and Devakottai 3. Existing bus stand may be expanded to meet future demand 4. Karaikudi and Devakottai should be clubbed to form a Municipal Corporation
6. Mr. Raja Mohan, Ward 3 1. Water supply, Strom water drain, Underground drainage system should be given top priority 2. A municipal health officer should be posted for this municipality. 3. Town bus stand and Moffusil bus stand should be separate. 4. Existing Travelers bungalow should be utilized properly
7. Ms. Tamilarasi.R, Ward No 9 (Councillor) 1. An industry should be established to create employment opportunities for the in habitants 2. A surgical ward should be created in the municipal maternity hospital. 3. UGD – Scheme should be implemented early.
8. Mr. G. Kamaraj, CPI, Ward No 13 1. All blockages in the water drains should be removed. ______135 City Corporate cum Business Plan for Devakottai Municipality FICHTNER INDIA Final Report TNUIFSL ______
2. Ooranies should be desilted and maintained wall. 3. A ladies college should be developed in the town.
9. Mr. R.M. Balasubramanian, Ward No 15 1. An Engineering college, a medical college should be established in the town. 2. An integrated heritage development plan should be prepared and implemented to augment more income to the local body.
10. Ms. Rabia Beevi, Ward No 17 (Councillor) 1. Higher level educational institutions should be developed 2. An industry should be developed to provide employment opportunities.
11. Mr. R, Thirunavukkarasu, Ward No 22 (Councillor) 1. In each ward, a ward office for councillor should be constructed. 2. Streets should be numbered and name boards should be installed in each street. 3. Thirupattur and Devakottai should be clubbed and announced as Municipal Corporation.
12. Mr. K. Elango, Ward No 13 (Councillor) 1. Sewerage treatment plant should be constructed near government Poultry farm, 2. A community hall can be constructed so that the marriages for the poor may be performed there. 3. Municipal health centre should provided with adequate facility for safe delivery
13. Ms. R. Manjula Devi, Ward No 24 (Councillor) 1. In Kailasanathpuram, Community hall and public convenience should be constructed
14. Mr. S. Munusamy, Ward No 5 (Councillor) 1. In ward No 5 huts in the slums should be replaced by new houses 2. Parks and Play grounds should be developed 3. Developed storm Water drains should be constructed in these area.
15. Ms. Saharnisha Begum, Ward No 27 (Councillor) 1. Arrangements should be made so that Ooranies should be properly utilized to the full extent. This would save the quantum of protected water to be supplied 2. An industry should be created to provide jobs to public and to reduce out migration
16. Dr. M. Subramanian 1. Cleanliness should be maintained in weekly market, daily market and cattle market.
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2. A commercial complex should be constructed in Vellian Oorani and all Ooranies should be desilted and maintained well. 3. Law and order should be maintained well.
17. Mr. Bosco – from Human Rights Organization and Retd. English Professor. 1. Existing bus stand should be expanded. 2. Walk ways with trees on the sides around the Ooranies should be developed after removing the encroachments. 3. A polytechinic or Engineering College or Graduate Training College may be developed in this town 4. More Public conveniences should be created. 18. Mr. Mahboob Basha, Industrialist 1. Health centre should be developed with all infrastructure facilities. 2. A bridge to connect 25th ward and markandan path should be constructed in order to save fuel and time of the public
19. Mr. A. Geneshen, Notary Public 1. Stand by motors (for water supply) should be purchased and kept ready for usage in case of emergency. 2. Parks should be developed all along the bunds of Ooranies to avoid pollution. 3. Fogging machine with necessary medicines/chemicals should be used for controlling mosquitoes.
20. QUEEN women self help group (13 Members have represented (ward no 11) 1. Public toilets are to be constructed in this ward. 2. Road facility and street lighting facility should be extended to ward No 11
21. Mr.Gandhi Ramasamy, Ward 11 (Teacher) 1. Water supply storm water drainage and Under ground Drainage should be given priority in execution 2. A library should be established in this town. 3. All water bodies should be protected well.
22. Amman women self help group ( 10 members have represented) Ward No 11 1. Even, small rain causes flood, Flood mitigation measures should be adopted. 2. Street lighting should effectively be maintained. 3. Roads are with many pot holes. They should be maintained well by resurfacing.
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1. Ramnagar – Travelers bungalow should be renovated to use as library.
24. Mr. A Periakaruppan, Secretary AlTUC, ward 6 1. River Cauvery water should be brought to this town. 2. Stagnation in storm water drains creates mosquito breeding. Storm water drains should be effectively maintained. 3. Weekly market is to be reconstructed.
25. Gandhi Women Self Help Group, Ward 11 1. Storm water drain should be constructed in the ward.
26. Mr. K. Sornalingam Ex. MLA & Councillor, Ward 6 1. A Kalyanamandapam is to be constructed in the city 2. All Ooranies should be desilted and maintained 3. Fogging machine should be used to kill mosquitoes. 4. Public Conveniences should be constructed in the slums
27. Bhuvaneswari Amman Women Self Help Group, Ward 11 1. Public conveniences should be constructed in this ward. 2. Raods, and Street lights are to be maintained properly.
28. Mr. M. Kesavan, Councilor, ward No 16 1. Ground water drainage scheme should be implemented early. 2. Road at the Junction of Tirupathur Vattanam road near Sivan koil should be widened.
29. Mr. M. Paramaswaran, ward 22 1. Underground sewage system should be implemented giving top priority. 2. Mini buses may be operated within town limit. 3. Burial grounds/Burning ghats should be improved 4. Out migration to Madurai should be minimized introducing necessary infrastructural facilities
30. Mr. S. Varadharajan, Former Councillor, wad 23 1. Existing Market should be shifted to Vellaiyan Oorani and bus stand should be expanded by including present market area.
31. Ms. A. Vasantha Kumari, Councillor, ward 20 1. An industry should be developed for giving employment 2. Sodium vapour lamps should be increased in number. 3. Under ground drainage scheme should be implemented early.
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32. Ms. Annamall Meenal, Ward 20 1. Public conveniences may be constructed in each ward 2. Necessary improvement in the service industrial sector should be increased to increase employment opportunities for women
33. Ms. D. Indira, Amutha, Surabi SHG, Ward No 13 1. Street taps should be fixed in each street
34. Ms. Ramu, Everest self Help Group, Ward 7 1. Drainage stagnates in the streets. Hence storm water drain should be constructed. 2. Development of parks& Playfields is essential.
35. Ms. Bagam Priyal, Gokulam Women SHG,) Ward 22 1. Drainage and rain water mostly enter in to residential houses. Hence storm water drains should be constructed in Anna Nagar, 4th Street.
36. Ms.S. Rani, Councillor, ward 23 1. Bus Stand should be expanded 2. Storm water drains and roads should be extended in all parts of the town.
37. Ms.. Guruswamy ,Ward 24. Retired employee 1. Underground drainage scheme should be implemented 2. Another, Secondary bus stand should be constructed. 3. Parks for all should be developed in all parts of the town.
38. Mr. S.P.S. Sundararajan, Merchant’s Association 1. Bus Stand should be shifted to vellaiyan Oorani 2. An engineering college may be established.
39. Mr.S. Varadarajan Former Councillor, Ward 23 1. Bus Stand should be expanded shifting the nearby daily market. 2. Storm water drains should be constructed in parts of the town. And Underground drainage scheme need not be implemented involving heavy cost. 3. Burning ghats must be modernized using gasifier Plants.
40. Therasa Self Help Group ( 12 members), Ward 16 1. Water supply should be extended to Ward 16
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41. Ms. M Lakshmi Kasturibai, Women Self Help Group, Ward 23 1. Protected water should be supplied effectively daily. 2. Ooranies should be desilted and used well. 3. Storm water drains should be cleaned daily.
42. President, Sarojini women self group, Ward 11 1. Underground drainage scheme should be implemented
43. Mr. N Veerabadran, Businessman ward 11 1. I.T Park should be created. 2. Railway line should be extended from Karaikudi to Rameswaram Via Devakottai
44. Mr. C.T Seethuraman, State General Secretary and Legal Advisor, Tamil Nadu Local Bodies Employees Federation. 1. Daily market should be shifted to Vellian Oorani 2. A public meeting place should be identified especially for political meetings.
45. Ms. Kamalam Chelladurai, Former Councillor, ward 2 1. Ooranies should be desilted and encroachments in approach channels in the Ooranies should be removed 2. Bus Stand should be expanded to meet future traffic 3. Daily vegetable market should be shifted to Vellai Oorani
46. Ms. Meenal Sethuraman, District Secretary. 1. Mosquito menace should be controlled 2. Vellaiyan Oorani ex- market site should be used
47. Mr. M. Balaji, Secretary Subas chandra Bose Auto Employees & Owners association, Ward 13 1. When bus stand gets expanded, space should be allotted for parking of autos.
48. Officials of Devakottai Municipal Office 1. The existing bus stand should be expanded to meet future need, taking a portion of daily market located adjacent to the bus stand. 2. Mutton and fish market located in the existing daily market should be shifted to defunct Ayurvedic hospital
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