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Nagercoil Municipality Workable solutions to help you make the difference Tamilnadu Urban Infrastructure Financial Services Limited Final Report - Nagercoil Municipality Conversion of City Corporate Plan into Business Plan July 2006 A Division of Nagercoil Business Plan TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................................6 1. BACKGROUND .........................................................................................................................12 1.1 OBJECTIVES AND SCOPE ........................................................................................................ 12 1.2 APPROACH TO CCP AND BP ................................................................................................. 14 1.3 REPORT STRUCTURE.............................................................................................................. 15 1.4 DELIVERABLES...................................................................................................................... 15 2. REVIEW OF CCP - CITY PROFILE ...................................................................................... 16 2.1 ECONOMIC PROFILE............................................................................................................... 16 2.2 NAGERCOIL POTENTIAL ........................................................................................................ 16 2.3 PAST PLANNING EFFORTS...................................................................................................... 16 2.4 KEY DEVELOPMENT ISSUES.................................................................................................. 17 3. REVIEW OF CCP - MUNICIPAL ASSESSMENT: INFRASTRUCTURE & ORGANISATION............................................................................................................................... 18 3.1 WATER SUPPLY ..................................................................................................................... 18 3.1.1 Additional storage capacity required............................................................................ 18 3.1.2 Distribution lines cover 95% roads .............................................................................. 18 3.1.3 Water supply reaching only 43% houses ...................................................................... 18 3.1.4 Issues.............................................................................................................................19 3.2 SEWERAGE AND SANITATION................................................................................................ 19 3.2.1 28.5% population devoid of any sanitation facility ...................................................... 19 3.3 ROADS COVER 58% TOWN .................................................................................................... 19 3.4 34% ROADS COVERED WITH STORM WATER DRAINS (SWD) .............................................. 19 3.5 100% COLLECTION OF SOLID WASTE, BUT POOR DISPOSAL FACILITIES ................................ 20 3.6 STREET LIGHTS COVER 83.3% OF THE TOWN ........................................................................ 20 3.7 INADEQUATE SOCIAL AND RECREATIONAL FACILITIES......................................................... 20 3.8 SLUM INFRASTRUCTURE ASSESSMENT REQUIRED ................................................................ 20 3.9 THE ORGANISATION REQUIRES TRAINING IN KEY AREAS...................................................... 21 3.9.1 Revenue section............................................................................................................. 21 3.9.2 Accounts & establishment section................................................................................. 21 3.9.3 Engineering section....................................................................................................... 23 3.9.4 Health section ............................................................................................................... 23 3.9.5 Town planning section .................................................................................................. 24 3.9.6 Information technology section..................................................................................... 24 3.9.7 Status of e-Governance ................................................................................................. 24 4. REVIEW OF MUNICIPAL FINANCE.................................................................................... 25 4.1 NAGERCOIL’S PER CAPITA SURPLUS HIGHER THAN THE STATE AVERAGE ............................ 25 4.2 REVENUE RECEIPTS ............................................................................................................... 27 4.2.1 Revenue growth of 8.6% due to increase in all revenue streams.................................. 27 4.2.2 Property tax and shop & market rent contribute to 30% revenues .............................. 27 4.3 REVENUE EXPENDITURE........................................................................................................ 27 4.3.1 O&M expenses is 17% of municipal revenues.............................................................. 27 4.3.2 No significant maintenance of roads and SWD ............................................................ 28 4.4 OUTSTANDING LIABILITIES ................................................................................................... 28 4.4.1 Debt liabilities - 60.43% of closing balance of 2004-05.............................................. 28 4.4.2 Non-debt liabilities – 3.47% of Closing Balance of 2004-05 ....................................... 29 4.5 CAPITAL EXPENSES MET FROM INTERNAL REVENUES SURPLUS ........................................... 29 Nagercoil Business Plan 4.6 KEY PERFORMANCE INDICATORS ......................................................................................... 30 4.7 FINANCIAL PLAN FOR VARIOUS REVENUE SOURCES OF NAGARCOIL MC ............................ 31 4.7.1 Revenue improvement potential and feasibility ............................................................ 31 5. CAPITAL INVESTMENT PROGRAM................................................................................... 32 5.1 CAPITAL INVESTMENT .......................................................................................................... 32 5.2 DEPARTMENT WISE INVESTMENT IDENTIFIED FOR IMMEDIATE REQUIREMENT .................... 32 5.2.1 Rs. 1210 lakhs required for water supply projects ....................................................... 32 5.2.2 Rs. 6782 lakhs required for UGD and sanitation facilities........................................... 33 5.2.3 Rs 410 lakhs required for Solid Waste Management (SWM)........................................ 34 5.2.4 Rs. 1589 lakhs required for roads and drain service.................................................... 35 5.2.5 Rs. 190 lakhs required for street lighting services........................................................ 36 5.2.6 Rs. 749 lakhs required for other services...................................................................... 36 6. FINANCIAL OPERATING PLAN........................................................................................... 38 6.1 NEED FOR A FOP................................................................................................................... 38 6.2 ASSUMPTIONS FOR FOP ........................................................................................................ 38 6.2.1 Revenue Receipts Items................................................................................................. 39 6.2.2 Revenue expenditure ..................................................................................................... 39 6.2.3 Capital income and expenditure ................................................................................... 39 6.3 PROPERTY TAX AND WATER TAX IMPROVEMENTS HAVE THE MAXIMUM IMPACT................ 40 6.4 PROPERTY TAX / GENERAL TAX............................................................................................ 40 6.4.1 Rs. 830 collected per property per annum in 2004-05.................................................. 40 6.4.2 Improvement measures can yield Rs. 6563 lakhs.......................................................... 40 6.4.3 Summary ....................................................................................................................... 41 6.5 WATER CHARGES .................................................................................................................. 41 6.5.1 Low coverage of 43% and low collection efficiency of 53%......................................... 41 6.5.2 Improvement measures can generate Rs. 1776 lakhs ................................................... 42 6.5.3 Summary ....................................................................................................................... 42 6.6 SHOPS & MARKET RENT ........................................................................................................ 43 6.6.1 Improvement measures can generate Rs. 2202 lakhs ................................................... 43 6.6.2 Summary ....................................................................................................................... 43 6.7 OTHER REVENUE SOURCES CAN GENERATE RS. 2000 LAKHS ............................................... 43 6.8 AREAS OF EXPENDITURE REDUCTION..................................................................................
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