Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

10. Sustainable financial and operating plan
10.1 Financial and Operating Plan (FoP)– time horizon, basis and assumptions
10.1.1 Time-horizon
The FOP has been prepared for a 20-year period i.e., FY 2008-2027.
10.1.2 Demographic projections
Exhibit 10.1 provides the population projections that form the basis of developing the Capital
Investments and other revenue and cost projections for the municipality.
Exhibit 10.1 Population projections and related estimates
Unit
Baseline Projected
2007 2012 2017 2027
Population nos 71229 76804 82536 94405
Households nos 14839 17068 18341 20979
Slum population nos 26503 28,418 30,538 34,930
Slum households nos 4479 4,831 5,192 5,938
Assessed Properties nos 19375 19969 21459 24545
Road length km 44 46 52 52
10.1.3 Revenues
Exhibit 10.2 provides details of the assumptions for projecting revenues for Krishnagiri
Exhibit 10.2 Revenue related assumptions
Segment Revenue driver Basis / Assumptions
Property Tax Baseline property tax / property (2006) Rs. 1505 per year
Growth in tax rate 30% once in 5 years 2008 onwards
Assessments growth Population growth. As per trend
captured in Exhibit 10.1
Professional Tax Baseline tax / assessee (2006) Rs. 1387 per year
Growth in tax rate - 30% every 5 years from 2008
Growth in assessments - Population growth
Water charges Penetration (Connections / properties) Baseline – 22%. Connections growth
assumed to reach 60% by 2013 and
80% by 2027.
Deposit and user charges Connection deposit assumed at Rs.
3000 and Rs. 8000 for household and
commercial connections respectively
and user charges assumed at Rs. 100
per month and Rs. 200 per month for
residential and commercial
connections respectively. Tariffs are
CCP cum BP - Krishnagiri Municipality 84