Arani Town - Municipal

The broad financial analysis of the Arani Municipality finances reveal that the
Municipality has to necessarily increase its own sources of income and
collection efficiency for servicing the additional borrowings in the future.
The Municipality borrowings are high at Rs. 226 lacs, and the outgo on account
of interest is very high. The municipality has the capacity of further borrowings
and can resort to further borrowings for new project identified based on the
additional income to be generated and existing income flows.
To summarise, the overall income pattern of the Arani Municipality indicates both
positive and negative features. The positive trends are on the income side, where the
Municipality has higher growth rate in income than growth in expenditure.
5. PROPOSED REFORMS
The proposed mandatory municipal reforms are broadly classified under the heads of:
a. Reforms in resource mobilization
i. Reforms in Taxation
Property mapping - Onetime assessment of all unassessed and under
assessed properties.
Regular and periodic increment of property tax at the rate of 15% every 5
years
ii. Improving revenue from user charges
The Municipal council may assume charge of increase in water charges, to
recover full O&M Cost of water supply and UGSS.
Increase in the connections to at least 85% of total assessments.
Pre-mobilization of deposits for the proposed WS or UGSS project
Implementation of Conservancy fee for SWM for hotels, marriage halls,
industries and other commercial establishments
Revenue Generation from sale of compost and scrap.
Reforms in Energy and Resource efficiency
Conducting energy audits, leak detection studies, Enforce regulations on
illegal tapping of water, Fixing flow control valves and meters.
Provision of energy saving lights and equipments, Privatizing the
maintenance of street lights to ESCO companies.
iii. Formation of new sustainable revenue sources
The remunerative proposals idenfied are
Improvement in Old bus stand with two wheeler parking shed
Construction of New ëAí grade bus stand near bye pass
Construction of 100 no. of shops in proposed new bus stand
Two wheeler and four wheeler parking shed at the Existing New bus stand