Arani Town - Municipal

Chapter - 9 Final Report: Arani Municipality
9.4.1 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 6 years are as below:
Table 9-17: Establishment Expenses ñ Growth & % of Total Expenditure (Rs. in lacs)
S.No Estb Expenses 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Personnel ñ Salaries 127.30 159.42 151.82 167.74 161.97 157.34
Terminal &
Retirement Benefits
33.77 28.82 56.21 19.51 6.01 1.21
2 Total 161.07 188.24 208.03 187.25 167.98 158.55
% of Total Expt 46.22% 67.59% 48.39% 82.97% 84.51% 63.83%
% Growth - 16.87% 10.51% (9.99%) (10.29%) (5.61%)
The establishment expenses constitute around Rs.175 lacs per annum and accounts
for around 50% of the total expenditure.
9.4.2 O&M Expenses ñ 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 6 years is as below :
Table 9-18: O&M Expenses (Water Supply) ñ Growth & % of Total Expenditure (Rs. in lacs)
S.No O&M ñ Water Supply 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Wages 1.53 1.93 2.50 - - 0.05
2 Power Charges 12.78 20.19 20.00 2.42 2.38 34.72
3 Maintenance Exps 0.70 2.59 3.50 1.64 3.62 2.20
4 Vehicle Maint. 0.64 0.49 0.26 0.84 0.77 0.94
5 Others 0.30 1.10 0.60 0.08 0.24 2.41
Total 15.95 26.30 26.86 4.98 7.01 40.32
6 % of Total Expt 4.58% 9.44% 6.25% 2.21% 3.53% 16.23%
7 % Growth - 64.89% 2.13% (81.46%) 40.76% 475.18%
The O&M Expenses ñ water supply constitutes around Rs. 25-30 lacs per annum and
the main component of the same is power charges. The O&M water supply has
grown on an average by 30% over the years.
9.4.3 O&M Expenses ñ 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 ñ buildings, roads and others. The
expenses on account of street lights & others for the last 6 years is as below :
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