Arani Town - Municipal

Chapter - 9 Final Report: Arani Municipality
- Total Outstanding Liability as % of Property Tax Demand 222%
3 As a proportion of Property Tax Own Revenue Income
- Outstanding Debt as % of Own Revenue Sources 96%
- Outstanding Non Debt Liability as % of Own Revenue Sources -
- Total Outstanding Liability as % of Own Revenue Sources 96%
4 Non Debt Liability as % of Total Liability -
Debt Servicing Ratio 1.42%
9.6.4 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 is at 63%. 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. Arani
Municipality has demonstrated 5.33% annual growth in per capita revenue income
during the assessment period, while the per capita revenue expenditure has grown
at a negative CAGR of 3.60% during the corresponding period, which indicates that
as population increases revenue fund will be surplus.
Table 9-28: Financial Performance Indicators
S.No Indicators Value
1 Operating Ratio 63%
2 Growth in Per Capita Own Revenue 0.40% p.a.
3 Growth in Per Capita Grant 21.73% p.a.
4 Growth in Per Capita Total Revenue Income 5.33% p.a.
5 Growth in Per Capital Establishment Expenditure (2.60%) p.a.
6 Growth in Per Capita O&M Expenditure 20.71% p.a.
7 Growth in Per Capita Revenue Expenditure (3.60%) p.a.
9.6.5 Efficiency Indicators
These indicators are essentially a measure to assess municipal efficiency with regards
revenue base coverage and utilization. Arani Municipality has low collection
performance both with regards all sources of income as compared to other
Municipalities in the district. The average population per residential assessment at 5.5
persons indicates that the property tax base is as per standard coverage.
Table 9-29: Efficiency Indicators
S.No Indicators Value
1 Tax Collection Performance (Current)
- Property Tax 65%
- Profession Tax 70%
- Water Charges 40%
- Non Tax Income 70%
2 No. of Property Tax Assessments per Tax Collection Staff 2090 Nos.
3 Property Tax Demand per Assessment Rs. 754/- p.a.
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