Governance & Financial assessment of Mehsana Municipality 13-14

URBAN GOVERNANCE
Institutional Mapping

2
Urban Governance
Larger expenditures have to be combined with better governance structures,
strong political and administrative will to collect taxes and user charges, and
improved capacity to deliver.
“ Report on Indian Urban Infrastructure and Services, 2011
“
They (Indian Cities) require technical skills to manage the delivery of urban
services as well as provide a socio-economic environment in which the industry
and services sectors can become globally competitive.
Urban Planning
Infrastructure Design
Political Will / Autonomy
Administrative Capacity
Financial Viability / Autonomy

3
Urban Governance

1. Institutional Framework | Municipal Council
1. Elected and Administrative Wings
2. Functions of the Council
3. Institutional Capacity
2. Private participation in Service Delivery
3. Finance
4
Urban Governance
Presentation Structure

Institutional Framework Municipal
Council
5

6
Institutional Framework | Municipal Council
Background
Center
State
ULB
Three Tier Government

7
Background
Center
State
ULB

8
Impact of the 74th CAA-Consolidated Report Vol - I_summary
Background
Center
State
ULB
ultra vires
beyond the powers or
authority granted by law

9
Background
Center
State
ULB
ultra vires

10
Background
Center
State
ULB
ultra vires

11
Background
Types of ULBs Elections Functions
Finances

12
Background
Finances

13
Background
Finances

14
Background
Finances
GUJARAT MUNICIPALITY ACT
1963

15
Elected and Administrative Wings of the Municipal Council

16
Elected Administrative
17 Electoral Wards in City
3 Elected Councillors per ward
President / Mayor
14 Department
Chief Officer assigned by State Government from
Administrative Services (GAS)
18 Committees
5 years tenure
Employees of Municipal Council
Characteristics of the Wings of Municipal Council in Mahesana

17
Elected Wing

18
General Body
(Chaired by President)
17 Wards
3 Councilors per Ward
Election Process

19
General Body
(Chaired by President)
Sanitary cum food and drugs
control committee
Light Committee
Standing Committee
Building and Road Committee Town Planning Committee
Shops and Establishment Committee
Water Works committee
Hospital Committee Accounts committee
Garden and sports committee Legal committee Revenue committee
Underground sewerage scheme
committee
Staff committee
Urban Community Development Project
committee
Crematorium and cemetery
committee
Gas committee Transport committee
Functions of the Elected Wing

20
Gaps in the functioning of the Elected Wing
Election Function

21
Ward (Ground Conditions)
Election Function

22
Election Function

23
Election Function

24
Ward Sabhas
Area Sabhas
Election Function

25
Ward Sabhas
Area Sabhas
Election Function

26
Administrative Wing

27
Source: CDP Mehsana
Organogram of the Administrative Wing
Chief Officer
Office Superintendent
General
Administration
Shops &
Establishment
Taxes
Water works
department
Dispensary Sanitary General work Public Garden IDSMT Sanitary
U.C.D.
T.P. & Building
Regulation
Underground Sewerage
Sanitary

28
Source: CDP Mehsana
Chief Officer
General
Administration
Shops &
Establishment
Taxes
Water works
department
Dispensary Sanitary General work Public Garden IDSMT
Internal Auditor
Building Inspector
Encroachment
Inspector
Surveyor
Cashier
Clerk and Asst.
clerk
Enforcement
Mukadam
Enforcement
labour/Peon
Security guard
Peon
Shop Inspector
Assistant clerk
Clerk
Assistant clerk
Peon
Water works
Engineer
Inspector
Fitter
Pumpman
Medical officer
Cash writer
Dresser cum peon
Dresser
Family planning
Compounder
Chief sanitary
inspector
Food inspector
Statistical clerk
Assistant clerk
Ward clerk
Clerk
Head mukadam
Civil Enginner
Overship
Assistant clerk
Carpenter
Wire man
Gardener
Cremetorium
watchman
CNCD dept.
Tree plantation
Watchman
Civil engineer
Carpenter
Overship
Sanitary
Mechanic foreman
Driver
Wire man electricity
Wireman helper
Cleaner
Sanitary Mukadam
U.C.D.
Project officer
Social
Clerk
Peon
T.P. & Building
Regulation
Planning Assistant
Surveyor
Tracer
Deputy Engineer
Mechanic
Supervisor
Operator
Overship
Carpenter
Clerk
Watch man
Mukadam
Sweeper
Sanitary
Sweeper
Building labour
Water works

29
Source: CDP Mehsana
Chief Officer
General
Administration
Shops &
Establishment
Taxes
Water works
department
Dispensary Sanitary General work Public Garden IDSMT
Internal Auditor
Building Inspector
Encroachment
Inspector
Surveyor
Cashier
Clerk and Asst.
clerk
Enforcement
Mukadam
Enforcement
labour/Peon
Security guard
Peon
Shop Inspector
Assistant clerk
Clerk
Assistant clerk
Peon
Water works
Engineer
Inspector
Fitter
Pumpman
Medical officer
Cash writer
Dresser cum peon
Dresser
Family planning
Compounder
Chief sanitary
inspector
Food inspector
Statistical clerk
Assistant clerk
Ward clerk
Clerk
Head mukadam
Civil Enginner
Overship
Assistant clerk
Carpenter
Wire man
Gardener
Cremetorium
watchman
CNCD dept.
Tree plantation
Watchman
Civil engineer
Carpenter
Overship
Sanitary
Mechanic foreman
Driver
Wire man electricity
Wireman helper
Cleaner
Sanitary Mukadam
U.C.D.
Project officer
Social
Clerk
Peon
T.P. & Building
Regulation
Planning Assistant
Surveyor
Tracer
Deputy Engineer
Mechanic
Supervisor
Operator
Overship
Carpenter
Clerk
Watch man
Mukadam
Sweeper
Sanitary
Sweeper
Building labour
Water works
186,
31%
412,
69%
Total Posts = 598
Occupied
Vacant

30
10 1
8 19
3
3
1
4
2
17
5
0 0
113
14 1
5 15
5
8
6
6
1
13
2
3 36
297
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Occupied post Vacant post

31
Municipal Functions

32
I Municipal Functions | Obligatory – GMA 1963 Mahesana
1 Urban planning including town planning
2 Giving immediate relief to persons rendered destitute by natural calamities
3 Establishing and maintaining primary schools
4 Regulating or abating offensive or dangerous trades or practices
5 Securing or removing dangerous buildings or places and reclaiming unhealthy localities
6 Obtaining a supply or an additional supply of water in case of unwholesomeness of the existing supply at a reasonable cost
7 Public vaccination
8 Water public streets and places
9 Cleansing and abating nuisance in public spaces not being private property whether such places are vested in the municipality or not
10
Introducing and maintaining the system of water closet so as to dispense with the removal of night soil by carrying the same in a receptacle cart or
other means
11 Disposing of night soil and rubbish
12
Providing special medical aid accommodation for the sick in time of dangerous diseases and taking such measures as may be required to prevent
the outbreak or to supress and prevent the recurrence of such diseases.
13 Establishing and maintaining public hospitals, dispensaries and family planning centers and providing public medical relief.
14
Acquiring and maintaining, changing and regulating places for the disposal of the dead and disposal of unclaimed dead bodies and carcasses of
dead animals.
Municipal Functions

33
I Municipal Functions | Obligatory – GMA 1963 Mahesana
15 Constructing, altering and maintaining public latrines and urinals
16
Constructing, altering and maintaining public streets, culverts, municipal boundaries marks, markets, slaughter houses, privies, drains, sewers,
drainage works, sewerage works, baths, washing places, drinking fountains, tanks, wells, dams and like
17 Suitable accommodation for calves, cows, or buffaloes required within the municipal borough for the supply of animal lymph
18 Printing such annual reports of the municipal administration of the borough as may be required by general or special order of the state government
19
Paying the salary and the contingent expenditure on account of such police or guards as may be required by the municipality for the
purpose of this act or for the protection of any municipal property
20 Improving agriculture by suitable measures
21 Devising town planning within the limits of the borough according to the law relating to town planning for the time being in force
22 Lighting public streets, places and buildings
23 Extinguishing fires and protecting life and property when fires occur
24
Removing obstructions and projections in public streets or places and in spaces not being private property, which are open to the enjoyment of the
public, whether such properties rest with municipality or government
25
Erecting substantial boundary marks of such description and in such positions as shall be approved by the collector, defining limits or any alteration
in the limits of the municipal borough
26 Registering births, marriages and deaths
27 Make payments to institutions identified by state government for anti-rabic treatment, leprosy and treatment for lunatics.
Municipal Functions

34
II Municipal Functions | Discretionary - – GMA 1963 Mahesana
1 Giving relief to and establishing and maintain relief works in time of famine or scarcity for, destitute persons within the limits of municipal borough
2
Constructing, establishing or maintain , public parks, gardens libraries museums, lunatic asylums, halls, offices, shops market dharma shalas,
rest houses, place of entertainment and homes for the disabled and destitute and other public buildings
3
The construction, maintenance, management, organisation or purchase of telephone lines or for guaranteeing the payment of interest on money
expended for the construction of a telephone line subject to the previous sanction of the development commissioner when the line extends
beyond the limits of the municipal borough
4 The construction, purchase, organisation , maintenance, extension and management of mechanically propelled transport facilities
5
Laying out, whether in areas previously built upon or not, new public streets and acquiring the land for that purpose, and the land required for the
construction of building or cartilages thereof the abut on such streets
6 Planting and maintain roadside and other trees
7 The construction maintenance repairs purchase of any works for the supply of electrical energy or gas
8 The construction of sanitary dwellings for the poorer classes
9 Providing accommodation for all classes of servants employed by the municipality
10 Establishing and maintain pre primary schools and secondary schools such as balwadies balmandirs etc
11 Undertaking cultural activities
12
Making contribution by way of aid to pre-primary schools, secondary schools, institution providing higher or technical education and institution of
educational societies
13 Establishing and maintain secondary schools and institutions for higher or technical education
14 Making contribution to the funds of local self government institute
Municipal Functions

35
15 Undertaking measures of promotion of social and moral welfare of the population in the borough
16 Establishing and maintaining Gymnasia, playgrounds, theatres, libraries, reading rooms and other recreation centres
17 Arranging for the destruction or the detention and preservation of dogs
18 Securing or assisting in the securing of suitable places for the carrying on the offensive trades
19 Supplying, constructing and maintain receptacles, pipes and other appliances for the use of private premises
20 Establishing and maintaining a farm or factory for disposal of sewage
21 Setting up of diaries or farms for the supply, distribution and processing of milk and milk products
22 Promoting well being of Municipal employees and all class of Municipal employees and their dependents
23 Constructing, altering and maintain residential building for housing – Houseless persons
24 Encouraging Co-operative housing societies and assisting to them in construction of residential buildings
25 Undertaking manufacturing of building materials and their distribution at fair prices
26 Undertaking schemes of slum clearance or redevelopment of any area
27 Preparation of plans for economic development and social justice
28
The performance of functions and the implementation of the schemes that may be entrusted by the State govt. to it, including those in relation to
that matters listed in the Twelfth schedule to the constitution of India
29
Any public reception, ceremony entertainment or exhibition within the municipal borough according to the rules made in this behalf by the state
Government
Municipal Functions

36
30 Taking a census, and granting rewards for information which may tend to secure the correct registration of vital statistics
31 Making a survey
32
Paying the salaries and allowances, rent and other charges incidental to the maintenance of the court of any stipendiary or honorary magistrate
or any portion of any such charges
33 Promoting the idea of Co-operation in different walks of life and organising and encouraging Co-operative institutions
34 With the previous sanction of the state govt. reclaiming wasteland and bringing it under cultivation
35 Training the urban community in self-help and self sufficiency on the principle of Municipal corporation
36 Starting of granaries
37 Constructing altering and maintain go downs and depots for preservation of food grains and vegetables
38 Conservation of manorial resources preparing compost manure. Organic manure and mixture and to arrange for making them easily available
39
Establishing and maintaining nurseries for fruit bearing trees and vegetable and also arranging for storage and distribution of fruits and
vegetables grown
40 Undertaking measures for improvement of agriculture and cattle breed
41 Assisting in establishment of large scale small scale -cottage and craft industries
42
Taking any measures not specified in the foregoing provision of this section or in section 87, which is likely to promote the public safety, health,
convenience, welfare of education
Municipal Functions

37
Functions
Obligatory
Functions
Discretionary
functions
27/27 16/27(11)
15/42 not known

38
III Municipal Functions | 12th Schedule - Constitution of India Mahesana
1 Urban planning including town planning
2 Regulation of land-use and construction of buildings
3 Planning for economic and social development
4 Roads and bridges
5 Water supply domestic, Industrial and commercial purposes
6 Public health, sanitation, conservancy and solid waste management
7 Fire services
8 Urban forestry
9 Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded
10 Provision of urban amenities and facilities such as parks, gardens, playgrounds
11 Burials and burial grounds, cremations, cremation ghats/grounds and electric crematoria
12 Cattle pounds, prevention of cruelty to animals
13 Vital statistics including registration of births and deaths
14 Street lighting, Parking lots, bus stops and public conveniences
15 Regulation of slaughter houses and tanneries
16 Slum improvement and up gradation
17 Urban poverty alleviation.
18 Promotion of cultural, educational and aesthetic aspects
Municipal Functions

39
Political and Administrative Autonomy
Performance of
Functions
Capacity Finance

Private participation in Service Delivery

WHY
NAGARPALIKA
ADOPTED PPP ?
CURRENT SITUATION
OF MUNICIPALITY
FINANCIAL
CONSTRAINT
S
NON-
AVAILABILITY
OF SKILLS
POOR
SERVICE
LEVELS
HELP TO
MEET
FINANCIAL
NEEDS
SHALL IMPROVE
SERVICE LEVELS
&
ACCOUNTABILITY
PPP
PROVIDE
REQUIRED
SKILLS &
TECHNOLOG
Y

SELECTION OF PPP
PROJECTS
NEEDS FOR PUBLIC
FACILITIES
ASSESSING ON BASIS OF
URGENCY ,COST &
TIMELINE
SUBMITTED TO
GENERAL BODY
DETAILED
COST
ANALYSIS
SUBMITTED TO
GENERAL
BODY
PROCUREMENT
OF PVT. PARTNER
SELECTION OF PVT.
PARTNER
COMPETITIVE BIDDING
PROCESS
INVITATION TO PVT.
COMPANIES
SUBMISSION OF DPR BY
COMPANIES
ASSESSING THE
PROPOSALS
APPOINTING THE
SUITABLE
OOPS!!! WHERE IS PUBLIC PARTICIPATION IN THIS PROCESS?

SECTORS
ADOPTING PPP
MODELS IN
MEHSANA
NAGARPALIKA
WATER SUPPLY
SANITATION
SEWERAGE
DRAINAGE
ROADS & BRIDGES
STREET LIGH
SOLID WASTE
MANAGEMENT TAX
COLLECTION
PARKS &
GARDENS CREMATORIUM
MOU

WATER SUPPLY:
ROLE OF PUBLIC &
PRIVATE
WATER SUPPLY
CONSTRUCTION
OPERATION &
MAINTENANCE OF
ASSETS
OWNERSHIP OF
ASSETS
PUBLI
C
PRIVATE

45
TAX COLLECTION
PUBLI
C
PRIVATE
TAX COLLECTION:
ROLE OF PUBLIC &
PRIVATE
COLLECTION
OF TAX
REDRESSAL OF
COMPLAINTS
TAX AS A BASE OF
REVENUE INCOME

HIGHER COST OF
PROJECT THAN
SUBMITTED
CONTRACTED FIXED
PRICE WITH SOME ITEMS
INDEXED TO INFLATION
PVT. PARTNER RESPONSIBLE IF
RELATED TO DESIGN,
CONSTRUCTION, OPERATION &
MAINTENANCE OF PROJECT
POOR
PERFORMANCE
FINANCIAL PENALTIES
DEFAULT PROVISIONS &
REMEDIES THAT FAVOUR
MUNICIPALITY
TERMS OF REFERENCE
WHAT IS THE RISK MITIGATION APPROACH BY NAGARPALIKA?

ISSUES OBSERVED
MISCONCEPTIO
N
CONTROVERS
Y
FEAR
COMMUNITY
STAFF
EXPERTISE
LACK
EXPERTISE
VACANCY
LACK EXPERIENCE
APPROACH
PUBLIC
AWARENESS
COMMUNITY ENGAGEMENT
COMMUNICATION
CAPACITY BUILDING
ENGAGE EXTERNAL
EXPERTS
APPOINT NEW OFFICIALS

48
As a part of Urban Development Planning Studio 2014, Masters in Planning, CEPT University, Ahmedabad, 19 Feb 2014
Finance
income & expenditure
Municipal

49
a u t h o r i t i e s │ i n s t i t u t i o n s │ p o w e r s │ r e s p o n s i b i l i t i e s │ r o l e s
So what does the taxes collection signify about the authority?
It signifies power, autonomy &
independence of the authority for
development over a space.

50
What does the expenses indicate?
 Capacity to undertake
developmental activities
 Priorities of the authority for
development
a u t h o r i t i e s │ i n s t i t u t i o n s │ p o w e r s │ r e s p o n s i b i l i t i e s │ r o l e s

51
Developmental activities
taken up by the following authorities at district level
urban rural
Collector DDO

52
villages Gram panchayat
Taluka panchayat
District panchayat
Panchayat dept
State government
Institutional framework for
developmental activities in
12 peri-urban
12
peri-urban
villages

53
Taxes Gram panchayat
House tax
Light tax
Professional tax
Cleanliness tax
R u r a l

54
Gram panchayat │ Taluka panchayat │ District panchayat
Land revenue
जमीन महसूर
Taxes
R u r a l

55
13th Finance Commission Grant
Annual Grants
MP – MLA Fund
High
dependency
ratio
Grants
R u r a l

56
abc
Special Grants
xyz
High
dependency
ratio
Grants
R u r a l

57
Urban
Municipality
Collector
State Government
Institutional framework
for developmental
activities in
areas
- Approvals
- Forward funds
- Implementation
- Planning
- Identification
M e h s a n a
roles

58
Mehsana Municipality
Taxes & own Income
grants
income
Income
Sources
Mehsana
Municipality

59
Income
Opening balance
Mehsana
Municipality
2013 - 2014
Own income
Grants & Funds 34.80 crore
20.75 crore
33.75 crore
89.30 crore
own income
grants & funds
60%
40%
Income
–
dependency
ratio
As per Mehsana Municipality Budget 2013-14

60
Taxes &
Charges
Mehsana
Municipality
2013 - 2014
User charge
Property Rent
Water Tax
Penalty
Electricity Tax
Conservancy tax
Professional Tax
Water Charge
Property Tax
Gutter Tax
TP Betterment charge
Impact Fee
60%
70%
of total own income
(20.75 crore)
Income
-
own
income

61
Taxes &
Charges
Mehsana
Municipality
2013 - 2014
Thumb rules
Professional Tax
Water Charge
Property Tax
Area municipality limit : 3145 hec Population : 1.90 lakhs
Rs. 6,500/-
Rs. 11,000/-
Rs. 22,000/-
For 1 hectare inclusion of area in Mehsana municipality …approx.
With FSI remaining same…
Other Tax Rs. 10,000/-
Approx. Rs. 50,000/- p.a.
Income
-
own
income
-
annual

62
Taxes &
Charges
Mehsana
Municipality
2013 - 2014
Thumb rules
TP Betterment charge
Area municipality limit : 3145 hec Population : 1.90 lakhs
Rs. 1,50,000*/-
For 1 hectare floating of TP scheme … approx.
Income
-
own
income
–
one
time
Collected over 10 years sometimes...

63
Grants
Mehsana
Municipality
2013 - 2014
Income
-
grants
Annual Grant
Special Grant
Basic per capita
63
Entertainment tax
Land revenue
Octroi grant
Urban development
G.M.F.B.G.
Cleanliness abhiyan
Town planning grant
Health staff subsidy
D.A.Allowance
Water works Grant
Pay & use grant
Flood Relief fund
S.J.C.M.UD yojana(DUDA)
15%Vivekadhin
Incentive conservancy
Nirmal gujarat
S.J.yojana
S.J.S.R.Y (Loan subsidy)
Amrut Dhara
Mission mangalam
Town planning admin

Revenue Grants
G.M.F.B.G(State)
Pay & use grant(State)
Cleanliness abhiyan yojana(State)
Road repair & main. (State)
Town planning Grant(State)
Malaria prevention(State)
Shop & Establishment(State)
Basic per capita grant(State)
S.J.S.R.Y (Lone subsidy) (State)
Cable T.V. (State)
Proffessional Tax(State)
Entertainment tax(State)
Nirmal gujarat grant(State)
Land revenue grant(State)
Octroi grant(State)
Health staff subsidy(State)
Town planning admin(State)
S.J.S.R.Y admin. (State)
District administration(State)
Town planning admin(State)
Incentive conservancy(State)
U.C.D.Grant subcidy(State)
New Anganvadi Grant(State)
M.L.A.Grant(State)
M.P.Grant(central)
Flood Relief fund(State/(central))
Urban development(State)
Amrut dhara(State)
12th Finance commission(central)
S.J.C.M.U.D (DUDA) (State)
Water works(State)
13th Finance commission(central)
15%Vivekadhin Grant(State)
Capital Grants

• G.M.F.B.G
• S.J.C.M.Urabn development
yojana(DUDA)
• Incentive conservancy
• Cleanliness abhiyan Grant
• Pay & use grant
• Water works Grant
• Amrut dhara
• Swarnim jayanti C.M.urban
developement yojana
• 15%Vivekadhin Grant
• Cable T.V.
• Nirmal gujarat grant
• Road repair & maintainance
• Urban development grant
Physical Infrastructure
• New Anganvadi Grant
• Shop & Establishment
Social infrastructure
Physical
Infra.
grant
18 crore
3%
97%
Social
Infra.
grant
60Lakh

66
Expenditures
Mehsana
Municipality
2013 - 2014
Revenue expenditure
Capital expenditure 54.85 crore
20.82 crore
88.90 crore
revenue exp.
capital exp.
70%
30%
Expenditures
–
operating
ratio
–
capital
utilization
Approx. Balance 13.23 crore
As per Mehsana Municipality Budget 2013-14
75.67
cr

67
Capital
Expenditure
Mehsana
Municipality
2013 - 2014
Urban development
Sanitary capital
IDSMT
Underground sewage
Garden capital
Water works capital
Building Capital
Elec. capital
Crematorium Capital
Road Works
30%
of capital expenditure
(54.85 crore)
Income
-
own
income
56%
71%

68
Financial
Health
Mehsana
Municipality’s
2013 - 2014
Financial analysis
Operating Ratio = Operating expenses
Revenue account Receipts
Benchmark
0.99
Dependency Ratio = Revenue account Grants
Revenue account Receipts 0.38
> 1
Mehsana Municipality is just short of meeting its OP with current sources.
Possible Reason -Abolition of Octroi tax 2011- Replacement with Grant .

69
Financial
Health
Mehsana
Municipality’s
2013 - 2014
Capital Utilization = Capital Expenditure
Capital Receipts
Cost Recovery = Revenue account Receipts
Operating Expenses of that sector
Water 52.3 %
Electricity 51.64%
SWM 25%
Sewage 11.13%
235.71 %
Mehsana Municipality uses revenue income & Grants for building capital sign of growth
Benchmark
> 100 %

70
Financial
Health
Mehsana
Municipality’s
2013 - 2014
Financial analysis

71
Institutional Framework | Concluding Thoughts
Future Growth Intentions of the ULB

72
Existing Mahesana Municipality Area : 22.48 sqkm

73
Mahesana Planning (Study) Area : 63.76 sqkm for ADA

74
Conversion of the Planning area to Mahesana Corporation

75
Is this the right model for future growth?

76
Is this the right model for future growth?
Can we propose an alternative?

Governance & Financial assessment of Mehsana Municipality 13-14

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Governance & Financial assessment of Mehsana Municipality 13-14