City Corporate & Business Plan - Municipal

Chapter ñ 9 Final Report: Ambur Municipality
The assigned revenue of the municipality has increased by around 10% p.a.
over the last 6 years. Devolution Fund, which accounts for 35% of the total
revenue has reduced during the last 3 years.
The municipalityís own resources has also shown increase of only around 2%
over the last 6 years. The municipalityís own revenue comprises property tax,
profession tax, water charges and income from properties have all shown
growth of around 2% over the last 6 years.
The total accumulated surplus of the Municipality as on 31st March 2007
stands at Rs. 596 lacs. As against the same, the total fixed assets comprising
land, buildings, plant & machinery, vehicles etc. stands at Rs. 1980 lacs. Out
of the total fixed assets, the value of land is only Rs. 590 lacs.
The total loans of the Municipality as on 31st March 2007 stands as below :
Table 9-23 - Borrowings of the Municipality (Rs. in Lacs)
S.No Loan from Purpose Rate of O/s as on
Interest 31.3.07
1 Government Loan Water Supply &
Construction
13.50% 115.33
2 TNUDF Loan Roads 14.00% 43.24
3 TUFIDCO Loan Water Supply 10.50% 155.07
4 Bank - 12.00% 17.49
Total 331.13
As against the same, the contribution by Municipality, contribution by
Government and Grants from Government as on 31st March 2007 stands as
below :
Table 9-24 - Status of Contributions & Grants
S.No Particulars Rs. in lacs
1 Contribution by Municipality 151.44
2 Contribution by Government 252.64
3 Grants from Government 307.65
Total 711.73
It is observed from the above that around 60% of the fixed assets excluding
Land have been funded by means of Contribution and Grants from
Government over the years and the balance 30% from Loans.
The average current collection efficiency of the municipality is very poor, with
50% efficiency in property tax, 75% efficiency in profession tax and 10%
efficiency in water charges. The arrears collection performance is also poor.
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