Presentation On Urban Service Delivery

Improving Urban Service Delivery through Local Governance

A CMD Study Presentation 14 August 2007

Why Local Governance? • Subsidiarity principle ▫

Accountability

▫

Responsiveness

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Constitutional provisions • Part IX-A-“The Municipalities” • Structure, composition, and duration • Reservation of seats for women, scheduled castes, and scheduled tribes • A threshold of functions and powers, including power of taxation

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Functions Twelfth Schedule- 18 items, spanning across ▫ Planning (urban planning, town planning, land use regulation, economic and social development planning) ▫ Economic infrastructure (roads and bridges, water supply, conservancy) ▫ Social infrastructure (public health, sanitation, solid waste management) ▫ Public amenities (fire services, burial grounds, cattle pounds, vital statistics) ▫ Environmental services (forestry, parks, regulation of slaughterhouses) and ▫ Poverty alleviation (weaker section interests, slum improvement) Improving Urban Service Delivery through Local Governance

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Are services available and satisfactory? • Urban service coverage and quality poor

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Reasons of poor delivery Poor service delivery attributed to ▫ Inadequate democratization and ▫ Poor empowerment of urban local bodies

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Democratization • Direct election

• SEC set up on 3rd December 1993

• One-third seats reservation for women

• It has superintendence, direction and control of voters’ list and conduct of elections

• Proportional reservation for scheduled castes and tribes • Five years tenure • No dissolution through statute amendments • Fresh election before term expiry • Supervision, direction and control over electoral rolls to be with State Election Commission • Election-related matters by laws made by State legislature (Article 243-ZA)

• Full powers in the matter of elections • Unique powers– ▫ Chairs Delimitation ▫ Commission Elections held in

1995, 2000, 2005

• No super-session of elected members or bodies • No other interventions in election process

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Finances I Article 243-X –ULBs to levy and collect •Taxes •Duties •Tolls

KM Act ( S 283)-ULBs i. to have a Municipal Fund and ii. to levy • Property tax • Profession tax

•Fee and a share from state tax revenues

• Tax on animals and vessels

•Grants-in-aid

• Show tax

•A municipal fund to be constituted at the ULB level

• Tax on advertisements, and • Tax on timber brought into the municipal area (Section 230) • Surcharge on any tax for providing a specific civic service

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Finances II TVM

THRISSUR

• Revenue surplus in all 5 years and capital surpluses in 2 years

• Revenue and capital surpluses in 4 of 5 years

• For a projected investment of Rs.191 crores on sewerage and sanitation, drainage, and roads, revenues sufficient to cover O & M costs

• In separate budget, electricity distribution had revenue surpluses all 5 years

• ULB can meet debt service obligations on a 49% investment loan component. with a good debt service coverage ratio • Property tax-43 % collection (database last updated in 198889)

• For a projected investment of Rs.180 crores for water supply, drainage, roads, and solid waste management with a 49% loan component, ample ability to meet full O&M costs with safe debt service coverage ratio • Property tax-75 % collection (database last updated in 1980s)

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Urban Planning The Town Planning Act [IV of 1108 Malayalam Era] ▫ Municipality has the primary responsibility to prepare a town planning scheme( Section 7) ▫ What the plan to consist of (Section 3) ▫ Power to prepare master plan with “focus on scientific spatial planning” (Section 51(3)) ▫ Municipality to “prepare and implement detailed town planning schemes” (Section 51(4))

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Water Supply and Sewerage I K M Act 1994, overrides Kerala Water Supply and Sewerage Act,(14 of 1986) • KWA assets in ULB area “to vest in and stand transferred to ULB” (section 315)

If in more than one local government institution “ to

vest in a committee including the municipality Chairperson and panchayat presidents” (Section 315A) • ULB has “power and right to” ▫ prepare and implement water supply or sewerage scheme”

▫ impose water & sewerage charges (Section 315B) [ Improving Urban Service Delivery through Local Governance

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Water Supply and Sewerage II Kerala Decentralization of Powers Act 2000 further amended Act 14 of 1986 ▫ KWA to render technical services to local bodies [Section 34(1)(5)] ▫ Local governments are “free to start own water supply and sewerage schemes either individually or as a group” and “ fix their own user charges” [Section 34(1)(6)]

▫ obligatory on KWA to transfer water supply/sewerage service to ULB on request [Section 34(2) (1)(b)]

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Thrikkannapuram WS scheme Cumulative Payments (Rs. lakhs)

Graph 1 450 400 350 300 250 200 150 100 50 0 1998

1999

2000

2001

2002

ULB to KWA

2003

2004

2005

2006

KWA Payouts

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Capacity for Governance Capacity is ▫ the ability of people, organizations and society as a whole to manage their affairs successfully (OECD, 2006) ▫ not a technical process ▫ both organizational and individual issues (OECD, 2006) ▫ requires higher degrees of knowledge

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Organization Needs to have control over ▫ Goals, ▫ Output, ▫ Property, ▫ Technology, ▫ Structure and ▫ Individuals (Richard Osborn, 1980)

When an organization adopts a new strategy, it also requires changes in its structure

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Goals Goals are made up of Purpose, Mission & Objectives 1.Purpose= a broad aim, a primary role 2.Mission=unique aim, narrower than purpose 3.Objectives=target for achievement, more specific than mission statement

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Strategy • A broad programme for achieving objectives & for implementing mission • Creates unified direction in terms of objectives & resources Has a relationship with the environment

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Structure The setting in which ▫ power is exercised, ▫ decisions are made, and ▫ organization’s activities are carried out”(Peter Blau)

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Considerations in evolving a structure • Technology. • People • “Fit” or Agreement Organizational capacitating efforts a post of superintending engineer to “take care of all kinds of engineering works”

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JNNURM “meaningful association/engagement of ULBs” ▫ in planning function of para-statals and ▫ delivery of services to citizens”(GOI,2006)

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A new organizational structure • Hierarchical • A company owned by ULB • A networking solution • Need of Support organizations

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Structure Irrigation

KWA

KSEB

KWA

Government of Kerala Drainage for TVM

ULB Council Water supply for TVM

Council Dept.

Street lighting for TVM

General Admn. Dept.

Sewerag e for TVM

Mayor Secretary

Revenue Dept.

Healt h Dept.

Town Plg. Dept.

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Engineerin g Dept.

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