KARACHI, June 20: Sindh Governor Mohammedmian Soomro promulgated on Thursday the Sindh Local Government (Third Amendment) Ordinance, 2002, coming into force with immediate effect.

In the Ordinance, amendments have been brought in the proviso to sections 1 (3), 2, 16 (1), 54 (1).

A new section 54-A has been inserted providing for the functions and powers of Town Municipal Administration.

The functions and powers of Town Municipal Administrations shall be to:

(a) Within the framework of the spatial/master plans for the city district, prepare spatial plans for the Town in collaboration with Zila and Union Councils including plans for land use, zoning and functions for which the Town Municipal Administration is responsible; (b) enforce, in addition to its own, all municipal laws for and on behalf of city district government, if required by such city district government at the cost and expense of the latter; (c) execute and manage development plans for the functions which are performed by the Town Municipal Administration; (d) within the framework of the spatial and master plan for the city district, exercise control over land use, land sub- division, land development and zoning by public and private sectors for any purpose, including for agriculture, industry, commercial markets, shopping and other employment centres; (e) prevent and remove encroachments; (f) procure and compile information provided by Union, village and neighbourhood councils of prioritized projects in the towns; (g) prepare budget and long-term and annual town municipal development programmes in collaboration with the union councils, under the directions of Town Nazim; (h) maintain, with the assistance of the city district government, union, village and neighbourhood councils, a comprehensive database and information system for Town Municipal Administration and provide public access to it on nominal charges; (i) propose taxes, cesses, user fees, rates, rents, tolls, charges, fines and penalties under Part-IV of the Second Schedule for approval of the Town Council and notify the same after such approval; (j) collect taxes, cesses, user fees, rates, rents, tolls, charges, fines and penalties; (k) organize local sports, cultural and recreational events, fairs and shows;

(l) organize cattle fairs and cattle markets; (m) regulate markets and services and issue licenses, permits, grant permissions and impose penalties for violations thereof as and where applicable; (n) manage properties, assets and funds vested in the Town Municipal Administration; (o) develop and manage schemes, including site development in collaboration with city district government and union administration; (p) provide, manage, operate, maintain and improve the municipal infrastructure and services, including: i) water supply distribution other than integrated systems maintained by or on behalf of the city district; ii) sewerage system other than an integrated system maintained by or on behalf of city district, excluding sewerage treatment and disposal; iii) solid waste collection and conveyance to transfer stations designated by the Town but excluding treatment and disposal of waste; iv) street lightings; v) fire fighting; and vi) parks, playgrounds, open spaces and arboriculture, other than major facility maintained by the city district; vii) slaughter houses.

(q) authorize an officer or officers to issue notice to a person committing any municipal offence and initiate legal proceedings for continuance of commission of such offence, or for failure to comply with the directions contained in such notice; (r) prosecute, sue and follow criminal, civil and recovery proceedings against violations of municipal laws; (s) maintain town municipal records and archives; and (t) prepare financial statements and present them for internal and external audit in the manner as may be prescribed.”

Established a District Fund and Public Accounts: (1) There shall be established a District Fund, a Taluka Fund, a Town Fund and a Union Fund as the case may be for each respective Local Government.

All revenues received by a Local Government shall form part of the respective Local Government Fund including; (a) monies transferred by another Local Government under this Ordinance; (b) grants made to or monies received by a Local Government from the Government or other sources; (c) the proceeds of taxes or charges levied by a Local Government under this Ordinance; (d) rents and profits payable or accruing to a Local Government from immovable property vested in or controlled or managed by it; (e) proceeds or any other profits howsoever known or called from bank accounts, investments or commercial enterprises of a Local Government; (f) gifts, grants or contributions to a Local Government by individuals or institutions;

(g) income accruing from markets or fairs regulated by a Local Government.

(h) fines paid with respect to offences under this Ordinance or bylaws or under any other law for the time being in force in which provision is made for the fines to be credited to the Funds established under this Ordinance. (i) proceeds from other sources of income which are placed at the disposal of a Local Government under directions of the Government and (j) all monies transferred to a Local Government by the Government. (3) All other moneys including- (a) receipts accruing from trusts administered or managed by a Local Government;

(b) refundable deposits received by a Local Government and (c) deferred liabilities shall be credited to the Public Account of the respective Local Government.

Budget Preparation: The annual budget for each Local Government shall consist of: (a) grants-in-aid from the government; (b) amounts available in the respective Fund; (c) receipts for the next year; and (d) expenditures to be incurred for the next year.

Approval of budget: (1) Following the presentation of the provincial budget but, before the commencement of the next financial year, each Nazim shall present the budget for approval by the respective Council before the beginning of such financial year:

Provided that the charged expenditure may be discussed but shall not be voted upon by the Councils.

(2). When a Local government assumes office for the first time, it may, within ten weeks, present to the respective Council a budget for the remaining part of the financial year for approval.

(3). The budget of Local Government shall, on presentation before the Council, be referred to the finance committee of the Council for detailed scrutiny and recommendation to the Council.

(4). The budget of a local government shall be approved by simple majority of the total memberships of the respective council.

(5). No other business shall be taken up by a council during the budget session.

(6) In case a budget is not approved by a council before the commencement of the financial year to which it relates, the concerned local government shall spend money under various heads on pro rata basis in accordance with the budgetary provisions of the preceding financial year for a period not exceeding thirty days.

In case the budget is not passed within the extended period the budget shall be prepared, approved and authenticated by the local government commission for the full year.

(7) At any time before the expiry of the financial year to which a budget relates, a revised budget for the year shall be prepared by a local government and approved by its Council.

(8). A budget shall not be approved if: (a) the sums required to meet estimated expenditures exceed the estimated receipts; and (b) the constraints specified in section 119 have not been complied with.

(9). The Nazim shall authenticate by his signature a Schedule specifying, the: (a) grants made or deemed to have been made by the District, Taluka, Town or Union Council and (b) the several sums required to meet the expenditure. — APP