.jpg?itok=tdpqmu2- "PAP town councils to raise service and conservancy charges from July")
File photo of HDB flats in Singapore.
The 15 town councils run by the People's Action Party will increase their service and conservancy charges (S&CC) for flats, shops and offices, as well as markets and cooked food stalls over the next two years.
File photo of HDB flats in Singapore.
SINGAPORE: Residents in all 15 town councils run by the People’s Action Party (PAP) will have to pay more in service and conservancy charges (S&CC) from July.
The increases will be phased over two years, with the one in 2023 "being generally smaller" than in 2024, according to a media release sent by Marine Parade Town Council on Thursday (Jun 1).
The first revision will take effect from Jul 1 and will range from S$0.70 to S$7.90 a month depending on flat type while the second increase, which takes effect on Jul 1, 2024, will be between S$1.00 and S$9.10 a month.
These increases are smaller than they would have been because of the government stepping in to provide the town councils with "special funding support", according to the media release.
"This helps in cushioning the full impact of rising maintenance costs on residents," it added.
The S&CC increases required were originally estimated to range from S$3.00 - S$3.80 for one-room flats to S$18.70 - S$21.90 per month for executive flats.
The Ministry of National Development is providing a special grant for town councils that need to raise S&CC to "maintain financial sustainability to offset the impact of potential increases on residents".
"In view of this, as well as current economic conditions, PAP town councils have reconsidered and reduced planned S&CC increases."
S&CC for shops and offices, as well as market and cooked food stalls located in the 15 town councils will also go up.
Shops and offices will pay an additional S$0.01 to S$0.40 per sq m a month in the first round of increases this July, and another S$0.02 to S$0.41 per sq m a month from July next year.
Market and food stalls will pay an extra S$2.20 to S$31.50 a month in the first increase and an extra S$2.20 to S$36.40 a month in the second increase.
The 15 PAP-run town councils are: Ang Mo Kio, Bishan-Toa Payoh, Chua Chu Kang, East Coast, Holland-Bukit Panjang, Jalan Besar, Jurong-Clementi, Marine Parade, Marsiling-Yew Tee, Nee Soon, Pasir Ris-Punggol, Sembawang, Tampines, Tanjong Pagar and West Coast. The remaining Aljunied-Hougang and Sengkang town councils are run by the opposition Workers’ Party.
CNA has reached out to the Workers' Party-run town councils to ask if they have plans to increase their S&CC.
As the age and profile of the estate, residents’ needs, and operating expenditures differ from town to town, the S&CC rates for all 15 town councils are different, according to the media release.
Each town council will deliver individual notices to their residents to inform them of the new rates, it added.
The town councils have been facing "increasing cost pressures due to higher energy prices, maintenance costs, and manpower costs", said the statement.
This has been reflected in higher tender rates for services such as cleaning, pest control, and landscaping, it added.
The town councils have assessed their financial position for the next five years by considering factors such as increasing expenses and long-term financial needs. This is to ensure that the estate infrastructure and amenities in the common areas are well maintained, said the media release.
"The S&CC adjustments made will enable the town councils to maintain sufficient funds to continue to improve the estates with cyclical maintenance and upgrading of common facilities to meet the needs of residents for the next five years."
If S&CC rates remain unchanged, most town councils "expect to run a deficit" for the 2023-24 financial year, said the coordinating chairman for PAP town councils Lim Biow Chuan.
"This would mean tapping on recent years’ accumulated surpluses, which we would otherwise use for long-term purposes like topping up the sinking fund," he said.
Mr Lim said that the PAP town councils will continue to focus on improving cost savings and productivity wherever possible and keep up contributions to the sinking fund and lift replacement fund.
The previous S&CC increase was announced in 2017 and phased over two years.
S&CC rebates are part of the GST Voucher scheme package issued to households.