Town councils under the People’s Action Party (PAP) will be increasing service and conservancy charges (S&CC), phasing them over 2023 and 2024.
The rise in charges will take effect on premises such as HDB flats, shops, offices, markets and cooked food stalls.
The Straits Times (ST) reports that PAP town councils will be increasing S&CC over the next two years.
Source: shawnanggg on Unsplash
The first increase on 1 July this year will see the following changes in monthly fees:
The next increase, taking place on 1 July 2024, will result in monthly fees increasing by the following amounts:
In total, HDB households will be charged between S$1.70 and S$17 more each month for conservancy charges over the next year onwards.
Channel NewsAsia (CNA) reported that the town councils have been facing increasing cost pressures. This was evident from higher tender rates for services such as cleaning, pest control and landscaping.
If the previous rates had remained, a deficit for the 2023-24 financial year would have been possible for most town councils.
Source: Galen Crout on Unsplash
However, the increases are smaller than originally planned due to the Government providing “special funding support” to the town councils.
This will help in cushioning the impact of rising costs on residents.
Initially, the charges would have increased from S$3.00 to S$21.90 per month for HDB flats, varying on property type.
Town councils which need to raise charges to offset the impact on potential increases on residents will also receive a special grant from the Ministry of National Development (MND).
“In view of this, as well as current economic conditions, PAP town councils have reconsidered and reduced planned S&CC increases,” PAP said.
According to ST, S&CC rates will differ between the different town councils, depending on various factors.
This will include the age and profile of estates, residents’ needs and operating expenditure.
The fees from the S&CC will also pay for cleaning, landscaping and refuse collection, among others.
Residents in the relevant areas will receive a notification on the new rates from their town council.
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Featured image adapted from Albert Vincent Wu on Unsplash.
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