I refer to the articles “Municipal charges to go up at HDB estates managed by 7 town councils” (Straits Times, Jul 28) and “7 town councils ‘to raise S&C charges’” (Straits Times, Jul 26).
Aljunied-Hougang cut fees
The latter article states that “Last year, some residents in Ang Mo Kio had their fees cut, while the Workers’ Party cut charges in the Aljunied-Hougang Town Council after it took over”.
As I understand that historically, Service and Conservancy Charges (S & CC) have always increased periodically, except for the drop last year – why is it that the opposition Workers’ Party can reduce it the moment they win Aljunied-Hougang?
How many Ang Mo Kio residents had fees cut?
Why is it that only “some residents in Ang Mo Kio had their fees cut”? – Whereas as I understand it all residents in Aljunied-Hougang had their fees cut.
What percentage of residents in Ang Mo Kio had their fees cut?
A mere coincidence?
What a coincidence? – For Ang Mo Kio to cut fees in the same year that Aljunied-Hougang also cut fees?
$4.38m surplus – need to increase fees?
As to “In East Coast (town council), for instance, operating expenditure expenses rose from $18.2 million in financial year ending March 2008 to $20.5 million in the financial year ending March 2011”, according to its Annual Report 2010/2011, it had an operating surplus of $38,056 and an accumulated surplus of $4.38 million.
It was also rated Level 1 (the best) for S & CC “Household in Arrears” and “Amount in Arrears”.
Even if it starts to run into a deficit, from the current operating surplus of $38,056, its accumulated surplus of $4.38 million may be enough to last for many years.
Operating deficit, but surplus for the year and large accumulated surplus?
Another example is Bishan-Toa Payoh Town Council (BTPTC) which according to its Annual Report 2010/2011 had an operating deficit of $3 million, but a surplus for the financial year of $1.7 million and an accumulated surplus of $9.6 million.
In this connection, according to a fact sheet just published on its web site to explain the increase, it says that S & CC operating cost was $29.4 million against operating income of just $20.7 million in 2012 (note: the figures I quoted above are from the 2010/2011 annual report, as the 2012 report is not available on its web site).
However, there is no information on the fact sheet as to the operating deficit, surplus for the year or accumulated surplus for 2012.
Does this mean that the operating deficit may have jumped by 190 per cent in just one year (2012)? – Is the fact sheet trying to give the impression that the difference ($8.7 million) between the operating cost and operating income is like an “operating deficit”?
So, is there really an urgent need to raise fees for 7 town councils now?
Leong Sze Hian
