Alternative news in 1 day? (part 68) – $17.8m surplus transferred to sinking fund of just 2 town councils?

February 27, 2014

I refer to the article “8 town councils to increase service & conservancy charges” (Channel NewsAsia, Feb 27).

It states that “Charges by Jurong Town Council were raised in 2010.”

Have operating surplus?

According to the 2012/2013 annual report of Jurong Town Council – the surplus for the financial year was $598,503 and the accumulated surplus was $2,404,235.

So, why is there a need to increase the service & conservancy charges (S & CC)?

Accumulated surplus transferred to sinking fund?

Also, according to its 2011/2012 annual report – the accumulated surplus of $4,930,421 was transferred to the sinking fund in accordance with section 34 of the town council act which stipulates that when a writ of election is issued – 80% of the accumulated surplus will be transferred to the sinking fund.

If the party that wins the elections in a town council is a different one, the transfer is 100%, instead of 80%.

If not for this transfer of the accumulated surplus to the sinking fund in 2011, would there be a need to raise S & CC now?

How much accumulated surpluses transferred for 8 town councils?

I have only cited the example for just one town council. What was the total accumulated surpluses transferred to the sinking funds for all the 8 town councils?

In this regard, for example – Ang Mo Kio’s surplus for the year ended 31 March 2013 was $1,793,752 – accumulated surplus was $6,280,934 and accumulated surplus transferred on 18 April, 2011 to the sinking fund was $12,826,802.

Is there really a need to raise S & CC now for these 8 town councils?

Leong Sze Hian

 

 

 

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.