If you were to open your letterbox in July and you see the monthly town council envelop, don’t get a bill shock or wonder why it’s no longer the same amount you used to pay.
Service and conservancy charges (S&CC) at 15 PAP town council wards are set to increase from 1 July 2023.
And of course, because Singapore has a track record of letting people gradually get used to the new system, it’ll come in two phases.
Here’s what you need to know.
PAP Town Council Charges Will Increase Starting 1 July
According to CNA, residents in all 15 PAP town councils will need to pay more in S&CC charges starting from 1 July.
The increases will take place in two phases; one in 2023 and one in 2024.
For the first increase, residents will be charged an additional cost of S$0.70 to S$7.90.
Of course, don’t be shocked by the latter figure because the increase is tied to the flat type.
So if you stay in atas homes, you’ll need to pay more; and if you stay in 1- or 2-room flats, the prices will be cheaper.
The increase is “smaller” for the first phase and residents can expect a higher increase come 2024.
The range of increase for the second phase is between S$1.00 and S$9.10 a month.
So in total, with some quick math from the resident Blue Cat here, you’re probably seeing a total increase of S$1.70 to S$17.00.
Of course, each town council has different rates of increase due to varying residents’ needs, age profile and operating expenses so it won’t be the same across the board.
Each town council will send individual notices to its own residents to inform them of the new rates.
Now, before you start complaining, note that it could’ve been more expensive.
Increase Could Have Been Doubled
According to the town council, the original increase was projected to be between S$3 to S$21.90.
One-room flats were expected to see an increase of S$3 to S$3.80 while executive flats’ increase ranges between S$18.70 to S$21.90.
Whew, dodged a bullet there.
Now, while some of you might think that it’s the case of $Value Fire Sale (where the “original” price was inflated to give a discount so we’ll feel better about paying), the reason why they’re not proceeding with the original increase is due to the Ministry of National Development (MND).
There is a special grant provided by MND for town councils that needs to raise S&CC to minimise the financial impact on residents.
In layman’s term, residents just got subsidised.
It’s not just Residents
Now, if you’re a firm believer of “misery loves company”, you’ll be happy to know that businesses can’t escape the increase as well.
For shops and offices, they’ll need to pay an additional S$0.01 to S$0.40 (wait for it…) per square metre in the first round of increase.
In the second phase, their S&CC charges will be increased by another S$0.02 to S$0.41.
As for market and food stalls, they’re looking at an extra S$2.20 to S$31.50 per month for the first phase and another S$2.20 to S$36.40 per month.
Just don’t be too happy because somehow, they’ll have to make a living so costs will eventually go to you.
Guess we’ll be seeing more cai png incidents in the future.
So Why Are They Doing It?
For the conspiracy theorists out there who believed that our national coffers are running low, there’s a more reasonable explanation for this.
It’s to prepare for the future, is what our dearest clickbaity Blue Cat will say.
But because articles are scrutinised more thoroughly, I can only give you the facts.
“It’s to prepare for the future.”
Blue Cat: …
The reason why the PAP town councils are raising the S&CC charges is because, according their projections, they will run a deficit (read: more money going out than coming in) if they do not do it.
To be honest, though, no one is really surprise because costs for everything is rising today.
This includes the cost of energy, maintenance costs, manpower and even for services such as cleaning, pest control, and more.
How much cash are you getting in December 2023 from the Government? Here are the facts simplified for you:
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