SINGAPORE — All 15 People's Action Party (PAP) town councils will raise their service and conservancy charges (S&CC) in two phases, with the first increase taking effect on July 1 this year, and the second increase on July 1 next year.

The changes apply to flats, shops and offices, as well as markets and cooked food stalls over the next two years, they said in a statement on Thursday (June 1).

The first increase this year will range from S$0.70 to S$1.20 a month for one-room Housing and Development Board (HDB) flats, and S$5.80 to S$7.90 for executive HDB flats.

Commercial property owners and tenants will see an increase ranging from S$0.01 to S$0.40 per sqm a month, while the increase for market and food stalls range between S$2.20 and S$31.50 a month.

The increase in the second phase, which takes place from July 1, 2024, will range from S$1 to S$1.40 a month for one-room HDB flat types and S$6.80 to S$9.10 a month for executive HDB flats.

As for commercial property owners and tenants, their S&CC fees will be increase by between S$0.02 and S$0.41 per sqm a month. The increase for market and food stalls will be between S$2.20 and S$36.40 a month.

"These S&CC adjustments are smaller in quantum than they otherwise would have been, because the Government has stepped in to provide the town councils that are planning to raise S&CC with special funding support," the PAP town councils said.

This helps in cushioning the full impact of rising maintenance costs on residents.

The S&CC increases required were originally estimated to range from S$3.00 to S$3.80 for one-room flats to S$18.70 to S$21.90 a month for executive flats.

The statement said that the Ministry of National Development (MND) has informed all town councils that it 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.

The last time S&CC fees went up was in 2017. The increase then was between S$1 and S$17 a month and staggered over two years.

The PAP town councils said that each town council’s S&CC rates will vary “as the age and profile of the estate, residents’ needs, and operating expenditures differ from town to town”.

Each town council will send out individual notices to their residents to inform them of the new changes. 

The town councils have been facing greater cost pressures over the years due to higher energy prices, maintenance costs and manpower costs, which are reflected in higher tender rates for services such as cleaning, pest control and landscaping, the statement said.

Mr Lim Biow Chuan, coordinating chairman for PAP town councils, said: “Given rising costs, most PAP town councils expect to run a deficit for the financial year 2023 to 2024, if S&CC rates remain unchanged. This would mean tapping recent years’ accumulated surpluses, which we would otherwise use for long-term purposes like topping up the Sinking Fund.

“While the special funding support from Government will cushion the impact on residents, we 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 PAP town councils will also continue to work closely with Members of Parliament and relevant agencies to help residents who may have financial difficulties with their S&CC payments, the statement added.