Funding

Town Councils are primarily funded by service and conservancy charges (S&CC) collected from residential and commercial lessees/ tenants. Individual Town Councils can decide on their own S&CC rates and these can differ for different flat types.

The Government also provides Town Councils with an annual operating grant, which makes up about 15% of Town Councils’ total annual income. To help Town Councils absorb the increase in GST on S&CC for HDB households, the Government also disburses GST subventions to Town Councils on a quarterly basis.

How do Town Councils use their funds?

Town Councils generally maintain 2 types of funds - operating fund and sinking fund.

• About 65-70% of a Town Council’s funds are typically put into its operating fund. This is used for short-term routine expenses such as estate cleaning, repairs and maintenance.
  
  
• The other 30-35% is required to be set aside as sinking funds. Sinking funds are accumulated over time to fund major repairs and maintenance that are periodically needed. Town Councils also use sinking funds to co-pay for the Lift Upgrading Programme.