<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>How town councils will be assessed
</TR><!-- headline one : end --><TR>Senior Minister of State for National Development Grace Fu yesterday shed light on the upcoming grading system of town councils and how their funds are currently managed </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Mavis Toh
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Q: How will town councils be assessed?
A: We want to implement a performance management system that will help to grade, as well as benchmark, the performance of town councils, and which will include indicators such as cleanliness, maintenance standards and the performance of lifts.
We hope to make that public probably in 12 months' time.
Q: Will revisions be made to investment guidelines?
A: There are clear guidelines on what they can spend on and invest in. We believe that setting a limit of 35per cent on the products that they can invest in is a very good way to balance the risks they are exposed to.
We don't intend to micro-manage how they invest those funds.
At 35per cent, where the other 65per cent basically has to be in deposits and government bonds, we believe it is a very safe instrument. A level of 35per cent for them to try to make investments work, I think, is a very reasonable limit.
We would like to monitor the adequacy of their sinking fund.
We may look into other indicators on financial management, like how they manage their arrears and how fast they collect their S&CC (service and conservancy charge) and so on.
We're looking at a whole series of indicators.
Q: What's the best way to keep town councils' fund management in check?
A: I think, like all companies, we have to rely on published financial statements that are audited, prepared to accounting standards, so that there is credibility in reports. We should not respond to ad hoc requests on latest investment positions - that will not be fair to town councils; otherwise they will not have time to do their work.
I think reporting at accounting periods, showing sufficient information according to the guidelines we have, audited by auditors that show that there is credibility in numbers, is really the best position to go.
Q: Will residents be given more say in town councils' future investments?
A: I think residents should be given a say not just in investments, but in all decisions town councils are making, including the cleaning standards, maintenance standards and so on. So we should focus attention on performance of town councils on a holistic basis.
Residents should engage town councils and town councils should really provide the consultation process with residents but not just solely on investments.
Q: How can conservancy charges be kept low?
A: Through the Energy Save Programme, the target is to reduce energy consumption in the common areas by 30 per cent over a five-year period for all HDB estates. This is equivalent to estimated annual savings of about $36 million across all town councils, or 8 per cent of the town councils' annual operating expenditure, when fully implemented.
Energy-efficient products like T5 lamps for common corridors and high-powered compact fluorescent lamps for outdoor lighting will be introduced.
[email protected]
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WHERE THE MONEY GOES
How are town councils financed?
Residents and commercial tenants pay service and conservancy charges.
The Government also gives an annual operating grant.
How is the money managed?
<TOWN councils maintain two funds:
Operating fund for short-term routine expenditure like estate cleaning, repairs and maintenance.
Sinking fund for long-term maintenance needs like re-painting HDB flats, rewiring and replacing lifts and water pumps.
How much goes into the sinking funds?
Depending on the size of the property, at least 30 to 35 per cent of the combined total of the service and conservancy charges collected and the government grant, is set aside as sinking funds.
Why are sinking funds necessary?
It helps pay for cyclical repairs and maintenance that are done over longer intervals, such as re-painting of estates once every seven years.
To co-pay for lift upgrading so residents pay less.
Mavis Toh
</TR><!-- headline one : end --><TR>Senior Minister of State for National Development Grace Fu yesterday shed light on the upcoming grading system of town councils and how their funds are currently managed </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Mavis Toh
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Q: How will town councils be assessed?
A: We want to implement a performance management system that will help to grade, as well as benchmark, the performance of town councils, and which will include indicators such as cleanliness, maintenance standards and the performance of lifts.
We hope to make that public probably in 12 months' time.
Q: Will revisions be made to investment guidelines?
A: There are clear guidelines on what they can spend on and invest in. We believe that setting a limit of 35per cent on the products that they can invest in is a very good way to balance the risks they are exposed to.
We don't intend to micro-manage how they invest those funds.
At 35per cent, where the other 65per cent basically has to be in deposits and government bonds, we believe it is a very safe instrument. A level of 35per cent for them to try to make investments work, I think, is a very reasonable limit.
We would like to monitor the adequacy of their sinking fund.
We may look into other indicators on financial management, like how they manage their arrears and how fast they collect their S&CC (service and conservancy charge) and so on.
We're looking at a whole series of indicators.
Q: What's the best way to keep town councils' fund management in check?
A: I think, like all companies, we have to rely on published financial statements that are audited, prepared to accounting standards, so that there is credibility in reports. We should not respond to ad hoc requests on latest investment positions - that will not be fair to town councils; otherwise they will not have time to do their work.
I think reporting at accounting periods, showing sufficient information according to the guidelines we have, audited by auditors that show that there is credibility in numbers, is really the best position to go.
Q: Will residents be given more say in town councils' future investments?
A: I think residents should be given a say not just in investments, but in all decisions town councils are making, including the cleaning standards, maintenance standards and so on. So we should focus attention on performance of town councils on a holistic basis.
Residents should engage town councils and town councils should really provide the consultation process with residents but not just solely on investments.
Q: How can conservancy charges be kept low?
A: Through the Energy Save Programme, the target is to reduce energy consumption in the common areas by 30 per cent over a five-year period for all HDB estates. This is equivalent to estimated annual savings of about $36 million across all town councils, or 8 per cent of the town councils' annual operating expenditure, when fully implemented.
Energy-efficient products like T5 lamps for common corridors and high-powered compact fluorescent lamps for outdoor lighting will be introduced.
[email protected]
<HR width="50%" SIZE=1>
WHERE THE MONEY GOES
How are town councils financed?
Residents and commercial tenants pay service and conservancy charges.
The Government also gives an annual operating grant.
How is the money managed?
<TOWN councils maintain two funds:
Operating fund for short-term routine expenditure like estate cleaning, repairs and maintenance.
Sinking fund for long-term maintenance needs like re-painting HDB flats, rewiring and replacing lifts and water pumps.
How much goes into the sinking funds?
Depending on the size of the property, at least 30 to 35 per cent of the combined total of the service and conservancy charges collected and the government grant, is set aside as sinking funds.
Why are sinking funds necessary?
It helps pay for cyclical repairs and maintenance that are done over longer intervals, such as re-painting of estates once every seven years.
To co-pay for lift upgrading so residents pay less.
Mavis Toh
