# More Support for Town Councils in Estate Infrastructure Maintenance and Replacement

- **Source:** Ministry of National Development
- **Published:** 2017-01-23T03:23:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/more-support-for-town-councils-in-estate-infrastructure-maintenance-and-replacement
- **Topics:** HDB & Public Housing, Government & Policy, Investment & Capital Markets

## Featured rationale

The mandatory reserves, alongside the $450 million Lift Enhancement Programme, could strengthen long-term funding for lift upgrades and maintenance across ageing HDB estates.

## AI summary

From 1 April 2017, Town Councils must allocate at least 14% of S&CC collections and government grants to ring-fenced Lift Replacement Funds.

## Original article

As our HDB estate infrastructure gets older, more expenditure will be needed for the maintenance and replacement of these infrastructure assets. Town Councils must therefore plan ahead and contribute more to their Sinking Funds to pay for these major expenses, e.g. repainting of HDB blocks, maintenance of building facades, replacement of lifts and water pumps etc.

The Government will help the Town Councils to prepare for these longer-term expenditures in several ways.

First, HDB had earlier announced a $450 million Lift Enhancement Programme (LEP) that will substantially co-fund the Town Councils’ costs of retrofitting older lifts with safety features and enhancements commonly found in newer lifts. These include additional sensors to detect obstructions to the lift door, and to better regulate lift speeds. Some 20,000 lifts, which have been in operation for 18 years or less, are expected to benefit from the LEP.

Second, all Town Councils will have to set up dedicated Lift Replacement Funds (LRF), to be carved out from their Sinking Funds and ring-fenced for future lift replacements. The LRF was announced by MND in September last year, and since then, MND has been working with the Town Councils on the implementation details. Specifically, from 1 April 2017 onwards, the Town Councils will be required to set aside a minimum of 14% of their Service and Conservancy Charges (S&CC) collections and government grants into their new LRF. This will be on top of their regular contributions (another 26% or more of the Town Councils’ collections) to the general Sinking Fund.

Third, MND will increase the S&CC operating grants it currently gives to the Town Councils to help cover their costs, and also provide additional grants to match part of the Town Councils’ contributions to their LRF. Details of the MND assistance measures will be released separately.

While the various forms of Government support will go some way in helping the Town Councils meet their long-term expenditure needs, all Town Councils must also do their part. They must plan ahead prudently and responsibly, ensure that their long-term finances are sustainable, and build up their Sinking Funds and LRF regularly over time.

## Chinese translation

> Translation model: grok_cli

### 在产业基础设施维修与更换方面向市镇理事会提供更多支持

随着我们的组屋（HDB）产业基础设施日益老化，维修与更换这些基础设施资产将需要更多开支。因此，市镇理事会必须提前规划，并向其储备金投入更多资金，以支付这些重大开支，例如组屋楼宇重新粉刷、建筑外墙维修、电梯及水泵更换等。

政府将通过多种方式协助市镇理事会为这些较长期的开支作准备。

首先，建屋发展局较早前已宣布一项4亿5,000万元的电梯提升计划（LEP），将大幅共同资助市镇理事会为旧电梯加装安全功能及新电梯常见提升设施的费用。这些包括额外感应器以侦测电梯门受阻，以及更好地调控电梯速度。约20,000部已运作18年或以下的电梯预计将受惠于LEP。

其次，所有市镇理事会须设立专项电梯更换基金（LRF），从储备金中分拆并专项预留作未来电梯更换之用。LRF由国家发展部于去年9月宣布，此后国家发展部一直与市镇理事会就实施细节进行协作。具体而言，自2017年4月1日起，市镇理事会须将其服务与保育费（S&CC）收款及政府津贴的至少14%拨入新的LRF。这将在其向一般储备金的常规供款（市镇理事会收款的另外26%或以上）之外。

第三，国家发展部将增加目前向市镇理事会发放的S&CC营运津贴，以协助其支付成本，并提供额外津贴，以配对市镇理事会对LRF的部分供款。国家发展部援助措施的详情将另行公布。

尽管各项政府支持将在一定程度上协助市镇理事会应付长期开支需要，所有市镇理事会亦须尽其本分。它们必须审慎负责地提前规划，确保长期财务可持续，并随时间定期充实其储备金及LRF。