Assessment taxes to go up in MPPJ 2006 budget
The Star 9/11/2005

Petaling Jaya Municipal Council (MPPJ) will raise assessment taxes to achieve a balanced budget for 2006.

“The slow economic growth this year has affected the council’s revenue and as such, the council has to increase revenue and reduce backlogs (in collecting assessment taxes),” said MPPJ president Datuk Ahmad Termizi Puteh.

He said the increased taxes would contribute RM145mil, up from RM124.5mil in 2005 and boosting the council’s total projected revenue to RM204.97mil.

Termizi said MPPJ would undertake several steps to ensure better collection of assessment, which included appointing a credit management company, introducing sterner measures against those who owed the council money and taking more defaulters to court.

It was announced that non-tax revenue was projected at RM54.4mil, down from RM60.1mil for 2005.

“The council expects revenue from licensing, service payments, interest from investments, fines and state funding to shrink due to the slow economy.

“MPPJ also expects to receive additional grants from the Government, including RM4.69mil for road maintenance,” added Termizi.

On expenditure, he said the council projected a sum of RM204.9mil for 2006, up from RM185.2mil this year.

Emolument for workers will increase from RM41.1mil to RM46.19mil, due to 32 promotions and 87 positions with their status changed from contractual to permanent staff, thereby increasing payment for Cola (cost of living allowance).

Service and supplies expenses are also projected to increase from RM103.3mil to RM119.8mil.

The largest increase under this category is in economic services sector with an increase from RM54.4mil to RM60.2mil. Of the amount, 50.3% is payment to Alam Flora, which goes up from RM29mil to RM31.7mil.

The allocation of RM2.5mil to 24 councillors and RM500,000 to four assemblymen, which can be used for projects benefiting the areas under them, is also under the economic services category.

Termizi said expenditure for maintenance and repairs (involving drains, sidewalks, road signs and bus and taxi stands, among others) would also increase from RM30.3mil to RM39.1mil.

Representatives from residents associations, non-governmental organisations and business associations vetted the original budget draft for 2005 and 2006 on Aug 19, 2004.

MPPJ’s finance and public works committee revised the 2006 budget on Oct 20 this year and presented it to NGO representatives for debate before it was presented on Oct 27 to the council board for approval.