Municipal Councils’ urged to strengthen financial positions

Municipal Councils’ around the country have been urged to implement appropriate strategies to strengthen their financial positions and focus on the collection of market and Public Service Vehicle fees arrears until 31 July 2021.

Minister for Local Government, Premila Kumar says strategies need to be further realised by the Councils’ to collect the rates arrears, which remains the major revenue stream.

She says there are municipal councils who are not financially healthy and are struggling to provide basic services.

Kumar further says the Councils’ must develop innovative plans to strengthen the operations by first prioritising fixed expenses and have also been encouraged to thoughtfully execute measures to become financially independent and sustainable.

Meanwhile, Kumar says ratepayers are reminded that the Municipal Councils are in the midst of issuing rates notice for the new financial year starting from 1 August 2021 to 31 July 2022.

The Ministry says most councils have taken the initiative of providing incentives to the ratepayers in the form of discounts to encourage ratepayers to pay off their rates early.