Municipal Commission (1887–1951)

Singapore's rapid development in the 19th century meant that there was an increasing demand for the management of municipal matters beyond the ad-hoc management of such matters by the British colonial government. In 1887, the Municipal Commission of Singapore was established that split the administration of the town area and the rural districts, and also had its own source of municipal funds that were separate from government revenue. The Commission initially comprised an appointed full-time salaried president, and five elected members. It supported numerous improvement projects over the next few decades such as establishing a fire brigade, enlarging reservoirs, and providing street lighting. In 1913, the commission was reorganised and elections were abolished, although they were reintroduced in 1949 to encourage greater civic participation.^[2] Three elections were held for the commission from 1949 to 1950 before it was renamed in 1951.^[3]

City Council (1951–1963)

In 1951, the Municipal Commission was renamed the City Council when Singapore officially attained city status in the British Commonwealth.^[4] The Municipal Building, from which the Commission operated, was also renamed City Hall.^[5]

The Municipal Building, where the Municipal Commission operated, was renamed City Hall in 1951.

From 1951 to 1958, four full elections and one by-election were held for the City Council.^[3]

Pilot Town Council programmes (1986–1988)

Although the PAP campaigned in the early years that local government functions were inefficient for a small city-state like Singapore,^{[7]: 87, [87]} the party changed its mind a few decades later. It decided in 1986 to decentralise some municipal functions because it wanted ostensibly to increase resident participation in estate management. As a result, three town councils were set up in Ang Mo Kio as a pilot programme to manage the estate.^[10]

Town Councils Bill and Act (1988)

The three pilot town councils were deemed to be highly successful and led to the introduction of the Town Councils Bill in Parliament in May 1988.^[11] Goh Chok Tong, who would eventually become Prime Minister in 1990, argued in Parliament that town councils not only provided for greater resident participation, but also would act as "political stabilisers".^{[12]: 379, [379]} He cited the fact that in other democracies, e.g. Britain, there were inherent factors that resulted in greater political stability, such as long-term allegiances of constituencies to a certain political party. But in Singapore,

... it is the PAP which provides the political stability. There is no other party at present which can effectively govern Singapore. But this political stability can be threatened by sudden temporary swings in national mood. If there are such swings, the PAP can be out of power. If that happens, political instability will result because no alternative leadership has emerged which can effectively govern Singapore.^{[12]: 384, [384]}

Goh also noted in the same speech in Parliament that voters were confident that after decades of uninterrupted PAP rule, that even if they elected opposition candidates to Parliament that they would still have a competent PAP government managing their constituencies, which would result in a "free-rider" problem:

For example, some voters who want a PAP government also want to see some opposition MPs. They may vote for an opposition candidate and depend on the PAP to look after their constituency because they expect other constituencies to return PAP candidates in sufficient numbers to form the government.^{[12]: 385, [385]}

Chiam See Tong, then-MP for Potong Pasir and one of only two non-PAP MPs at that time, spoke at length rejecting the bill. Chiam argued that the role of an MP was to give direction to a nation, and not to manage municipal matters:^{[13]: 413, [413]}

A party is elected because of its policy. The people may want the party to represent them so that the nation can move in a particular direction. The PAP first came into power on a socialist platform. People of Singapore voted them in because they thought that was good for Singapore and so they went on a socialist principle, up to lately, of course. Some people may want to vote people like Margaret Thatcher, free enterprise, the capitalist line. You vote her in. So that is the purpose of voting Members of Parliament and a particular party. But you do not vote a Town Councillor to change the direction or have a national policy in regard whether to foreign policy or to national policies on education or defence, or how you should have a relationship with your neighbours. These are not the work of town councillors. These are the work of Members of Parliament. So there is a distinct different role.^{[13]: 414, [414]}

He also noted that most MPs did not stay in the same constituency, let alone the same housing estate, of their residents, and would therefore not add much value to the residents in such matters. He proposed that Town Councils should be made non-political, but was rebutted by Lee Hsien Loong that MPs should care for their constituents as much as they cared about lawmaking:

If any MP stands in the next election and says, "Please elect me. I will pay no attention to municipal matters. You go and find some non-political Town Councillor on your own to manage that and you have it out with HDB should anything happen", I do not think he is going to be elected. I do not think the Member for Potong Pasir will put that in the SDP manifesto. Will he? Perhaps not.^{[13]: 415, [415]}

Ultimately, PAP's supermajority in Parliament allowed it to pass the bill into law without further consultation.^{[12]: 445, [445]}

By-laws

Under the Town Councils Act, a town council may make by-laws as part of its estate management role.^[16] As of 28 November 2019, there are 51 pieces of by-law legislation published in the Singapore Statutes.^[18] The by-laws generally cover three main areas: (1) the rules governing the use of common spaces and open areas in the estate; (2) conservancy and service charges to be paid to the Town Council; and (3) the penalties for not paying those charges.

Funding Sources

Apart from the service and conservancy charges (S&CC) that are paid by the residents and commercial operators of the town, a town council is also able to tap on numerous grants that the government provides.

Funds

Town councils are required to allocate their monies into three distinct funds:^[1]

• Operating Fund: For short-term, routine expenses;
• Sinking Fund: For long-term, non-lift cyclical expenses; and
• Lift Replacement Fund: For long-term, lift-related cyclical works.

Action Information Management Pte Ltd (AIM)

In December 2012, Aljunied–Hougang Town Council was scored the lowest banding for S&CC arrears management.^[24] Sylvia Lim, chairwoman of the town council, blamed the poor results on Action Information Management Pte Ltd (AIM), a vendor that provided computer systems for town council management. She claimed that the town council was "acutely aware" of the possibility that AIM, as a long-standing IT vendor for PAP town councils, could choose to withdraw from their contractual obligations at short notice. Because of this, the town council had to put in effort to create a new IT system,^[25] which compromised their level of service. Chandra Das, AIM chairman, produced correspondence between the company and the town council that suggested otherwise—AIM in fact readily agreed to two extensions to the contract that was supposed to end on 1 August 2011.^[25] This point is later corroborated again in the judgment of Aljunied–Hougang Town Council and another v Lim Swee Lian Sylvia and others and another suit.^[26]

Aljunied–Hougang-Punggol East Town Council