SUBANG Jaya City Council (MBSJ) has ruled out increasing assessment rates despite facing a projected RM21mil budget deficit next year.
It is opting instead to boost revenue through stricter enforcement and tax arrears recovery.
Among the measures are considered were increasing compound and fine collections, as well as appointing a third-party agency to pursue unpaid assessment rates.
MBSJ Treasury director Mohd Fadzil Mahat said the city council was committed to improving its financial position without placing an additional burden on ratepayers.
“We want to improve our revenue, but we will not increase assessment rates, as that will only burden the public.
“Instead, we will look at alternatives, like stepping up enforcement and engaging external agents to collect assessment arrears.
“At the same time, there will be consistent audits on all our spending to reduce wastage,” he said.
He said this during a town hall session at USJ7 multipurpose hall in Subang Jaya, Selangor, yesterday, to present MBSJ’s proposed 2027 budget to more than 250 attendees, including representatives from residents’ associations and community leaders.
Subang Jaya mayor Datuk Rumaizi Baharin said feedback from the session would be incorporated into the revised budget before its submission to the state government in November.
He said the council was expected to generate RM405mil in revenue next year against a projected expenditure of RM426mil.
The projected revenue includes RM274mil from assessment tax, RM119mil from non-tax sources such as rentals, services and development plan fees, as well as RM11.7mil in allocations from the federal and state governments.
Meanwhile, expenditure was estimated at RM287.5mil for management costs and RM139mil for development.
Rumaizi added that the council was currently owed RM65mil in assessment arrears.
Mohd Fadzil said MBSJ would take a more aggressive approach to recovering outstanding payments.
“We need to hire a third-party agent because of the scale of the work involved.
“We will also consider legal action against errant property owners who fail to settle their arrears.
“As a government agency, we have an obligation to collect revenue and use those funds to sustain our services,” he said.
Also present were Subang Jaya assemblyman Michelle Ng and deputy mayor Mohd Zulkurnain Che Ali.
