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2) The Provisions of the Law

According to the law, there is a limit of the local government’s authority in

collecting User Charges. For example, local governments have the authority to collect fees for
waste and sewage collection, but have no authority to collect waste disposal fees.

= Disproportion between the collection of the revenue and the cost

Most local governments have fewer incomes from User Charges than costs of
providing the public services. Although the provided public services are on the basis of the

necessities regardless of profit, the proper collection of User Charges is necessary to maintain
the financial status of the activities. The disproportion of the collection of the revenue and the
cost affects local governments to be less self-reliant in a fiscal status and continue to rely

primarily on the federal budgets. The major factors of the disproportion are: 1) local
governments are hesitating to collect more or higher User Charges because of its concern to
the voting; 2) the common adoption of User Charges below costs is to give a public access to
all groups of citizens; 3) local governments avoid the collection of User Charges because of

its complicated process; and 4) local governments are unable to cover all User Charges
because of the lack of the local people’s collaboration to pay the charge.

= Suggestions on the Collection of User Charges from public services provided
by local governments

User Charges is very important for the development of local revenues. This study has
suggested in three areas: 1) Principles of the Revenue 2) Potential Methods for the Collection
of User Charges, and 3) Principles of the Organization. The details are as follows:

1) Principles of the Revenue

This study presents the basic principles to conduct User Charges by local governments
to serve as a channel for the development of the revenue. However, the public interest must

be taken into account at the local level with fairness and equality in access to public services
of all target groups.

Moreover, the implementation of User Charges has 3 key components: 1) Types of

Public Services; 2) Rates of User Charges for Public Services; and 3) Structure of User
Charges for Public Services. This study has proposed the principles as the follows.

1) Types of Public Services

1.1 Local governments should precede the development of User Charges from the
public services compliant with the law.