2008/9 Precept (Council Tax)
At the last Town Council meeting at the end of November there was a great deal of discussion about the precept (Council Tax) that New Alresford Town Council will levy for the next financial year – 2008/9. The Council failed to agree on the size of the precept and a number of the issues are set out below that were actively discussed during the meeting.
Last Year’s precept
The precept for the current year was set at £180,000 against an expenditure of £194,300 the difference being made up from income received. This year’s expenditure looked to be well in excess of budget as no provision had been made, when setting the budget, for utilities (electricity, gas and water), increased rates and building maintenance. The budget was also hit, although this could not have been foreseen, by the financial problems with Arlebury Park Sports and Social Club (APSSC) who have paid no rent during the course of this current year.
The Council took action in August to revise all budgets and severely trimmed expenditure to cover these exposures. As a result it is currently forecast that we will hit the revised budget with a little to spare.
Components of the Budget
The Budget is made up of a number of items that there is little opportunity to change
| Personnel Costs | £67,000 |
| Property Insurance | £12,000 |
| Recreation Grounds | £25,000 |
| Loan Repayments | £38,000 |
| Administration | £10,000 |
| £152,000 | |
| To this must be added | |
| Environment Budget | £13,000 |
| Tourism Budget | £10,000 |
| Grants & Donations | £ 5,000 |
| Total | £184,000 |
It should be explained that the bulk of the budget for recreation is to cover the cost of grass cutting. The Environment budget covers Litter & Dog Fouling, bus stop provision and cleaning, the allotments and some lighting. Tourism covers the maintenance of the Millennium Trail, a contribution to the Watercress Festival and Tourist Information, eg leaflets and their distribution.
To these figures have to be added the cost of utilities, (£17000) rates (£7000) and building maintenance (£5000) bringing the total budget to £212,000).
Against this can be set income that comes, in the main, from car parking, (£2000) sports fees (£1000) and the recovery of the floodlight electricity (£4000). Normally it would also be expected to get some rental income from APSSC albeit only £5000. This Council hopes to obtain more rental income from Arlebury Park in the future but this cannot be guaranteed at this point. This reduces the amount required for 2008/9 from £212,000 to £205,000.
The position is further complicated as there is a possibility that the loan obtained to build the Arlebury Park extension will not have been fully utilised. After the final bill is paid it is possible that there will be a sum unused of around £28,000 which may have to be repaid to the Public Works Loan Board. This money is not currently available as it was, in effect, used to pay for part of the Stevens litigation costs.
Our reserves have been seriously depleted, below recommended levels, also as a result of having to pay the Stevens litigation costs (£69,000) and some provision should be allowed to improve this position.
Additionally the council agreed to make a provision of £5000 to handle the increased workload created by one member of the public demanding large amounts of information under the Freedom of Information Act.
As a result of the above there will be no alternative but to significantly increase the precept in the next financial year. Hopefully most of this increase will be a one time hit, essentially to pay for the Stevens case, and this Council will be able to return to a level of precept similar to last year.
At is meeting on 17 January New Alresford Town Council agreed to set the precept at £250,000 for the next financial year.