Budget 2016/17
The Parish Council, at its meeting on Monday 11th January 2016, has agreed a 10% increase in its Council Tax for 2016/17.
The Council considered a report from its Clerk and Respnsible Finance Officer, Andrew Gardiner, which summarised and detailed the expenditure which it is proposed to incur in providing the services operated and managed by the Yapton Parish Council. The total expenditure for the financial year 2016/17 has been agreed at £52,500 which is £1,957 less than budgeted in the previous year.
The Income generated from running various services and activities amounts to £5,190 resulting in a Net Expenditure of £47,310 to be financed from the Precept or from General Reserves and Balances.
In the concluding paragraphs, a range of options was given for the Council to consider in recommending a level of Council Tax to be levied on the Parish in 2016/17. The increases ranged from 0% to 10%. The Council agreed an increase of 10.00% increase in the Council Tax, which for a Band D property would amount to a weekly increase of £0.06 to run the services valued by residents living in the Parish
The full extract from the Council Minutes is shown below:
.FINANCE
Precept for 2016/2017
27. The Council had before it and considered a report prepared by the Clerk and Responsible Financial Officer setting out the revised estimates for the current financial year and the estimates of expenditure and income for 2016/2017 (copy attached to minute book).
28. Members noted that the forecast total expenditure for 2016/17 was £52,500, and the expected income from services and Council Tax Benefit Grant was £5,190 giving a net expenditure to be met from Council Tax and Reserves of £47,310
29. The Clerk referred to an analysis set out in the report of the Reserves and Working Balances brought forward from the 2014/15 financial year. This identified an unspent balance of £3,429 for work funded through an Operation Watershed Grant and a balance of £4,251 remaining of the Neighbourhood Plan ring-fenced grant, which would leave an estimated net balance in reserves brought forward at 1/4/15 of £13,544 to cover the Council’s routine expenditure and contingencies.
30. The reduced income from the Council Tax Benefit Grant received from Arun District Council had been included under Other Income in the budget. This amounted to a reduction in grant to be received in 2016/17 of £1,607.
31. The Council has been notified by Arun District Council that the Band D equivalent taxbase for 2016/17 has been calculated at 1282. This is a 6.21% increase and would generate income from increased council tax receipts at the current tax of £2,272.50. Some of this increase has resulted from the additional properties now being occupied in Yapton as a result of approved housebuilding (i.e, off Goodhew Close
32. The Council noted that the funding arrangements which now applied to the Council’s budget, meant that the net expenditure was financed from two elements: the Precept and Council reserves.
33. The Clerk advised that the provisional budget, a copy of which had been enclosed with the agenda papers, had been prepared on the basis of providing a similar level of services and activities as in previous years. The Clerk pointed out that even if the Council accepted a modest increase of 5.0% in its Council Tax, which in turn determines the amount of the precept, the Council was currently running its budget at a deficit. The Clerk pointed out that the drawdown from reserves would be £6,095 to assist in funding the revised expenditure in 2015/16, and £6,030 to support the budget for 2016/17.
34. The question of the level of precept to be demanded from Arun District Council was discussed. The Clerk advised that it was his view that a modest increase in Council Tax was warranted to finance the budget and to reduce the amount that was being funded from reserves and working balances. The estimated balance remaining in the General Reserve after meeting the projected drawdown in 2015/16 and 2016/17 taking into account a 5.0% increase in Council Tax would only be £3,080.
35. The Council agreed that the budget resulting in the Council’s net expenditure of £47,310 was needed next year to maintain its local services. The Council agreed to support the budget by taking £4,581 from its General Reserves and £500 from the Yapton Neighbourhood Plan reserve, leaving the balance to be met by the actual precept, resulting in a precept of £42,729. The impact of the precept on an average Band D tax payer would then be £42,729 ÷ 1282 (the Council’s new tax base) = £33.33 which represents an annual increase of £3.03 on last year’s figure.
36. The Council Tax calculated from the proposed budget for 2016/17 produces average Band D council tax of £33.33. (Calculated from the precept of £42,729 ÷ 1282 (the Council’s new tax base). This represents an increase of 10.0% or £3.03 on last year’s figure.
37. Resolved:
(a) The Council approves the forecast total expenditure for 2016/17 of £52,500, and the expected income from services and Council Tax Benefit Grant of £5,190 giving a net expenditure to be met from Council Tax and Reserves of £47,310.
(b) The Council agreed to support the budget by taking £4,581 from its General Reserves and £500 from the Yapton Neighbourhood Plan reserve, leaving the balance to be met by the actual precept, resulting in a precept of £42,729.
(c) The Council notes the tax base for Yapton for 2016/17 of 1282.
(d) That the Council Tax for the Parish of Yapton for 2016/17 be increased by 10.0% producing a Band D Council Tax of £33.33 (£30.30 + £3.03).
(e) That the Yapton Parish Council precept for the year 2016/17 be £42,729 (£33.33 x 1282) for the 2016/2017 financial year to cover the estimated cost of maintaining the facilities and local services as set out in the Clerk’s report.