A meeting of Newtown & Llanllwchaiarn Town Council to be held on 27/11/23 at 18:30.
Join the meeting on Microsoft Teams »Tomorrow town councillors will convene to discuss the budget for the upcoming financial year.
The focus of the deliberations is the proposed 11.4% increase in the precept, which directly impacts residents' council tax.
The Town Council's Responsible Finance Officer (RFO) will present a comprehensive report outlining the financial landscape and the challenging decisions ahead.
The report begins by highlighting the Council's aims for the next fiscal year, a combination of existing projects, recurring services, and new initiatives aligned with the council's 5-year plan.
It goes on to state that the 2023-24 precept benefited from a one-off 'subsidy' of £112,000, thanks to the utilization of higher-than-required general reserves, a result of the lingering effects of the Covid pandemic. However, this surplus will not be available for the 2024-25 precept, creating a significant financial challenge.
Increased costs in goods, services, and staff pay, coupled with changes to councillor allowances, have resulted in a financial disconnect between the Council's commitments and the raised precept.
The RFO emphasized that the Council must now decide whether to raise the required funds or make cuts to projects and services.
What is Council Tax and how is it worked out?
Council Tax is paid by households based on the value of their property. The amount you pay is decided by three organisations - Powys County Council, Newtown & Llanllwchaiarn Town Council and the Police & Crime Commissioner.
Each organisation sets a budget which is divided by the number of properties in an area. The town council and police portions are called a precept. It is then collected by Powys County Council and paid to the three organisations.
To view your personalised breakdown of council tax for your property, sign up for a newtown.wales account and click on the 'View breakdown' link on your account page.
The draft budget prepared by the RFO includes anticipated price rises and an additional £10,000 for the major refurbishment fund. Council Committees have identified projects from the 5-year plan for 2024-25, and the budget has been adjusted accordingly. However, feedback from councillors has led to revisions, with the removal of the £10,000 for the major refurbishment fund, resulting in a required precept of £898,903 for 2024-25.
For a Band D household, the proposed increase translates to an additional £20.42 per annum, representing an 11.4% rise from the current amount of £179.21.
The Town Council's reserves strategy aims for general reserves equal to 2 to 3 months' expenditure. However, by 31/03/24, the estimated reserves are likely to be around 1.8 months' expenditure. The 2024-25 draft budget includes some savings, but the RFO warns that these might not be repeatable, potentially impacting the precept for 2025-26.
The Refurbishment Fund, currently at £90,000, faces uncertainty depending on grant applications and decisions on capital projects.
The RFO's recommendations include a willingness to accept a temporary dip in general reserves below the target by 31.3.25. Two budget options are presented for consideration: A) accepting the budget as proposed in paper 15.5a or B) accepting the budget with the removal of £20,000 capital expenditure on Christmas lights.
As the budget is in draft format, councillors can still make changes. The final amount will be decided at a special meeting in January.
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