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Budget and Precept for the year 2022 to 2023

Coffinswell Parish Council agreed to request a precept of £6155.00 for the year 2022 - 23.


Coffinswell Parish Council Chairman's Budget Report 2022/2023

For a pdf version of this report click this link

Background Information

The Parish Budget is set annually by Precept and is administered by Teignbridge Council, being levied as part of the Annual Council Tax.
The Parish Precept submission must be forwarded to Teignbridge Council no later than the January preceeding the forthcoming Financial Budget Year.
Financial years run from April 1st to March 31st .
This levy is applied to all properties within Coffinswell Parish and is the predominant part of the Parish’s total income .
Another source of limited income are grants such as the variable P3 Grant specifically provided for footpath maintenance.
Furthermore another exceptional source of income is that of a Community Infrastructure Levy
This CIL (Community Infrastructure Levy) which came into force on 1 September 2019 is a charge which can be levied by Local Authorities on new developments in their area.
Most new developments which create net additional floor space of 100 square metres or more, or create a new dwelling are potentially liable for the levy.
Where the development is within the area of a Parish Council, the charging Authority, Teignbridge, must pass a proportion to the Parish Council. This varies from 15% of a Parish without a Neighbourhood Development Plan to 25% for a Parish with such a plan.
Parish Councils can spend CIL monies on ‘the provision, improvement, replacement or maintenance of infrastructure or anything else that is concerned with addressing demands that development places on an area’.
This Levy must be spent within five years of its receipt.

Budget Setting Process Information

Setting a Budget in November /December to anticipate the needs and expenditure in forthcoming Budget year can be a difficult process, having to rely on previous budget analysis, current trends in respect of price rises and the Government’s economic predictions.
Furthermore there is always varying degrees of economic uncertainty for the year ahead, with factors such as Brexit impacts and the Coronavirus pandemic being good examples.
Whilst the proposed Budget is intended to cover all day to day expenditure for the Financial Year, there are also Financial Regulations requiring Parish Councils to maintain reserve funds. The Chartered Institute of Public Finance and Accountancy describes the purpose of Reserve Funds as;

• a working balance to help cushion the impact of uneven cash flows and avoid unnecessary temporary borrowing, and

• a contingency to cushion the impact of unexpected events or emergencies.

This reserve fund is known as the General Reserve or Contingency Reserve and the Parish Council is required to maintain a reserve of between 3 and 12 months expenditure.
Another Budgetary consideration should also be given to an Election Reserve
Consideration should also be given to Specific Reserves or Earmarked Reserves. This reserve would cover items such as Emergency Planning, Grants etc. Funded projects which will run across financial years are another example. CIL income would also be able to be included within this category.

Summary of Parish 2021/2022 Budget to date [ up to the end of October 2021]

The Agreed Parish Precept for 2021 /2022 was £5760
The Parish also received P3 grant of £150
Furthermore Parish also carried into this financial year Specific funds amounting to £7756.64 which was a result of CIL payment in the later part of the financial year 2020/2021.
The Parish undertook to stop decline and maintain a minimum General /Contingency reserve at a level of 6 months .This in financial terms was a Parish minimum in bank balance at the end of the year 2021/2022 of £2880.
The agreed 2021/2022 budgets as can be seen below

Precept Budget 2021/2022

2021/2022 Budget 1st April to 31st March

2021/2022 Budget spend 1st April to 31st October 2021

Anticipated total budget spend for 2021/2022

Comments

Precept/budget

£5760

£5670

£5670

Administration

Subscriptions

£184

£133.99

£133.99

Audit

£310

£290.00

£290.00

Venue Hire

£200

£5.99

£305.99

Office Expenses

£50

£49.99

£70.00

Insurance

£330

£271.32

£271.32

Sub Total

£1074

£751.29

£1071.30

Salaries and Expenses

Clerks Salary

£2756

£1270.08

£2540.16

Clerks expenses

£125

£57.42

£120.00

Mileage

Travel Costs

£10

0

£10.00

*

Payroll services

£100

£60.00

£60.00

Sub Total

£2991

£1387.50

£2730.16

Environmental maintenance

Trees

£50

0

£50.00

*

Grass cutting non P3 areas

£50

0

£50.00

*

Repairs and annual maintenance

£150

0

£150.00

*

Grass cutting machinery fuel costs

£100

0

£100.00

*

PPE maintenance and replacement

£50

£59.00

£59.00

This came from P3 funds

Strimmer training

£100

0

£100.00

*

Sub Total

£500

£59.00

£509.00

Infrastructure/ Assets maintenance

Repairs /general maintenance

£50

0

£50.00

*

Seats

£50

0

£50.00

*

Signs

£50

£120.00

£120.00

Noticeboards

£50

0

£50.00

*

Sub total

£200

£120.00

£270.00

Training

Councillor and clerk

£175

0

£100.00

Sub Total

£175

0

£100.00

Miscellaneous

AGM expenses

£50

0

0

Election expenses

£50

0

0

Website hosting

£100

£615.99

£615.99

Miscellaneous

£80

£17.00

£80.00

*

Sub total

£280

£632.99

£695.99

Grants

Grant to church fabric fund

£450

0

£450.00

*

Sub total

£450

0

£450.00

Total

£5670

£2950.78

£5826.45

Overspend/underspend

£156.45

Overspend

During the year the Parish were successful in securing a further grant of £500 from the Parish Footpaths partnership for the provision of rechargeable strimmers to replace our current petrol machines. This grant was further supported by a grant of £300 from Councillor Alistair Dewhirsts Locality budget.
The Parish Council have agreed to fund to remaining costs [ approximately £1300] from the Specific funds budget . This equipment is currently being costed and will be purchased shortly.

Specific Reserve Budget 2021/2022

Carried forward from 2020/2021 budget

Proposed expenditure in 2021/2022

Comments

CIL Income

£7756.64

Replacement of petrol machinery to rechargeable electric

Approximately £1400 due to be spent in Nov/Dec 2021

In line with agreed Climate Action Plan

Part funded by £500 and £ 300 grants from Parish Pathway Partnership and Councillor Dewhirst Locality Fund

Possible part funding of Parish Lengthsman service

Approximate £2000

Possible part funding of 50% from DCC Highway Maintenance Community Enhancement Fund

Proposed Budget for 2022/2023

Currently the official inflation rate as indicated by the Office of National Statistics is 2.9% . The official target for this financial year is 2%
The current consumer price index is showing an increase of 3.2% (up to and including august 2021)
The Bank of England are currently predicting a rate increase of 4.0% by December 2021 which will remain until the spring of 2022.
Therefore the proposed budget table as set out below reflects an increase of 4% ( rounded up to the nearest pound) across the board over this years budget, with a number of exceptions as explained in comments section

Proposed Precept Budget 2022/2023

2022/2023 Budget 1st April to 31st March

Comments

Precept/budget

Administration

Subscriptions

£192

Audit

£323

Venue Hire

£208/£360

This will need to be increased as current cost is £30 per meeting . Increased number of meeting means budget should be in region of £360

Office Expenses

£52

£50 per yr for Office 365, plus paper – suggest £75

Insurance

£344

Sub Total

£1271

Salaries and Expenses

Clerks Salary

£2867

Increase not known at this time so based on 4% assumption

Clerks expenses

£130

Travel Costs

£25

Increased to reflect this years expenditure and fuel cost rises

Payroll services

£104

Sub Total

£3126

Environmental maintenance

Trees

£52

Grass cutting non P3 areas

£250

Increase due to reduced number of volunteers and need to fund payment to external providers to support

Repairs and annual maintenance

£50

Reduction to reflect new machine purchases in 2021/2022

Grass cutting machinery charging costs

£50

Reduction to reflect use of rechargeable machinery

PPE maintenance and replacement

£52

Strimmer training

£104

Sub Total

£558

Infrastructure/ Assets maintenance

Repairs /general maintenance

£52

Seats

£52

Signs

£52

Noticeboards

£52

Sub total

£208

Training

Councillor and clerk

£182

Sub Total

£182

Miscellaneous

AGM expenses

£52

Election expenses

£52

Website hosting

£120

Costs greater than previously budgeted for

Miscellaneous

£84

Sub total

£308

Grants

Grant to church fabric fund ?

£468

This grant is still shown whilst discussions continue as to the best way to provide assistance to the Church

Sub total

£468

Total

£6121

Overspend/underspend

A 4% budget increase over 2021/2022 precept of £5760 would be £5991.

Therefore it can be seen that the above proposed budget exceeds this by £130 or approximately 2.2%

This means that the minimum budget increase should be 6.2%

The General reserve at the end of 2022/23 would need to be £3060 .


____________________________________________________________________________________________________________________________________________________________________________________________

Budget and Precept for the year 2021 to 2022

Coffinswell Parish Council agreed to request a precept of £5670.00 for the year 2021 – 22 which is an increase of 20% on the previous year.


Coffinswell Parish Council Chairman’s Budget Report 2021/2022

For a pdf version of this report click this link

Background Information

The Parish Budget is set annually by Precept and is administered by Teignbridge Council, being levied as part of the Annual Council Tax.
The Precept submission must be forwarded to Teignbridge Council no later than January 2021.
This levy is applied to all properties within Coffinswell Parish and is normally the Parish’s total income, with the exception of a variable P3 Grant specifically for footpath maintenance.
However on the 21 October 2020 the Parish received the very welcome news that it was awarded a CIL payment of £7756.64.
This CIL (Community Infrastructure Levy) which came into force on 1 September 2019 is a charge which can be levied by Local Authorities on new developments in their area.
Most new developments which create net additional floor space of 100 square metres or more, or create a new dwelling are potentially liable for the levy.
Where the development is within the area of a Parish Council, the charging Authority, Teignbridge, must pass a proportion to the Parish Council. This varies from 15% of a Parish without a Neighbourhood Development Plan to 25% for a Parish with such a plan.
Parish Councils can spend CIL monies on ‘the provision, improvement, replacement or maintenance of infrastructure or anything else that is concerned with addressing demands that development places on an area’.
This Levy must be spent within five years of its receipt.
It is proposed that we will be consulting residents as to community proposals/suggestions for the allocation of these CIL funds.
Budget Setting Process
Setting a Budget in November 2020, to anticipate the needs and expenditure in 2021/2022 can be a difficult process, having to rely on previous budget analysis, current trends in respect of price rises and the Government’s economic predictions.
The Government predictions for 2020 were for inflation in the region of 1% and for 2021 2%. However during this current year, price rises are exceeding this, being in the region of 2.75%.
Furthermore there is also a degree of economic uncertainty for the year ahead, with factors such as Brexit and the ongoing Coronavirus pandemic to consider.
Whilst the proposed Budget is intended to cover all day to day expenditure for the Financial Year, there are also Financial Regulations requiring Parish Councils to maintain reserve funds. The Chartered Institute of Public Finance and Accountancy describes the purpose of Reserve Funds as;
• a working balance to help cushion the impact of uneven cash flows and avoid unnecessary temporary borrowing, and
• a contingency to cushion the impact of unexpected events or emergencies.
This reserve fund is known as the General Reserve or Contingency Reserve and the Parish Council is required to maintain a reserve of between 3 and 12 months expenditure.
At year end financial year 2019/2020 the general reserve was approximately 7 months.
However at the end of financial year 2020/2021 the predicted general reserve will be approximately 5.5 months.
To stop the decline of the General/Contingency Reserve, to a minimum level of 6 months, which can be seen as being below 2019/20 levels, would require a increase of the Precept in the region of 11%.
It can therefore be seen that, for the 2021/2022 Budget to address the current/predicted price rises and the General Reserve decline it would require a minimum of increase of 13.75%.
Budgetary consideration should also be given to an Election Reserve.
Consideration should also be given to Specific Reserves or Earmarked Reserves. This reserve would cover items such as Emergency Planning, Grants etc. Funded projects which will run across financial years are another example. CIL income would also be able to be included within this category.
The Parish’s current Precept 2020/2021 is £4725, which equates to household levy of £35.05 (using a Band D property as the example) or just £2.92 per month.
Budget Recommendations
1. That the Parish Council undertake to stop the recent decline and agree to maintain a minimum
General/Contingency Reserve at a level of 6 months.
2. That this Budget ensures that this 6 month level is achieved within this financial year 2021/2022.
3. That the CIL payment of £7756.64 be identified within the Specific/Earmarked Reserve for allocation
starting in 2021/2022 Financial Year following parishioner consultation. Proposals/costs will be
identified within Parish Action Plan for 2021/2022 as they become available.
4. Options
a. That the Precept for 2021/2022 is set at £5560 (15%increase), which equates to a household
increase from £35.05 to £40.30 per year or £3.36 per month. (using Band D property as example)
b. That the Precept for 2021/2022 is set at £5625 (16% increase) which equates to a household
increase from £35.05 to £41.76 per year or £3.48 per month.
c. That the Precept for 2021/2022 is set at £5690 (17% increase) which equates to a household
increase from £35.05 to £ 42.20 per year or £ 3.51 per month.


Parish Precept and Budget for 2021 – 2022

for a pdf version of this report click this link

Having received the Chairmans Budget report for 2021/2022 the Parish Council met on 17 November 2020 to discuss and set the Parish Precept for 2021/2022. The key issue discussed was the need to stabilise the Parish’s general reserve which has been in decline for a number of years. This reserve is vital in ensuring that the Parish Council can meet its statutory financial obligations in the event of unexpected and unforeseen issues or emergencies which may arise. As a result of these discussions it was agreed that the level of Precept for 2021/2022 should be increased by 20% on the 2020/2021 Precept. This would mean that the individual property council tax would be £45.76 per household, an increase of £10.71 over last year (based on a Band D property). This increase would provide an approximate overall Parish budget for 2021/2022 of £5670. Whilst this headline percentage figure looks high upon an initial inspection, in financial terms this is a modest increase of just 90 pence per month. It should also be borne in mind that the Parish’s overall monetary income is exceptionally small given the services we provide. Resulting from the 17 November meeting it was also agreed that a detailed budget should be presented at the 19 January 2021 Parish meeting for agreement prior to advising Teignbridge of the Parish’s 2021/2022 Precept request. Attached is this proposed budget allocation for 2021/2022 and it can be clearly seen that this is a balanced budget with zero infrastructure development potential. See Appendix A However the Parish is very fortunate to be in a position to carry forward into 2021/2022 and beyond earmarked funds resulting from a CIL received in October 2020. This CIL money can only be allocated to the ‘provision, improvement, replacement, operation or maintenance of infrastructure or anything else that is concerned with addressing demands that development places on an area’. The Parish Council will be shortly be commencing a community consultation process in respect of Parish Infrastructure Projects for 2021/2022. Recently received correspondence from Teignbridge Councils Chief Finance Officer has indicated that due to the current unprecedented financial situation it is proposed to reduce the Parish’s Council Tax base code for 2021/2022 by approximately 2.6%. See Appendix B which is a worked example showing how this proposed change has been arrived at. This proposed change if approved at Teignbridge Councils Budget meeting in February 2021 would reduce our planned 2021/2022 Budget by approximately £148 and as such the budget proposal set out in Appendix A would have to be revisited to make the necessary cost savings. The Parish’s Strategic Plan with its incorporated Action Plan for 2021/2022 is available on the Parish Website. This document together with the following Parish annual budget account/spreadsheets is updated frequently throughout the year and will ensure that our financial transactions are available for public examination and scrutiny at all times.

Precept Budget P3 Budget CIL(infrastructure project) Budget

Proposed 2021-22 budgetCouncil tax change