PARWICH.ORG

Parwich Parish Council Precept

It is with regret that the Parish Council is having to raise the precept. We are also very sorry that this information was not conveyed to those affected, before the increase was shown on the Council Tax bills.

Below is an outline of the responsibilities of the Parish Council which I hope illustrates the rationale for the increase and demonstrates that we are using the income we receive, to good effect.

What is the precept?

Parish Councils can raise revenue to help meet their spending requirements by issuing a “Precept”. This represents the total amount to be raised through Council Tax from all of the dwellings within the parish. The Precept is converted into an amount per council tax band and is added on to an individual Council Tax bill

In Parwich the Council Tax for 2012/13 includes a Parish Council Precept which impacts on individual Council Tax bills ranging from £19.53 per year for band A dwellings and up to £58.58 for the highest valued band H dwellings.

For mid-range band D valued dwellings in Parwich, the sum included within the Council tax bill after the 2012/13 increase, is £29.29 per dwelling per year.

This means that there has been an increase on last year’s cost per household, per year of £6.17 for Band A and £18.50 for Band H.

The annual increase for Band D being £9.25, an increase of less than 18p per week per household.

Why has the precept increased?

 Precept of £4,500 had not been increased, in real terms, for 4 years. It is good practice for moderate increases to be considered annually.

 2012/13 is a jubilee year. A £500 donation towards celebrations has been considered in this year’s precept effectively meaning the precept rise was £1,500 not £2,000.

What is the Parish Council expenditure?

Examples of our expenditure are:
 Estimated annual expenditure continues to exceed income. Without an increase in the precept there is an erosion of reserves.

 Mowing costs + VAT, salary allowed for a permanent clerk from 2012/13, insurance (£1,000) alone exceed precept figure of £6,500.

 VAT can be reclaimed but does not appear until the following financial year ie £750 has to be allowed in 2012/13 precept calculation.

 Tree surgery will be required during 2012. Tree surgery costs can be in excess of £500.

 Tennis/hard court area and children’s play ground continue to require attention. Tennis court maintenance has previously exceeded £1,000. Playground roundabout needs attention during 2012.

 Utility bills continue to rise; unfortunately leaks occur. Water leak this year was over £1,000 and was fortunately refunded by STWA but will not be refunded if such a leak occurs again.

 Winter salt/grit provision has to be considered. A harsh winter in 2012/13 may require multiple salt refills.

 Pavilion requires continuous maintenance. Damage caused by last year’s burst has not yet been completely restored and will need to be addressed during 2012.

 Training courses for Councilors.

 Some additional clerk time required to set up pay roll with HMRC (this should have been set up in April 2011)

 Subscriptions, maintenance, audit costs, playground inspections, (stationery, postage, phone calls, internet provision used by clerk) continue to rise.

 Allowance for hedge cutting has to be considered.

 Village seats require maintenance.

 Jubilee celebrations plans are being made for a village celebration on Tuesday 5th June this will include a village tea, games and celebration mugs for all children under 16.

 Flood defences are to become an annual consideration which may require some input from the parish council. This matter has been brought to the attention of DDDC and DCC and is presently ongoing, therefore, any financial commitment by the parish council is not yet known but could impact on capital reserve.

 The Localism Bill, not yet in force, may have an impact on percentage increases permitted by parish council from 2013 onwards. This may have a limiting effect on future projects if reserves are eroded.

 Contingency for unforeseen expenditure, projects and changes in legislation should always be allowed.

What additional income is there?

 Caravan lettings Income is sporadic and unpredictable/inconsistent. Fees have not been increased prior to this year. Moderate increases should have been incorporate each year.

 Income from tenants has not always been received on time, ie can straddle more than one financial year. An increase in rent from tenants has not been achieved over previous years but will be sought for the following financial year.

 Revenue from sporting facilities is virtually nil but utility costs at this location have to be met. Income from this source, in previous years, contributed to lower precepts.

I hope this information is useful to you. I can assure you, on behalf of the Parish Council, that we strive to ensure that every penny that we receive is used to good effect and with great care.

Caroline Healy
Chair
Parwich Parish Council
March 2012

—————————————————————————————————————–
Additional information
Parwich Parish Precept – comparison of increase between 2011/12 and 2012/13
Band C comparisons with all Parishes in Derbyshire Dales
Derbyshire Dales Council Tax for all Parishes 2011/12
Derbyshire Dales Council Tax for all Parishes 2012/13