1. highlights · aspley guise parish council proposed budget and precept request 2017/18 for...

AspleyGuiseParishCouncilProposedBudgetandPreceptRequest2017/18

ForConsiderationattheJanuary2017ParishCouncilMeeting

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1. Highlights

• Budgetexpendituretobeincreasedby2%• HighwaysWorksreservetobeincreasedto£15,000• StreetlightReplacementreservetobeincreasedto£10,000• PlanningAdvicereserveof£2,500tobecreated• Generalreservestobereducedby£11,879to£20,803• ProposedpreceptforaCouncilTaxBandDpropertyof£45.55peryear

2. IntroductionTheattacheddetailedbudgetfortheCouncil’sexpenditurehasbeenpreparedforthefinancialyear2017/18andrepresentsanincreaseof2%comparedtotheforecastoutturnfor2016/17.Itisfurtherproposedthatthecouncil’sspecificreservesforHighwaysWorksandStreetlightReplacementsareincreasedto£15,000and£10,000respectivelyandthatanadditionalspecificreserveof£2,500forthecostofPlanningAdvicebecreated.Theincreasedspecificreserveswillbepartiallyfundedbyareductioninthecouncil’sgeneralreservesto£20,803equivalenttosixmonthsnormalexpenditurewhichisgenerallytheminimumconsideredappropriateandisinlinewiththepolicysetafewyearsagotoreducethegeneralreservesfrom12monthsto6monthsworthofroutineexpenditure.Theneteffectoftheabovewillrequireapreceptfor2017/18of£45.55anincreaseof£7.20peryearor18.8%forapropertyinCouncilTaxBandD.TheproposedpreceptforalloftheCounciltaxbandsisshowninthechartinSection4below.Assumingallothersimilarsizedcouncils(withbetween800and1,250dwellings)increasetheirpreceptby2%AspleyGuisewouldstillhavethe5thlowestprecept,risingfrom3rdlowestthisyear–seeAttachmentIV.AsummaryofthebudgetexpenditurecomparedtothecurrentyearforecastoutturnandthereservemovementsisshowninAttachmentI.3. ProcessforSettingtheBudgetandPreceptTheParishCouncilisfollowingitsestablishedproceduresforsettingthebudgetandpreceptwhicharesetoutintheCouncil’sFinancialRegulationswhichareavailableontheCouncil’swebsite.WehavereceivedanumberofrepresentationsfromresidentsinrecentweekssuggestingthattheCouncilholdavillage-wideconsultationonthelevelofpreceptandtheusestowhichitisputincludedinthebudgetfornextyear.



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AstheprocesshastobeconcludedattheCouncil’smeetingscheduledfor9thJanuaryintimetomeetCentralBedsCouncil’sdeadlineon20thJanuaryforsubmissionofthelevelorprecepttobesetfor2017/18therehasbeeninsufficienttimetocarryoutthesortofconsultationsuggestedthisyear.WewillconsiderthissuggestionwhenconductingtheannualreviewoftheFinancialRegulationsinthespring.WehavealsoreceivedanumberofrepresentationssuggestingthattheParishCouncilshoulddomoretobringthegeneralupkeepofthevillagebackuptotheprevioushighstandardandgenerallyimprovevillagelife.Whileprimaryresponsibilityformuchofthisworklieseitherwithresidents,forexamplebycuttingbackhedgesencroachingonfootpaths,orwithCentralBedsCouncil,whoareresponsibleforallhighwaysissues,thereisundoubtedlymorethattheParishCouncilcoulddoifithadthenecessaryfunding.Examplesofsuggestionsforadditionalexpenditurethatwehavereceivedwhicharenotprovidedforinnextyear’sbudgetinclude:

• ReprintingtheAspleyGuisevillagewalksleaflet• ProvisionofaDefibrillator• CompletingthefencingatrearoftheWestHillplayarea• OtherHighwaysSchemesegazebracrossingonAspleyHill• AcontributiontowardsthecostofanewCricketPavilionwithsegregatedchanging

facilities• AfurthercontributiontorefurbishingtheVillageHall• SupplementingserviceswhicharetheresponsibilityofCBC–egstreetsweeping

4. ProposedPreceptbyCouncilTaxBand

£0£20£40£60£80

£100

BandA BandB BandC BandD BandE BandF BandG BandH

£30.37 £35.43£40.49 £45.55

£55.67£65.79

£75.92£91.10



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5. ProposedIncreaseinPreceptbyCouncilTaxBand

6. BudgetedExpenditurefor2017/18AdetailedbudgetissetoutinAttachmentIIandissummarisedinthetablebelow.

Abreakdownoftheexpenditureisshowngraphicallyinthepiechartsbelow.

£0

£5

£10

£15

£20

BandA BandB BandC BandD BandE BandF BandG BandH

£4.80 £5.60 £6.40£7.20 £8.80

£10.40 £12.00£14.40

Budget YTD 4thQTR 9+3Fcast Budget Change %2016/17 2017/18

CurrentExpenditureGrants 10,631 5,534 6,138 11,671 13,687 2,016 17%AdministrativeCostsinclVAT 16,003 9,562 6,527 16,089 12,278 (3,811) -24%Streetlights 5,814 4,577 2,145 6,721 8,725 2,004 30%OpenandPlayAreas 8,192 4,912 1,243 6,155 6,761 606 10%

40,640 24,584 16,052 40,636 41,451 815 2.0%

2017/182016/17



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Theprincipalchangesintheproposedbudgetexpenditurecomparedtotheforecastoutturnforthecurrentyearareasfollows.6.1. Grants–proposedbudget£13,687anincreaseof£2,016Theparishcouncilmakesgrantstoanumberofbodieswhoprovideservicesandsupporttovillageresidents.ThelargestgrantsaretotheVillageHallmanagementcommitteeandtheSportsTrustthatrunstheWestHillrecreationground.Anoverallincreaseinexpenditureongrantsof£2,016isproposedfor2017/18.TheVillageHallhashistoricallyreceivedthelargestgrantcontributionof£4,137perannumwhichitusesprincipallytopayfortheupkeepandrefurbishmentofthebuilding,supplementinglargergrantsreceivedfromotherbodies.The2016/17grantincludes£2,019broughtforwardfromthepreviousyearwhichisnotrepeatedin2017/18leadingtoareductioninthebudgetfor2017/18comparedtothepreviousyear.TheSportsTrustreliesonagrantof£3,000peryearfromtheParishCounciltopayfortheregulargrasscuttingoftheplayingfieldswithitsothercostsmetfromrentsreceivedfromteamsandotherswhousethepitchesandotherfundraisingactivities.Anadditionalgrantof£1,000hasbeenincludedintheforecastoutturnfor2016/17asacontributiontorepairingorreplacingtheroofontheequipmentstorewhichisinapoorstateofrepairandinneedofurgentattention.Noequivalentsumisincludedinthebudgetfor2017/18.Bothofthesebodiesarefacedwiththeneedtoraiseconsiderableadditionalfundinginthecomingyears,inthecaseoftheVillageHalltocarryoutmuchneededoverduerepairsandtobringthestandardofthefacilityuptothestandardofsimilarhallsinthearea,forexamplebyupgradingthekitchen.TheSportsTrustneedstoprovideadditionalchangingfacilitiestomeetnewECBregulationswhichcouldrequireanewpaviliontobebuiltwithoutwhichcompetitivecricketmaynolongerbepossible.Theamountsinvolved,possiblyinexcessof£100,000,arenotfeasibletobemetfromadditionalParishCouncilgrantsfromthecurrentlevelofprecept.Anadditionalbudgetof£5,000isthereforeproposedfor2017/18toassistbothbodiesinplanningforandraisingthefundstomeetthesechallenges.6.2. AdministrationincludingVAT-proposedbudget£12,278adecreaseof£3,811Themajorchangeinadministrationcostsbetweenthecurrentyearandthebudgetproposedfor2017/18arisesfromthetimingdifferencebetweentheVATsufferedoncurrentyearexpenditurewhichisrecoveredthefollowingyear.Thisresultsinanoverallreductioninadministrationcostsof£3,811whichiseffectivelybeingusedtofinancetheadditionalproposedexpenditureongrantsandstreetlights.AbsentthemovementinVAT,administrationcostsareproposedtoincreaseby1%.



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6.3. Streetlights-proposedbudget£8,725anincreaseof£2,004TheParishCouncilowns,operatesandmaintainsapproximatelyhalf,orjustover100,ofthestreetlightsinthevillage.TheremainderaretheresponsibilityofCentralBedsCouncil.Thestreetlightslikeallelectricalequipmentarerequiredtobeinspectedperiodicallywiththenextinspectiondueinthesecondhalfof2017atanestimatedcostof£2,207.Minorrepairsneededarecoveredbythisbudget,anystreetlightswhichcannotberepairedandneedreplacingwouldbemetfromtheStreetlightReplacementreserve,seebelow.Wehaveathreeyearfixedpricecontractfortheelectricitysupplywhichisunmeteredsonoincreaseinthecostofelectricityisincludedinthebudget.6.4. OpenandPlayAreas-proposedbudget£6,761anincreaseof£606Thisbudgetcoversthecostofgrasscutting,otherthantheWestHillplayingfield,maintenanceofourchildrens’playequipmentandlimitedgeneralmaintenanceoftheopenareasinthevillage.ThenetincreaseintheproposedbudgetfornextyearwillallowforimprovedgrasscuttingoftheTownlandsfieldwiththegrasscuttingsclearedfromtheplayingarea.7. Reserves7.1. NeedforReservesTheCouncil’sbudgetforthisyearhasbeensetagainstaveryuncertainbackground.OfcoursethereisgeneralpoliticalandeconomicuncertaintycausedbyBrexitandtheresultsoftheUSandnextyear’sEuropeanelections.ClosertohomethereistheuncertaintyofwhetherCentralBedswillchoosetheareaofthevillagenorthoftherailwaylineforamajornewhousingdevelopment,thepossibilitythatourlevelcrossingwillbeclosedwhentherailwaylineiselectrifiedandthepossibilityoftheproposedOxfordtoCambridgeExpresswaypassingthroughthevillage.Thoseuncertaintiesaresometimeinthefuture.Intheshorttermwehavethepossibilityofbeingaskedtomakeacontributiontowardsthecostofalongawaitedtrafficcalmingschemeandthepossibilitythatanumberofourstreetlightswillfailtheirperiodicinspectionandneedtobereplaced.TherearealsoanumberofsmallerscalehousingprojectsforwhichdevelopersmayseekplanningpermissionincludingthosesubmittedtoCentralBedsCouncil’sCallforSitesasshowninAttachmentV.SoundfinancialmanagementrequirestheParishCounciltosetasidereservestomeetthecostoftheseuncertaintiesshouldtheymaterialise.



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7.2. HighwaysWorksReserveResidentshavebeenaskingtheParishCounciltofindawayofhavingtrafficcalmingortrafficmanagementmeasuresinstalledinthevillageforatleast20years.MeasureswereintroducedsomeyearsagoonWeathercockLane,largelypaidforfromthedevelopmentgainfromthedevelopmentoftheformerNampaksiteinWoburnSands.MorerecentlytheParishCouncilpersuadedCentralBedsCounciltointroducesomeverylimitedmeasuresonWestHill.CentralBedsCouncilhaveconsistentlyrefusedtopayforthemorecomprehensiveschemethatthevillageneeds,absentanywiderscaleroadimprovementssuchasduallingoftheA421.AsmuchofthetrafficisheadingtoorfromMiltonKeynestheParishCouncilthereforealsoapproachedMiltonKeynesCouncilwhichhadpreviouslypaidforatrafficcalmingschemeinthevillageofWhaddontothewestofMiltonKeynes.MKCagreedinprinciplein2013tomakeacontributiontowardsthecostoftrafficcalminginAspleyGuisefromthedevelopmentgainfromthemajornewhousingdevelopmentinWavendonbetweenLowerEndRoadandtheA421.Ithastaken3longyearsbutCentralBedsCouncilfinallysubmittedproposalsforaschemetoMKCafewweeksago.ItistooearlytosaywhetherMKCwillprovidealloramajorpartofthefundingfortheproposedscheme,withanestimatedcostof£150,000,butthereisadefinitepossibilitythatCentralBedsCouncilandtheParishCouncilwillbeexpectedtomakeacontributiontowardsthecost.RatherthanruntheriskofdelayingtheschemeitisproposedthatourHighwaysWorksreservebeincreasedto£15,000,or10%oftheestimatedcostofthescheme,toallowforthiscontributionshoulditberequired.7.3. StreetlightReplacementReserveAsnotedaboveourstreetlightswillbesubjecttoaperiodicinspectionin2017whichcouldresultinanumberneedingtobereplaced.Thecostofreplacementcanvarysignificantlydependingontheextentofrelatedworktotheelectricsupplytothelightsandtheneedforanyassociatedtrafficmeasureswhiletheworkiscarriedout.Inanyeventmanyofourstreetlightsareapproachingtheendof,orhavepasttheendof,theirusefullivesandsubjecttothenumberofanyneedingreplacementbasedontheresultsoftheinspectiontheParishCouncilwillthenconsiderembarkingonaprogrammeofsystematicreplacementofthelightsintheworstcondition.Itisproposedtoincreasethereserveforstreetlightreplacementsto£10,000,sufficienttoallowforthereplacementofbetween5and10streetlights,tocoverthisrisk.



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7.4. ReserveforPlanningAdviceTheParishCouncilisawarethatanumberofplanningapplicationsmaycomeforwardin2017thatareagainstthewishesofmanyresidents.WearealsofacedwiththetaskofrespondingtothenextdraftofCentralBedsCouncil’sLocalPlanwhichmayallocatemajorareasofthevillagenorthoftherailwaylinefornewhousingandthepossibilitythatthedeveloperwhohasaninterestinthatlandmaybringforwardaspeculativeplanningapplicationforalargenumberofnewhousesoutsidetheLocalPlanprocess.WhiletheParishCouncilhashadsomesuccessinrecentyearsinprotectingthevillagefromunwanteddevelopmentnoneofusareprofessionalplannersandwemayneedtocallonexpertprofessionaladvicetomeetthesechallengesinfuture.Anewspecificreserveof£2,500isproposedforthispurpose.7.5. GeneralReservesAllcouncilsareexpectedtomaintainreservestomeetneedsforfundsthatcannotbepredictedwithsufficientcertaintytobeincludedinthenormalbudget.Aswellasthe“knownunknowns”suchasthethreeissuesidentifiedaboveitisconsideredbestpractisetoalsomaintainageneralreservetocover“unknownunknowns”.Thereisnospecificguidanceonthelevelofreservesthatshouldbemaintainedalthoughtheregulationrequiringanexplanationtotheauditorsofthereasonsforholdinggeneralreservesinexcessofayear’sexpenditurehasledtothatbecomingamoreorlessacceptedmaximumbymany.TheParishCouncilmaintainedthatmaximumlevelofreservesforanumberofyearsbutdecidedafewyearsagotoworktoreducethelevelofthereservestothehalfwaymarkbetweenthedefactomaximumofayearandtheminimumofzeroie6months.Giventheneedexplainedabovetocreatethespecificreservesitisnowproposedtoreducethegeneralreservetothisleveltoreducethelevelofpreceptincreasewhichwouldotherwiseberequired.8. LongRangePlanOurFinancialRegulationsalsocallforathreeyearplantobepreparedwhenconsideringthelevelofpreceptforthefollowingyear.AnoutlineThreeYearPlanisincludedatAttachmentIIIwhichshowsthatfollowingthehigherthanusualpreceptproposedfor2017/18morenormalpreceptincreasesinlinewithinflationshouldbesufficientinfutureyears.



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9. StressTestingBestpractiserequiresfinancialplanstobesubjecttostresstestingconsideringscenariosotherthanthebasecaseonwhichtheplanisbased.Forthisyearthemostlikelyalternativescenariosrelatetothosewhichthereserveshavebeencreatedfor.9.1. WorseCaseInthisscenarioweshouldconsiderhowwewouldrespondifeitheralargercontributionisrequiredformtheParishCounciltoatrafficcalmingschemeorifasignificantnumberofstreetlightsfailtheperiodicinspection.InthiscasetheParishCouncilcouldallowitsGeneralReservetotemporarilyreducebelowtheproposedlevel.Theabsolutesuggestedminimumlevelissufficienttocoverthreemonthscommittedexpenditurewhichwouldallowafurther£10,000tobespentonthetrafficcalmingschemeorstreetlightreplacementwithahigherpreceptincreaseinfutureyearstorebuildtheGeneralReserves.9.2. BestCaseInthisscenarionocontributionwouldberequiredtowardsthecostoftrafficcalmingandnostreetlightswouldneedreplacing.InthisscenariotheParishCouncilcoulddecidetoeither:

• Beginasystematicprocessofreplacingthestreetlightsintheworstconditionasoutlinedabove

• PursuesomeoftheotherissueslistedinSection3aboveincludingadditionaltrafficfeatures

• Usethesavingtoreducethelevelofpreceptinfutureyears10. ConclusionTheParishCouncilisaskedtoconsiderraisingthepreceptfor2017/18inlinewiththerecommendationssetoutinthispaper.



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AttachmentIProposedBudgetSummaryandReserveMovements

Budget YTD 4thQTR 9+3Fcast Budget Change %GeneralReservesBalancebroughtforward 46,644 46,644 48,734 46,644 32,682 (13,962)Precept 40,154 40,154 0 40,154 47,964 7,810 18.8%Interest 0 20 0 20 20 (0)Currentexpenditure (40,640) (24,584) (16,052) (40,636) (41,451) (815) 2%Highwaysreserveprovision (7,500) (7,500) 0 (7,500) (10,850) (3,350)Otherreservesprovisions 0 0 0 0 (2,500) (2,500)Streetlightreserveprovision (6,000) (6,000) 0 (6,000) (5,062) 938Balancecarriedforward 32,658 48,734 32,682 32,682 20,803 (11,879)

HighwaysReserveBalancebroughtforward 0 0 7,500 0 4,150TransferfromGeneralReserve 7,500 7,500 0 7,500 10,850Highwaysworks 0 0 (3,350) (3,350) 0Balancecarriedforward 7,500 7,500 4,150 4,150 15,000

PlanningReserveBalancebroughtforward 0 0 0 0 0TransferfromGeneralReserve 0 0 0 0 2,500Otherreserveexpenditure 0 0 0 0 0Balancecarriedforward 0 0 0 0 2,500

StreetlightReserveBalancebroughtforward 0 0 4,938 0 4,938TransferfromGeneralReserve 6,000 6,000 0 6,000 5,062Streetlightworks 0 (1,062) 0 (1,062) (5,000)Balancecarriedforward 6,000 4,938 4,938 4,938 5,000

TotalBalancebroughtforward 46,644 46,644 61,172 46,644 41,770Precept 40,154 40,154 0 40,154 47,964Interest 0 20 0 20 20Currentexpenditure (40,640) (24,584) (16,052) (40,636) (41,451)Reservemovements 0 0 0 0 0Highwaysworks 0 0 (3,350) (3,350) 0Otherreserveexpenditure 0 0 0 0 0Streetlightworks 0 (1,062) 0 (1,062) (5,000)Balancecarriedforward 46,158 61,172 41,770 41,770 43,303

2016/17 2017/18



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AttachmentIIProposedDetailedExpenditureBudget

Budget YTD 4thQTR 9+3Fcast Budget Change %2016/17 2017/18

CurrentExpenditureGrants 10,631 5,534 6,138 11,671 13,687 2,016 17%AdministrativeCostsinclVAT 16,003 9,562 6,527 16,089 12,278 (3,811) -24%Streetlights 5,814 4,577 2,145 6,721 8,725 2,004 30%OpenandPlayAreas 8,192 4,912 1,243 6,155 6,761 606 10%

40,640 24,584 16,052 40,636 41,451 815 2.0%GrantsVillageHall 6,157 2,019 4,138 6,156 4,137 (2,019) -33%SportsTrust 3,000 3,000 1,000 4,000 3,000 (1,000) -25%FundRaising 0 0 0 0 5,000 5,000BobbyVan 500 0 500 500 500 0 0%WSTC 0 500 0 500 500 0 0%Churchyard 400 0 400 400 400 0 0%S137 400 15 0 15 50 35 233%Other 174 0 100 100 100 0 0%

10,631 5,534 6,138 11,671 13,687 2,016 17%AdministrativeCostsClerk'sSalary 6,028 4,422 1,477 5,900 5,969 69 1%Clerk'sExpenses 1,122 699 225 924 1,000 76 8%Insurance 2,856 2,626 0 2,626 2,726 100 4%SportsTrustContribution (111) 0 (111) (111) (111) 0 0%Printing 1,632 664 700 1,364 1,200 (164) -12%BudgetLetter 0 0 350 350 350 0 0%Rent 862 863 0 863 863 1 0%Subscriptions 700 612 0 612 650 38 6%Training 500 25 0 25 100 75 300%FireCabinet 0 0 250 250 0 (250) -100%NeighbourhoodPlan 2,000 (347) 347 0 200 200AuditFee 204 200 0 200 200 0 0%VATRecoverable (3,795) (2,445) 0 (2,445) (5,531) (3,086) 126%VATPayable 4,005 2,242 3,289 5,531 4,662 (869) -16%

16,003 9,562 6,527 16,089 12,278 (3,811) -24%StreetlightsMaintenance&Testing 714 896 900 1,796 3,800 2,004 112%Electricity 5,100 3,680 1,245 4,925 4,925 (0) 0%

5,814 4,577 2,145 6,721 8,725 2,004 30%OpenandPlayAreasGrassCutting 5,406 3,736 0 3,736 4,234 498 13%CBCContribution (673) (673) 0 (673) (673) (0) 0%PlayEquipmentMaintenance 1,734 375 814 1,189 1,000 (189) -16%RepairstoSquare/Benches 0 525 150 675 800 125 19%PlayEquipment 0 0 11,386 11,386 0 (11,386) -100%S106Contribution 0 0 (11,386) (11,386) 0 11,386StreetCleaning 836 600 200 800 800 0 0%OpenAreas 510 220 29 249 250 1 0%SaltBins 200 29 0 29 200 171 594%Plants 179 100 50 150 150 0 0%

8,192 4,912 1,243 6,155 6,761 606 10%

AdminexclVAT 15,793 9,765 3,238 13,003 13,147 144 1%



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AttachmentIIIThreeYearPlan

2017/18 2018/19 2019/20Preceptincrease 18.8% 2.0% 2.0%GeneralReservesBalancebroughtforward 32,682 20,803 19,966Precept 47,964 48,923 49,901Interest 20 20 20Currentexpenditure (41,451) (42,280) (43,126)Highwaysreserveprovision (10,850)Planning&ElectionReserve (2,500) (2,500)Streetlightreserveprovision (5,062) (5,000) (5,000)Balancecarriedforward 20,803 19,966 21,761

Months 6.0 5.7 6.1HighwaysReserveBalancebroughtforward 4,150 15,000 15,000TransferfromGeneralReserve 10,850 0 0Highwaysworks 0Balancecarriedforward 15,000 15,000 15,000

Planning&ElectionReserveBalancebroughtforward 0 2,500 5,000TransferfromGeneralReserve 2,500 2,500 0Otherreserveexpenditure 0Balancecarriedforward 2,500 5,000 5,000

StreetlightReserveBalancebroughtforward 4,938 5,000 5,000TransferfromGeneralReserve 5,062 5,000 5,000Streetlightworks (5,000) (5,000) (5,000)Balancecarriedforward 5,000 5,000 5,000

TotalBalancebroughtforward 41,770 43,303 44,966Precept 47,964 48,923 49,901Interest 20 20 20Currentexpenditure (41,451) (42,280) (43,126)Reservemovements 0 0 0Highwaysworks 0 0 0Otherreserveexpenditure 0 0 0Streetlightworks (5,000) (5,000) (5,000)Balancecarriedforward 43,303 44,966 46,761



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AttachmentIV

Comparisonof2016/17PreceptbyParishandPotentialImpactofProposedIncrease(SourceCentralBedsCouncil–allcouncilswithbetween800and1,250dwellings)

No Council

BandDEquivalentProperties

2016/17Total

Precept£

2016/17BandDActual£

AssumedIncrease

2017/18BandD

Assumed£1 Westoning 866 28,335 32.72 2% 33.37 2 Clifton 1,207 43,000 35.63 2% 36.34 3 Aspley Guise 1,047 40,154 38.35 18.8% 45.55 4 Silsoe 1,174 50,977 43.42 2% 44.29 5 Shillington 814 35,935 44.15 2% 45.03 6 Stondon 982 50,475 51.40 2% 52.43 7 Northill 974 59,000 60.57 2% 61.78 8 Eaton Bray 1,151 83,000 72.11 2% 73.55 9 Fairfield 1,143 88,940 77.81 2% 79.37 10 Harlington 884 99,362 112.40 2% 114.65



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AttachmentV

SitesSubmittedtoCentralBedsCouncil’sCallforSites

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