1.1
Section 3 of The
Local Government Finance (New Parishes) Regulations 1998 states that the
billing authority (the Isle of Wight Council) must calculate the precept in
accordance with Section 32 of the Local Government Finance Act 1992.
1.2
This precept will
endure for the whole of the financial year 2006 / 2007, and will represent the
maximum funds which the Parish Councils can raise via the precept.
1.3
The Parish Councils
will set their own precepts for the financial year 2007 / 2008 and all
subsequent years
2.
Consultation:
2.1 In drawing up these recommendations the Electoral Services Office has consulted with members of the Isle of Wight Council whose Electoral Divisions fall within the boundaries of the two new Parish Councils, the Secretary to the Society of Local Council Clerks (who collated feedback from Town and Parish Clerks throughout the Island), the secretary to the Isle of Wight Association of Town and Parish Councils, and the two Isle of Wight Council Cabinet Secretaries.
2.2
In setting the proposed
precept for the forthcoming financial year it is necessary to consider all the
items of expenditure which the Councils will have to service out of that
precept, and to include a fund for spending on local projects, which will allow
the Parish Councils to have a material influence on their area.
2.3
When drawing up the
proposed budgets, the same figures have been used for both Parish Councils as
the have similar electorates (704 for Fishbourne and 647 for Havenstreet and
Ashey), and both electorates fall within the same employment hours band as
determined by the Guide to Good
Employment Practice in Local Councils produced jointly by NALC (the National
Association of Local Councils) and SLCC (the Society of Local Council Clerks)
3.
The Proposed Budget:
3.1 The following table shows the proposed budget for each Parish Council for the financial year 2006/07:
|
Expenditure
Item |
Proposed
Budget |
|
Clerks
Salary |
£2415.46 |
|
+15%
pension contribution |
£362.14 |
|
+10%
sickness / holiday cover |
£241.43 |
|
Insurance
Expenses |
£400 |
|
Audit
Expenses |
£300 |
|
Miscellaneous
Expenses |
£500 |
|
Parish
Expenditure |
£3000 |
|
Inaugural
Elections |
£800 |
|
Total |
£8019.03 |
3.2 The clerks salary has been based upon 24 hours per week at a rate of £8.387 per hour, which is spinal column point 18 on the NALC / SLCC National Agreement on Salaries and Conditions of Local Council Clerks in England and Wales. The Parish Councils have an annual review of the clerks hourly salary and number of hours worked built into their draft terms and conditions of employment.
3.3 Should the clerk opt to join the Local Government Pension scheme, then a further 15% of salary will be necessary to cover the employers pension contributions, additionally a further 10% of salary will be needed for holiday and sickness cover.
3.4 The figures for both insurance and audit costs were obtained via consultation with existing Parish and Town Councils on the Island, and both represent real and necessary costs.
3.5 A further £500 has been allowed for miscellaneous expenses incidental to the employment of the clerk and the running of the Parish Council, such as travelling costs, telephone costs, official notices, photocopying and so forth.
3.6 A sum needs to be allowed for general Parish expenditure, otherwise the ability of the Parish Council to carry out any community projects would be severely limited. Previous experience has suggested that a figure roughly equal to the sum spent on the clerks salary and associated costs provides a reasonable figure, and so the total clerks expenditure on salary of £3019.88 has been rounded down to arrive at a sum of £3000.
3.7 The costs of elections in the first year of the Parish Councils existence will need to be borne by the Parish, and for the size of electorates in these areas a sum of £800 has been allowed, which will include the issue of Poll Cards.
3.8 Should it be the case that any particular sum is not called upon in the first year of the Parish Councils existence, it can be either spent on other items or carried forward to the following year.
3.9 Given the uncertainties of anticipating the budget of the Parish Councils in the first year of their existence the total precept figure of £8019.03 can be rounded down to £8000 for the financial year 2006 / 2007.
3.10 Due to the deadline associated with the publication of this report it has not been possible to calculate a Council Tax Band D equivalent for the two Parish Council areas. However, as an indicative guide to the estimated cost to electors in the areas, an average charge per property per annum on the Register of Electors has been calculated as follows:
Fishbourne £23.39
Havenstreet and Ashey £20.78
3.11 The variation between the two figure arises from the difference in the number of properties in each area.
4.0 Recommendations:
4.1
It is recommended:
That
the Isle of Wight Council agrees an
initial level of Parish precept to be levied in the areas of the two new Parish
Councils, at a rate of £8000.00 per annum for the financial year 2006 / 2007 as
detailed in Appendix C.
Contact
Point: Clive Joynes, Electoral Services Officer. Tel 823341