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MPC(21)116.03 1st Draft Budget Report for 2022/23

Agendas & PapersFull Council Uploaded on November 11, 2021

MPC(21)116.03

 DRAFT BUDGET FOR 2022 / 2023

 This report sets out the workings behind the first draft budget for the financial year commencing 1 April 2022, as recommended by Budget Working Group following a meeting on 11 November. The full set of figures is in paper MPC(21)116.03a and the two papers should be read together. 

The Council is required to set its budget and precept requirement at its meeting in January 2022 and advise East Suffolk Council of its precept requirement by 28 January.

In 2021/22 the precept is £93,706 (rounded). If you wanted to claim the same amount in 2022/23 because of the rise in the tax base that would result in a reduction of 2.34% on the parish element of council tax bills. If you wanted to keep the Band D charge the same as this year it would yield a precept of £95,957.

Budget Working Group has recommended a 3.1% uplift on this latter figure in line with consumer price index inflation together with an additional contribution to reflect the costs of servicing the new pavilion, particularly the public toilet provision. The details are set out in the notes below and the recommended precept for next year is £104,536.

Full Council is recommended to consider this draft budget as a basis for the precept claim for 2022/23.

William Grosvenor

 Clerk and Executive Officer to the Council

 11 November 2021

EXPLANATORY NOTES TO DRAFT BUDGET FOR 2022/23

COST CODE TITLE BUDGET NOTES
1101 Precept 104,536 The tax base has increased so keeping the Melton Band D charge the same as this year would yield £95,957.

Budget Working Group has recommended a 3.1% uplift in line with CPI inflation (£2,975) together with a contribution of £5,604 towards the maintenance costs of the public convenience and pavilion with an overall precept figure of £104,536.

This is an overall increase of £8,579 on the figure of £95,957) which equates to an increase for a Band D equivalent property of £4.50 a year or £0.37 per month.

1108 B/S interest 262 Both the MPC accounts with IBS are now closed to new investors. Figures are based on latest published information.
1109 Rent from 1st floor 15,584 This allows for one month rent free; otherwise figure is £17,000
4108 Staff salaries 50,243 Clerk @ SCP 29 [£17.10 per hr] x 25 hrs pw = £22,230

Maintenance Officer @SCP8 [ £10.65 per hr assuming MPC agrees his progression from current SCP7 and that the new minimum wage rise of 6% wef from next April does not cause the lower scale points to be reviewed] x 18 hrs pw = £9,968.40

New Asst Clerk @SCP18 [£12.98 per hr] x 20 hrs pw = £13,499

Total = £45,697.40

NOTE: No provision is made for annual increments for the Clerk and Asst. Clerk as they will have only been in post for 3 months.

Adding 1.75% for the employer’s final offer on this year’s pay rise to be backdated to 1 April 2021 and making provision of 2% for next year’s pay rise (an additional £1,713.65) produces an uplifted total of £47,411.05 (rounded to £47,412).

Provision for NI costs:

Gross earnings for NIC: – where employees earn over the secondary threshold (currently £737pcm) NI is charged at 13.8% on the excess.

Anticipated costs for 2022/23:

Clerk = £160 x 12 = £1,920.

Asst Clerk = £60 x 12 = £720

Maint. Officer = £13 x 12 = £156.

This produces a total of £2,796 to which should be added an uplift of 1.25% for the social care levy = Total of £2,831.

GRAND TOTAL FOR SALARIES BUDGET = £50,243     

4110 Pensions 8,217 This includes provision for the Clerk (£5,112) and provisionally the Assistant Clerk (£3,105). Total = £8,217.

NOTE: The sums remitted monthly to the Suffolk Pension Scheme include the employee contributions which on the above salary figures amount to a further £2,108. They are already provided for in the calculation of the gross salaries payable.

4120 Computer hardware 800 This reflects the need to replace the existing Clerk’s PC.
4125 Business rates 6,817 This figure reflects a 3.1% uplift in the light of both latest intelligence and the indications that the Chancellor is not going to do anything radical about Business rates in the autumn statement
4132 Subscriptions       1,110 This figure reflects subscriptions to SALC (based on the electorate size and linked to inflation) and SPS
4164 S137 grant giving       1,000 A notional figure has been included subject to discussions by BWG and Full Council. Any provision for grants payable under other provisions as well e.g. s142 LGA 1972, will need to be considered.
4169 Grant to Melton Messenger       1,200 The sum originally budgeted for in 2021/22 has been included; again this is subject to discussion.
4205 Neighbourhood Plan       2,000 This is included to cover disbursements etc. The main body of work should be grant funded.
4309 Greenspace mgt. contract       4,500 Elements of this can be covered by CIL or the divested lands sinking fund (earmarked CIL) if required.
4310 Greenspace additional works       4,000 Elements of this can be covered by CIL or the divested lands sinking fund (earmarked CIL) if required.
4316 Pavilion -water          500 This is substantially increased in recognition of having a public wc in the new pavilion.
4318 Pavilion – running costs       7,250 This is a new cost head which is primarily designed to cover the cost of servicing the public wc. Based on research undertaken by the Asst. Clerk some time ago, annual costs could be approx. £7k. The budget reflects a 9 month period on the assumption that the new pavilion will not be completed and open to the public until summer 2022.
4327 Play area checks 500 This is increased to provide a more comprehensive check on all equipment – particularly the zip wire.
4346 Trees risk assessment       5,000 Last assessment February 2021. This will need to be done again in about October 2022.
4355 Tree works       5,000 This can be covered by CIL or the divested lands sinking fund (earmarked CIL) if required.