What is the ‘PRECEPT’?
Each year, at this time, the Parish Council needs to set the amount of money/revenue that needs to be raised to help meet outgoings/running costs for the forthcoming year across the Parish and so the council will issue a request for a contribution, which is known as the local ‘Precept’.
How is the ‘PRECEPT’ arrived at?
The Parish Council together with the Finance Officer [Parish Manager] work out the income/funds required for the forthcoming year in the form of a Budget. The budget is based on previous year’s expenditure, anticipated costs [including inflation], extra increased costs for products and services, changes in legislation, etc.
This is then converted into an amount per Council Tax Band that is added onto the general Council Tax demand. In Leicestershire, this is set on the average of Band D properties within the Parish, and added to the overall Council Tax bill. It should be noted that the number of Band D equivalent properties varies each year as a result of new homes being built, old ones being demolished, properties becoming empty or second homes, boundary changes. [Note – see also below Who Pays section].
Please note that the Budget Forecast for April 2024 – March 2025 is available upon written request to the Parish Manager or on council’s website www.odapc.co.uk under finance.
Who needs to pay the ‘PRECEPT’?
All Residential owners/households need to contribute to the overall running costs of facilities and services provided by your Council. i.e. all dwellings that fall within the Parish area.
However, the number who pays is also affected by the level of people eligible for discounts and council tax reduction.
How is the ‘PRECEPT’ raised?
The ‘Precept’ is collected by Leicestershire County Council within the Council Tax levy and can be paid by a variety of methods, usually with instalment payments spread across the year to your own Council Tax Account. The local authority [LCC] then disperse – in two payments in April and September to the local Parish Council to spend as required and appropriate.
How much ‘PRECEPT’ are we going to pay this year 2024/2025? Will it be more or less than the last financial year?
The Council is requesting an 8.72% increase [from 2024-2025] of £7,443 for the 2024-2025 Precept. Whilst this is an increase on last year, it is very necessary for the Council to meet its fiscal obligations in the forthcoming year to remain financially viable.
What will this mean for householders/property owners? The increase has been kept to a minimum, to be proportionate and to be affordable.
The increase of £7,443 divided by the number of Band D properties [based on 2023/2024 figures provided by NWLDC] calculates to an increase of
£5.58 per annum or £0.69 per month or £0.16p per week
[If the number of Band D properties goes up then the amount due from households will do down.]
Actual Extra to be paid in 2024/25
2024/2025
£99.85
2023/2024
£94.38
2022/23
£89.61
Increase from 2023-24
£5.58 / 12 = £0.47 per month
£5.58 / 52 = £0.11 per week
Reasons why there is a ‘Precept’ increase
- Unlike the larger District and County Councils the Parish Council receives no funding from Central Government of Business Rates, so the net cost of its services is funded entirely from rate payers. This year’s Council tax increase equates to a Council tax Band D amount of £5.48, which represents an increase of 8.72% from the current year figure.
- Soaking up extra costs on unexpected incidents which could not be foreseen.
- Increase to Insurance cover to protect the parish assets.
- Maintenance, repairs, and replacements have been included to ensure Parish assets are kept in good condition and fit for purpose.
- Inflation normally fluctuates throughout the year, so it is quite acceptable and realistic to build in/anticipate price increases across the vast range of services, personnel, and products that the Council must access to maintain a decent standard of service for the benefit of the community. Due to the high rise in inflation and economic uncertainty anticipated increase in costs have needed to account for.
- It should be noted that Parish councils do not have a cap placed on their requests for funds/Precept and this enables ODAPC to make this –decision to keep our finances healthy to provide a sensible level of services to the Parishioners.
- Council is aware of the need to be open and transparent to the ratepayers of this parish in making this request for an increase to the ‘Precept’, in order that they will see that Council is stating quite clearly the amount of funds required to execute a budget that is realistic and fair in today’s economic climate. The Council appreciates it is not alone in this plight.
What does the ‘PRECEPT’ get used for/spent on?
The funds collected are divided out to cover a variety of costs, e.g.
General Costs
Parish Assets
Miscellaneous
- Administration/Office
- IT Support
- Subscriptions
- Insurance
- Grants
- Training
- Salaries & associated costs – NI/Pensions
- Audit fees
- Repairs & Maintenance
- Servicing costs
Maintenance costs of the Parish Leisure Centre (now run by ME sports)
- Furniture
- Waste disposal
- Play Park & Equipment
- H & S Inspections and compliance
- Office rental
- Meeting room rental
- Insurance
- Groundsman & Grass cutting of Park & The Green areas
- Maintenance/Repairs
- Arboreal Works
- Cemetery
- Flower planters
- Insurance
- Defibrillator maintenance
- Motor Vehicle Activated Sign (MVAS)
- School Awards
- Commemorative Coins – Jubilee
- Lamp post poppies
- Maintaining Silhouette Soldiers
- Donation to RBL
- Support Citizens Advice
- Support 3 Views News
- Memorial Gates maintenance
Extra-ordinary/ unexpected costs/ incidents
- Tree removal (ongoing)
- Fence replacement
- Surveys – Land
- Solicitor
Contingency
- The council seeks to be economically viable in order to build reserves for the protection of council funds and the call that may be made upon them.
- The Council is advised to keep at least 6 months running costs in reserve throughout the year.
- Council started building reserve funds in 2021. They have not yet reached the recommended level.
The Parish Council continues to maintain a number of open space areas including, Donisthorpe Playing Field, The Parish Memorial Gardens, The Parish Orchard, Oakthorpe Children’s fenced play area, Acresford Green & Memorial Grounds.
Financing of Projects - proposals to enhance the Parish Environment for the benefit of the residents, will be through any Grant Funding which may be applied for from various sources [although this is not guaranteed] and from Reserves where possible.
The Parish Council’s income is generated mainly through its land hire and leisure centre hire facilities. During recent years the income steams have been impacted upon by Covid-19. Due to the extended closures of the Council’s facilities, the estimate income from hire was not achieved.
Oakthorpe Community Centre is now under ME Sports (February 2022) although the building and grounds are owned by the council.
If council were still running the centre, then the precept would have needed to increase significantly due to the increase of living costs and interest rates. The Council appreciates it is not alone in this plight as local businesses have also undergone similar trials and tribulations.
In the near future Council is expecting services to be devolved from LCC & NWLDC especially in the areas of foot paths and roadside highway maintenance.
Council and Committee meetings are open to the public and you are invited to contact the Manager, Mrs Kelly Grove or Member of Council for more insight into the role of Councillor. Although there are currently no vacancies on the Parish Council, there will be elections in May 2027 for a new 4 year term with 8 councillor spaces available. The elected councillors will represent the parish as a whole. You may make an expression of interest to the Manager, Kelly Grove, who will be happy to provide you with more details of the role.
Agenda and Minutes may also be viewed.
For a copy of the report or further information please contact the Parish Manager Office between 9am-12 Noon Monday-Wednesday. There is an answer phone – please leave a message and your call will be returned.
Tel. 01530 610357
Or email
admin@odapc.co.uk
manager@odapc.co.uk