The Town Council's Financial Management
The Town Council is required (Local Government Act 1972, s.151) to appoint a Responsible Financial Officer (RFO); this role is held by the Clerk. The accounts and its procedures are administered and overseen by Full Council; they are also under scrutiny of an Internal Auditor and are externally audited by Littlejohn LLP.
Precept
Northstowe Town Council derives most of its funding from the 'Precept', a share of the Council Tax, which is collected by South Cambridgeshire District Council. The Precept is the total amount raised through the Council Tax share from all the dwellings in the parish of Northstowe.
Town and Parish Councils do not receive any direct funding from central government; to fund its services and activities, the Town Council relies on the Precept plus any other income generated from services and facilities it provides, or from grants obtained. Northstowe Town Council also obtains some income from Section 106 contributions from developers, linked to trigger points for the Phase 2 development of the town.
How is the Precept calculated?
The Precept requirement is the difference between the Town Council’s estimated income and its anticipated spending requirements for the financial year, which runs from 1st April to 31st March. The Town Council agrees a budget before it can set its Precept and both must be agreed by the Full Council.
The budget for 2021-'22 was made in conjunction with the Interim Town Council; from 2022-'23 onwards, the 15 members of the Town Council set the Precept taking into consideration:
· Current year’s spending levels - for ongoing services for which it is responsible;
· Costs of any additional spending plans or projects;
· Provision for contingencies and reserves;
· Levels of anticipated income – from services for which it is responsible e.g. market stall fees; grants; sponsorship.
Budget Setting processes
The Town Council budget processes commence in August when the RFO starts preparing draft budgets with each Committee and considers the Council needs and ambitions as a whole. The draft budgets will then be reviewed by the Finance and Governance Committee in November and December, following which the Full Council will set its formal budget and precept request to the Principal Authority in either December or January.
The Precept for Northstowe for 2024-'25 is set at £144,786.44 - This equates to £96.08 per annum for a band D-equivalent household (+ 11.6% against '23-'24). NB: The Precept for Northstowe for 2023-'24 was set at £111,159.41 (£86.09 per annum for a band D household (+0% against'22-'23)); The Precept for Northstowe for 2022-'23 was set at £88,250.86 (£86.09 per annum for a band D household (+5% against '21-'22)); The Precept for Northstowe for 2021-'22 was set at £66,472.80 (£81.99 per annum).
Northstowe Town Council's Budget for 2024 - '25:
The budget for 2024-'25 was approved at the Full Council meeting on 19th December 2023.
- The Council decided to raise the band D-equivalent cost per household by £9.99 per annum, to balance the books with increasing costs.
- The Council has also decided to use some of its reserves to bridge the gap between anticipated income and expenditure [at the time of the budget setting in Dec. '23 - based on forecasting data - it was expected that a total of £47,758.29 from the General Reserve may need to be used in '24-'25].
Reserves at 31st March 2024:
- General Reserve: £88,067.47
- Earmarked Reserves: £44,174.91 - of which: £6,010.00 - S106 contributions - Community Endowment Fund; £34,562.16 - S106 contributions - Town Board Fund & £500 donation; £3,602.75 - remainder of original £8,000 CPCA grant for market development.
Estimated Income for ’24-'25: £190,246.44; to consist of: Precept: £144,786.44 and other income streams including: further S106 contributions (Earmarked Reserves); market stall fees: grants; sponsorship.
Estimated Expenditure for ’24-'25: £208,004.73. This includes: planned use of Earmarked Reserves for: Park Play - £5,000; Noticeboards - £5,000.
Key changes in the Council’s budget for 2024-'25, reflecting an increase in estimated expenditure against '23-'24:
- Expansion of central staffing: New Community Assets Manager to be attracted;
- Continued financial support to grow the weekly market further;
- Management of verges maintenance alongside B1050 taken in-house;
- Increase of funds allocated to the Council’s Community grant scheme;
- Exploring options to manage community assets buildings in future, including additional legal advice needed.
NORTHSTOWE TOWN COUNCIL'S BUDGET FOR 2024-2025
Northstowe Town Council’s Budget for 2023 - ’24:
The budget for 2023-‘24 was approved by the Town Council at its Full Council meeting on 20th December 2022.
* With this, the Council decided to keep the household bill the same as the year before, considering the cost-of-living crisis.
* The Council used some of its reserves (at the time of budget-setting the Council expected that a total of £57,113.36 was to be taken out of the General Reserve) to bridge the gap between anticipated income and expenditure. This was made possible due to; An underspend at 31st March 2023 totalling £34,837.18 against the original 2022-‘23 budget; and a higher income was obtained (an additional £8,885.00) in ’22-’23 than anticipated at the time the ’22-’23 budget was set.
Reserves at 31st March 2023: General Reserve: £84,711.57; Earmarked Reserves: £45,072.16; of which:
o £11,010.00 - S106 contributions; Community Endowment (tranche 1)
o £34,062.16 - S106 contributions; Town Board (tranches 1, 2 and 3)
Estimated Income for ’23-‘24: £134,344.41. To consist of: Precept: £111,159.41 - Income streams (market fees: potential hire sports pavilion and fields; other): £20,185 - Sponsorship and grant funding: £3,000
Estimated Expenditure for ’23-‘24: £191,457.77. This includes: Use of Earmarked Reserve (S106 Community Endowment) - for Park Play: £5,000; Use of Earmarked Reserve (S106 Noticeboard) for Noticeboards: £5,000.
Key changes in the Council’s budget for 2023-‘24, reflecting the increase in estimated expenditure against 2022-‘23: Expansion of central staffing: Deputy Clerk; Market Manager; possible Facilities Manager; Hiring fixed office: hire costs and fitting out office space; Increase of funds allocated to the Council’s Community grant scheme; Managing a pilot weekly market in Northstowe; The Council is exploring options to run the sports pavilion and facilities - costs, including additional legal advice needed, are factored into the budget.
Northstowe Town Council's budget for '23-24
Northstowe Town Council Budget for 2022-'23:
· Estimated Income for the year: £90,250.86 (which consists of Precept plus expected minimum of £2,000 in grants and sponsorship)
· Estimated Expenditure for the year: £100,972.50
· The budget for 2022-'23 was approved by the Town Council at its Full Council meeting held in December 2021. A 5% Precept increase was combined with a decision to take £10,721.64 out of the General Reserve, which is the difference between the estimated income and estimated expenditure for 2022-'23. This was made possible because of a circa £16,000 underspend on the 2021-'22 budget, enabling the Town Council to keep the precept rise low.
· Earmarked Reserves, on 1st April 2022: £21,766.50; expected by end of '22-'23 financial year: £32,599.50 (Section 106 contributions).
· General Reserve, on 1st April 2022: £51,711.03 (includes the remainder of underspend from 2021-'22).
Key changes in budget for 2022-'23, reflecting the increase in estimated expenditure against the budget for 2021-'22: Piloting of a market in Northstowe; Launch of grant awarding policy to support community groups; Increase in involvement with and delivery of community events; Plans to employ an Assistant Clerk to help cover growth in workload; Investigations and possible legal advice for future community asset transfers to the Town Council.
Northstowe Town Council budget for 2022-2023
Review of Financial Year 2022-'23 - Presentation at Annual Town Meeting in April 2023.
Northstowe Town Council Budget for 2021-'22:
The Precept for Northstowe for 2021-'22 had been determined by South Cambridgeshire District Council, as there was a requirement for this to be set prior to the re-organisation order coming into effect on the 1st April 2021; the budget for 2021-'22 was made in conjunction with the Interim Town Council. From the 1st April 2021 the Interim Council and subsequently following the May 2021 elections the elected Council has worked to this budget:
Northstowe Town Council budget for 2021/2022
Review of Financial Year 2021-'22 - Presentation at Annual Town Meeting in April 2022.