October 2024 - Minutes of Finance Commtt. Meeting
Minutes of the Meeting of Hemswell Parish Council Finance Committee, Thursday, 24th October 2024, 6.45 pm in the Hemswell and Harpswell Village Hall, Maypole Street, Hemswell.
Present: Parish Councillors: Cllr. G. Jago, Cllr. P. Sutherland, Cllr. R. James. Clerk: E. Raymond. Member(s) of the Public (MoP): 0
Meeting commenced 6:45 pm
AGENDA
64-10-24/25 TO ELECT THE CHAIR OF THE PC FINANCE COMMITTEE
Cllr. G. Jago was proposed and seconded for election as Chair of the Finance Committee. The motion was proposed, seconded and unanimously carried.
RESOLVED to ELECT Cllr. G. Jago as Chair of Hemswell PC Finance Committee.
65-10-24/25 APOLOGIES FOR ABSENCE – All members of the committee present. No apologies received.
66-10-24/25 DECLARATIONS OF INTEREST AND DISPENSATION REQUESTS – None received.
BUSINESS MATTERS FOR CONSIDERATION
67-10-24/25a To review the PC reserves strategy and policy and to recommend for approval by the full PC.
Members acknowledged the recommendations of the Joint Panel on Accountability and Governance Practitioners’ Guide (JPAG) (March 2024) to put in place a General Reserve Policy and to review the level and purpose of Earmarked Reserves (EMRs) as smaller authorities have no specific right to accumulate funds via the precept. Committee members discussed the proposed reserves strategy and policy and agreed the PC faced very few potential risks that might result in it having to call upon general reserves. Members, therefore, agreed to set the level of general reserves at between four and six months of net revenue expenditure (circa £5-7k) in line with JPAG recommendations
RESOLVED to RECOMMEND the Reserves Policy for approval at the next PC meeting. ACTION: Clerk to add as agenda item for next PC meeting and circulate policy to all members.
67-10-24/25b To review the current FY budget and spending and prepare the FY 2025-2026 annual budget to recommend for approval by the full PC.
Members reviewed budget data for the current financial year (FY 2024-2025), actual YTD, and forecast for year-end, together with the proposed budget and precept demand for FY 2025-2026. A mixture of incremental increases and forecasting was used for the next FY budget and precept setting. Members acknowledged the two items of highest expenditure for the PC being the clerk’s salary and grass-cutting costs. As Hemswell Civil Cemetery provides the only source of income for the PC (excluding the precept), there is limited scope to offset the annual precept demand other than by using general reserves or making cost-savings where possible.
Members reviewed each budget code and proposed spend for the next FY. Members agreed to create a Grant and Donation budget code with an allocation of £1200.00 for FY 2025-2026. The PC will raise awareness of the available Grant/Donation fund with organisations and groups who may wish to apply for grants/donations, for example, playground grass-cutting, Christmas tree/decorations, etc. See https://hemswell.parish.lincolnshire.gov.uk/council-business/policies-procedures/13
Predicted income FY 2025-2025 = £1725.00 (excluding precept).
Predicted operating costs FY 2025-2025 = £10,488.00.
Proposed FY 2025-2026 budget = £11,725.00 to include replenishment of EMRs and to fund planned expenditure against items on the PC Action Plan (e.g., replacement of street furniture/benches, Maypole maintenance, cemetery noticeboard, village enhancements).
RESOLVED to RECOMMEND the FY2025/2026 budget be set at £11,725.00 for consideration and approval at the next PC meeting ACTION: Clerk to add as an agenda item for next PC meeting and circulate supporting budget documents and reports to all members.
67-10-24/25c To review and agree on the funds required to maintain adequate general and earmarked reserves and to recommend for approval by the full PC. Members reviewed the existing categories and funds allocated to earmarked reserves (EMRs) and current balances. Certain EMRs have been reduced or depleted due to recent purchases or works, i.e., the Beck maintenance fund. The EMRs will be further reviewed and ‘topped up’ as required from general reserves while adhering to the 4-6 month net revenue expenditure.
RESOLVED to MONITOR EMRs and to reallocate funds to maintain sufficient reserves to undertake the planned maintenance/repair of PC assets and to complete projects identified in the PC action plan. ACTION: Clerk to add as agenda item for next PC meeting and circulate supporting documents and reports to all members.
67-10-24/25d To consider and agree on the annual precept to be levied and to recommend for approval by the full PC.
Committee members discussed the precept demand for 2025/2026. Members agreed the proposed precept demand for 2025/2026 could be significantly lower than the current financial year, given the cost savings achieved in the current FY, while still allowing it to meet its predicted operational costs and to fund projects and activities planned for 2025-2026. It was agreed that the annual precept demand for the FY 2025/2026 is set at £10,000, an increase of 5.88% on the last FY. This would result in a rise of £4.24 per annum, or 0.08p per week, for a Band D equivalent property. Residents with certain exemptions or a property in a different band (not Band D) would pay a higher or lower tax.
RESOLVED to RECOMMEND the annual precept demand for the FY 2025/2026 be set at £10,000 with a recommendation to consider and approve at the next PC meeting ACTION: Clerk to add as an agenda item for next PC meeting and circulate supporting documents and reports to all members.
68-10-24/25 DATE OF NEXT MEETING – The date of the next Finance Committee Meeting will be agreed, if required, following the submission of the final precept demand (Jan 2025).
Meeting Closed: 7:50 pm
Minutes of the Meeting of Hemswell Parish Council Finance Committee, Thursday 17th October 2024, 6.45 pm in the Hemswell and Harpswell Village Hall, Maypole Street, Hemswell.
Present: Parish Councillors: Cllr. G. Jago, Cllr. P. Sutherland, Clerk: E. Raymond. Member(s) of the Public (MoP): 0
The meeting was opened and the clerk informed members that apologies for absence had been received by Cllr. R. James. Consequently, the meeting was inquorate and under the Local Government Act 1972, Sch. I2, paras 12,45 “no business shall be transacted at a meeting of a parish council unless at least one-third of the whole number of members of the council are present at the meeting……but in no case shall the quorum be less than three”.
The meeting was adjourned and closed at 7.00pm.
The agenda shall be presented at the next meeting, date to be agreed.