Agenda item

A presentation will be carried out by the Chair of the Task and Finish Group

The Chair of the Parish/Town Councils – Review of Concurrent Funding Task and Finish Group presented a report to Committee, prior to submitting to Cabinet.

Face to face meetings were held with nine out of the ten Town/Parish Councils, Betley, Balterley and Wrinehill were the exception, but the relevant information had still been obtained.  A good deal of good practice was found and, to a certain extent, the Council was getting very good value for money.

The first question that had been raised was “are people being doubly taxed?” the answer was “yes”.  The key facts found was that the Council had no legal obligation to award this grant to any Parish Council.  Government funding to the Borough Council had been reduced by over 51% and would continue.  The grant to Parish Councils had remained the same.

The third finding was seven out of the ten Parish Councils increased their amount of assets between March 2013 and March 2014.

The recommendations were:-

1.  Doing Nothing

2.  Reduce by 50%

3.  Abolish S136 Monies

4.  Establish a more closely monitored system

Option 4 was the favoured option by the Task and Finish

Most of the Parish Councils had in excess of twelve months’ precepts in reserve.  A reasonable amount would be between three to twelve months gross expenditure.

The Task and Finish Group was, therefore, recommending that a cross-party monitoring group should be established.  Prior to any grant money being issued in April 2015 individual Towns and Parishes would need to provide this group with proof that the grant for 2014/2015 had been used in full and for its intended purpose.  Failure to do so could result in an amount, equivalent to any shortfall in 2013/2014, being deducted from the grant for 2015/2016.  This could be used as a model for the issue of S136 monies in future years.

A presentation was carried out at the Parish Forum held on Tuesday 14^th October 2014 and the above recommendations were generally approved. 

The Group also remained concerned at the level of cash assets held by Town and Parish Councils.  It was recognised that reserves needed to be held for emergencies and money had to be set aside for large scale maintenance.

It was, therefore, recommended that by April 2016 general reserves should be set at a level of six months of gross expenditure.

One Member put forward a further proposal; up to £7,000 be awarded to every Town/Parish Council, any additional money must be justified and an application submitted.

Option 4 was largely agreed with all Members as the process would be more accountable.

There seemed to be an anomaly of reserves and assets and the saving of reserves needed to be reserves not cash reserves and if the S136 was to be abolished it should be executed over a period of time.

Clarity was asked to be provided of what were agreed as concurrent functions when the S136 grants were established in 1974.  The Executive Director Resources and Support Services agreed to obtain the information produced in 1974.

Resolved:-

(a)   That the report is submitted to Cabinet on the 14^th January 2015.

(b)   That the Task and Finish Group continue its work looking at the future policy relating to the S136 grant.