Parish Council Finance
What is the precept?
The Precept is the money which is given to the Parish Council to run all Council business. A percentage of the council tax which is paid by residents is based upon the amount of precept requested by the Parish Council.
The budget process is started in October and the process continues until early January. After agreeing its budget in December/January, Colney Heath Parish Council can demand this from St Albans District Council as its Precept.
What other income is received by the Parish Council?
Other income received by the Parish Council is from rental charges from the Recreation Ground pavilion lease as well as any grants received for specific projects. We also receive income through VAT reclaims and bank interest. Higher Level Stewardship which is a grant received for grazing cattle on The Warren at Colney Heath Common is received yearly along with a modest income from a recycling clothing bank.
The Parish Council Budget
A well-planned budget is an essential tool for controlling the Council’s finances as it provides the Council with the confidence to ensure that sufficient income is available throughout the year to pay for expenditure for services or the capital for planned projects.
By monitoring our spending against the budget plan, we can control our finances during the course of the financial year.
What does the Council spend its money on?
From all income received, the Parish Council then has to pay for things like managing Colney Heath Common, grass cutting for open spaces and recreation areas, audit fees, salaries for staff and the emptying of the litter and dog waste bins. All these cost items, alongside anticipated expenditure are listed within the Council budget. A well researched budget should result in these costs being adequately covered.
The Council may also decide to accrue some money over several years to pay for a significant project. An amount of money acting as a contingency is also good practice for the Council to use for unexpected costs or in the event of emergencies.
What is the budget timetable for 2024/25
Full Council reviewed the 4th version of the CHPC budget and approved an increase in Precept of 0.5%. The Precept for 2024/25 is £177,960.00
The full approved budget for 2024/25 can be viewed at the following link: CHPC Annual Budget 2024/25
Approval of Direct Debits and Standing Orders for 2023/24 when approved will appear here: Approved 2024/25 Direct Debits and Standing Orders
Powers & Duties; Local Government Act 1972
Local Government Powers and Duties
Local Councils have a wide range of powers and but very few duties.
Duties
A duty is an activity that must be carried out e.g. Local Councils must appoint a Chairman and a Clerk.
Powers
Statutory powers, granted by Parliament, give Local Councils the choice or opportunity to take action and are therefore discretionary. Like all powers given to public bodies the powers of Local Councils are defined in detail in legislation and these details may include a requirement to obtain the consent of another body (for example the approval of the County Council to the provision of a car park). Local Councils must exercise their powers also subject to the provisions of the general law (for example planning permission is necessary for a sports pavilion).
Section 137
Section 137 of the Local Government Act 1972, as amended by the Local Government and Housing Act 1989, Section 36, enables Councils to incur expenditure for certain purposes, not otherwise authorised, which in their opinion is in the interest of, and will bring direct benefit to, their area or any part of it or all or some of its inhabitants. The benefit obtained must be commensurate with the expenditure incurred. The annual expenditure must not exceed the total electorate multiplied by the annual statutory limit per elector.
The annual statutory limit for 2024/25 is £10.81. Confirmation of this amount can be read in the letter at the following link – DLUHC Section 137 letter
The electorate for 2024/25 is 2,114
The statutory annual expenditure limit for 2024/25 is £22,852.34.
Section 137 monies cannot be spent on an individual. For example, a scout may ask the Council for financial help to enable them to travel abroad on an exchange visit. Worthy as this may be, the Council cannot agree because the statute states that S137 monies must benefit some or all of its inhabitants. However, if a request came from the Scout Leader for the whole troop to travel abroad on an exchange visit, the Council could consider a grant for the whole group as this would then be benefiting some of its inhabitants.
Table of details
The powers which have been vested in Parish, Town and Community Councils by Acts of Parliament are summarised in the following document as a guide. Each description is brief and is intended to be a general indication. It is not a complete list of every single power and duty. It also provides details of the regulations under which statutory provisions are made. Where a function is marked with an asterisk (*) a Council also has the power to give financial assistance to another person or body performing the same function.
Powers-and-Duties
Local Government Act 1972 – Summary
| Section 1 – 16 | Lays down the constitution of Parish Councils and Parish Meetings |
| Section 79 – 99 | Covers qualification and disqualification, casual vacancies and resignation, interest admission |
| Section 100 | Including/excluding the public and press (see Public Bodies (Admission to Meetings) Act 1960 |
| Section 101 | Allows a principal authority to ask any other authority to discharge a function on its behalf |
| Section 102 – 109 | Provides for Committees, Standing Orders and for Parish Meetings to have powers of Parish Council conferred by the Borough/District Council |
| Section 111 | Subsidiary powers for a local authority to do anything which helps it to discharge its functions |
| Section 112 – 119 | The appointment of staff and insurance |
| Section 123 – 131 | Governs land transactions including power to ask district council to execute a compulsory purchase order on behalf of the Parish Council |
| Section 133 | Provision of community buildings |
| Section 134 | Parish Council can use a school building |
| Section 135 | Standing Orders for making contracts |
| Section 137 | The power to provide things not otherwise authorised for the benefit of some or all of its parishioners |
| Section 139 | Power for Council to accept goods, property or money |
| Section 141 | Power for Council to carry out research (village appraisals) |
| Section 142 | Power to produce information: newsletters, Citizens Advice Bureau |
| Section 143 | Subscriptions to local government associations (i.e. NALC) |
| Section 144 | Power to attract tourists and visitors (village signs/Christmas lights) |
| Section 145 | Power to promote entertainment and the arts, village celebrations |
| Section 214 | Power to be a burial authority |
| Section 215 | Closed churchyards |
| Section 222 | Power to prosecute or defend in court in the interest of the public |
| Section 225 – 234 | Custody and public inspection of documents |
| Section 235 – 238 | Byelaws |
| Section 245 | Power of Parish Councils which are not grouped with any other to become a Town Council and call its Chairman ‘Town Mayor’ |
| Schedule 12 Part 11 | covers procedures and meetings of part time Councils |
| Part 111 | Deals with Parish Meetings |
| Schedule 13 | Covers financial arrangements |
| Schedule 26 | Covers crematoria and cemeteries |