ALTON Town Council's policy and resources committee faced a Conservative challenge over a proposed five per cent increase in its share of the council tax, at the November 14 meeting. The proposal, to be put before the next full council meeting, is to raise a precept of £415,000 for the year 2008/09 which, allowing for a small growth in housing stock, will represent a five per cent increase on this year's precept of £392,000. It will result in a Band 'D' council tax payer seeing a levy of £61.94 on behalf of ATC, compared to £58.99 in the current year. Town clerk Steve Parkinson said the increase in precept would make provision for two per cent inflation, a five per cent increase in insurance costs, four per cent in business rates and an assumed three per cent for staff pay agreements. More controversially it includes a £20,000 transfer to reserves which will stand at £80,723 by the end of the current financial year. The proposal was to continue this policy for the next three years with some of these funds beginning to be earmarked for specific purposes, in particular vehicle replacement, building maintenance and tree safety. But while Lib Dem councillors appeared happy, the lone Conservative was not. Newly-elected Beverley Carpenter did not accept a continuing £20,000 reserves policy if it forced the increase in precept above the rate of inflation. Pointing to the fact that pensions were scheduled to increase by just 3.8 per cent next April, Mrs Carpenter believed that ATC had a responsibility to set a precept that was affordable. While she appreciated the need to rebuild the reserve fund, it should not be at the expense of the electorate. It could, she suggested, be done by setting a precept of £406,000 which would represent a 3.5 per cent increase from which it would be possible to earmark £11,000 for reserves. While councillors resisted adopting such a policy for 2008/09, there was sympathy for Mrs Carpenter's view. It was stated, however, that the proposed precept of £415,000 was required to provide a £8,890 balance for the capital project programme. This will include £15,000 towards a CCTV system in the town, seating in the main hall at Alton Assembly Rooms (£30,000), £50,000 towards the rebuilding of the Finnimore Pavilion at Anstey Park; plus the ATC recreation committee had a list of possible schemes. On reserves, councillors were reminded that they were still recovering from a period, some 10 years ago, when it was considered prudent to use their reserves. The decision, taken in 2005/06, to earmark £20,000 a year to rebuild the fund was based on comments by the internal auditors who were concerned over the diminishing safety net. Dave Crocker suggested that reserves should stand at around 10 per cent of the annual turnover. Council leader David Willoughby felt that to reduce the proposed precept figure and cut the reserve figure back for the year 2008/09 would be "too drastic" and would be "cutting the budget too close to the cloth" which could prove unsustainable. "Capital items usually cost more than you think," he warned. While the majority felt it would be irresponsible at this stage to consider reducing the budget for 2008/09 it was agreed to review the situation for 2009/10. The proposed precept figure of £415,000 is to be ratified by full council on Wednesday.
