TOWN councillors have been told to think twice before coming up with more than five per cent inflation-busting increases on next year's council tax.

They were warned to consider the effect on people who face "poverty" in the face of mounting council tax rises as the recession bites.

At a meeting of the finance and general purposes committee, town councillors received the first draft of the budget for 2009/10, which included a 5.1 per cent rise in council tax.

The pond, play equipment, Petersfield open-air swimming pool and the current economic crisis are all considerations for Petersfield Town Council as they get to grips with next year's budget.

Bob Ayer said: "The national economic situation is dire and the consequences are likely to impact locally. Long before the credit crunch I have received representations from residents in my ward – particularly from pensioners not in receipt of means-tested benefits – that the current levels of council tax are placing them in real poverty.

"The district council's residents' surveys confirm that concerns about the levels of council tax are district-wide and strong.

"Our council is already the highest precepting parish council in the district and in my view cannot continue to increase its share of the council tax above inflation year-on-year without regard to those parishioners who cannot afford it.

"In my view the proposed increase of 5.1 per cent is both unreasonable and unacceptable."

Concern was raised that money should be allocated for play equipment in the town, as the £15,000 the council had agreed would be an annual earmarked sum was removed from last year's budget. But grounds chairman Hilary Ayer said that sum should be reinstated this year. Councillors resolved to add £15,000 to the budget for play equipment.

Mrs Ayer also raised concern about the running of the town hall. She said: "I think that it is beginning to look as if the management of the town hall complex is getting too much for this town council to manage. A not-for-profit arrangement such as East Hampshire District Council has with DC Leisure would enable the running of this asset to be more efficient and smoother. We should be working in the spirit of best value. I am not sure our council tax payers would think we were."

But Ken Hick said: "Petersfield can be very proud of the Festival Hall, and the staff. It's all done by the people who use it. There is nothing like it in Havant, Chichester or Portsmouth."

Following this summer's blue algae outbreak at the heath pond, the town council had to foot a clean-up bill of almost £15,000 to pay for the disposal of thousands of dead fish that perished. The town council has been quoted one solution to the problem, but that could cost £36,000.

Mrs Ayer said: "This is an area that is well used by most residents and visitors. I do not see money in the budget for this work and it hardly counts as contingency – we know that bill is coming. Anyway, paying for it out of contingency just means it goes on the next precept rather than this one. If you look at your precept calculation you will see the forecast for next year. It is very scary."

Councillors decided that £15,000 should be added to the draft budget for work on the pond.

Next year's budget draft also included a request from Petersfield open-air swimming pool to have its annual grant increased from £10,000 to £15,000. Town clerk Neil Hitch said pool bosses had also made a loan application to Hampshire Playing Fields Association.

Mrs Ayer proposed that funding be removed for capital projects including £10,000 for replacement of the Festival Hall boiler; £20,000 for reception alterations for the town council; £10,000 for town and Festival Hall roof replacement; £15,000 for double glazing at Sheet village hall; £50,000 for a Festival Hall sprinkler system; and £12,500 for double glazing at the festival Hall and Rose Room. The motion was lost.

Mrs Ayer also called for the projected transfer to capital reserves figure of £70,000 to be removed from the 2010-2011 projection, but this motion was also lost.

At the end of the meeting, it was recommended the that the draft budget for 2009/2010 be agreed and accepted after the proposed changes.