Members of Tenby Town Council have agreed a budget in principal for the coming year, after discussing a report at their meeting on December 10, by the town clerk/responsible financial officer Andrew Davies, who explained that the budget for 2025/26 has been put together following discussions within TTC’s Policy and Finance Committee.

“A budget had been set at £419,438.91 but this would not be the total charge to the tax payer as this would be reduced by income received and use of reserves,” explained Mr Davies.

“At the moment, we cannot establish what the precept requirement – the charge to council tax payers – will be, as we don’t have this year’s council tax base.

“In discussing the budget, there were a number of over-riding issues that impact on our budget process. The biggest of these are the additional demands being placed on the Town Council in response to budget cuts in Pembrokeshire County Council.

“This year’s budget includes the ongoing costs of contributions to the operation of Tenby Library and taking over full responsibility for the costs of the Upper Frog Street toilets.

“It should be noted that this is on top of the contributions to gardens and floral displays that has been increasing over a number of years.”

Another important factor in the Committee’s considerations was the potential decline in the Council Tax base due to the County Council’s decision to reduce the Second Homes Surcharge to 150%.

Last year the Town Council benefited from the 200% rate, enabling TTC to fund a number of projects without too much of an increase in the precept, but the likely impact of a declining base and being asked to fund increasing demands had formed the focus of discussions.

The Town Council has previously acknowledged that there will be capital works required for a new office and ‘community hub’ at the former cafe at the front of the De Valence Pavilion building.

In the main, it is expected that this will be funded from reserves as the move is part of a long-term investment and is expected to yield a benefit over a period of decades rather than a single year.

The proposed re-location, with the resultant revision of the lease of the building between the Town Council and the De Valence, will see an increase in insurance costs but this is partially offset by a likely reduction in the expenditure as a tenant. 

It is proposed to earmark a further £30,000 in reserves for the new office project.

The proposal to enter into a partnership with a third party to include community banking provision within the new office hub will also derive income to the council.

The Policy and Finance committee felt, that with a continuing cost-of-living crisis, it is increasingly difficult to justify the costs of the Civic Dinner following the Mayor Making ceremony as part of the entertainment budget.

While costs of floral displays came in under budget due to some of the changes made to bedding areas to reduce watering costs, the cost of bedding plants has increased this year.

Provision of £12,921.89 has been made to fund PCC’s increased contract costs to retain the public toilet facilities in Upper Frog Street.

A figure of £13,000 has again been included in the budget to allow TTC to fund PCC to retain current opening hours at Tenby Library going forward.

The finance committee felt that a long proposed project to floodlight the town walls was unachievable in this financial climate without substantial grant funding. It was agreed to pause this project for the foreseeable future and move the £10,000 allocated in reserves to unearmarked reserves.

Members were told that earmarked reserves at the end of next year are estimated to be £251901.67 while unearmarked reserves are some £57,353.49

It is proposed that some £66,303.76 of earmarked reserve funding will go towards budget spend for 2025/26. 

In summarising his budget report, Mr Davies told members: “Council will see that when the Revenue and Capital budgets are combined the total planned gross expenditure proposed is £419,438.91.

“When income and use of earmarked reserves spending is considered, we are left with a net precept requirement of £302,871.33.

“We have yet to be informed of the Council Tax base for 2025/26.

“Based on the Council Tax base for 2024/25 this would see a Band D equivalent precept levy of £85.80 an 8.93% increase.

“Please note that the Band D equivalent is only a rough guide as the base rate may go up or down and it is anticipated that the Council Tax base will be significantly lower for 2025/26 due to the reduction in the Second Homes surcharge,” he added.

Cllr. Laurence Blackhall told his fellow councillors: “What the Clerk suggests, to wait until January to agree the precept requirement, is sensible.

“If our council tax base has fallen by more than 300, we will need to look at the figures again and either reduce our budget or commit more funds from reserves to keep the impact on the people of Tenby to a minimum.

“We want to continue to support our activities, our community engagements, the Augustus Place Community Centre and the De Valence, but we must also realise that difficult times mean difficult discussions and possibly some projects not proceeding.

“We’re already talking about using money from reserves to keep any increase to the lowest possible and may have to utilise more.

“We are fortunate that TTC have managed their monies to be in a position to be able to do this, and have not artificially lowered things.

“If Pembrokeshire County Council managed its finances and increase reserves in the same way over last 25 years, perhaps they would not be in the situation they are today!” he added.

Tenby’s Mayor, Cllr Dai Morgan said: “It is the best it can be - it is not going to get any better.”

The Clerk felt that one budget head that could be considered was the cost of floral displays. Since the budget had been prepared, he had received the costings for next year’s planting from PCC’s environmental services operations manager Neil McCarthy, who said that different scenarios such as dispensing with the flower towers that sit along the South Parade could save over £3,000.

Cllr. Sam Skyrme-Blackhall said: “I have long had an opinion about the flower towers and I think they have had their day.

“We need to be looking at perennials, not plants that are taken out and thrown away every year. We need to look at sustainable plants that are better for the environment.”

Deputy Mayor, Cllr Charles Dales concurred, stating: “The South Parade towers look tired very easily. Our responsibility is to look after the future.

“It is not right spending money on flowers that are thrown away when people are struggling. Wild flowers can look gorgeous.”

The Mayor proposed that councillors accept the budget as proposed and revisit in January to determine the precept requirement; and it was resolved that the recommendations laid out in the Clerk’s report be accepted.