South Kesteven District Council to borrow £10 million
South Kesteven District Council is to borrow £10 million to help fund its housing and economic ambitions.
The borrowing for 2019/20 is revealed in proposals for the district council’s annual budget, which come before councillors on Thursday.
Members of the Budget - Joint Overview and Scrutiny Committee are also recommended to approve a maximum £5 increase (3.25 per cent) in council tax without triggering a referendum under government legislation.
Parking charges and penalties, market rents, building control charges, green waste charges, fixed penalty charges would be frozen.
But inflation-based rises are proposed for charges covering the use of arts centres, planning and pre-planning charges set locally, outdoor recreation, and cemeteries.
The move comes as SKDC faces a nine per cent cut in central government grants from £6.425m in 2018/19 to £5.862m in 2019/20.
SKDC would have a net spend of £13.78m in 2019/20 compared with £15.376m in 2018/19 and £13.173m in 2020/21. Council tax income would rise from £7.146m in 2018/19 to £7.815m in 2020/21.
InvestSK, its regeneration company, would to receive around £1.36m a year.
Some £500,000 a year would go into ‘base housing budgets’ from 2019/20, and an assistant chief executive for housing recruited. The ‘Capital Programme’ spend would be £12.67m in 2019/20 and £14.214m in 2020/21. Borrowing of £10m in 2019/20 is proposed to help fund this.
A housing budget of £16.489m is proposed for 2019/20, with £15.113m indicated for 2020/21 and £13.796m in 2021/22. This would be for repairing existing houses as well as funding new.
The budget report added: “To accelerate the ambitions of the Housing Revenue Account and a stepped increase in the new build programme, it is proposed to include in the programme a significant allocation of £15m capital expenditure over the (three year) period of the programme for the HRA to procure strategic sites across the district where there is an identified need for housing development.”