Tenby Town Council has agreed its budget for 2023/24.

At the first meeting of the New Year, the town clerk Andrew Davies talked members through his summary of the budget, and outlined what shortfall there would be to be met from reserves if members kept the potential rise in the Band D rate to 6%.

“Council will see that when the Revenue and Capital budgets are combined, the total planned gross expenditure proposed is £389,674.86,” he explained.

“Income is being estimated this year to be £17,447.50 and grant aid through the Enhancing Pembrokeshire Fund of £96,000. With underspent earmarked reserves of £26,156 we are left with a net precept requirement of £250,921.36.

“At the last meeting, when the draft budget was considered, members resolved to look to an increase of the Band D equivalent of not more that 6%. This would mean an increase of the Band D equivalent from last year’s £69.95 to £74.15.

“Based on the Council Tax base for 2023/24, this would generate a precept of £225,143.12 leaving a shortfall of £25,778.24 which members determined should be met through an allocation from unearmarked reserves.

“This will give the council a cushion of £53,153.74 of unearmarked reserves for any unforeseen expenditure,” continued Mr Davies, recommending that the council accept the budget as proposed and consider utilising £25,778.24 or unearmarked reserves to set the precept at £225,143.12.

Discussing the proposals, Cllr Sue Lane said she felt the Town Council needed reserves, stating that they need to be ‘very careful’ about using them, as in the past they had used reserves to help keep the precept down, but had ended up with bigger rises in subsequent years.

Cllr Laurence Blackhall agreed that this was something that they needed to watch closely, but he felt that the Town Council had built reserves up to such a point, that they had sufficient funds to cope with unforeseen circumstances.

“We have to be realistic, some increase is needed, but does it need to cover all proposed expenditure,” he said.

With Cllr Lane suggesting increasing the Band D equivalent by at least 1% more to 7%, Cllr Blackhall said he was mindful that Pembrokeshire County Council may want the Town Council to take over services such as public toilets in the future, and he suggested splitting the difference somewhere with an 8.5% rise.

Mr Davies acknowledged Cllr Lane’s concerns, but the last two Wales Audit audits had picked up on the Town Council’s large amounts in reserve and had suggested that they consider using some to reduce the precept.

Cllr Tony Brown remarked that he felt that this was a tough time for everyone financially, and said that he was happy to support the clerk’s recommendation, as the Town Council had more than enough reserves. Cllr Duncan Whitehurst agreed and felt that they should try and reduce the financial burden on the community.

Cllr Paul Rapi said he felt it was a difficult decision to make, as he felt an increase was needed, as the Town Council needed to be careful that it did not fall being increasing prices.

He said that he had been asked as to what the Town Council was spending this money on. “The people need to know what their money is being spent on. We need to be more sympathetic to their needs,” he remarked.

Cllr Lane said that you’d never please everyone with spending plans.

Cllr Blackhall said that at a recent meeting, he had highlighted the declining Council Tax base in terms of properties due to holiday lets and the like.

“The situation may reverse with new legislation proposed by the Welsh Government and we should monitor this during the next year,” he commented.

Councillors elected to accept the budget as proposed by the town clerk and utilise £25,778.24 of unearmarked reserves to set the precept at £225,143.12 - a rise of £4.20 for a Band D rate.