Brent Knoll Parish Council has this week agreed in principle to proceed with a new Toilet Block and Village Shop project to replace the old toilet block that has reached the end of its useful life.
The decision will be finalised at a meeting later this month, subject to financial and reference checks on the preferred tenderer and completion of the agreement to lease with the Community Shop Committee.
The council has also this week explained in detail the finances of the project following much local discussion about the cost of the work and the impact on local residents’ council tax bills.
The council says: “Costs incurred to date, including planning, architect’s fees and legal fees, amount to £12,600.”
“Other costs include: Cost of Build – £222,000; Other Fees, including Project Management, Legal, Building Regs, etc £14,300 to a total of £249,000.”
The Parish Council has also
explained how the costs will be met.
It says: “The Parish Council consulted the parish on obtaining a loan for £160,000. The council has Community Infrastructure Reserves of approx. £36,800.”
“Specific Funds were set aside in this year’s budget and next of £13,700. Payments already made for works to date £12,600.”
“The shop will be paying for the works for the shop fit out etc approximately £26,000 making a total of £249,000.”
“There has been discussion as to the impact on residents’ Council Tax Bills and interest payments.”
“The Loan of £160,000 is to be sourced from the Public Works Loans Board. This will be repaid over 25 years and is subject to interest payments.”
“The interest rate is fixed at the time the loan is taken out. Based on the interest rate from Wednesday (rates change daily until the loan is drawn down) the annual cost would be approx. £11,700.”
“The Parish Council already has built into its 2023/4 a budget of £11,200, so that is already factored into council tax levels and does not need a significant change.”
“It has been calculated that over the 25 years, based on the repayments, the total amount of interest incurred will be £132,500.”
“However, it is worth also noting, that based on the agreed lease with the shop over the 25 year period the shop will pay some £106,000 in rent (and that is if the rent is capped after 5 years).”
“The Toilet Block needs replacing, the proportion of the project required for the toilet block is approx. 35-40% of the total costs.”