“Bite the bullet,” Biggleswade Town Council were urged ahead of a close vote over its share of council tax.
Town clerk Peter Tarrant presented a report recommending a nine-and-a-half per cent rise for Biggleswade residents, as part of becoming “a more modern and progressive council”, according to a report to a town council meeting.
The increase will be 28p a week for a Band D property, compared to 38p a week last year, with a budget of £1,289,691 for 2021/22.
Final bills will include Central Bedfordshire Council’s contribution, which is expected to rise by around five per cent, as well as police and fire precepts.
“Biggleswade aspires to be the best town council in the UK, said the report.
“This is a significant challenge and needs to be properly resourced.”
The level of general reserve is currently below the minimum level required, it added.
“A council of Biggleswade’s size should set aside a minimum of three months net revenue expenditure.”
Councillor Hazel Ramsay, who chairs the council’s finance and general purposes committee, said: “The Orchard Centre has been closed resulting in lost revenue, after money was spent improving it.
“The car parks have been free of charge to encourage people to visit the shops which remain open, while Rose Lane car park needs work to prevent flooding.
“And we pay costs for the ongoing neighbourhood plan, which is vital for the town.
“We owe it to residents to have a town council which is fit for purpose, after the population growth during the last three decades from around 9,000 to 20,000 plus eventually.”
Councillor Duncan Strachan warned: “We’ve got to bite the bullet and take that action. The only source of income we can rely on is the precept.
“Much as I don’t want to, I will be supporting the higher increase because of so many unknown factors.”
All three voting options assumed “the council will divert £100,000 from its rolling capital fund to the general reserve”.
The council’s strategic aims over the next five years will be developed in a new corporate plan.
Councillor Rob Pulinger said: “At the end of a difficult year, a deficit of £27,500 is forecast, so I don’t think we’ve been adversely affected as a town in the circumstances.
“Until we know what we want to do with the money sitting in our bank account, we shouldn’t be taking more funds from our residents.”
Hoping for further savings, councillor Mark Knight said: “My prime concern is delivering value for money for Biggleswade residents.
“When so many families are struggling financially, we should be looking to freeze council tax.
“We’re leasing rather than buying a new depot and we’ve few capital expenditure plans.
“All these financial pressures add up when many household incomes are frozen or in decline.”
Councillor Colin Thomas said there was no reason to suggest why they should be spending more money this year.
“We’re not here to save money just in case something happens,” he explained.
Councillor Kevin Brown agreed, saying the lower option was the logical argument financially.
Approving the higher precept rise, with eight votes in favour, six against and one abstention, councillors also supported other financial recommendations from the town clerk.