Extra £1/2 million council tax income

COUNCIL tax income in Warrington could increase by more than £1/2 million next year because of the number of new homes that have been built and sold.
The calculation of the borough council’s tax base indicates an increase of 505, taking the number of homes to the equivalent of 70,157 Band D properties.
Main reason for the increase is the number of properties sold between September last year and September this year at Chapelford Village, Carrington Park and Regency Park and an estimate of the number of properties that will be sold at Chapelford, Clearwater Quays, Chester Road and Navigation Street during the coming year.
Any increase in the council tax base results in extra income of £1,137 per property.
This will result in additional tax of £547,000.
There are actually 88,178 domestic properties in Warrington. These have been valued by the district valuer and placed in one of eight bands, A to H., according to the price at which the property might reasonably have been sold on the open market on April 1, 1991.
The number of properties are then adjusted for discounts and exemptions and then converted to the number of Band D equivalent properties.
In a report to councillors, chief finance officer Lynton Green says an incorrect estimate of the number of Band D equivalent properties would result in the council having to declare a deficit for 2011-12, adding an additional budget pressure to the 2012-13 financial year.
But Warrington are declaring a collection fund surplus of £400,000 for 2010-11, giving extra income of £337,000, with £43,000 paying to the police authority and £20,000 payable to the fire authority
“As the same prudent method is being followed as previous years it is thought that the risk of declaring a deficit for 2011-12 is very low,” the report adds.