Non Monetary Contracts

There are currently no non monetary contracts.

Kings Hill Parish Council Loans

An Introduction to Parish Council Borrowing

 

  • A parish council may borrow funds but will normally require the formal written approval of the Secretary of State.
  • Councils wishing to borrow will have to get in touch with the County Association, whether a member or not, to discuss the proposal and to obtain the Application Form for the Approval.
  • Borrowing must be for a specific, generally capital expenditure, purpose detailed on the Application and in a Report to Council.
  • Approval is required and no mortgage or charge on property is allowed.
  • The Council will be required to demonstrate to the Secretary of State that the repayments are affordable and that the Project costs being supported exceed £5 per elector.
  • If borrowing is being considered, the Clerk and Chairman should contact the County Association office as early as possible. Any formal decision to apply for and to exercise a borrowing approval has to be made by the Full Council meeting and not by a Committee.
  • Usually loans are taken from the Public Works Loan Board (PWLB) at rates of interest that are very competitive. A parish council is a first class borrower based on the security of the council tax revenues. PWLB also understand the statutory position of the Council.

 

 

Loan A

This loan was taken out on 11th July 2002 in the sum of £115,00 for a term of 25 years. 

The interest rate is fixed at 5.25 %.

The final payment will be on 11 July 2027.

The loan was for the youth extension to the community centre. 

 

Loan B 

This loan was taken out on 12th July 2006 in the sum of £500,00 for a term of 25 years. 

The interest rate is fixed at 4.75 %.

The final payment will be on 11 July 2031. 

The loan was for an extension to build parish council offices at the community centre. 


Loan C 

This loan was taken out on 29th January 2021 in the sum of £60,000 for a term of 12 months. It is to be repaid in two tranches from the 2021/ 2022 precept.

The loan was to aide cash flow due to the loss of income resulting from the Coronavirus pandemic and national lockdowns.

 

Public Work Loans Board Audit Statement 31st March 2021