Hire rates for the new hall facilities – an explanation

During the last few Community Council Meetings the subject of the charge rate for the new hall facilities has attracted significant attention. The Strathdearn Community Development Company (SCD) are now in a position to publish the proposed charge out rates for the use of the various amenities. You will note from the following table that there has been no significant increase in cost, as feared by some members of the community. It should also be noted that these rates also include VAT

We would also like to take the opportunity to explain why it is necessary to make a charge and how these charges have been derived. There are three main elements to the charge:-

1. As is currently the case with all community halls and public buildings a charge is necessary to cover the basic costs relating to operating services (electricity, water, etc.), cleaning and maintenance, rates, etc ., as well as the ongoing need for asset replacement, repair and maintenance.

2. Contrary to public belief – the wind farm community benefit is not a gift, it is a grant. A gift comes with no conditions, a grant is provided under the proviso that certain conditions are complied with. Wind farm operators receive tax advantages from their community benefit contributions, so they and other funding bodies stipulate that:

• their funds should be invested in projects that demonstrate progress to financial viability;

• their funds are not intended to deliver benefit to individuals, unless defined under charitable purposes like education, health etc.

Consequently we are under obligation to levy a charge to individuals and user groups who wish to use the facilities. However where an event is organised for and is open to all members of the community (e.g. a dance, ceilidh, concert, etc.), then the charge may be waived provided all proceeds rest with the community (i.e. any profit made belongs to the community body)

3. In order for the SCD to reclaim the 20% VAT on building construction, HMRC advised the SCD that it was necessary to apply the market chargeable rate for all aspects of hire which includes VAT.

The detail behind these arrangements has been the subject of extensive and transparent discussion within the community over the past seven years. Over this time, there have been reports to every Community Council meeting, monthly public meetings of the development company, AGMs, special meetings, user group consultations, Newsletter articles, web site papers and Facebook postings.

In order to enable the viability of the new hub, fairness to everyone and compliance with financial conditions and charitable status, reasonable charges must be applied. IV13 residents will get a local rate – little different to charges for the current hall – for vastly improved facilities.

It is worth remembering that charging was always applied to the ‘old’ village hall (long in poor repair and condemned on Health and Safety grounds) and are still applied on the Millennium Hall, which is too small for many events. Compared to charges for public buildings levied by Highland Council and commercial venue charges, rates for local users of our high-quality new community facilities are modest.

Several years ago community consultation across the Strathdearn area by the Conservation and Development in Sparsley Populated Areas (CADISPA) charity highlighted that the two most important requirements by the community were a new community hall and affordable housing. The SCD has delivered the hall and are currently addressing the need for affordable housing.

The SCD recognise that there may still be members of the community who would like to discuss the rates or wish to know more about how these were arrived at, consequently a public meeting will be held later this month primarily to address the matter. A date for the meeting will be published on the website in the coming ten days and notice posted in the shop and Millennium hall.

[If you cannot easily view the table below, CLICK HERE for the PDF version]