As previously reported, the current cemetery on Boston Road is nearly at capacity - and there are only enough free grave spaces remaining to last for approximately another two years.
It is anticipated that the new cemetery will have enough grave spaces to serve the community for at least 200 years.
A spokesman from Horncastle Town Council said: “We’ve purchased the field adjacent to the Horncastle Community Woodland off Scrivelsby Road and have been granted planning permission to change the land into a new burial ground.
“This will give provision for full burials, ashes burials and a green burial area.
“All the work that has been carried out to date, including the purchase of the field, has been paid for by Horncastle Town Council’s capital reserve.
“But there are insufficient capital reserves to complete the work to create a new cemetery.
“The work includes creating a woodland driveway and internal parking area, constructing a cemetery store and toilet building, and resurfacing the main entrance car park.”
The town council is proposing to seek a loan of £110k which will be repaid over 50 years.
A spokesman from Horncastle Town Council explained: “This will be fixed rate loan and the current rate of interest is around 2.5 – 3%.
“The cost of the loan repayments has been included in the Town Council’s 2019/20 budget, up to £5,000 has been allowed, but if approved, the future loan repayment method will be agreed by the new Council who were elected in May.
“Repaying the loan over 50 years will enable the cost of the new cemetery to be shared with future residents of the town, rather than current residents bearing the financial burden.”
Town residents have until Friday, May 31 to complete an online survey which is available at www.horncastletowncouncil.co.uk/cemetery-survey
Paper copies of the survey are available from Horncastle Library and the Horncastle Town Council office, in Stanhope Hall.