Town councillors voted in favour of a 5.42% rise – equal to 11p a week for taxpayers in Band D properties.
The budget was outlined by town clerk Steve Larner, who explained the challenges in balancing the books due to inflation and uncertainty regarding the coming season..
He told councillors: “The proposed budget includes the previously agreed increase in fees and the expected income for Scarbrough Avenue car park.
" The projected income figures assume that the same volume of tickets per length of stay will be purchased as in 2022.
"At the time of writing no agreement has been reached with East Lindsey District Council officers.
"This is very concerning as it now seriously puts in doubt being able to start the increase from the beginning of the financial year.
"There is also a risk that the level of projected income will only be achieved if there is a successful holiday season for Skegness.
"The impact of not achieving the income will be pressure on reserves in 2023/4 and the 2024/25 precept both in terms of moderating future income
expectations and replenishing reserves to compensate.
"Other income is also vulnerable. As we have seen this year, cemetery income can vary considerably from year to year.
"Whilst income from kiosks may seem secure, should there be a problem it could take many months to resolve. Overall, therefore it is proposed that the vulnerability
represents about 25% of other income.
" Another concern is the level of inflation. The Consumer Price Index (CPI) rate was recorded at 10.7% in December. Only some budget headings have been increased for inflation by 10%. If inflation continues at the current level for any length of time, it will put pressure on the outturn.
“There are still outstanding risks associated with the DEFRA proposals changes to the cemetery regulations as set out last year to do with water quality. Whilst the proposals seem to have been put in abeyance for now, this could change. It is estimated that the unbudgeted risk associated with this could be £12,000.”