The BID will be financed through an additional, annual levy that will be set at 1.5% of the rateable value of the business. The levy will apply to all business rates payers with a rateable value of £6,000 or more.
The projected levy income for year one is £236,000 and over five years will mean over £1 million is invested in the projects and services outlined in this plan, to benefit your business. An additional contribution of £160,000 throughout the lifetime of the BID will be received from Bradford Council.
The following chart demonstrates the approximate BID levy businesses will pay:
|Rateable Value||Maximum Annual Levy||Maximum Equivalent Daily Cost|
The levy is an investment. In return for your investment you benefit from projects and services you would not get without a BID. The BID company will be able tell you what you are receiving for your investment; it will be accountable for every pound it receives or generates.
SIZE OF LEVY
The rate of the levy was chosen to be average in comparison with other BID areas, so it doesn’t put too high a burden on business and doesn’t limit the benefits that a BID can deliver. The rates were set following discussion with national advisors on Business Improvement Districts including Boots, British BIDs and the Association of Town and City Management. We also reviewed Business Plans from across the country. The rate of levy has been considered by Bradford Council, as the collecting agent, and is not unusual when compared with BIDS in other towns and cities. Bradford Council is the collecting agent for the Keighley business improvement district levy as the Council already collects other business (non-domestic) rates. This is expected by the rules that govern BIDs.
VOLUNTARY MEMBERSHIP AND ADDITIONAL FINANCE
There will be a voluntary membership scheme for businesses, with a rateable value of less than £6,000 in the BID area so that they too can benefit from BID projects and services. The BID can also seek voluntary contributions, grants and project match funding to deliver even better value for money for its activities. In addition, the BID will also be able to run commercial services or other income generating activities.
“Keighley is a great place to live and visit but business drive and continued improvement is vital for its growth and success. The BID is such an exciting opportunity so although we are exempt from paying the BID levy, I will definitely be making a voluntary contribution to support its plans”
Airedale Enterprise Services
BID GOVERNANCE – NOT FOR PROFIT
A new independent, non-for-profit company limited by guarantee will be established to govern the BID and will be known as Keighleybid Limited. This organisation will have a board of directors, directly accountable to BID levy payers for:
• Effective delivery of the projects and services as set out in the Business Plan.
• Upholding and promoting the BID’s vision and objectives.
The Board will serve voluntarily and will be composed to reflect the make-up of the town’s businesses and organisations. Keighleybid will have the following board composition:
|Entertainment, Hospitality and Leisure||2|
|Commercial and Office||2|
|Shopping Centres||1 (2 if another is built as planned)|
|Further Education College||1|
To ensure continuity, levy paying members of the BID steering group will serve as the Keighleybid Board in year one, and thereafter an annual election will be held where any company member will be eligible to stand for BID board director. If you pay the levy you will be eligible to become a company member.
Bradford Council will be a dedicated participant in the BID Company through one board member (a councillor), which the Council will nominate, for the life of the BID. This member will represent the Council’s interests as a BID levy payer and be a voting Member.
As a levy payer, you will have a stake in the BID company. You will have a say in what the BID funds are spent on and you can hold the BID company accountable throughout the duration of the five years.
The Keighleybid company will not be able to make a profit – any surplus must be spent on projects and services agreed by you and the Board of Directors.
The Keighleybid will also employ a dedicated, full-time manager to ensure the projects outlined in this business plan are delivered effectively and efficiently.
They will be responsible for:
• Being the main contact point between levy payers and the Board
• Delivery and management of the BID Business Plan
• Seeking additional financial contributions towards the BID company
If successful at vote, Keighley BID’s term will commence in January 2016. It will run for five years and then be required to seek renewal through a new ballot.
CHANGES WITHOUT A RE-BALLOT
It is expected that there would be some minor change in delivery as circumstances and experience can cause positive change – this would not warrant a re-ballot. Changes would be signalled at the start of each year. In some instances a major change would lead to a re-ballot of the levy paying businesses i.e. any circumstance that caused the Keighleybid company to become unviable.
KEIGHLEY BID INDICATIVE BUDGET
|Year 1||Year 2||Year 3||Year 4||Year 5||5 Year Totals|
|Income from Levy||£236,000||£236,000||£236,000||£236,000||£236,000||£1,180,000,000
|Additional Income CBMCD||£40,000||£40,000||£40,000||£40,000||£160,000,000
|Additional Income KTCA||£40,000||£40,000,000
|Other Additional Income||£10,000||£10,000||£10,000||£10,000||£10,000||£50,000
|Projects and Services|
|Marketing and Promotion||£104,670||£97,320||£97,150||£97,280||£97,280||£943,700|
|Safety and Security||£46,000||£39,000||£46,500||£44,500||£37,500||£213,500|
|Ease of Access||£40,000||£32,200||£32,020||£32,020||£25,910||£160,150|
|Staff, Accommodation and Administration||£30,000||£30,000||£30,000||£30,000||£30,000||£150,000|
|Levy Collection Costs||£12,000||£12,000||£12,000||£12,000||£12,000||£60,000|
|Bad Debt Provision||£12,000||£12,000||£12,000||£12,000||£12,000||£60,000|
The above table represents an indicative budget based on estimated levy income from the rating list at the time of writing.
Sign up for the latest news, events and offers