VALE residents are facing an average council tax rise of around 3.9 per cent for the forthcoming year, should councillors approve the proposal next month.

The rate, for a Band D property of £1,069.56 would mean an increase of £40.14 over the year.

The Vale Council increased the council tax by 4.5 per cent in the financial year 2014/15 and 4.8 per cent in the year 2013/14.

The council requires £59.874m to be met from council tax.

The report put before cabinet members, at their meeting on February 23, said: “The average of the council tax set by councils in Wales for 2014/15 at Band D was £1,042.58, whilst the Vale’s was £1,029.42. The Budget Working Group’s view is that the proposed increase in council tax at 3.9 per cent is a reasonable compromise between the pressure on services, particularly in light of the significant reduction in Aggregate External Finance and consequent level of savings required and the financial pressures facing council taxpayers.”

The proposed budget uses £2.5m of the Council Fund Reserve and the estimated balance on the Council Fund at March 31, 2016 is £8.9m.

The report added: “The use of reserves for funding recurrent expenditure is clearly not sustainable. Given the level of savings already identified and the lead time for their implementation, it is, however, anticipated that repayments to the Council Fund Reserve will not commence until 2016/17. With the proposed strategy, it is currently estimated that by 2017/18 no use of the Council Fund Reserve will be required.”

The Vale Council has to make £32.4m of savings within the next three years.

The proposal will be considered at the full council meeting on Wednesday, March 4.