Proposed 5-year budget

Most BIDs are for a five-year term and it is proposed that Cheltenham’s BID would be established for this period, operating between 2016-2021 in order to allow the maximum amount of time for projects to become embedded and to generate positive results.

The Cheltenham BID would be run as a non-profit making organisation and so the budget within this Business Plan proposes income as being equal to expenditure over the life of the BID.

The bulk of BID income is derived from the business levy and a prudent anticipated collection rate of 97%. Other BIDs have been proven to generate significant additional income in the form of grants, sponsorships, voluntary business contributions and trading activities as they develop. We are projecting that the Cheltenham BID would generate at least an additional 15% of income by the end of its first 5-year term, creating an additional 15 pence for every pound invested by businesses.

The proposed budget is therefore as follows:

Notes on budget
1. Assumes levy collection of 97%.
2. Contingency has been set at 5%, as per industry guidelines.
3. Year 1 assumes income and expenditure for part of the financial year, as per Cheltenham ballot timescales.
4. Administration and overheads have been capped at 20% to be consistent with industry guidelines.
5. BID levy collection costs have been agreed at £21.55 per unit, which is well within the industry maximum of £35 per unit