LEVY RULES, GOVERNANCE, AND BUDGET

In developing the rules that will apply to the BID, consideration has been given to The Business Plan Criteria for BIDs (2022) published on behalf of levy payers by British BIDs.

The Ballot

1. Maidstone Borough Council will send those responsible for properties to be subject to the BID a ballot paper on or around 30 May 2023.

2. Each property or hereditament subject to the BID will be entitled to one vote in respect of the BID Proposal in a 28-day postal ballot, which will commence on 2 June 2023 and conclude on 29 June 2023.

3. Ballot papers received after 5pm on 29 June 2023 will not be counted.

4. The declaration of the ballot result is due to be announced on 30 June 2023.

5. In order for the proposal to be successful at ballot the result will need to meet, as a minimum, two independent criteria which are: a) of those ballots returned by the close, those voting in favour of the proposal must exceed those voting against it; and b) of those ballot papers returned by the close, the total rateable value of those properties or hereditaments which vote in favour, must exceed the total of those voting against.

6. If successful at ballot, the BID will commence delivery of services on 1st October 2023, and will continue for a period of five years to 30 September 2028.

The Levy

1. The BID levy will apply to all persons or organisations liable to pay the non-domestic rates for eligible hereditaments located within the BID area.

2. The levy rate to be paid by each property of hereditament is to be calculated as 1.8% of its rateable value as at the ‘chargeable day’ (1 October each year).

3. All properties or hereditaments with a rateable value of £15,000 or more will pay a levy.

4. The number of properties or hereditaments liable for the levy is approximately 529.

5. From the second year of the BID term the levy rate may be inflated by the prevailing Consumer Price Index as of 30 June in that year. For the purposes of budgeting a rate of 3% per annum has been assumed from year two to the end of the term.

6. The levy will be charged annually in advance for each chargeable period from October to September each year, starting in 2023. No refunds will be made.

7. The maximum amount payable for any one hereditament is to be capped at £12000 and may be inflated by the prevailing Consumer Price Index as of 30 June in that year.

8. The ratepayer for any untenanted properties or hereditaments will be liable for payment of the levy, meaning the landlord (or their representative) in most instances.

9. The BID levy must be paid by any new ratepayer occupying an existing eligible non-domestic rateable property within the BID area on the chargeable day up until the end of the five year term, even if they did not vote in the ballot. Any new eligible rateable business hereditament created during the lifetime of the BID and situated in the BID area will be obliged to pay the levy on the next chargeable day. Any business whose rateable value changes due to alterations will be charged at the new rate on the next chargeable day.

10. Occupiers within The Mall, Fremlin Walk, The Royal Star Arcade, and Lockmeadow Entertainment centres that are subject to a service charge will pay 1.3% of their rateable value.

11. Charitable organisations that are subject to relief on their business rates liability may apply to the BID Board for a reduction and will be considered on case by case basis.

12. Maidstone Borough Council will be responsible for the collection of the levy. The collection charge to the BID will be £17,000 per annum

Governance

1. The BID Proposer is Maidstone Business Improvement District Limited t/a One Maidstone, the established BID company. The BID will be operated by Maidstone Business Improvement District Limited t/a One Maidstone (Company number 11166750) a not-forprofit organisation, limited by guarantee.

2. The Directors of the Board shall continue to be primarily made up of representatives of levy paying businesses and, where necessary, will include non-levy paying representatives where additional expertise is required. The Board will have responsibility for governance matters such as financial arrangements, contractual obligations, human resources, standards, performance, and compliance.

3. Directors of the Board are appointed by invitation and are selected based on suitability relating to sector representation, diversity and approved by the board.

4. Maidstone Borough Council, Kent County Council and Kent Police shall maintain representation on the Board, as agreed, in a non-voting capacity.

5. The Board shall meet no less than quarterly and shall appoint a Chair annually.

6. The Board shall form such sub-groups that from time to time become necessary.

7. Provided that the BID is meeting its overall objectives, the Board shall have the ability to vary service delivery and expenditure allocation according to the changing demands of the levy payers. However, any change to the BID boundary or to the levy rate proposals, such that they impact negatively upon any levy payer, would require a formal Alteration Ballot.

8. The Company shall meet with the Council, as the Billing Authority, quarterly to monitor service delivery, levy collection and financial management issues.

9. Directors representing levy paying businesses will also be Members of the BID Company.

10. The BID will file annual accounts with Companies House. The accounts will be available to all levy payers. An annual general report on activities, including finances, will be published. A financial statement will be distributed to businesses along with the BID levy invoice annually.

11. An Annual Meeting for Members and levy payers will be held.

12. The project delivery and functioning of the BID will be monitored by the Board of Directors and also by the Advisory Group. A wider BID Advisory Group acts as a scrutiny group and will meet no less than annually. Its members make up a cross section of sectors represented within the BID boundary; participants are invited to join based on their involvement with certain sectors or for their specific areas of expertise.

13. Levy payers will be kept apprised of the progress of BID projects via regular and ad-hoc email news updates and seasonal publications. An annual survey will also be conducted to monitor the opinion of the levy payers.

14. An Operating Agreement, which includes the Council’s Baseline service commitments, has been agreed with

Maidstone Borough Council. A copy can be found at One Maidstone.com

15. Notification of the intention to hold a ballot was sent to the Secretary of State on 16 January 2023.

Finance

1. A cautious approach has been adopted to budgeting for the BID term.

2. A levy collection rate of 95% has been assumed.

3. The average annual levy available to be spent by the BID for the term is approximately £533,239.

4. If the BID generates a surplus, it will be carried forward for project delivery with some being used as a contingency provision.

5. Carry forward of reserves from the first term reflect Covid restricting some activities that will be carried into the next term for frontline project delivery. The carry forward figure also incorporates additional funding secured late in the first term for Safer Streets and town centre events activities alongside mitigation cost for closure that in the instance of a successful ballot will also be carried forward.

6. Included within the budget is additional income, primarily evidenced by the historic performance of the One Maidstone Business Crime Reduction Partnership with on-going membership fees being applicable to non-levy paying members of the partnership. This is equivalent to approximately 9% of the estimated levy to be collected but cannot be guaranteed.

7. Any other business wishing to become an Associate Member of One Maidstone BID can do so in addition to the Crime Reduction Partnership.

8. Operating costs of the BID are estimated at approximately 20% of total expenditure.