Business Improvement District Development Study - Merthyr Tydfil ...

Merthyr Tydfil Business Improvement District Development Study
Spatial profiling and financial modelling
Determining the optimum configuration of area, charge and programme is
a very complex exercise with a potentially infinite number of options. In
order to make the process more manageable and more objective we have
introduced a number of analysis techniques.
The charge itself involves consideration of a number of variables:–
the levy rate and how its applied, To date most BIDS have
decided on a percentage of Rateable Value
the decision as whether to introduce a rateable value threshold
below which properties are exempt
the decision as whether to introduce a cap i.e. place a limit on the
maximum a single occupier will pay regardless of the size of the
RV
the decision as whether to introduce concessions e.g. those that
apply in the consideration of mandatory and concessionary relief
from National Non Domestic Rates such as applies to charities
Ballots in different parts of the country have been fought on a range of
rates with 1% being the most common. British BIDs, working with the
Inter Bank Forum, British Retail Consortium and others, has been
involved in an attempt to standardise this levy rate nationally. This pays
little regard to the different programmes and locales in which they apply.
The table below illustrates summary financial data for the proposed BID
area. It indicates projected outturn for the whole area across a range of
multipliers and applies this to number of possible thresholds that might be
applied.
No cap / £5,000 £5,500 £6,000
threshold threshold threshold threshold
No of
hereditaments 423 291 274 266
Total RV 11,213,106.00 10,881,000.00 10,792,300.00 10,746,700.00
Levy @ 2.00% 224,262.12 217,620.00 215,846.00 214,934.00
Levy @ 1.75% 196,229.36 190,417.50 188,865.25 188,067.25
Levy @ 1.5% 168,196.59 163,215.00 161,884.50 161,200.50
Levy @ 1.25% 140,163.83 136,012.50 134,903.75 134,333.75
Levy @ 1.00% 112,131.06 108,810.00 107,923.00 107,467.00
30