THE cost of hiring Great Coates Village Hall could be increased as councillors seek to overcome an £8,000 shortfall in the budget.
Interim clerk to the council, Dave Jackson, said the council's budget was "barely viable".
An interim report was delivered by Mr Jackson just weeks after another one into the state of the council's accounts found a number of failings.
At the latest meeting of the village council, Mr Jackson said: "The council has been left with a legacy it cannot afford."
He told how a business rate was initially budgeted for at £1,200 but turned out to be £5,300.
He said improvements had been made and new procedures implemented since the previous report.
However, the council has been left with an £8,000 gap as the budget was set at £50,645, but the precept on villagers was fixed at just £42,300.
Councillors were told there was only £3,000 in reserves.
The biggest costs the council faces include restoration of the village war memorial, the village newsletter and a caretaker for the hall.
Mr Jackson said: "The council is going to struggle over the next few years if the hall cannot generate substantial sums.
"Additionally, even if the war memorial can be reinstated with grant income, it is still unclear how there will be sufficient surpluses in the next few years to build up any realistic reserves.
He recommended increasing the hall hire fee to £15 an hour in line with other villages and towns.
Regular, long-term hiring for activities and commercial groups is currently £12 per hour.
For village groups and not-for-profit organisations, the cost is £15 per session up to a maximum of three hours, or £7 per hour for individual one-hour slots.
A volunteer clerk is also being sought to avoid paying clerk costs.
Mr Jackson said: "While it is not impossible, it will be very difficult for the council to continue to function properly without additional reserves and without an increased revenue stream. The precept has been raised to an historically high level and while it is not significant when interrogated as a part of the total bill, I sense that there is little appetite to raise it again.
"Sadly, though, there will be little option if the council wishes to operate independently in the future."
A decision is expected to be made at the next parish council meeting in August.
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