COLNE Town Council is consulting with residents on borrowing £250,000 to avoid increasing the levy it charges them on top of council tax.

Its chief executive Colin Hill said: “People may appreciate that among the many services we have taken on from Pendle Borough Council are Alkincoats Park, the Grade II-listed Town Hall and a number of playground sites.

“The day-to-day cost of running all the services by Colne Town Council, without a very large increase in precept charge, means there are insufficient funds available to deal with some of the assets that now need substantial further investment.

“To deliver such improvements, and keep their finances on a proper footing, town councillors have agreed to borrow funds to enable them to continue to deliver improvements for the residents of Colne.

“It is anticipated a total borrowing requirement of £250,000 will be needed.”

The consultation on the town council website runs until March 10.