The City Council is the lower of a two tier level of local government in Hereford. It does not have a large bureaucratic or departmental structure so our financial resources can be directed where they are most required. The Council has set a detailed and balanced budget with no calls on its general contingency fund reserve.

The net revenue budget is funded from an annual charge (Council Tax) on local households and Council Tax Support Grant. The City Council makes a mandatory demand on Herefordshire Council in the form of a precept. A precept is a charge by the parish council for the principal authority to collect income from Council Tax payers on their behalf. The precept is then collected by Herefordshire Council as part of the Council Tax levied on taxpayers in the parish. Herefordshire Council pays the precept to the City Council in two instalments. The demand will be paid in full regardless of the collection rate of the principal authority.

The taxpayers in the City receive a combined Council Tax bill, which will include the charges for Herefordshire Council, the Office of the Police and Crime Commissioner for West Mercia and the Hereford and Worcester Fire and Rescue Authority, along with the City Council.