Council seeks over 3% rates increase from local businesses

Offaly"s county manager has proposed a commercial rate increase of 3.2% in the Offaly County Council draft budget for 2009. According to Pat Gallagher there is a clear need to increase council income generated from commercial rates especially as the local government fund has been cut by almost €1 million. He said that Offaly"s commercial rate for 2008 ranked 28th out of the 34 local authorities. The 3.2% increase was 20% lower than the current rate of inflation at 4% and would bring in an extra €243,200 in revenue for the council next year. Offaly County Council will discuss the final draft of the 2009 budget at a meeting next Monday December 15. Mr Gallagher said that the council had to frame the budget 'in the context of this general economic climate'. The Department of Environment, Heritage and Local Government reduced the local government fund grant to the council by 5.8% or €997,331 for next year. It now stands at €16,225,526. The council estimates that the net expenditure for 2009 would be €24,597,802. When the local government grant is deducted, it leaves the council with a deficit of €7,871,276 which it must claim back through rates levied. The Department also required the council to reduce payroll costs by 3% or €728,000 and implement a 50% reduction in advertising, consultancy and public relations expenditure. According to Mr Gallagher, the council needs to reduce the payroll costs by a further 1.4% which equals a total of €1.2 million to meet budgets. Some permanent council posts will not be deferred or not filled, overtime will be severely curtailed, temporary contracts will not be renewed and staff on leave will not be replaced. Mr Gallagher said it was likely that the reduction in financial and human resources will impact on the delivery of some of the council services. 'Some will be obvious at an early state, for example curtailment of overtime on county roads programme, while other will be less clear initially... However it is important that management, staff and elected members stay focused in these times of challenge,' he said. Here"s a roundup of other proposals. Water Increased estimate for water services in 2009 is due to the mainstreaming of the water conservation initiative and also the provision for new legislation. Demand for water supplies and wastewater treatment will increase. There will also be increasing energy costs. Landfill The council expects the EPA to grant the increase in tonnage capacity from 40,000 to 100,000 per annum at Derryclure. This will cost €929,000 extra to monitor and manage the site. Planning and Gateway Planning permission applications were down by 50% in 2008, the council expects a further 50% reduction in 2009. No funds were allocated to Tullamore under the Gateway Innovation Fund in 2008. Capital Spending/Development Contributions Due to the recession and falling planning permission applications, the council is certain of a substantially reduced level of income in this area in 2009. Housing/Social/Community The council has received the same amount of €408,000 in Disabled Persons Grants. The total gross expenditure in the council"s budget for 2009 is €2.04 million, up from €1.224 million in 2008. Regulatory and Compliance Costs Resources to deal with regulatory compliance costs in areas such as health and safety, water and wastewater and environment were not included in government funding. Many of these regulations carry the threat of criminal conviction for non-compliance. 'It is getting more and more difficult for us as a local authority to continue to absorb this extra activity without the appropriate funding and resources,' said Mr Gallagher.