Rates freeze as council plans cutbacks

Preparing a balanced draft budget for 2011 was “extremely difficult†due to the constraints on the council's income, according to the Offaly County Manager. “The last three years have been very challenging. I envisage that 2011 will be more challenging,†said Pat Gallagher, in his budget address to councillors. Councillors are meeting to discuss the draft 2011 budget on Monday. Mr Gallagher said that the council had prudently managed its finances to date, meaning there was no current burden of a significant financial overspend. The Local Government Fund has been cut by 8%, or €1.249 million, bringing it down to €14.139 million for 2011. This accounts for just under one quarter of the council's income. In total, Offaly County Council has a budget of €60.9 million to spend in 2011, a decrease from €2.3 million from last year. It has estimated an annual income of €36.7 million, a drop of €400,000 from last year. However, businesses throughout the county will breathe a sigh of relief to hear that the county manager is proposing a commercial rates freeze for 2011, the third year in a row. Councillors look certain to approve this on Monday. WATER There will be a cut of €537,000 to water services within the county - down from €5.8m in 2010 to €5.5m in 2011 for water supply costs, while waste water treatment costs will be cut by €233,000. Meanwhile, Mr Gallagher said that the council is obliged to collect outstanding monies owed from the commercial sector for water and sewerage services. FIRE SERVICE There are also cuts proposed for the fire service, mainly to the fire services training and operation of the fire brigades. The council will spend €2,974,263 on the fire service in 2011, down from €3,229,138 last year. This will be a disappointment to the many campaigners who were hoping to keep the stations in Daingean, Kilcormac and Banagher open after they were stood down last year. But the council said that extra funding would be impossible to find - or result in other vital services being affected. “Given the overall budgetary situation of the council, and the call on resources from other council services, it will be extremely difficult to consider making additional financial provision in this area,†said Mr Gallagher. If the cuts to the fire service budget are adopted within the council budget, then the draft Fire and Emergency Operations plan will also be adopted. This plan will only include services from the five stations that remain in operation. ROADS Mr Gallagher said the council's road programme will be “severely curtailed†in 2011, because the Department of Transport has revised the rules on road grant expenditure, meaning that certain expenditure that was previously eligible is now ineligible. “The financial effect for Offaly County Council we estimate will be approximately €500,000, which we must absorb from our own resources,†he said. The Road Maintenance Grant, which is allocated by the Department in early 2011, has been cut significantly over the past three years. In 2008, Offaly County Council received €43.9 million. In 2010, the council received €15.8 million.