This article is from page 10 of the 2011-09-20 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
KILRUSH Town Council has warned that “difficult decisions” will have to be made if the local authority is to ensure that it plays its part in the timetable laid down by the IMF for Ireland’s National Recovery Plan.
This warning has been sounded out by Kilrush Town Clerk John Corry in a comprehensive financial report for the year up to June 30, with some ratepapers described in the west Clare capital described as “very problematic”.
And, by way of confronting the problem of unpaid rates that are now running at an unprecedent level of 69 per cent, the council has warned that it may be forced to pursue people through the courts.
“The report highlights issues of concern in relation to the overall funding of Kilrush Town Council,” said Mr Corry is introducing his report. “Payments by customers continues to be very problematic. Rates collection at 30th June, 2011 stood at 31% in comparison to 39% at 30th June, 2010.
“Kilrush Town Council is dependent on rates income to maintain its operations as it represents 38.4% of Annual Income. The slowing payment pattern highlighted above has resulted in a considerable negative impact on cash flow.
“Kilrush Town Council is acutely aware of the commercial difficulties which rate payers are experiencing, and has adopted a practical approach in terms of payment plans to facilitate rate payers. However, where customers fail to engage to deal with amounts outstanding, recovery of the debt by legal means becomes necessary,” said Mr Corry.
The Town Council’s financial situation, brought on by unpaid rates has been exacerbated by a sharp rise in the arrears in housing rents in the first six months of the year as compared with the corresponding period last year.
“Arrears in housing rents have increased significantly since the beginning of the year,” reported Mr Corry, added that “rent collection at June 30 was 80 per cent in comparison to 87 per cent at the end of June, 2010. This increases reflects the current economic climate, but also impacts on cash flow to Kilrush Town Council”.
And, it’s the council’s warning that the Government “circular 3/2009 requires every local authority to ensure that its revenue account remains in balance for 2011 and consequently total expenditure must equal total income” that has opened up the live possibility of legal action being taken to ensure the books are balanced.
“This report highlights the difficulties that are facing Kilrush Town Council as we embark on the 2012 budget preparation process,” said Mr Corry. “Performance against budget is constantly monitored and managed. Difficult decisions have to be made to ensure that our current deficit can be eliminated,” he added.