This article is from page 17 of the 2011-12-20 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 17 JPG
MEMBERS of Ennis Town Council last night adopted a budget amid concerns that a continued drop in the amount of money collected from commercial rates could lead to an “across the board” cut in services next year.
The comments came as councillors agreed to maintain the current level of parking charges (€ 1.30) and commercial rates (€ 65.45).
The council will spend an estimated € 12,166,958 in 2012 despite an 8.98 per cent cut in the local government fund allocation. In his annual report, Town Manager Ger Dollard states that the council’s three primary income sources – grants, rates and parking charges – “have been under sustained pressure”.
Mr Dollard told the meeting that the rate of collection of commercial rates currently “falls below what is acceptable. He said that unless the council examines more ways of collecting rates, “there will be a serious impact on the services we can provide”.
Mr Dollard said rate collection currently stood at 60 per cent, down significantly on the desirable 85 to 90 per cent rate. Pressed by Green Party councillor Brian Meaney on what services could be cut given the difficult retail environment forecast for 2012, Mr Dollard said services would have to be cut “across the board”.
However Mr Dollard added that there was no element of panic about the issue at the moment and that the council expected to run a surplus in its end of year accounts.
Cllr Meaney said he was not seeking to scare local authority workers with stories of New Year cuts.
Cllr Tommy Brennan (Ind) said, “I would appeal to rate payers, if they can pay, to pay for their services they are getting.” The meeting heard that income from parking charges fell significantly in 2011.
Mr Dollard stated, “The increase in parking charges in 2011 by 10c to € 1.30 was designed to partially recover the VAT increase. In my report on the budget 2011, I advised council that they would need to revisit the issue in the budget for 2012 to full the bridge the income loss in the area.”
He continued, “It is clear that that wider economic environment has continued to deteriorate and parking income will be significantly below budget this year. In the current business environment the option of further increasing parking charges in 2012 to recover the VAT element is not realistic. In addition the increase in VAT rates from 21 per cent to 23 per cent in the national budget imposes a further cost on the council in 2012. This 2 per cent VAT increase will result in an estimated additional cost on off-street parking of € 12,000.” Mr Dollard explained that the council, in conjunction with the local business community, had engaged in a number of initiatives aimed “stimulating economic activity” and promoting the town.
He continued, “It is clear that communication of the parking offer with- in the town to the wider public needs to be strengthened as there would appear to be a lack of awareness of the long term parking options.”
The budget for parking income and fines for 2012 of € 1,324,000 shows a reduction of € 184,000 over 2011.
In the area of commercial rates, Mr Dollard states that the council intends to maintain the commercial rate for 2012 at the level adopted in 2009.
He said, “The general rate on valuation proposed for 2012 is € 65.45. At the present time there is no buoyancy in the valuation base and the number of vacancies is a cause for concern.”
Mr Dollard also told the meeting that the € 100 household charge would not have any impact on the council’s budget.