County to decide on Local Property Tax next week

Councillors have until September 30 to vary the basic rate of the LPT up or down by 15%.

The Department of the Environment has indicated that the total LPT expected to be received by the Council is €14.5m – of which €11.6m will be retained locally. The value of a full 15% increase or reduction would be €2.18m.

Income for 2017 is forecast to be €500,000 lower than in 2016. Current estimates of expenditure for 2017 is put at €107.1m, an increase of €2.2m over the 2016 budget, which includes additional payroll costs arising from national pay agreements, additional costs due to a reduced head count being funded by Irish Water and an increase in the provision for vacant rate properties.

“The overall budgetary position shows that changes such as reduced income, increasing costs and areas of activity, and the need to make further provision for vacant commercial property means that there is a clear requirement for increase income as in the alternative services will be reduced through significant expenditure reductios in order to achieve a balanced budget,” according to a report circulated to councillors in advance of this month’s meeting.

“The cumulative deficit to the end of June 2016 stands at €1.8m. This deficit will most probably increase in size from mid-year arising from among other things, a requirement for an increased provision for vacant or uncollectable rates. The local government auditor has again highlighted the importance of addressing the deficit which is particular challenging in the current economic climate.”

A 1% variation in the base LPT rate would result in an increase of 90c per year for one third of properties; €2.25 for another third valued up to €150,000 and €3.15 for a quarter of properties.

A jump of the full 15% would add €47.25 a year for households.

Not one submission was received by the Council when it sought public feedback on a variation to the LPT.

Fianna Fáil Councillor Mary Hoade said before a decision would be made by the chamber, the majority had agreed to seek meetings with a number of ministers to see if it was possible to secure more central funding to address the serious shortfall in Council coffers.

They planned to meet with the Minister for Housing, Planning and Local Government Simon Coveney, Minister of State for Gaeltacht Affairs and Natural Resources Sean Kyne and Minister of State for the Office of Public Works and Flood Relief Sean Canney.

A special meeting to debate the issue has been set for next Monday.