Galway City Council warns councillors it 'may need' supplementary budget to balance books
A supplementary budget – with possible cutbacks to services and increased charges – may be needed to balance the books at Galway City Council this year, the local authority has claimed.
In a warning from management, city councillors were told the income anticipated in the 2026 Budget they adopted last November may not materialise.
A briefing on Wednesday (April 22) between elected representatives and senior officials at City Hall heard of a “potential requirement for a supplementary budget.”
The Local Government Act allows for the introduction of an additional budget if the income provided in the annual adopted budget “does not materialise”.
The supplementary budget would be introduced if it was deemed necessary in 2026 to ensure “that expenditure is aligned with available income and statutory obligations”.
“The need for such a measure would reflect the seriousness of any income shortfall and the inability to absorb the deficit through internal adjustments alone,” according to the presentation delivered to councillors by City Council management.
Councillors were also warned of the knock-on effects if the income projections in the 2026 adopted budget do not materialise.
“Where the scale of unrealised income gives rise to a deficit in 2026 figures, any such deficit will have to be carried forward and will form the first call on the preparation of the 2027 Annual Budget. This means that before any new proposals, service enhancements or strategic initiatives can be considered, the shortfall arising from under-performance of 2026 income lines must be addressed in full.
“Reliance on aspirational or uncertain revenue streams therefore presents a direct risk to the financial stability in 2026 but also 2027 and future years. This may necessitate service reductions, increased charges or additional revenue measures to restore balance,” City Councillors were warned in the presentation.
The conclusion section of the briefing said that the Council needed to take an “evidence-based approach” to future budget decisions, supported by “early engagement with elected members” and “transparent communication with the businesses, stakeholders and the public”.