Galway City Councillors reject 10% property tax hike to fund footpath repairs as funding gap looms

The increase would have cost the average household approximately €29 per year and would have allowed the council to recruit an additional footpath crew.

Council officials said the investment would have enabled improvements in approximately 189 housing estates over three years, compared with the current rate of 42 estates annually.

Councillors were told that footpaths were the single biggest source of public liability claims against the local authority, with more than 60 claims recorded over the past three years.

However, members strongly opposed placing a further financial burden on homeowners,.

And they were incensed over the level of funding Galway City Council receives from central government.

Cllr Frank Fahy (FG) formally proposed rejecting the increase, pointing out that just €230,000 was allocated to footpaths despite the council's annual budget having grown from approximately €75 million to more than €160 million.

He said residents in areas such as Menlo were paying the same property tax as those in Salthill and Taylor's Hill, despite lacking basic footpath infrastructure.

Cllr Peter Keane (FF), who used his casting vote as Mayor to secure a previous property tax increase in 2024, said he faced a significant public backlash over that decision.

"To suggest a vilification would be an understatement," he said.

“The electorate did not thank us. They blamed me when I used my casting vote. The whole city thought it was me. It was the right thing to do and I commend you (Executive) for trying this. The tenants of this local authority do not pay – only private residents. We keep going back to the same trough of people.”

He accused central government of treating Galway City Council with contempt and said the responsibility for addressing its funding difficulties lay with local Oireachtas members.

Cllr Niall McNelis (Lab) said the nine councillors who supported the previous increase had "got it in the neck", while the council had received no improvement in igovernment funding.

"People are really struggling," he said, calling on Galway's Oireachtas representatives to "put on a city jersey".

Cllr Alan Curran (Soc Dem) described the way the local authority is funded as "beyond a joke", while Cllr Mike Cubbard (Ind) said he had “zero confidence” the council could deliver €3 million worth of footpath works.

Cllr Clodagh Higgins (FG) warned that seeking further contributions from homeowners risked making the council appear "tone deaf".

Several councillors called for direct engagement with government ministers, including Housing Minister James Browne.

Other possible revenue sources such as a tourist bed tax and commercial rates on student accommodation were also raised.

Council management acknowledged the financial pressures facing the local authority and indicated that alternative income streams would be examined.

Galway City Council faces €6.1m funding gap

Meanwhile, Galway City Council is projecting a €6.1 million gap between its income and expenditure next year - and that was if the Local Property Tax hike had gone ahead.

Figures show that Galway City Council will have income of €164.1 million next year against expenditure of €170.2 million, leaving what the council describes as "excess expenditure over income" of €6.09 million.

The projected income figure includes €10.89 million from Local Property Tax, incorporating the additional €1.03 million which would have been raised if councillors approved the proposed increase.

Galway City Council currently applies a 15 per cent increase to the basic Local Property Tax rate.

Changes introduced under the Finance Act 2025 allow councils to increase the basic rate by up to 25 per cent for the first time for the 2027 liability year.

The council said many housing estates are now more than 30 years old, with deteriorating footpaths creating safety and accessibility concerns.

Priority would be given to the worst-affected areas, including locations near schools, public transport and community facilities, as well as areas used by residents with mobility difficulties.

The council estimates that the further LPT adjustment would cost liable households an additional €29 a year on average, although the amount would depend on the property's valuation band.

A property in the €315,001 to €420,000 valuation band, for example, would incur an additional €33.30 annually under the proposal.

The council's underlying Local Property Tax allocation for 2027 remains unchanged from 2026.

Just two submissions were received during the council's public consultation on varying the Local Property Tax rate.

Funded by the Local Democracy Reporting Scheme