Members of the Inishowen Municipal District has this afternoon passed their draft budget for the MD for 2025.
They’re being asked to adopt an initial budget of €225,000, the bulk of which will go towards the €25,000 given to each member to allocate at their discretion.
As was the case with Letterkenny yesterday, member were told full figures will not be available until the full budget in December, and a warning was given that rates increases may have to considered at that point.
The council’s Director of Finance Richard Gibson said there are a number of challenges, including inflation, facing the council, and today’s decision is just part of an ongoing process. which may involve an increase in the commercial rate.
All members expressed concern at that prospect, and called for a restructuring of how local government is financed.
Mr Gibson outlined the extent of services provided by the council, saying they have to be funded.
He pointed out that 2/3 of local businesses are paying less in rates this year than they did last year, and in many cases, the grants available are more than the amount paid. He added that 3/4 of local businesses pay less than €5,000 annually, and a 5% rates increase would mean an increase of around €5 a week. Mr Gibson stressed that’s an indicative projection, and does not constitute a statement of intent.
Mr Gibson stressed that just like everyone else, the council is facing inflation, and since the last rates increase in 2019, the costs faced by council have risen by around 20%.
