Letterkenny Milford Municipal District has adopted a draft local budget of €250,000 for the coming year.
All MDs must adopt local allocation figures before the council’s 2025 Budget meeting, which takes place on December 4th.
The Council’s Director of Finance Richard Gibson told members his preference would be that the council budget be agreed first.
In particular, he said the fact that allocations for roads are not confirmed until March means that there is a significant figure missing as the council tries to determine spending plans for the coming year.
The bulk of the allocation agreed today will go to the council’s development fund, under which each member will have a discretionary €25,000 to allocate as they see fit.
Mr 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.
A number of members referenced national surpluses, and the money coming into the exchequer as a result of the Apple judgement, and asked Mr Gibson if the council is seeking a share of that money.
Mr Gibson stressed the council is never finished asking for more. He pointed out the council has borrowed €34 million in the past number of years, stressing that matching funding is vital in that respect. In this region, the match fund rate is 10%, and the council’s preference is that that would be that be reduced. In term of marine projects, members were told, the figure is reduced to 5%.
Mayor Cllr Gerry McMonagle says today’s discussion again highlights the need for local government reform, particularly in terms of funding…………….
Independent Cllr Declan Meehan criticised national government, accusing ministers of promoting a ‘good cop, bad cop’ scenario when it comes to rates.
He said the government focusses on giveaways in the national budget, with local authorities being forced to raise commercial rates because of a lack of core funding.
He agrees there’s a need for change………………
