Row looms over council budget

Difficult discussions are likely to take place over the coming weeks as Tipperary Co Council seeks to prepare a 2024 budget challenged by rising inflation.

The county's five local authority districts are debating their estimates ahead of next month's budget meeting of the full council. Some members of Nenagh Municipal District have indicated that they would reject the budget unless funding can be sourced from central government to increase expenditure in line with inflation.

Last week's district meeting heard that the council would try to at a minimum maintain this year's expenditure in 2024. But Cllr Michael O'Meara said the projections did not take account of inflation; the council could be left with “a minus on every line” of its 2024 budget if it tried to maintain expenditure without extra funding, he warned. Cllr O'Meara wanted the CEO to seek the necessary funding for the year ahead from central government.

“Every other sector of Irish society has got an increase,” he reasoned. “This is another nail in the coffin of local authorities if we accept this budget. That message needs to go out loud and clear,” Cllr O'Meara said, calling for an increase of “at least 10%” to cover the council's spending in 2024.

He supported Cllr Joe Hannigan's call for extra provision for voids, or vacant council housing stock. Cllr Hannigan said more of these houses have been brought back into use in Nenagh district this year than in any other year. “We've got to keep that ball rolling,” he said.

Cllr Phyll Bugler wanted provision made for regular street cleaning in Ballina and Newport, a service that she said was discontinued in 2010. Cllr John Rocky McGrath also made a case for extra staff for the district, while Cllr John Carroll wanted the council to incentivise rural graveyard committees, where small groups of mostly older people have been doing “an extraordinary amount of work”.

NENAGH POPULATION INCREASE

Head of Finance Mark Connolly said he was not surprised with any of the points raised by the councillors. Inflation - at 6-7% - is a major challenge to the council in trying to maintain spend. The local authority is limited in its ability to raise its own income and is negotiating with the Government in advance of its 2024 budget.

The last census indicated that Nenagh's population has increased by 3%. This has led to an increased General Municipal Allocation (GMA - discretionary funding) allocation of €232,202 for the district, up from €225,507 last year.

Mr Connolly said he would brief the CEO on all of the concerns raised by the councillors.

There would be an opportunity to discuss them in more detail at the budget workshop in November and at the meeting on the council's draft budget meeting later in the month.

‘NO MAGIC FORMULA’

But he warned that there is “no magic formula” for combatting inflation and difficult choices would have to be made in preparing the budget. “Something has to give,” Mr Connolly said. He could not stand over a 10% increase in expenditure without finding a way to fund it.

District Director Marcus O'Connor said the GMA is fixed by the Local Property Tax and based on population. Some districts would experience a GMA reduction next year; Nenagh's is increasing.

The figures in the draft budget are preliminary. In the area of roads funding, the council is anticipating an increased allocation from the Dept of Transport but would not know how much this would be until early next year.

In terms of wanting extra funding beyond that provided by central government, questions would have to be asked in preparation of the council's budget. “What's going to come out?” Mr O'Connor said this would be discussed at the budget workshop.

Cllr Ger Darcy remarked on how inflation had been low for many years and this made the budgetary process easier. He did not want to consider an increase in commercial rates as a means of making up the present shortfall.

Government funding is the solution, but he pointed out that every local authority in the country would be seeking the same.

Cllr O'Meara nevertheless wanted the message to remain clear that Nenagh representatives are concerned about the council's ability to fund services in 2024. “We are far from happy with this,” he maintained.

Cllr Hannigan also remained concerned about the budget falling short of what is required. He reiterated his view that housing is the key issue and said that if it came down to repairing one road less for the sake of bringing five or six houses into use, he would be “all for that”.

But he appealed for councillors to work together in what would be a difficult budgetary process going forward.