Car Tourismo Banner
Home » Regional » Ennis » Town council seeking approval for €2m overdraft facility

Town council seeking approval for €2m overdraft facility


ENNIS Town Council is seeking approval to arrange an overdraft facility of €2m for the coming year.

Town clerk, Eddie Power explained there are a number of items that may give rise to the need for the overdraft facility.
These include interim funding of capital project expenditures until long-term funding, usually grant funding, is received. In addition, revenue expenditure items, for example non-national roads programme items, though eventually fully funded, also have to go through the expenditure-claim-repayment cycle. The town clerk further stated that the difference in timing of expenditure and revenue cycle for items funded from the council’s own resources also give rise to the need for the overdraft.
“Depending on the coincidence of major payment or receipts, the level of overdraft utilisation can and does vary quite a lot. It is prudent to make overdraft facilities available even if only required for short periods. Having the overdraft facility available does not create a cost, as the cost arises only as it is utilised,” Mr Power explained.
The matter was due to be put before town councillors at their monthly meeting this week, with the council recommending the approval of the overdraft until December 31, 2011.

 

About News Editor

Check Also

Council accused of a ‘cheap job’ on Hermitage Road

RESIDENTS of one of Ennis’ most historic housing estates have been left “hugely disappointed” with …