€1m to be returned to property developers

APPROXIMATELY €1 million in planning contributions lodged by developers to Clare County Council will have to be returned because the development will not be built, it emerged this week.
Commenting on the annual financial statement for 2010, Councillor Brian Meaney asked at a local authority meeting on Monday how much the county council expected to pay back developers where planning permission for developments is no longer to be implemented.
Under the terms of most planning permissions, a developer has to pay the local authority a number of different planning contributions for water and sewerage work before construction work starts on the first phase of the development. However, a developer also has the right to apply for a development contribution refund if no longer in a position to proceed with the development.
Director of services, Nora Kaye, confirmed the council estimated in the region of €1m still had to be refunded to property developers.
Earlier in the meeting, county manager Tom Coughlan revealed the council had managed to incur a surplus of €112,694 in income over expenditure at the end of 2010 thanks to a series of cost-cutting measures and new efficiencies. The overall result reduces the cumulative deficit on the income and expenditure account to €1.75m at the end of 2010.
The main saving was achieved in payroll following the reduction of 144 local-authority staff. Between December 2008 and December 2010, Mr Coughlan noted local authorities accounted for 30% of the reductions in the public sector payroll bill while local authorities represented only 10% of the overall public sector.
He pointed out that the head of finance and her staff, Noleen Fitzgerald did well to present the 2010 annual financial statement so early considering her office is under severe pressure to provide information for officials concerning the EU/IMF bailout.
In reply to Councillor McCarthy, Ms Fitzgerald stated that while local authorities generally paid for goods and services within 15 days, this provision didn’t apply to capital grants from the Department of the Environment for infrastructure projects.
She said the council’s expenditure on housing construction had fallen from €26m in 2006 to €8m in 2010.
Commenting on the €3.7m reduction in the council’s payroll costs from €45.9m to €42.2m, she noted this was achieved through a combination of the income levy, staff retirements and the ending of temporary contracts.
Ms Fitzgerald explained that in the past two years, budget processes have been particularly difficult requiring savings to negate both the impact of reductions in the Local Government Fund and increased cost pressures in all service areas. The county council spent €109m in 2010 compared to €116m in 2008.
“While the overall result is almost in line with the adopted budget, there is a continued requirement to implement strict budgetary control and collection measures in order to manage our capacity to deliver services,” she said.
Councillor Cathal Crowe called for the introduction of a distribution mechanism to allow income from urban areas, like Killaloe, go back into the local communities as he claimed traders couldn’t see where their rates are being spent.