98% drop in development funds

THE extent of the collapse in construction has been illustrated by Kilrush Town Council figures showing that the amount of development contributions received in 2011 was over 98% down on the 2007 figure.

The information was contained in the 2011 Annual Financial Statement (AFS), which showed the council has had a great financial performance since 2007, as a six-figure deficit has transformed into a surplus.
The statement showed there was income of €273,096 from development contributions in 2007 but just €3,397 last year.
“At the end of 2007, there was a cumulative deficit of €187,000 on the revenue account and at the end of each year since then it has been the aim of the town council to reduce this debt. This proved to be a very difficult task in the current climate in terms of realising estimated income from a number of sources and by also taking into account the reduction of the Local Government Fund and reduced grants from the Department of the Environment. However, notwithstanding this, Kilrush Town Council continued the trend of a positive result on its revenue account in 2011. This has mainly been achieved by providing cuts in expenditure during the year across most services divisions. These measures, together with the strict budgetary controls and prudent financial management, resulted in an overall surplus of €2,165 for the year,” the AFS states.
The document also showed the council collected 90% of rates due in 2009 but this was down to 76% in both 2010 and 2011. With regard to rent and annuities, the collection rate was 95% in 2009, 93% in 2010 and 90% last year.
Town Clerk John Corry said the collection rates in Kilrush “compare favourably” with other towns in the county. With regard to the drop over the last three years, he said it was a reflection of difficult economic circumstances. He also said the initiation of legal proceedings was a last resort but was an option.
It was agreed to set aside a sum of €40,000 for development works at the Cooraclare Road Sports Development, €12,000 for the recently adopted shop front grant scheme and €20,000 for the costs involved in terminating the superloo contract.
With regard to the council’s capital account, Mr Corry said €1.4 million has been spent to date on the refurbishment of the John Paul estate. There were also improvement works at the town hall and on footpaths.
Mr Corry said the majority of capital spending is related to grants from Government.
Mayor of Kilrush Ian Lynch said there had been a lot of prudence shown over the last few years and he also said that the performance showed that town councils can be very effective.
There was also some criticism of the existing commercial rates system at the meeting.
In response to some earlier correspondence, the council received a letter from the Department of the Environment, which gave some details of the existing system. “It should be noted that commercial rates income makes a significant contribution to the current funding requirements of local authorities. Rates provide the means by which local authorities can fund the services essential to communities and therefore business, across the full range of local actives including roads, water and waste services, fire and emergency services, libraries and a range of community amenity and social activities.
“The minister has, however, requested local authorities exercise restraint in setting their 2012 ARVs. Local authorities have responded positively to similar requests in recent years and across the 88 local authorities, the average change of ARV from 2011 to 2012 shows a decrease of 0.31%.
“The minister recognises that these are difficult economic times and will continue to keep all matters relating to rates under regular consideration in his department.”
Fianna Fáil councillor Tom Prendeville said the current system can act as an impediment to starting up a business, while Mayor of Kilrush Ian Lynch said a more far-sighted system could see fewer empty shop units in the town.