Reduction of council expenditure difficult to achieve, says Coughlan

CLARE County Council is finding it increasingly difficult to reduce its annual expenditure of €101.8 million without reducing frontline services, county manager, Tom Coughlan has warned.

 

In his address to county councillors as part of the Draft 2013 Budget, Mr Coughlan had admitted the preparation of this Budget was particularly difficult due to the fact the scope to achieve operational savings is progressively reducing.

Commercial rates are expected to remain the same for the second successive year pending the eventual outcome of councillors’ deliberations of the annual Budget Estimates, which are scheduled to start next Tuesday.

In addition to reducing levels of income from local services in a number of divisions, Mr Coughlan has cited the increase in vacant properties in the county and the continuing reduction in local government funding and income from local services.

This has resulted in a reduction in rates income provided for in the Budget.

“Given the continuing reduction in local government funding and income from local services, it has not been possible to provide for a decrease in rates in this Budget.

“It is proposed to meet the ongoing reductions in income through achieving efficiencies, as in previous years and consequently an increase in the level of commercial rates is not provided for.

“The impact of a reduction in rates has been discussed with the council on a number of occasions and the consequences of a such a reduction, without a counter-balancing source of income have been outlined to the elected members.

“The council remains committed to adopting a practical approach in terms of facilitating ratepayers who are in difficulty. However, at the same time, the council must endeavour at all times to receive the income outlined in the budget so that services may be maintained at planned levels,” he said.

He stressed the underlying objective of the draft budget was maintaining existing levels of services, while simultaneously reducing the overall expenditure of the council to reflect severe reductions in income.

He acknowledged the achievement of further efficiencies and reduced costs will require the implementation of more radical change management, new methods of service delivery, reorganisation and restructuring and additional efficiency measures at local, regional and national level.

Significant efficiencies have been identified in the Local Government Efficiency Review Report and while substantial efficiencies have already been achieved, he noted there will be a requirement on the sector to further reduce costs in the short term.

“There is little scope for the extension of services but the council will during 2013 make every effort to improve levels of service and service delivery mechanisms.

“The council will continue to protect and enhance the unique environment of the county, to drive economic and tourism development, to minimise social exclusion and to deliver quality services within the resources available,” he said.

Clare County Council’s allocation from the Local Government Fund has dropped by 39% since 2008 from €16.48 million to €10.7 million for 2013.

Since 2009, payroll costs have reduced by €9m, a reduction of 20%, from €44.8m to €35.6m in 2013.
As in previous years, Mr Coughlan noted the declining capital account programme means there is less capacity on the capital account to absorb payroll cost, which means the positive impact on the revenue account is less than the overall reduction in cost in the period.

In previous years, the council has received additional local government funding for water services but this amount will not be notified until next year.

An amount of €125,000 has been included in the budget, which represents a €175,000 reduction on the figure included in the 2012 Budget.