Development levies and rates unpaid
OVER three million euro is due to Limerick City Council in development levies and just 45 per cent of rates have been collected, it was revealed this week. And a warning has been issued that it will be extremely difficult to adopt a Budget for next year, because of the number of shop closures in the city and the reduction in Local Government funding by between five and seven per cent.
Cllr Joe Leddin told a meeting of City Council this week that there’s 3.1million euro in outstanding development levies not collected, and asked if it was possible to let councillors know who owes what, as some of this money is outstanding for years.
“Many people who made a fortune in the Celtic Tiger years, now owe this council a fortune”.
The city manager, Tom Mackey, said that the major rate bases are not within the city.
“We are at a disadvantage because of limited rate bases within the city – on the northside (which was ceded to the city by the boundary extension granted in March 2008), the rates collected there would equate to the cost of running the area.
“Our borders are constrained, which affects our income,” he said.
Responding to concern expressed that the economic crisis could result in cuts to essential services, Mr Mackey said the council has 90 million euro from the Department of Local Government, to deploy on running the city and must get the very best value for that amount of expenditure.
Regarding staffing levels, he told the meeting that out of the 35 local authorities in the country, Limerick City Council is in the top three for staffing levels, percentage-wise.
“Our spend on staff is exceptionally high and we will have to curtail staffing limits”.
Cllr Pat Kennedy, who earlier warned that the healthcare of employees must be protected in terms of one employee not having to do the work of five, urged that rather than wait until the Book of Estimates is being prepared for next year’s budget for the city, that the council should meet soon, to examine and discuss the issue.
Confirming that a special meeting focusing solely on the city’s finances will be held in the next few weeks, Mayor Kevin Kiely told the councillors that this will be held “in camera.”
