Council passes historic €185m budget for 2021

Despite the challenges of the Covid-19 pandemic, Tipperary Co Council has adopted its biggest ever budget with expenditure amounting to some €185 million.

The difficulties of this year of restriction under the ever-looming shadow of Brexit had led many to fear further financial shortcomings in 2021. But the budget passed by the council last week contains no cuts in any of the key areas of expenditure, no increase in rates, and represents an overall increase of almost €10 million on this year's budget.

As with previous years, roads will take the lion's share of council spending in 2021, with the service division 'Road Transport & Safety' accounting for 32% of budget expenditure, some €60 million. A vast array of plans are provided for in the area of Housing & Building (19%), expenditure of €38 million, while Environmental Services make up 16% of expenditure or €27.5 million.

RATE OF VALUATION

The Annual Rate of Valuation will remain in 2021 at 0.1919, one of the lowest and most competitive rates in the country. The council has received more than €7 million of Government funding to make up this year's commercial rates waiver over Covid-19.

Presenting the draft budget to councillors at last Friday's meeting of the council in Littleton, CEO Joe MacGrath said the rates waiver scheme was one of a number of Government initiatives that have equated to a more positive financial outcome for the council. The Restart Grant has also assisted business in the county, with the council advancing over €18 million to local businesses under the scheme.

The council's main source of income is the Local Property Tax (LPT) allocation, which for 2021 stands at €25,951,602. The passing of a resolution in October to vary the basic rate of LPT by plus 10% means the LPT will be increased to €27,156,665. Of the additional income, 50% is now being allocated to the General Municipal Allocation while the remaining 50% is allocated to support swimming pools, leisure centres and arts centres across the county that have suffered reductions in income levels due to the impact of the pandemic.

ADOPT THE ESTIMATES

Asking councillors to adopt the estimates last week, Mr MacGrath said the new budget “instills confidence where there is uncertainty”. In spite of all the setbacks in 2020, the CEO saw optimism in the outlook for the year to come. “I have no doubt that there are brighter days ahead,” he said.

Head of Finance Liam McCarthy said one of the most significant increases in the 2021 budget is in roads, which have seen increased investment over recent years. The figure adopted in the council's 2017 budget was €40 million. He mentioned that a substantial spend of €8 million on public lighting would begin next year.

Mr McCarthy said the council could expect to receive a total of around €12 million through the rates waiver scheme. He added that the rate demand in Tipperary is much lower than that of surrounding counties. He also expressed hope of receiving Government funding to make up loss of income from parking and other miscellaneous services this year.

COUNCIL EXECUTIVE AND MEMBERS THANKED

Cathaoirleach Cllr Michael Smith thanked the council executive and members for their close engagement on preparing the new budget. Cllr Smith said the budget would support every town, village and community in Tipperary through such means as job creation, investment, sewage schemes and recreation; he called for adoption of the budget.

Cllr Pat English proposed cutting €35,000 from councillors’ expenses (total expenditure of €214,000) and conferences abroad (€15,000), and allocating it towards playgrounds (€105,000) instead. Mr MacGrath replied that the figures for attending conferences have been reduced for 2021 owing to the lack of activity; they may need to be increased again next year.

With 35 of the 40 councillos present, a vote on Cllr English's proposal was taken. It was defeated by 28 votes to six with one abstention.

Cllr Jim Ryan hit out at the council spending €300,000 on coroner fees and expenses. This is an unfair demand on the council and money that would be better spent on local services, Cllr Ryan said, asking the council to write to the Dept of Justice about the situation.

Cllr Roger Kennedy formally proposed adoption of the budget, which he described as a far greater deal than what was expected four to six months ago, greatly assisted by national government funding.

“It's very fair,” he said. “It's more than we could have expected over the year.”

Seconding the proposal, Cllr Marie Murphy noted that the budget provides increases across all service divisions. She also noted that the projected spend equates to €1,150 for every person in Tipperary.

“That is phenomenal,” Cllr Murphy said. “I don't think anyone would have expected to adopt a €185 million budget today.”

Cllr English formally proposed rejecting the budget. The matter was put to a vote and the budget was passed by a margin of 30 votes to five.