City Council warns of services withdrawal

The Chief Executive of Galway City Council has warned that the ongoing strain on local authority finances, coupled with a recruitment embargo, will mean that some services will have to be withdrawn next year.

City councillors will meet next Monday night to vote on the local authority budget for 2016 – which has been branded “difficult and challenging” by Brendan McGrath.

The 2016 Budget provides for an expenditure of €76.6m – up almost €781,000 (1%) on last year.

At a media briefing this week, Mr McGrath warned that the Council “cannot overstretch itself in the way that it has been doing in recent years”.

He pointed to a funding gap of €2.5 million in next year’s budget, saying it was very difficult to bridge.

Mr McGrath has proposed a 3% increase in commercial rates – which was revealed by this newspaper last week – which will generate an increase in revenues of €1.05 million.

This money will be ring-fenced for additional infrastructural spending in the run-up to Galway’s European Capital of Culture bid for 2020.

“The Council is facing an extensive and growing list of expenditure demands without the ability to lever corresponding income increases.

“Prioritisation, commensurate with staffing levels, will mean that some activities or programmes may have to be postponed or withdrawn as the organisation cannot overstretch itself in the way that it has been doing in recent years.

“The Council cannot go over its budget and difficult decisions have to be made to decide what projects can and cannot be supported, with the Council having to be prepared for unforeseen contingencies.”

For extensive coverage of the City Council Budget 2016, see this week’s Galway City Tribune