City faces bankruptcy as income dries up

Date Published: 06-Feb-2009

The city is on the verge of ‘going bust’ with approval to be sought on Monday night for an emergency €15million overdraft facility to keep the bills paid.

The City Council is owed in the region of €20 million in development levies, rates, water charges, refuse charges and rents – but the money is not coming in.

Another blow was dealt to the City Council in January, with the Government only paying out 17% of its Local Government Fund allocation as compared to the usual 25%.

In a letter to city councillors issued this week, the City Council’s Head of Finance, EdelMcCormack, outlined the seriousness of the financial situation. “The current economic climate has imposed increased restrictions on cash flow due to the ongoing pressures on income collection from all sources.

“The constraint on income collection necessitates the overdraft requirement in order to ensure that the…