Council writes off €4.6 million in unpaid rates

Date Published: 14-Apr-2011

BY FRANK FARRAGHER

Galway City Council managed to ‘stay out of the red’ last year despite a major difficulty in collecting revenue – the books were balanced mainly by cutting payroll costs and reducing expenditure in services.

However, the financial downturn continues to bite deeply into the City Council’s budget with a ‘significant write-off’ of rates (€4.6m) as businesses continue to ‘go bust’, according to the City Council’s Annual Financial Statement for 2010. There are also additional rates arrears of €14.5m.

The recession has also hit hard at one of the big earners in the good times – the city’s network of pay and display carparks – with a major drop in the number of cars entering the city centre. With total expenditure of €84.8m, as well as a transfer of €4.8m into reserves, the City Council still recorded a net surplus of over €458,000 for 2010.

“The 2010 results reflect the successful efforts to reduce expenditure further while endeavouring to maintain essential services at acceptable levels and ensure compliance in an increased regulatory environment,” the City Council’s Financial Review states.

The financial downturn is also hitting the income levels of the Council’s two main leisure outlets – Leisureland and the Town Hall Theatre – while income from planning fees and fire safety certificates was also well down.

Despite having written off €4.6m in rates payments for 2010, there is a further €14.5m in rates to be collected in arrears – the total amount of rates collected last year was €25.5m.

The next biggest arrears heading is in commercial water charges totalling €3.16m, with €1.85m owed in rents and annuities as well as €1.2m still due in domestic refuse charges. There is a €430,000 deficit in housing loans.

For more on this story, see the Galway City Tribune.