Fears for city services if IMF forces cut in Council funds

Date Published: 22-Nov-2010

BY ENDA CUNNINGHAM

Fears that a Government allocation to Galway City Council’s 2011 Budget could be slashed by 20% or more on the orders of International Monetary Fund officials – which would result in swingeing cuts to services – are to be raised with local authority officials.

The Council has prepared a draft budget for next year on the assumption that the local government funding allocation will be cut by 10%.

However, Councillor Padraig Conneely is now seeking clarification on whether the IMF can ‘order’ the Government to make an even bigger cut.

Meanwhile, the Acting City Manager has proposed that business rates, commercial water charges and parking charges remain unchanged next year, while household waste collection charges are proposed to be increased by 5%.

The Draft Budget 2011 was presented the Council’s Corporate Policy Group (CPG) yesterday morning, with Acting Manager Joe O’Neill saying it has been a “very difficult task”. At the moment, there are outstanding rates totaling around €18m.

“Balancing the 2011 Budget has proven to be a very difficult task as we strive to maintain essential services to the city with reduced income levels. The level of income available to the Council to support the delivery of services has reduced further from that anticipated in 2010. This has necessitated further reductions in order to achieve a balanced budget,” Mr O’Neill told the CPG.

The proposals assume a local government funding allocation of €7,661,187, down 10% on 2010 and down almost 22% on the 2008 figure.

Read more in this week’s Connacht Sentinel