Donegal Co Council propose to spend over €175m next year

Donegal County Council proposes to spend over €175 million on services for the county in 2023.

Its 89-page copy of the Draft Revenue Budget, seen by Donegal Live, provides for an estimated expenditure of €175,555,907, up from €162,303,721 in 2022.

It shows the council anticipates income from a range of services and sources including Local Property Tax, rents, fees, charges, loan repayments, grants, recoupments, Internal Capital Receipts (ICRs), reserves and NPPR charges.

The balance of €38,837,059 will be funded from Commercial Rates. The draft document shows the Annual Rate of Valuation (ARV or rates multiplier) of €71.81 for the county and former Town Council areas of Letterkenny and Bundoran, and €62.29 for the former Town Council area of Buncrana. This means rates have not been increased for 2023.

The draft document also deals with expenditure issues and the challenges they will pose.

It shows that the council's total payroll cost for 2023 is €87,943,791, inclusive of pensions and gratuities of €10,156,386, €1,867,000 for gratuities and €8,289,386 for pensions.

Part of the document highlights the fact that the cost of energy has increased significantly during 2022 and is projected to increase further in 2023.

It states that aside from the direct consequences of increased energy costs in respect of electricity, fleet fuel, and heating oil, there is also the indirect impact that rising energy prices have on the supply of other goods and services generally.

"These increases in costs will impact the council’s financial outturn for 2022 and will have a negative impact on the council’s spending power in 2023. The draft budget for 2023 contains an additional provision in the sum of €3,328,698in respect of the projected increase in energy costs."

It reveals the council has been provided with an exceptional allocation from central government in the sum of €2,629,314 to assist in offsetting the increased cost of energy in 2023.

This allocation has been described as critical in terms of the council being in a position to consider a draft budget that allows for the maintenance of its services into 2023.

In his report, the council's chief executive, John G. McLaughlin (above) described it as a very challenging budget in the midst of the effects of very high inflation costs and the consequential cost of running the business of the council.

Separately he says they also acknowledge the effects the “cost of living” increases are having on Donegal people and communities.

"The price of essential household necessities such as food, oil, gas and electricity has seen massive increases and many families find it difficult to pay for everything on top of their housing and other costs. By way of example, the council’s electricity costs have already increased by over
200 % in 2022, with a projected increase of plus 241% being required in the budget provision for 2023."

He acknowledges that in framing the Draft Revenue Budget for 2023 he has taken account of the priorities of the councillors, with an emphasis on a number of key areas such as the maintenance and improvement of houses, roads, and other key infrastructure, support for economic development and job creation, plans for housing, roads, public realm improvements, town centre regeneration, recreation/leisure and job creation infrastructure as well as development in rural towns, villages, and communities across the county.

Mr McLaughlin also deals with issues like the co-funding of development projects, issues and opportunities in the region, and the Defective Concrete Block issue of which he says it is hoped that
approval to begin repairing these houses can be obtained in 2023. He also promises that efforts are being made to further “ramp up” the delivery of social housing next year.

Other areas touched on include climate action strategy, the Creeslough tragedy and the forthcoming retirement of the country's oldest county councillor, Ramelton's Cllr Ian McGarvey.

Other items in the draft budget for 2023  include:

• €300,000 of anticipated income from Non-Principal Private Residence (second home/holiday home) charges

• Income from roads grants is anticipated to be broadly in line with allocations received in 2022

• An additional €3,328,698 in respect of projected increases for energy costs across the organisation. These include electricity, fleet fuel, heating oil, etc.

• Funding from the Department of Housing, Local Government and Heritage in the sum of €2,629,314 to offset increases in energy costs for 2023

• Revenue account staff payroll and pension costs (excluding Irish Water payroll costs, which are recoupable in full) have increased by €5,744,232, primarily as a result of the implementation of national pay agreements and an increase in staff numbers to manage increasing workloads

• An increase in funding from the Department of Housing, Local Government and Heritage in the sum of €4,118,989, which relates to non-discretionary cost increases arising from the implementation of national pay agreements.

• Net income from Commercial Rates and Property Entry Levies (PEL) has increased by €1,734,686 (primarily as a result of buoyancy–revisions and new property valuations)

• Insurance costs have reduced overall by €45,555 for 2023. The reduction reflects improved performance on the council’s insurance book over the last number of years.

• The draft budget for housing maintenance includes an increase of €400,000 for 2023, reflecting projected increases in rental income for 2023

• IPB has confirmed the payment of a dividend to Donegal County Council in the sum of €448,908 for 2023, an increase of €273,452 on the figure for 202.

• Provides for loan charges in the sum of €1,105,273 in respect of the €20m loan approved by the councillors in 2022, together with an additional allocation for 2023 that will facilitate the drawing down of a further €10m in co-financing capacity for the capital programme

• €700,000 for the funding of a third phase of the tourism infrastructure, marketing, and business-activation scheme, which was first provided for in the adopted budget for 2021. This brings the total value of the scheme to €2.1m

• A repeat provision in the sum of €350,000 to undertake upgrading and repair works to access infrastructure in housing estates, including back lanes. €70,000 has been set aside per municipal district, with funding coming from a specific allocation within the three-year footpath and public lighting programme

• The Public Lights and Minor Infrastructure Fund has been repeated in the Draft Budget for 2023. The value of the fund is €259,000 which is equivalent to €7,000 per councillor

The meeting to discuss and adopt the Draft Budget is set to take place on Monday, November 21.