Leitrim County Council faces €240k funding shortfall in 2027 budget

Leitrim councillors have strongly criticised the Government over a €240,000 funding shortfall facing the county council, as they approved a €69.7m budget for 2027 after successfully overturning a proposed €30,000 cut to local roads spending following concerns over the impact on communities across the county.

The council’s draft budget, totalling €69,762,019, was approved on Monday, November 9, representing an increase of €5.6m on last year’s budget.

However, the budget discussions were dominated by concerns over the level of Government funding being provided to cover the overhead costs associated with the transfer of water services to Uisce Éireann.

Leitrim County Council is facing a €240,000 shortfall after the Government confirmed it would cover only around 80 per cent of the overhead costs previously recouped from Uisce Éireann. The council must now find the remaining 20 per cent elsewhere in its budget.

Responsibility for water services has been transitioning from the council to Uisce Éireann since 2023, with the process now nearing completion.

Leitrim County Council is the local authority in Ireland most reliant on Government funding, a fact which prompted strong criticism from councillors, who called for the shortfall to be fully addressed by central government.

Cllr Irene Guckian-Rabbitte described the situation as “chronic underfunding” and said the four TDs representing the constituency needed to “demand more”, given the council’s reliance on Government funding.

Cllr Enda Stenson said it was imperative that the issue of local authority funding was brought to the attention of Government.

“It’s imperative that the word comes out from here that the central government have got to face up to the issue of properly funding local authorities. There should be definite funding put in place, we’ve got to run a county,” he said.

The funding pressure initially resulted in a proposed €30,000 reduction in the council’s 2027 local roads allocation.

However, councillors opposed the reduction and successfully secured its reversal, with smaller savings instead being found in other areas of the budget. An agreement was subsequently reached, allowing the budget to pass.

Businesses across Leitrim will also face higher commercial rates next year after councillors approved a 3.5 per cent increase.

Of the county’s 1,100 ratepayers, approximately 650 will see an increase of 67 cent per week, or €35 annually, where their rates liability is less than €2,000.

The rates increase was criticised by Cllr Cormac Flynn, who argued that the council should look at alternative ways of generating revenue rather than placing additional costs on businesses.

“Instead of taxing the people who are driving our economy forward, we should be looking at those who are holding development back,” he said.

He suggested that vacant properties, underutilised lands and speculative holdings should contribute more towards the county’s development.

The increase was described as necessary to support the future development of towns and villages across Leitrim, with the commercial rates fund providing a return on the council’s investment in projects aimed at promoting the county.

“Nobody takes joy in putting extra bills on anybody,” CEO Joseph Gilhooly said, while adding that the council must work within legislation.

Other priorities outlined in the 2027 budget include capital investment, housing, cyber security, tourism, economic and community development, regeneration, vacancy and dereliction.

It was also confirmed that rent reviews for local authority tenants will become annual or biannual, following the most recent review, the first in 17 years.