Mr. Martin Lydon, Head of Finance presented the members with a Schedule of Uncollected Rates at 31^st December 2018:

·         Arrears of Rates at 31^st December 2018 amounted to €1.906m – this is a decrease of €522k from 2017

·         Total rate demand for 2018 was €11.724m with €10.216 collected – an increase of €1.681m on 2017

·         Adjustments for vacant premises, business closures, exemptions, uncollectable amounts and liquidated companies equated to €2.031m

·         The collection rate for 2018 was 86%

Members discussed the report as follows:

·         How does the 86% collection rate compare to 2017?

·         How many appeals have been made to the valuation office and judgments made on these appeals. Is the Valuation Office not informing the Council of changes as it appears some incorrect demands are issuing?

Martin Lydon confirmed that the 86% collection rate has increased from 83% in 2017.  There are ninety appeals with thirty decided on resulting in a loss of income of €70,000. The sixty appeals outstanding represent a total of €2.4m in rates and a 20% reduction in the original valuation could  lead to a further €500k reduction in rates. When this information is available a report will be brought to members as it is impossible to know the impact at this point.

Provision has been made in the accounts for a shortfall of this order and this will be part of the 2020 Budget with options available to be considered of a rates increase or property tax increase.

In response to concerns regarding communications from the Valuation Office, Mr. Lydon confirmed that the Valuation Office are only writing to the rate payers regarding the outcome of appeals. Many local authorities including Roscommon have already contacted the V.O. to express their dissatisfaction at this arrangement.