Mr. Martin Lydon, Director of Services presented the Chief Executive’s report to the Members on the Local Property Tax (Local Adjustment Factor) 2020:

He advised the Members in making a decision to vary or maintain the level of LPT, they must take into account the following and make a decision by 30^th September:

·         An estimation of income and expenditure for the coming year

·         The current financial position of the Council

·         The financial effect of a variation to the LPT rate and

·         Feedback from public consultation

He outlined the following:

·         The budgetary position for 2020 shows a shortfall of €1.4m with pressures of €2.585m including funding roads from own resources, filling of vacant posts and pay increases, reinstatement of GMA and reduced NPPR, expenditure on public lighting efficiency, match funding for village schemes, fund for purchase of derelict sites and reduced FSAI income offset to a certain extent by removal of maximum rent cap, reduction in loan payments and reduced insurance premium

·         In 2018 the Council recorded a revenue surplus of €189k

·         The Department have notified the Council of the 2020 allocation of €10.2m from the Local Property Tax Fund which is the same as 2016 – 2019 and included a net equalisation of €7m

·         The value of each 1% variance is €40.1k with 15% yielding €601k. The annual cost to the property owner will vary from €13.50 to €33.57 for 92% of the houses in Roscommon

·         No submissions were received from the public consultation process

·         The recommendation is for an increase of 15% in order to ensure a progressive budget and the need for additional funding in a climate where the current LPT fund is adequate to cover the costs of services provided.

The Members debated the proposal as follows:

·         The Corporate Policy Group agreed with the Chief Executives recommendation on the understanding that 5% would be ring fenced for vital local services

·         Important to not fall behind in improving services for the county

·         We cannot collect enough money locally to provide services and need equalisation fund

·         It is important to avail of all the funding available under the many different scheme including rural and urban regeneration, outdoor recreation town and village renewal etc. and we have to lever match funding

·         Why is funding not provided from Central Government?

·         This is not a good time to raise tax when Brexit is in the offing in the next month.

·         What is the position if the properties are revalued in 2020?

·         We have to reinstate the Municipal fund under new guidelines

·         We are not getting our share of the Motor tax funding and we need to send a message to Government

·         The increase is reasonable and if we do not agree to an increase locally, we cannot go to Government for more funding

·         No-one wants to increase the tax but at this stage it is a necessity just to stand still.

·         We do not want to be in a position of not being able to give grants to community groups etc.

·         Communities are always fundraising and have no more to give.

·         Need to be aware that the larger local authorities that are funding the rest of the county through the equalisation fund are not happy for this to continue. If we look at increasing rates, introducing parking charges as an alternative- this is the best option of the three.

·         While the LPT is a good method to raise local taxes for local projects, a review of the system is necessary

·         Need to consider the age profile of this in community groups – who will do all the work they carry out where they are no longer able to do so.

·         How will the GMA allocation be divided out and who will decide on this executive or elected members?

Mr. Lydon replied to the queries raised.

It was PROPOSED by Cllr. Leyden

          SECONDED by Cllr. Fallon

That the Local Property Tax basic rate be increased by 15% for 2020 under Section 20 of the Finance (Local Property Tax) Act 2012 as amended by Section 5 of the Finance Act (Local Property Tax) Act 2013.

It was PROPOSED by Cllr. Ward

          SECONDED by Cllr. Fallon

That there be no change in the basic rate of Local Property Tax for 2020

A vote was taken on the Proposal to Increase the Local Property Tax by 15% which resulted as follows: -

VOTING FOR THE PROPOSAL TO INCREASE THE BASIC RATE OF LOCAL PROPERTY TAX BY 15%: Councillors Callaghan, Crosby, Cummins, Fallon, Fitzmaurice, Keogh, Leyden, McDermott, Murphy, Naughten (10)

VOTING AGAINST THE PROPOSAL TO INCREASE THE BASIC RATE OF LOCAL PROPERTY TAX BY 15%:

 Councillors Byrne, Connaughton, Dineen, Kilduff, Mulligan, Shanagher, Waldron, Ward (8)

The Cathaoirleach declared the motion carried.

On the PROPOSAL of Cllr Fallon

                SECONDED by Cllr Cummins

It was AGREED that the Municipal District Fund be restored under new guidelines

On the PROPOSAL of Cllr. Ward

                SECONDED by Cllr. Shanagher

It was AGREED to write to the Minister for Finance to provide additional funding for Local Authorities

On the PROPOSAL of Cllr. Crosby

                SECONDED by Cllr. Naughten

It was AGREED that a mechanism be put in place to help fund small towns and villages to raise the required match funding for projects.