Decision Details

Local Property Tax Variation for 2021

Decision Maker: Monthly Meeting

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decisions:

Martin Lydon, Director of Services informed Members that a decision is to be made today in relation to the rate of Local Property Tax for 2021 and outlined the following:

·         Timeframes for decision making culminating in Plenary Budget meeting in November.

·         Large amount of uncertainty due to both Covid-19 and Brexit.

·         Roscommon County Council, in partnership with Elected Members, will continue to practice prudent budgeting.

·         Aim is to maintain funding for regeneration projects, Town Teams funding, amenity grants and match funding for smaller projects.

·         Rates Waiver will not meet full loss of Rates income.

·         Deficit predicted for 2020 due to Covid-19, loss of income and increased expenditure.

·         Maintaining LPT at 2020 rate will deliver €609,000 and will still result in funding gap of €468,000.

·         Reduction in LPT will mean shortfall of over €1,000,000 and an inability to match fund projects, maintain grant levels and a loss of funding to the county to stimulate growth.

·         7% of businesses unlikely to re-open in 2021 resulting in a loss of approximately €500,000.

·         Investment by Roscommon County Council in the county results in stimulus for the economy of the county.

·         Baseline allocation €10.2 million and we still receive €7 million from the Equalization fund.

·         One submission seeking reduction of LPT and exemption for protected structures.

·         Aiming to maintain frontline public services such as Roscommon Leisure Centre that needs an additional €100,000 in 2021 to keep it open.

He stated that the Chief Executive’s recommendation is to maintain LPT at the 2020 level, that means no change to the charge to citizens in 2021. This provides €255,00 for match funding, €150,000 for street cleaning, €120,000 for local roads, €50,000 for upkeep of parks and €34,00 to support Tidy Towns groups. He stated that if the increase is not agreed all of those items cannot be funded.

The Chief Executive’s recommendation is to maintain LPT at 2020 levels.

Cllr. Cummins proposed that Local Property Tax rate remains at the 2020 rate.

Cllr. Naughten seconded the proposal.

Cllr Tony Ward stated that 2020 has been an unusual year, that Roscommon County Council is always short of money and has been denied up to €100m for Roads alone from central funds. He stated that the Council has always been 100% prudent in its financial affairs and is genuine in relation to the €600k needed to balance the budget but more funding from central Government must be forthcoming.

Cllr. Tony Ward proposed that the Local Property Tax rate for 2021 revert to the baseline rate.

Cllr. Anthony Waldron seconded the proposal.

Cllr John Cummins stated that the Council would be in a grave position if LPT is left at the baseline rate with a deficit of over €1m to be found as outlined by the Director of Services, with a risk to grants, funds for Town Teams and other funding streams. He stated that the public want to see grants maintained, swimming pools operating, and amenities and graveyards maintained. He stated that 57% of the general public pay approximately 25c extra per week and if there is a counter proposal then it has to be explained where money will come from to make up the shortfall.

On the PROPOSAL of Cllr. Cummins

SECONDED by Cllr Leyden

It was AGREED that the meeting adjourn for a period of ten minutes. This time to be used to present proposals on how the budget shortfall would be funded in the event that the LPT is retained at the baseline rate for 2021.

Cllr. Kilduff PROPOSED that the vote on the LPT rate for 2021 proceed. There was no seconder for the proposal.

Cathaoirleach, Cllr Laurence Fallon adjourned the meeting for ten minutes, stating that this period will form part of the meeting time.

On resumption of the meeting after ten minutes the following spoke on the matter:

Cllr. Tony Ward stated that ratepayers are being bailed out and he can’t see any reason why Roscommon County Council can’t be bailed out by National Government. He stated that 64 advisors have been appointed by Government with so many Super Junior Ministers appointed and national politicians also receiving a pay increase. We are going back to the general public again and will have the same problems and issues again next year.

Cllr Orla Leyden stated that she had hoped a clear outline might come as to where funding might be found or else what services would be cut. We have to be realistic, services will be lost and people lose out if we don’t maintain LPT level. She stated that she wants to protect services and see county continue to develop.

Cllr John Keogh stated that he fully supports the proposal to maintain LPT rate at 2020 levels to maintain services and match funding. He stated that there is a risk of significant loss of services, projects would be put at risk and that he wants to see continued development particularly in South Roscommon, towns continue to be maintained and projects delivered.

Cllr Donal Kilduff stated that he supports keeping the LPT at the 2020 level as he wants to see continuation of services and availability of match funding. He also stated that as a Public Representative he resents the fact that he has to vote on the LPT issues, whilst at the same time a response is not forthcoming from the OPW or that they don’t have the resources to attend a meeting with Municipal District Members in relation to issues at Lough Funshinagh.

Cllr Paschal Fitzmaurice stated that there is no option other than to maintain the 2020 LPT level. He stated that the funding is needed to create jobs, develop our towns, support projects such as Castlerea Food Hub and provide amenity grants. He also stated that no credible alternative has been put forward.

Cllr Liam Callaghan stated that he supports continuation of LPT at the 2020 level as he can see huge benefits for towns and villages and as we are being subsidized by other counties we have to show a commitment to raising funds locally.

Cllr Kathleen Shanagher stated that she supports retention of LPT at the 2020 level as it supports communities, provides great parks and recreation facilities and supports housing grants for the county’s elderly population.

Cllr Ivan Connaughton stated that he supports Cllr Tony Ward’s proposal and that other cost cutting measures could be put forward. He stated that many people are out of work and on reduced incomes and cannot pay increased levels. He stated that hard decisions need to be made and now is not the time for a 15% increase.

Cllr Tony Ward stated that the Independent group had discussed the LPT and no whip has been applied to members of the grouping. He appealed to give 12 months to lobby national politicians to obtain funding for RCC for 2021.

Cllr Paschal Fitzmaurice stated that no whip has been applied to members in relation to a decision on the LTP.

Cathaoirleach, Cllr Laurence Fallon stated that he supports retention of LPT at the 2020 level as to not do so would plunge the Council into deficit of over €1m.

Cllr John Naughten stated that it is very important for people to know that this is not a further increase but rather a retention of 2020 LPT levels and they won’t be paying any more than they are paying in 2020.

Chief Executive, Eugene Cummins, stated that there is no increase in payment from last year for any householder, nor will there be a bailout from Central Government should we fail to maintain LPT at the 2020 level. He stated that he wanted to be 100% clear that items outlined by the Director of Services will not be funded if LPT is not maintained at the 2020 level. He stated that there will be big announcements in relation to capital investment shortly for all areas of Roscommon that the Elected Members have committed to. Elected Members help and input will ensure continued development and it a great credit to everyone that has transformed this county in terms of investment. There is no way forward if we don’t maintain LPT at 2020 level and we would not be in a position to continue funding development of the county. The Council gets LPT monies from individuals and this money goes back to the community collectively. There is a simple decision to be made – a budget with those items included or not.

The Cathaoirleach then requested that a vote be taken in relation to the Local Property Tax rate for 2021.

 

On the PROPOSAL of Cllr. Ward

          SECONDED by Cllr. Waldron

That the Local Property Tax rate for 2021 revert to the basic rate 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.

 

VOTING FOR THE PROPOSAL :

Councillors Ward, Connaughton, Dineen, Mulligan, Waldron (5)

 

VOTING AGAINST THE PROPOSAL:

Cllrs. Byrne, Callaghan, Crosby, Cummins, Fallon, Fitzmaurice, Keogh, Kilduff, Leyden, McDermott, Murphy, Naughten, Shanagher (13)

 

The proposal was defeated.

 

On the PROPOSAL of  Cllr. Cummins

          SECONDED by Cllr. Naughten

That the Local Property Tax basic rate be increased by 15% for 2021 as provided 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.

 

VOTING FOR THE PROPOSAL:

Cllrs. Byrne, Callaghan, Crosby, Cummins, Fallon, Fitzmaurice, Keogh, Kilduff, Leyden, McDermott, Murphy, Naughten, Shanagher (13)

VOTING AGAINST THE PROPOSAL:

Councillors Ward, Connaughton, Waldron, Dineen, Mulligan (5)

 

The Cathaoirleach declared the motion carried.

 

 

Publication date: 28/10/2020

Date of decision: 28/09/2020

Decided at meeting: 28/09/2020 - Monthly Meeting

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