·         Presentation from Mr. Martin Lydon, Director of Services

Mr. Martin Lydon, Director of Services gave a presentation to the members on the impact of the ongoing Covid-19 pandemicon the finances of Roscommon County Council including the impact on our revenue, the Government response, Local Government Sector response, Roscommon County Council response and the next steps to be taken in this matter:

 

·         Potential annual loss of €5.9m in rates income (€491k per month)

o   Annual invoices of €12.7m (arrears b/fwd. €1.2m)

o   2020 position; cumulative effect in 2021 (closed businesses)

o   Potential loss of rental income - Full affect will not be known until Covid-19 Pandemic Unemployment Payment ends

·         Reduction in Planning applications equating to €50k lost fee income

·         The Council need to be cognisant of 2021 finances in all decisions to be made on finances

·         The rates account deficit brought forward to 2020 is €1.2m – the lowest for many years.

·         It is difficult to calculate the loss of rental income

 

Government Response:

·         Circular Fin 06/2020 introduced “Commercial rates alleviation measures” including a 3-month waiver of Rates for certain businesses:

o   Only for businesses forced to close -€260m available to fund initiative and Roscommon can expect between €1.35 - €1.5m

o   Covers period 27^th March to 27^th June 2020

o   Operation of scheme not yet designed

o   The position post 27^th June to be considered as part of a wider review of options once unwinding of public health restrictions advanced

 

·         ReStart Fund initiated for commercial premises with a rates account launched on 22^nd May with a closing date of 31^st August

·         €250m available to fund initiative

·         Businesses must operate in commercially rateable premises

·         Ratepayers not eligible include Multiple Chains, Non-commercial organisations, businesses not operating from commercially rateable premises and premises that were vacant prior to Covid-19 emergency

·         Grant based on 2019 rates demand, subject to a minimum of €2k and maximum of €10k

·         If rates were less than €2k, business will receive minimum amount of grant i.e. €2k

·         Businesses that did not pay 2019 rates are eligible

·         Criteria for qualifying

§  Must have turnover <€5m and 50 or less employees

§  Suffered a projected loss of 25% in revenue (1^st April -30^th June)

§  Business must commit to remain open or reopen

§  Retain employees on Temporary Wage Subsidy Scheme (TWSS)

§  One week for approval by RCC

§  SLA signed with DBEI / DHPLG / EI

§  Will allow €200m to be allocated to local authorities

§  Effectiveness of scheme to be reviewed once €200m paid to businesses

 

·         The Department of Finance & Public Expenditure & Reform announced on 2^nd May a commitment to local authorities to make up the rates shortfall, so that local authorities can continue to provide full services to the public.

Local Government Response:

·         CCMA and Head of Finance Group have been in regular contact with DHPLG

·         Three Acute Financial Matter (AFM) Reports produced

·         Reports were basis for rates waiver fund of €260m

·         Local Government Sector is dependent on Central Government meeting shortfall across all sources of income

·         Pressure being maintained to investigate all income sources

 

Roscommon County Council Response:

 

•       Rates Team in place to help businesses with ReStart Fund

•       Dedicated email and telephone line

•       Form available and FAQ available on website

•       Digital Transformation Team have developed “back office” functionality to administer process efficiently

•       140 ratepayers completed “Covid-19 (Rates Form)” stating closure or part closure. Forms totalled €508k

•       Payments to contractors maintained throughout emergency; (region of €1.25m per week)

•       Analysis undertaken of all budgets to produce savings of €3.1m:

•       Amenity and graveyard grants maintained

•       Staff savings of €858k identified. Vacancies will be monitored and managed

•       Reduced housing voids programme; €515k

•       NPPR continues to perform well; an additional €200k expected

•       Municipal District Fund of €255k suspended

•       Town Team funding reduced by 52%; €8k per team (linked to Rates)

•       Savings on loan repayments €370k

•       Rates Incentive Scheme abolished €100k

 

Nest Steps to be Undertaken include:

• Moratorium on certain expenditure to be introduced
• Need to protect reserves and provisions to guard against uncertain future
• Budgets will be kept under review

•       Detail and clarity required regarding Central Government funding

•       2021 Budget process to start in June

o   Maintain income levels in areas such as LPT

o   Regular reports to CPG and Elected Members

 

The members welcomed the presentation and discussed as follows:

 

·         If a business is partially closed, will the rates demand be adjusted to reflect this situation?

·         Is the Restart fund available for businesses that reopened on 18^th May?

·         This is a broad insight as to what the Council is facing in the coming year(s). Our rate base is low but we traditionally have a very high collection rate.

·         Government funding is welcome but must be immediately paid to allow us to continue our service provision as best we can otherwise there will be a deficit in the day to day running of the Council.

·         A deficit of 50% of rates income is a staggering figure and Council needs to be prudent in its management of finances going forward.

·         Welcome decision to pay amenity and cemetery grants.

·         Town Teams need to be supported as it is vital to keep these structures in place

·         How is the level of restart grant calculated for businesses that apply?

·         A number of businesses that have opened have a decreased turnover due to decreased footfall and can these businesses be supported?

·         Every sector must be supported equally.

·         Welcome the restart fund – all jobs even one or two in a business are all important jobs.

·         What savings in staff are envisaged as regard the €858k reported?

·         Pressure must be exerted by Government to seek and avail of substantial EU Funding 

·         The Local Enterprise office in Roscommon is providing a great service to small businesses.

·         Many people will continue to work from home when restrictions ease and the importance of good broadband cannot be understated and as a county we ned to be prepared for this.

·         The benefit of being part of the EU will be of critical importance coming out of this situation.

·         The Restart grant is welcome but will fall short of what is required

·         Encourage all ratepayers to apply for the restart grant.

·         Welcome online trading vouchers which is 90% funded.

·         If Government do not provide funding the outlook is stark and we do not yet know the impact this will have on next year.

·         Need assurances from Central Government to provide shortfall in funding or services cannot be maintained

·         Need time to remember those who have passed away from Covid19 and lockdown has been difficult for many people.

·         It is vital that community funding is maintained.

·         More people are now shopping online and there must be consideration by central government to tax this and get money cack locally

·         The IDA need to have a more positive approach to County Roscommon

·         It is important to keep money in circulation locally and welcome the fact that all suppliers are being paid within 30 days.

·         Reducing social distancing from 2m to 1m has to be an important measure for consideration by the Government to assist many businesses.

·         Important that our Oireachtas members bring the message that funding will be needed by all counties. All members of Roscommon County Council will work together for the benefit of the citizens of the county.

·         An update will be required for the members on a monthly basis as there is there is so much we as do not yet know and the situation is ever changing. As a country we have worked so well together and there is a fear of a second surge.

 

Mr. Lydon replied to queries as follows:

·         The Council can process payments but not pay until money received.

·         For the Restart Grant businesses must be a rateable property.

·         Partial rebates can be facilitated and any business can apply that has a loss of more than 25% of revenue in a 3-year period.

·         The application for the restart grant must be made online only in order to process applications immediately and bank details to be included. The grant is based on 2019 demand.

·         Staff savings identified in 2020 are across all divisions and where recruitment has not taken place, workforce planning and the timings of people leaving and recruiting staff. This is a once off in 2020 and more concerning is the situation in 2021.

 

The Chief Executive informed the members of continuous engagement with the CCMA (City and County Managers Association), Heads of Finance and Government Departments throughout this emergency to date. This presentation by the Head of Finance today is the first attempt to find a solution regarding the loss of income. Ratepayers are the life of economic development in the county. Regular updates will be provided to members together and any new information received. Everything will be assessed and everyone treated fairly but next year will be more critical and any decisions taken have to have regard to the next two years.

 

 

On the PROPOSAL Cummins

SECONDED by Cllr. Ward

It was AGREED to write to the relevant Government Departments to request that all Government monies including any subsidy be paid immediately to Local Authorities.