(Circulated)

Mr. Caldbeck informed the members that the Annual Financial Statement (AFS) for 2016 has been completed and circulated in its unaudited form for members’ attention and provided a summary of the financial activity for the year. Mr Caldbeck presented a report to members and he explained that two resolutions were necessary in line with the content of his report.

• To approve the over expenditure compared to budget (in the main counterbalanced by increased income over that budgeted for the year)
• To approve the transfers to/from Revenue to Capital for the year (in the main amounts that had been approved by members as part of the budget process for 2016)

The key points for members to note from the AFS 2016 are:

• The Revenue account reports a surplus of €22k for 2016.
• Over expenditure was financed by increase in income streams.
• Revenue expenditure included €5m on flooding
• Vacant commercial property cost €2.3m in rates. This has increased dramatically since 2008
• Equalisation payment for LPT of €5.00m – there is more and more  risk attached to receipt of this money.
• Large increase in staff pension payments.
• 18% of our income in 2016 was from rates, in 2008 it was 12%. There is a huge reliance on a small number of ratepayers for the bulk of the rates income
• We received €240,000 in compensation for loss of rates income from globals and we do not expect any compensation in 2017.
• The revaluation exercise in 2016 had an impact on our cash flow
• Our expenditure per head of population in county was €1,350 (€87m for 64,436 pop)
• Final Account of Áras an Chontae not yet complete but expected to be €22m as per the loan sanction

Mr. Caldbeck outlined financial pressures for 2017/2018 as follows:

• Haddington Road Staff pay costs in 2017 will be €400,000 over budget while pension costs are more difficult to predict going forward
• Lack of compensation for loss of globals rates adjustment
• Budget pressure on ARV for 2018 as a result of evaluation
• Will NPRR stream eventually run out and if so how will the income be replaced?
• Possible costs associated with severe weather incidents such as fires or flooding
• Financial risks also include income threat to PRD, Thornhill Report recommendations on LPT, dependency on Irish water SLA, Irish water funding of pension,  pressures to increase LPT and possible outsourcing of services.

The following issues were raised discussed by the members:

• Prudent management of the resources ensured that the Council had no recourse to the overdraft facility in 2016. The 2016 AFS report shows that Roscommon County Council is in a healthy state financially.
• The vacant property levy of 15% will put small businesses under pressure.
•  Not in favour of commercial rates on vacant properties when businesses are struggling and this may be more appropriate in large cities.
• The Thornhill Report is of concern if it is implemented as it recommends each county retains its own property tax and we are subsidised up to €5m annually. This ultimately means we have to increase our property tax .
• What is the value of the bonds are outstanding?
• Although the sum of million was spent to alleviate flooding in 2016, there are still outstanding problems and pressure must continue to be brought to bear to deal with these issues.
• Members supported the ongoing financing of the Roscommon leisure centre as its provision was more than a financial matter. What happened regarding the Leisure Centre Advisory body and it would be considered good governance in view resources spent on it. Also consider Wi fi installation
• Concern with regard to rising cost of staff pensions, ageing staff profile and suggestion there should be a national fund for pensions.
• When will Final Account for Áras an Chontae be completed?
• Concern about current staff strike, phones not answered and request for a clear statement from CE on the matter
• Consider advisory body for Lough Key Forest Park similar to the Leisure centre.  Moylurg Ltd. are making  a presentation at the  next Boyle Municipal District meeting.
• Rates on wind farms have  increased – how will solar farms be rated?
• Concern from businesses in not so much rates as increasing insurance costs
• Management should look for motor tax payments to be retained in county
• Concern about cut in funding for local roads from year to year – many roads not resurfaced for years
• Incentives for businesses starting off not to have to pay rates for a number of years

Mr. Caldbeck replied to points raised as follows:

• The difference in amount billed vs. amount paid for rates is an accounting amount.
• The loan sanction for the new HQ was always €22m and there have been various presentations to members outlining the costs. The contractor costs are €15.7m, Land and associated costs €2.4m, Furniture fittings and ICT €2.1m Consultancy fees €1.3m and Miscellaneous costs €0.5m. 
• The council always try to maximise grant funding received  for housing

Ms. Majella Hunt, Director of Services informed the members of the significant investment in the Leisure centre. There have been changes in legislation with regard to Directorships and this will have to be regularised and part of this process will involve introduction of new structures including reestablishment of the advisory body.

Mr. Martin Lydon, Director of Services informed members that a total of €13.6m is outstanding in bonds but not all will be called in. Income from development levies increased due to the construction of the wind farm. There have been a couple of planning applications for solar farms but as the subsidy payments have discontinued it is difficult to know if they will progress

The C.E., Mr.  Eugene Cummins stated that he was delighted to be able to attend the meeting in Curraghboy and thanked Mr. Seamus McHugh for the hospitality. He said that the Final account for Áras an Chontae headquarters is imminent with one significant outstanding item to be resolved. In response to a query on the final account, he confirmed that a full breakdown of the final account would be made available to the members when completed. He also informed the members that as the recent staff dispute has been referred to the Labour Court he could make no further comment on the matter.

On the PROPOSAL of Councillor Naughten

SECONDED by Councillor Ward

It was AGREED that that Roscommon County Council seek extra funding for grants from the Department of Housing.

On the PROPOSAL of Councillor Leyden

SECONDED by Councillor Shanagher

It was AGREED that that Roscommon County Council reconstitute the Advisory Body of the Roscommon Leisure Centre.

On the PROPOSAL of Councillor Cummins

                SECONDED by Councillor Dineen

It was RESOLVED  that Roscommon County Council authorise the over expenditure under the Divisions as set out in Mr Caldbeck’s report of 12^th May 2017 which accompanied the Annual Financial Statement 2016 pursuant to Section 104  of the Local Government Act, 2001 and the transfers to/from Capital Revenue accounts.

On the PROPOSAL of Councillor Naughten

                SECONDED by Councillor Fallon

It was AGREED that the unaudited Annual Financial Statement for the year ended 31^st December, 2016 be adopted.

The Cathaoirleach at this point thanked Mr. Seamus McHugh from St. Bridget’s handball club and all of the hall committee for their work in having the hall in such wonderful shape for the meeting and for the hospitality.