Offaly County Council increases spending as it adopts Budget 2020

Offaly County Council has adopted its budget for 2020, agreeing to increase spending and freeze commercial rates in the process. 

The budget was adopted by members on Monday, November 18. 

The council has increased spending by almost €10 million, including increases to the roads budget, community CCTV scheme, lighting, digital management, the arts and a new shop front scheme aimed at boosting the local economy. €12,000 will be spent on the rollout of the National Broadband Plan.

The roads budget will increase by €75,000 in 2020, spread evenly across the three municipal districts.

Offaly County Council's expenditure will hit €68.4 million in 202, up from the €59.8 million spent in 2019. That increase is accounted for in the main by an increase in the level of central government funding for road grants, LEADER funding and other social supports.

Net expenditure will increase from €24.1 million in 2019 to €25.9 million in 2020.

Offaly County Council's 2020 budget will also see the first repayment of €150,000 made on the €2 million loan taken out by the local authority earlier this year to ensure the completion of a new arts centre in Tullamore. 

Outlining the budget, Director of Finance, Thomas Mawe, said: "As has been the case in recent years, the framing of the 2020 budget has been difficult as there remains a degree of uncertainty in the economic outlook and with a potential Brexit looming and the issues arising for some ratepayers around the decarbonisation agenda.

"It has been necessary to take a conservative approach, while these uncertainties exist, with minimal amounts of discretionary funding available for expansion of service. Nevertheless, the budget data also reflects an increase in funding in the county of national programmes like the roads programme, LEADER funding, SICAP and other national initiatives."

Funding allocated to each municipal district will remain the same in 2020. The rates harmonisation process completed in 2016 yielded an extra €100,000 per municipal district and that level is maintained for 2020. Tullamore will receive €177,000, Birr €170,000 and Edenderry €167,000.

€10.6 million will be spent on housing and building in Offaly in 2020; over €18 million will be spent on roads, transport and safety; €6.7 million on environmental services; and €3.3 million on water services. All of this expenditure is up on 2019. 

The budget was adopted after amendments put forward by the Fianna Fail grouping won the necessary support in a vote. The motion was outlined by Cllr Eamon Dooley and involved an increase in funding to Offaly swimming pools, playgrounds and libraries. The county's swimming pools will receive an additional €15,000 to be split evenly as a result of the amendments. An extra €15,000 was also agreed for the county's playgrounds with a €10,000 bump agreed for libraries. 

The budget for 2020 will see Offaly County Council's overall deficit reduced by a further €400,000. The deficit has been coming down steadily in recent years with OCC saying it is expected to have reduced by €2 million by the end of this year.

A number of councillors expressed concern at the loss of commercial rates in 2021 with the closure of West Offaly power Station. It is estimated that over €2.5 million will be lost in rates when the power station closes with further closures likely in the coming years within ESB and Bord na Mona.

Cllr Eddie Fitzpatrick described the potential loss of that rate base as "a huge issue," asking, "who is going to fill that gap."

"We need to start looking at that now as it's coming down the tracks very fast and will have a huge impact on our finances here," he added.

Cllr Neil Feighery described the rates situation as a "cliff edge," describing the closure of West Offaly Power as a "devastating blow" for the area. He went on to say that "ministers have made commitments on Just Transition and we should give them a chance to come good on that."

"We will be fighting for it so that Offaly is not forgotten. The challenges we face are huge but they are not insurmountable," he added.

A number of other councillors questioned those ministerial commitments with Cllr Declan Harvey and Cllr John Leahy describing last weeks visit by three government ministers to Offaly as "lip service" and a chance to "get their photo in the paper."

Responding, Chief Executive Anna Marie Delaney said the council were still waiting for the details of the suite of funding provisions announced for the Just Transition in the recent government budget. She said Offaly County Council would extend a meeting to the newly appointed Just Transition Commissioner, Dr Kieran Mulvey, to attend a council meeting. She will also invite him to attend a meeting of the Regional Transition Team which features other educational institutions and local authorities in the Midlands.