Bleak picture as widespread spending cuts forecast for Offaly in 2023
DISCRETIONARY spending in service areas across the entire County could face significant cuts in 2023. This was the stark message at the monthly meeting of Tullamore Municipal District.
The County Council budget for next year is currently being drafted against a hugely uncertain economic climate, members heard.
The closure of Shannonbridge Power Plant has resulted in a permanent reduction of €1.7m in rates income for Offaly County Council and Central Government will again fund this shortfall in 2023.
However, despite ongoing discussions with the Department of Housing Planning and Local Government (DHPLG) on this issue, no permanent long term central funding has been secured to replace this lost income which is directly as a result of the national decarbonisation agenda, it was reported at the council.
Meanwhile commercial rates are also down. A report to the meeting stated that ''there is huge uncertainty in this area as businesses struggle with inflation, including spiralling energy costs and the Local Government Sector continues to lobby the DHPLG on this matter.
Income from Goods and Services including parking charges, etc have also declined significantly in 2021. This trend is continuing in 2022.
Furthermore, ''increasing borrowing costs in light of increasing borrowing rates across Europe is increasing non-discretionary costs for Offaly County council.''
The chief executive of Offaly County Council, Anna Marie Delaney has proposed a general Municipal Allocation for the Tullamore area of €177,000 which is the same as last year's budget.
However, it was recommended that councillors not allocate the money to special areas until after the main county council budget meeting when there will be more certainty on the final amount.
Director of Services, Tom Shanahan outlined how the general municipal allocation is used. He said it has been used to fund a number of '' fantastic projects.''
€100,000 from the fund has in the past gone towards the Christmas Lights in Tullamore, Clara and Mountbolus, the Entente Florale and in addition money has gone towards the provision of public toilets in the town park for the last three years and it is hoped that this year the project will be finalised.
Meanwhile the remaining €77,000 of the budget is allocated to community groups in the Tullamore district.
Leas Cathaoirleach Declan Harvey who was standing in for Cathaoirleach Neil Feighery, said €177,000 is not enough for the Municipal District.
''I would be looking for €190,000 or €200,000. We are stuck on €177,000 and every year we ask for more and we never get it. We give out a lot of money for a lot of things. The public toilets in the Park got a lot of support from us in this term and last term and community centres got a lot of support,'' he said
Councillor Sean O'Brien agreed that ''we need a much bigger allocation. I think we will need a minimum of €200,000.''We have looked for money for the water feature in the town. It was a fantastic feature. It's great for the kids skipping through it. It needs a lot of money, we can get a grant but we need matching funding and if we don't have that we can't do it,'' he said.