Cork City Council avoids threatened 2.5% rates hike

That meeting had been deferred last month over draft plans for a rates hike designed to bridge a €2.5m deficit.

However, the shortfall was bridged instead by: 

• assuming an additional €560,000 rental income from social house purchases next year; 
• a €200,000 reduction of rates abatement from 50% to 40%; 
• a €537,000 saving from the ending of the rates incentive scheme;  
• a €408,000 saving by delaying recruitment by an additional month;  
• a €795,000 reduction in non-pay discretionary spend.

Councillors accepted the savings, and voted 23-3 to approve the budget, which will see some €326.5m spent on service delivery next year — €33.5m more than this year.

There will be no increase in parking charges, and all sports, community, and arts grants have been maintained.

Fianna Fáil councillor  Sean Martin, chair of the finance committee, praised members for putting party politics aside and finding a way to balance the books. He said: 

None of us got everything we wanted, but we’ve all bought into it for the benefit of the city. 

Fine Gael councillor Shane O’Callaghan said he was glad the majority of councillors recognised a commercial rates increase at this stage would have been the last straw for many businesses.

“Businesses are already grappling with a multitude of extra costs and expenses in a variety of areas and I have long said that it is not fair, reasonable or realistic to now expect them to pay extra rates on top of everything else,” he said.

However, Independent councillor Albert Deasy claimed he was obstructed from presenting detailed proposals to the finance committee, which included a recruitment embargo and a staff level review to reduce costs by €16m.

Councillors voted 25-1 against his amendments before approving the overall budget. 

Mr Deasy, Worker’s Party councillor Ted Tynan, and Solidarity Cllr Brian McCarthy, were the only councillors to vote against it.

Labour councillor Peter Horgan said councillors have a duty to ensure the council continues to operate and serve the people of Cork. He said: 

We passed the budget that will deliver, not everything we want, but gets us on the pathway to achieve what we want in our communities and city.

Independent councillor Kieran McCarthy said at times, the narrative about the city can be negative but he said there is unprecedented investment in the city centre.

Sinn Féin councillor Michelle Gould expressed concerns about house repair delays and said there are real people behind the statistics who should not be forgotten.

In what was her first city budget as chief executive, Valerie O’Sullivan, said the city faces another challenging year with cost-of-living, cost of doing business, increased demand for services against a backdrop of static resources and payroll increases on foot of national pay agreements.

“Added to this, we face a reduction in income from parking, which is necessary to develop public realm, flood relief, additional cycleways and the pedestrianisation of city streets," she said.  

"While all of these works are either essential or desirable, and very welcome, they also create an issue now and into the future for the funding of services.”