Pressure on Council's Commercial Rates Income Bound to lead to difficulties in keeping up service levels

Issued : Thursday 8 July, 2010

 The commercial rates paid by businesses in the County is the single biggest source of current income for South Dublin County Council: at about €124 million this year it accounts for about half the Council's annual budget revenue budget, and provides the money for much of the Council's ongoing work, including staff wages, maintanenance of Parks, Community Centres and the funding of much of the Council''s services. The amount of money South Dublin County Council receives annually from Government in the form of the Local Government Grant  is very small compared with the commercial rates income. As I have often highlighted in the past South Dublin receives the lowest amount of Local Government Fund grant per resident of all County and City and County Councils in the country.

So our capacity to provide many services is reduced if the rates income is falling below the levels we anticipated when we drew up our Annual Budget last December. The Manager's Reply to my Question at the July Council meeting, confiorms that we are behind target because of the financial pressures on our businesses. See below

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, July 12, 2010

QUESTION NO.22

QUESTION: Councillor E. Tuffy

To ask the Manager for an updated report on income received in respect of commercial rate payments since 1st January 2010, to provide a figure for the estimated total income anticipated in the whole of 2010, and if he will make a statement on the matter?

REPLY:

  1. 1.      The projected net billing for commercial rates in 2010 is €123,966,400.  This compares with a budget provision of €124,415,000 and will result in a budget shortfall of €448,600 for income from commercial rates.

  2. 2.      Commercial rates become due for payment in two equal installments or moieties each year.  Billing for the first moiety totaled €62,196,827 and this combined with opening arrears and warrant adjustments resulted in the sum of €79,893,690 as due for collection.

 

Commercial Rates 2010

Opening balance @ 1 Jan 2010

€18,124,111

Billed Jan/June 2010

€62,196,827

Warrant adjustments Jan/June

-€427,248

 

€79,893,690

Collection Jan/June 2010

-€57,898,288

 

 

Balance due @ 30 June 2010

€21,995,402

Billing July/Dec 2010

€62,196,827

 

 

Due with effect from 1 July 2010

€84,192,229

  1. 3.      €57,898,288 was received in respect of commercial rates during the period January to June 2010 resulting in a balance of €21,995,402 due for collection at 30 June 2010.


  2. 4.      Ratepayers are offered the option to pay in full once the debt becomes due or to pay via direct debit so that the commercial rates debt is cleared at year end.  Ratepayers who have defaulted from payment of their debt will be pursued for payment via the legal process.  This can result in the seizure of goods by the county sheriff on behalf of South Dublin County Council and/or legal judgments recorded against property belonging to individuals.

  3. 5.      As advised by the Manager during the annual budget process, sources of income are monitored on a continuous basis so that early intervention to contain expenditure is possible if income is at risk.  Revised expenditure proposals are discussed with members once it is clear that an adjustment is required to the budget.

 

 

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