Annual Budget 2009 - Roscommon County Council

Manager’s Foreword
Sector area where Performance Indicators are measured and reported upon from year to year.
Roscommon Co. Co. ranks well and continues to be above average in the majority of the 166
parameters measured.
In mid 2008 the Government imposed further cutbacks for the financial year 2009 on all Departments
including Local Authorities requiring a 3% cut in payroll along with other capital and overall revenue
stream cutbacks. The effect of the 3% cut alone stipulates that Roscommon County Council must
reduce payroll costs by €1 million in 2009 as against the 2008 figure. This will be achieved through
a combination of reductions/non renewals of temporary work contracts and fixed term contracts.
Overtime reductions will be necessary and other payroll payments will also be reduced.
Income/funding for Local Authorities can be classified in to three broad bands relating to the sources
of such funds viz; 1) The Local Government Fund – a Central Government block grant, 2) Proceeds
from the sale of goods and services – rents, water charges, planning fees, etc and 3) Commercial
Rates.
In recent years the Local Government Fund was generally increased in line with inflation or even
higher. County Roscommon consistently received a funding level from this source below the national
average but this County Council got on with the job and have consistently managed to live within
targets through good financial controls amongst other things. For 2009 however not only is the Local
Government Fund not keeping pace with the rate of inflation but it is being cut by an average of over
7%. The allocation to Co Roscommon is €21,765,459 which represents a 6.6% reduction on the
2008 level and is separate to the payroll cut already mentioned. The value of the shortfall over the
equivalent figure last year is €1,542,541.
These figures are presented prior to any consideration of the ongoing effects of continuing extra
responsibilities, expanded services, new projects, inflation and the effects of increasing levels of
service and ever increasing EU and other standards and obligations such as in the water services
area and in environment.
This year the Government has introduced a new potential stream of funding for Local Authorities in
the form of a €200 charge on non-principal private residences. This will require new legislation and
a new collection regime. It is unclear at the time of writing where the new collection system will be
centred and what level of administrative back-up will be required within the Local Authority. Certainly
there will need to be a major effort and painstaking/forensic trawl to establish ownership and to
determine liabilities. In the long term this new income stream may be a good development for Local
Authorities but the benefits may not be realised in 2009. Note also that the letter of notification of the
Local Government Fund grant advised ‘Following the introduction of the new charge, the level of
Exchequer contribution to the Fund will be revisited in the context of the revised estimate of
expenditure. Consequently the above provisional General-Purpose Grant Allocation for 2009 will be
revisited and adjusted as appropriate, to take account of income from this charge.’ Given the
projected timing of any new legislation, the set-up time for new systems and the above advice I have
not allowed for any increased income over and above the amount notified in the Local Government
Fund Grant for 2009.
Roscommon County Council | Comhairle Chontae Ros Comain | Adopted Budget 2009 | For year ended 31st December 2009
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