No rate hike or local property tax increase in Cork county
Cork County Council's budget next year has increased to €458m. Picture: Denis Minihane
Cork County Council has increased its budget for next year by €55m to €458m but it will not be seeking an increase from ratepayers to fund the increase.
There is also no hike in the local property tax (LPT) for householders in the county.
Some of the extra money to fund the budget comes from the fact that for the first time the council gets to keep all the money it raises from the LPT without having to give a large percentage of it to central government.
In part, the additional budget increase for 2024 includes a percentage of €1.503m needed for major capital investment projects the local authority is planning to undertake from next year until the end of 2026.
This includes €927.69m for housing, €340.75m for roads, and €20.58m for water services.
Council chief executive Valerie O’Sullivan said that while the 2024 budget shows a significant increase on this year the local authority “is facing continued cost increases across all its service delivery areas”.
She said the budget will enable the council to retain service levels even in the face of increased inflation, which is currently running at 5.1%.
Ms O’Sullivan said it is the first time in many years that the county council hasn’t had to dig into its reserves to prop up services.
The biggest single income strand for the council is rates and it is estimated it will bring in €127.5m from them in 2024.
Revenue from the LPT for next year is likely to be around €28.46m.
The council envisages spending €71.6m maintaining and upgrading its local road network next year and a further €29.2m on regional roads. That’s a combined increase of €22.9m on this year’s spending.
The local authority expects to spend nearly €98m on housing next year.
It intends to spend €927.69m on housing through its 2024-2026 capital plan. Included in that is €462.95m for social housing and €216.37m on affordable housing.
Homeless services will increase by €4.1m to €9.6m in 2024 and will include the creation of a new homeless family hub in West Cork costing around €800,000.
The council’s financial controller Jeremy Canty said budget allocations are to be increased across all services. He said it is still very challenging for ratepayers, especially small businesses.
“The burden on ratepayers has in real terms reduced taking into consideration the increase in inflation,” Mr Canty added.
Fianna Fáil councillor and Mayor of County Cork Frank O’Flynn said it was the biggest budget in the council’s history and it was important they didn’t have to dip into their €7.65m in reserves.
He also said he is pleased that council bosses have given a commitment to bring the number of outdoor staff from 354 up to 374.
Mr O’Flynn said the increase in spending on roads, street cleaning, footpaths, and upgrading of public spaces was also very welcome.
Leader on the council Fianna Fáil’s Seamus McGrath said: “This budget represents a huge investment in Co Cork.
“Overall, we welcome it. It is positive.”
However, he asked a new fund be created at budget time to enhance older playgrounds. “They’re a critical piece of infrastructure in our communities,” he said.
His counterpart in Fine Gael, councillor John Paul O’Shea, said it was good news that there would be no increase in rates and that the money from the LPT is being retained in the county.
