Issue - meetings

The Cathaoirleach, Councillor Mary Bohan invited Mr. Lar Power, Chief Executive to give an overview of the Draft Budget for 2021.

Mr Lar Power referred to the Draft Budget for the financial year ending 31^st December 2021 as circulated to each Member. A copy of the Budget document as circulated to the Members appears as Appendix 1 to the Minutes of this Meeting in the Minute Book.

Mr Lar Power outlined that, as the Members are acutely aware, 2020 has proven to be a very challenging year for citizens and in particular the business sector of County Leitrim and it was also a challenging year for Leitrim County Council. Covid-19 and the subsequent restrictions presented a challenge for Leitrim County Council in finding new ways to deliver services while complying with public health guidance to supress the virus and minimise the risk to staff and customers alike.

The impact of Covid-19 generated significant uncertainty both nationally and locally regarding the financial management of Local Government, particularly in the context of the potential for the loss of income from commercial rates, goods and services and increased expenditure incurred in responding to the pandemic. 

In mid-2020, the Government announced a Commercial Rates waiver for six months which was subsequently extended to nine months, and applicable to occupied properties subject to certain exclusions. The government also announced the Business Restart Grant, which was administered by Leitrim County Council. To date 470 businesses have received €3.41m in County Leitrim, with over €1m projected to be paid in the coming weeks in the form of top ups and appeals. The Government are currently considering submissions regarding Covid-19 costs incurred by Local Authorities together with income lost on goods and services and Mr Power stated he was optimistic that compensation will be forthcoming in this regard.

He advised that the 2021 Budget has therefore been framed in the context of very strong support from Central Government. The Annual Rate of Valuation (.2208) remains unchanged at 2020 levels and it is also recommended that the Commercial Rates Vacancy Refund Scheme (75%) remain unchanged at 2020 levels. Mr Power informed the members that the purpose of refunding only 75% of rates in respect of vacant commercial properties is to change the culture of having commercial properties lying idle for extended periods of time or indefinitely. Such vacant units seriously affect our towns and villages and make it extremely difficult for adjacent trading businesses to trade to their potential. Changing culture takes time and Leitrim County Council need to rid our towns of villages of vacant premises and this is one of the key methods to achieve this.

The purpose of having a commercial rates vacancy refund at 75%, is not primarily to generate income. It should be noted that if 2021 was not to be impacted by the Covid-19 pandemic, the projected income from the vacancy refund scheme would be approximately €70,000. Leitrim County Council is equally conscious that the Governments nine-month rates waiver does not  ...  view the full minutes text for item 165