Longford Town Council has a shortfall of close to €140,000 hanging over it, latest figures show.
Administrative officer Mark McNerney delivered the news last week as councillors returned to the chamber from their Summer recess.
Despite the figure, its almost €70,000 below the same period last year when finance chiefs were staring at a €206,000 deficit.
Mr McNerney said while the situation facing the council made for grim reading, income channels should help to aid its revenue account balance going forward.
“It’s not an ideal situation, but it’s one that we can manage with careful management of our budget for the rest of the year,” he said.
Part of the reason for the imbalance between expenditure and what the council is expected to take in is because of charges linked to the Government’s highly contentious property tax.
Under the newly enforced legislation, city and county councils are expected to pay €90 for each property it owns resulting in an estimated €20,000 rise in the council’s housing and building programme.
This is likely to double next year in what Mr McNerney conceded would present a “huge challenge”.
On the plus side, a fall-off in seasonal expenditure and a lesser than expected outlay for environmental services, would help redress the disparity, he said.