Longford County Council facing into acute financial challenges, meeting hears

Members of Ballymahon Municipal District were given an overview of the situation at their October monthly meeting.

John McKeon, Director of Services for Ballymahon MD outlined the General Municipal Allocation for 2024 in a presentation to members.

The budgetary base of the allocations covers development management, environmental services and recreation and amenity. The DoS warned that the local authority could face its first budget deficit since 2016.

Under the heading of financial challenges Mr McKeown indicated that there is no scope to increase the existing local income generated.

The data given to councillors highlighting the challenges, noting that the Local Property Tax (LPT) is maxed at 15%, members had increased that rates for 2023, Longford experienced the largest percentage population increase in State, and a downward revaluations for utility providers.

The fact that 2024 is a Local Election Year and the cost of the election is another financial challenge for the local authority.

The Director of Services for Ballymahon Municipal District said the MD has very little discretionary expenditure. A New Service Initiatives is only part funded and will “eventually crystallise into core services (payroll and pension obligations). Inflationary pressures are also stressing council finances.

Under the heading of 'Funding Gaps' Mr McKeown noted the ever increasing demands for 'match-funding' for Capital Projects, Uisce Eireann stranded costs (stranded costs refer to outstanding financial obligations relating to staff, assets or water infrastructure), meeting climate action targets, increasing Fire Service costs, the costs of providing services for multiple departments, undertaking the 2023 Rent Review 2023, and a potential deficit for 2023.

He described the 'double-edged sword' that affects budget planning: “There are ever increasing demands for matched funding projects. We are a victim of our own success. The more projects we take on the more we are required to match funding.”

Under the 'staff and payroll' heading the difficulty of meeting recruitment costs and attracting and retaining staff in a competitive environment, the ageing staff demographic, the current and future pension costs, the 'sunk' costs of contract or temporary posts, and contracts of indefinite duration (CID) converting temporary posts to permanent posts were flaggged.

The GMA recommendations for 2024 are that €300k to be distributed in Community Grants for festivals and events, Town Twinning and Intercultural Events across the county. This allocation covers; Tidy Towns grants, Christmas Lights, Broadband Connection Points (BCP's) and special projects. The figures will see €100k available in each of the Municipal Districts.

The Ballymahon GMA suggested allocations were: Arts Activities €10,500, Tidy Towns Grants €13,000, Town Twinning €3,000, Voluntary Bodies Grants €53,500, and Special Projects Grants €10,000.

Cllr Mick Cahill (FF) suggested that the Tidy Town allocation go to €15,000 and special projects go to €12,000 and that the necessary adjustments be made.

“We have a lot of very active Tidy Towns groups around the MD. They are doing excellent work on the ground, particularly in the area of climate change and climate action,” Cllr Cahill said.

Cllr Gerard Farrell (FG) commended Mr McKeon on the presentation and Director of Services, Samantha Healy, for her input, adding: “The outlook is positive. This allocation is very important to every town and village in the MD. The voluntary bodies who put in the work for their area are dependent on this support.”

Cllr Pat O'Tool (FF) and Cathaoirleach Paul Ross (FG) spoke in favour of Cllr Cahill's proposal. The motion to increase the Tidy Town and Special Projects budget was adopted.