Longford Council facing €1.3m shortfall in 2027 with THRIVE project 'biggest issue'
Fema Flanagan, Director of Finance, informed councillors at the recent Granard MD budget meeting that next year will present some difficulties with the Connolly Barracks €9 million regeneration initiative the biggest challenge.
Longford County Council will be dealing with 'significant' financial challenges in 2027 and the THRIVE Connolly Barracks Reimagined project has been listed as 'the biggest issue'.
Fema Flanagan, Director of Finance, informed councillors at the Granard Municipal District budget meeting last Tuesday that next year will present some difficulties.
She mentioned the global cost of living crisis and the rise in energy and fuel costs and nationally 'warnings' from the Irish Fiscal Advisory Council and 'continuous tightening of the purse strings by departments.
"In terms of our situation locally the big ticket items that are out there are the civic offices, local housing and the THRIVE project and future regeneration projects," she added.
The 'THRIVE Connolly Barracks Reimagined project is a major €9 million regeneration initiative which is turning the vacant, historic army barracks into a vibrant cultural and community hub in Longford town.
Official contracts for the long-awaited project were signed in September.
The EU and Government are allocating €7 million towards the cost and the local authority will fund the remaining outlay.
Ms Flanagan said, "We are short just under €1.3 million in our revenue budget this year for 2027 before we start doing anything at all, which is a significant cut to our income.
"I know we have asked the department to look at our funding on a step down basis to fund future projects in Longford, but we have no confirmational date for this.
"But, I suppose the reality is we are looking at having less money in the future whereas up to now it has been funding our revenue budget and that is a significant challenge for us for 2027.
"We have our own funded capital balances and to be fair we have actually been making good progress on these over the past few years because in 2020, 2021 and 2022 we had significant unfunded capital balances, which we have been making good progress over the past number of years.”
Ms Flanagan said the unfunded balances relate to the Voids programme and the Retrofit programmes.
"Cash flow in 2027 will be a financial challenge and I suppose where i see the biggest issue is going to be the THRIVE project and that is because while THRIVE project is getting €7 million in funding that funding is only coming at the end of the year,” she added.
Ms Flanagan said they have received verbal confirmation that they can get another [allocation] each year.
"So, potentially we are going to carry €3.5 million but we have to find our own cash flow.
"We are going to have to have to borrow into our own draft and it's just going to require tight management of the cash flow next year to fund the THRIVE project.
"There is €7 million funded and it is just to get to end game and to get that money back."