Limerick City and County Council agree balanced budget to fund growth and expand council services

24 November 2022

Limerick City and County Council’s elected members have today voted in favour of a balanced annual budget for 2023.

Limerick City and County Council agree balanced budget to fund growth and expand council services:

Total Proposed 2023 Revenue & Capital Budget = €1.25’BN
Clear focus on addressing dereliction and vacancy across Limerick City and County
SME Grant raised from 9% to 13.5% - 94% of rate payers eligible
Significant increase in Housing Maintenance
Vulnerable in society support e.g. Refuse Waivers/Homeless provision/Ukrainian support/Housing grants for the elderly and disabled/School meal fund/SICAP funding

The budget, which includes a commercial rate increase, is being delivered to fund growth and expand Council services.

The revenue budget was prepared amidst the backdrop of an accelerating gap between the cost base and the income necessary to maintain services at current levels. Despite these budgetary challenges created by the current global environment, the newly adopted budget provides for the continuation of all Council services for 2023.

There are no increases proposed to parking charges, cemetery charges, housing rents, planning fees, fire charges or fees at the recycling centres.

While there is an increase in commercial rates, the impact on small and medium enterprises will be offset for as many as possible, with an increase in the Small and Medium Business Enterprise Support Scheme.

The commercial rate increase of 4.5% is being offset by a grant percentage increase from 9% to 13.5%. The monies raised by the rate increase is being ring-fenced to provide extra services, while also enhancing projects already undertaken by the Council.

These include, but are not limited to, Tourism development, additional street cleaning and maintaining the library services. These funds allow for leveraging match funding from the Government on projects such as the 2027 Ryder Cup and the Newcastle West Athletics track.

The total estimated expenditure included in the Draft Budget for 2023 amounts to €905.62 million, a decrease of €46.61 million on the adopted figure for 2022.

The majority of the budget €674 million (74%) is for HAP Shared Services, which Limerick runs on behalf of the 31 local authorities, with the remaining €231m allocated to day-to-day services for the citizens of Limerick. The reduced activity in the HAP Shared Service Centre accounts for the majority of this decrease. As this expenditure is matched by a corresponding income, it has no net effect on the Budgetary Provisions

Expansion of services

There will also be an increase in several budget areas that are subject to high demand including housing maintenance, footpath repairs and a road patching programmes.

The demand for enhanced public realm and outdoor amenities has grown sharply since the onset of Covid and increased provision has also been made to maintain these areas, which has the dual benefit of responding to the demand of residents but also supports business through increased footfall in the towns and villages across the county.

Limerick City and County Council provides over 700 different services to the residents, businesses and visitors in the city and county.

Budgets for the key areas include:

Housing Maintenance, Traveller and Estate Management - €8.5m
Rental Accommodation Scheme/ Leasing – €14.7m
Local and Regional, Primary and Secondary Roads, Public Lighting, Road Safety and Traffic Management - €47m
Limerick Fire & Rescue Service -€11.4m
Street Cleaning and Illegal Dumping - €3.8m
Grass Cutting/ Trees and Horticulture, Maintenance of Parks - €2.6m
Local Enterprise Office – supports for the micro and SME sectors - €3.97m

The following schemes operated by Limerick City and County Council to support businesses are being retained:

Small and Medium Business Support Scheme
Vacant Property Allowance Scheme

Business and Retail Incentive Scheme

Earlier in the year, councillors voted for no change to the Local Property Tax from the 2022 levels which equates to 15% above the base rate.

The funding of €2.36 million continues to be ring-fenced to support:

Local & Regional Roads / Traffic Management / Street Cleaning - €768,000
Other Local Services (e.g. Fire / Library etc.) - €442,000
Capital Investment in New Plant to Deliver Efficient Local Services - €400,000
Urban and Rural Regeneration Fund - €550,000
General Municipal Allocation - €200,000

Mayor Franis Foley added: “The 2023 budget was prepared in an environment which has seen an escalation in energy costs and other input costs which are critical to the delivery of local services. New amenities, recently completed, now require a maintenance budget while financial supports are also needed for existing amenities all of which have witnessed reductions in income and significant increases in costs. The budget is balanced despite cost acceleration arising from existing and projected future economic growth”

Dr Pat Daly, Chief Executive of Limerick City and County Council said:

“A significant challenge in the preparation of this draft Budget has been the acceleration of the gap between our cost base and the income necessary to bridge this gap and to maintain services at current levels. There has been persistent upward pressure on our cost base arising from inflation and energy costs.

“Demands for additional funding are also increasing. The Housing Capital programme continues to increase in line with our targets set out in the ‘Housing for All’ plan. The repurposing of the Troy Studios loan during 2022 has allowed the Council to leverage further national funding to agree a €20m works programme to address voids and dereliction within our Social Housing Stock. The Budget also includes resource increases in the housing maintenance, traveller accommodation and housing grants.

“The financial demands on the Council`s revenue budget necessitated by the combined factors of cost increases can only be sustained through realistic income increases from across all major income sources. In this context, budget 2023 has included a 4.5% increase in Commercial Rates. However, in order to shield the SME sector from this increase, the budget reflects an enhanced SME scheme providing a rebate of 13.5% of their warrant subject to a limit of €1,500. The monies from the increase will be ring-fenced to maintain and in some cases increase the delivery of local services.

“There are areas we will also be looking to make significant gains in during 2023, not least the residential market. Our affordability and quality of life ensures we have an exciting and attractive mix for people to live work and play here. The recent announcement of the Residential Zoned Land Tax by the government is designed to stimulate the development of more housing across Limerick.

The overall objective of the budget preparation for 2023 has been again to maintain existing services to a high standard and ensure that Limerick City and County Council fulfils its statutory and regulatory obligations in an environment of increased costs and limited funding.”