25,000 households face €100 community charge

UP to 25,000 households in Limerick City face €100 community charge as city council management grapples with a mounting financial crisis due to falling rates income and reduced funding from the Department of the Environment.

Tenants living in city council owned houses may be levied through a €2 a week rent hike.

Sources in the council said a community charge was one of the options being considered by city manager, Tom Mackey.

Mayor Kevin Kiely said a community charge had not been raised with him but added: “If we want to maintain services at the present rate, we will have to find money from somewhere. The accountants will be looking at the situation over the coming weeks. But we are facing a big drop of up to 10% in rates income.

“There has been a hint on a community charge from the Minister for the Environment as our grant from central government will be cut again this year. We can’t increase the rates. If we don’t want to cut staffing levels, the only alternative may be to introduce a community charge.”

A €100 community charge would raise about €2.5m for the city’s coffers.