Cork City’s commercial rates hiked in chaotic budget meeting

Cork City’s commercial rates will increase for the first time in eight years and funding for hugely successful Christmas festival, Glow, has been slashed after a lengthy and at times chaotic city council budget meeting.

The cost of a resident’s parking permit will double, from €10 to €20, and the cost of parking in Paul St car park will go up 30c an hour after councillors voted 16-15 on the 2017 budget.

There were also significant funding cuts for the city’s Pulses of Tradition summer music event.

Against the backdrop of a €1.6m funding shortfall, council chief executive Ann Doherty said preparing a draft budget proved very challenging this year.

The shortfall arose mainly from Government decisions, including:

• Changes in administration of central government’s block grant, now called the restoration improvement programme for roads resurfacing, which will cost the council about €1.1m;
• Centralisation of all local authority payroll systems which has cost the city €188,000;
• The removal from local authorities of an Irish Water billing function for commercial and industrial water customers, which cost it some €190,000;
• A reduction in the rates income, following a global utilities rates review, has also cost the city in the region of €1.035m.

Ms Doherty proposed a 2.9% rise in commercial rates to balance the books, combined with a rates incentive scheme for those who paid on time.

Fianna Fáil had tabled an alternative package of measures which included a 1.25% rates hike, the parking charges increases, and funding cuts, which the party councillors described as balanced and prudent.

Fine Gael backed the package, and, with support from Independent councillor Kieran McCarthy, the budget was passed.

The increase in the cost of a resident’s parking permit will bring in €55,000, and the Paul St car park hike will bring in €230,000.

With €120,000 cut from Pulses of Tradition and €70,000 cut from Glow, the balance was made up in cuts from the budgets for vacant dwellings security, training, equipment budgets, and €150,000 from the economic development fund.

Fianna Fáil councillor Terry Shannon said his party had done its homework and prepared a set of balanced budgetary measures.

He launched a blistering attack on an “ill-prepared” Sinn Féin after it emerged its budget proposals weren’t valid. They included hikes in derelict sites levies, a road opening levy on utilities, and extra staff to collect rent and commercial rates arrears.

Sinn Féin’s Thomas Gould hit back, saying Fianna Fail and Fine Gael had fixed the meeting to ensure their proposal would go through.

Fine Gael’s John Buttimer said his party and Fianna Fáil made a concerted effort to maintain the cost of on-street parking at €2 an hour, and said that even with the hikes in charges at Paul St car park, it remains the second cheapest in the city.