Cork City rates would hold fast under budget plan

There will be no increase in commercial rates or parking charges in Cork City next year under city council budget proposals due to be discussed tonight.

Councillors will meet later to discuss the city’s almost €167m 2019 budget in what will be their last budget meeting before the city boundary extends next year to include Ballincollig, the areas around Cork Airport, Blarney and Glanmire.

It is understood the changes arising from next May’s boundary extension and the ongoing debate over the afternoon car ban on St Patrick’s Street will influence decisions later.

While a separate process is under way to manage the financial impact of the boundary extension, a source said the city has adopted a “steady-as-you-go” approach to next year’s finances.

A report will be presented showing that the council’s expenditure will increase next year by almost €6.6m —up from €160,241,400 in 2018 to €166,843,900. The extra spend is a result of an increase in roads grants, extra payroll costs associated with public service pay restoration, and extra money for homeless services.

Councillors will be told that while the collection of commercial rates is slightly ahead on last year, and rents income is holding steady, they will also be told that staff pay restoration, and outstanding loans and interest rates, have had an impact on finances.

The council increased rates by 1.25% in 2017 — the first increase in eight years — but tonight’s report will outline details of a grant to help rate-payers who meet strict criteria.

It is understood the budget includes proposals for the continuation of the council’s funding of tourism initiatives, and for the continuation of its economic development fund, which will be in the region of €600,000.

But FF Cllr Ken O’Flynn, who criticised the spend and handling of the €300,000 ‘We Are Cork’ branding initiative and who has been vocal in his criticism of the afternoon car ban, called last night for the appointment of a “marketing tsar” and for the ringfencing of about €3.5m in next year’s budget to run a city marketing office. And if the money can’t be found, he said private developers should be asked to fund it”.

“It is now very clear that we have a serious disconnect between the executive of city council, the existing business organisations, and the majority of traders in Cork city, and I believe it is all to do with the fact that business is down in our city.”

“It is not to do with change or progress for the city, and having spoken to hundreds of traders, I believe they are hugely supportive of plans to improve the city.

“What they are not supportive of is people telling them that they can’t have a say in it, or that certain councillors don’t care about them. I believe we can find €3.5m in this budget by cutting costs in areas that are not as important as the marketing of our city and after all, an increase in business in our city would lead to an increase in commercial rates and an increase in income for the city council.”

It is understood tonight’s budget includes proposals to maintain the council’s financial support of a range of festivals, arts events and cultural initiatives.