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Offaly County Council Draft Local Authority Budget 2021

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Offaly County Council Draft Local Authority Budget 2021 OFFALY COUNTY COUNCIL DRAFT LOCAL AUTHORITY BUDGET 2021 AND EXPLANATORY TABLES FOR THE YEAR ENDING 31ST DECEMBER 2021 The second issue we have been dealing with since March this year, is the Covid‐19 pandemic. A range of supports to business have been put in place including the Restart and Restart Plus Grants, and a suite of initiatives and supports from our Local Enterprise Office. Government funding has also been made to local businesses through the Council via the Rates Waiver scheme which has provided a 100% waiver of commercial rates for the final 9 months of 2020. The scheme applies to all ratepayers except those in a small number of categories. It should be noted that the level of Rates Income and Local Property Tax has remained virtually constant since unification of the Town and County Councils in 2014. LOCAL PROPERTY TAX: At the Meeting of Offaly County Council held on 21st September, 2020, the members approved a Local Property Tax (LPT) increase of 15% for 2021, to bring in €742,886 in additional revenue, to be allocated as match funding to countywide projects. This increase was also approved by the members for 2020. This commitment by the members in 2020 provided funding towards projects in Tullamore, Birr and Edenderry and to Just Transition projects. This fund will be ring‐ fenced again for 2021, with oversight by the Corporate Policy Group and a report will be prepared to account for expenditure to demonstrate its effective use. The LPT must be considered annually by the members. FINANCIAL CONTEXT: We continue to operate in a challenging budgetary environment and the draft budget has been prepared in this context. Due to the unknown duration of restrictions of Covid‐19, and its consequential impact on businesses, we have had to increase our bad debt provisions for 2021. Due to continuing demand for services, the need to provide the match funding for draw down of national funding streams for projects and enable the economic recovery of our county, the Revenue deficit provision for 2021 has been reduced to €50,000. Very significant progress has been made in tackling the cumulative revenue deficit in Offaly in recent years. This has been a significant achievement in managing the finances of the County. It is hoped that our cumulative revenue deficit can be further reduced in 2020. This may not be possible given the uncertainty surrounding the council finances in 2020 as a result of the COVID‐19 pandemic. However, we need to curtail this provision for 2021 to maintain services at 2020 levels, where possible. It also allows for the provision of the General Municipal Allocation of €100,000 in each Municipal District. €75,000 (6 months in 2021) is provided to offset loan repayments for Tullamore Community Arts Centre development which is currently underway. Commercial Rates are a significant contributor to the total income for the Council and it is difficult to project the level of income for 2021. A bad debt provision must be provided to account for this possibility. The Head of Finance addresses this in his report. We have been very challenged in our ability to maintain services in 2021 and the budget will be monitored very closely to ensure we can achieve the targeted out‐turn at year end. We have continued to provide €150,000 for County Road Maintenance, the General Municipal Allocation, provision for pay restoration (2%) which was effective from 1st October in 2020 but Page 2 of 5 will apply over the full year for 2021, and funding towards Tullamore Community Arts Centre. The Match Fund budget of €350,000 has also been maintained. It is important for Offaly from both a development, economic and tourism recovery perspective, that we are able to avail of any available national funding streams. It should be noted that this is not sufficient to optimise drawdown of all funding opportunities that become available. The Council has made applications under the various funding schemes for a number of tourism, economic and community projects. BALANCING THE BUDGET: The Council must adopt a balanced budget. It has been a difficult process for 2021. There are very significant challenges posed to rates income due Covid‐19 restrictions, combined with efforts to enable economic recovery and provide supports to businesses and communities hit by Covid‐19 restrictions. There are also the ongoing challenges presenting to us regarding the impact of the decarbonisation agenda. UPDATE 2020: I am happy to report that we have achieved significant progress on a number of initiatives in 2020: Tullamore Street Enhancement Project completed and further applicton submitted to URDF for next phase Tullamore Community Arts Centre construction commenced Just Transition Fund announced with Category 1 projects approved Grand Canal Greenway €3.1m Daingean to Edenderry and additional €300,000 for stretch to Lough Boora (both of these 100% funded) Works on Grand Canal Greenway completed to Ballycommon Bridge Grand Canal Greenway, Turraun to Shannon Harbour link ‐ Part 8 approved N52 Tullamore to Kilbeggan Link Road Project ongoing – currently Phase 2:Option Selection Tullamore River Enhancement Project – Part 8 approved Birr Distributor Road – Part 8 approved Failte Ireland Destination Fund for Birr ‐ €412,500 announced Edenderry Masterplan well underway Rural Regeneration Fund ‐ €395,250 approved for Banagher under Category 2 works which supports early preparatory work of projects with potential to transform rural areas July Stimulus Package – Allocation received of €827,500 to complete 28 projects across county Town & Village Renewal 2020 – Round 1 announced ‐ €90,000 – Shopfront Scheme and Outdoor seating facilities for businesses Round 2 – €180,000 ‐ Broadband connection points, covered outdoor spaces and public realm Round 3 ‐ €180,000 allocated – Amenity areas, outdoor garden and Millennium Square, Tullamore Climate Change Adaptation allocations received for 9 projects ‐ €272,500 Page 3 of 5 MUNICIPAL DISTRICTS: The General Municipal Allocation (GMA) remains the same as in 2020. The rates harmonisation process completed in 2016, yielded an extra €100,000 per Municipal District. This is maintained in 2021 budget. During the current year, this discretionary funding was allocated to projects focussing on local community priorities and initiatives. The total is €510k. It is apportioned to MD’s as follows: Edenderry MD ‐ €163k Birr MD ‐ €170k Tullamore MD ‐ €177k ECONOMIC DEVELOPMENT, TOURISM AND COUNTY PROMOTION: The Local Enterprise Office is an integral part of the economic development function being delivered by the Council. During 2020, we have seen further interest in serviced sites in our Business Parks. The office is experiencing a high demand for Trading Online Vouchers throughout the year. The County Development Plan review process is continuing and the Just Transition process commenced with applications invited and Category 1 projects approved. Free Public Wi‐Fi access initiatives and broadband connection points continue to be rolled out under the aegis of Offaly’s Broadband Officer. The Vex IQ Robotics initiative commenced in 2020 but due to Covid‐19 has been deferred until 2021. The Tourism sector has been badly hit by the pandemic. Efforts were made during the summer with a national radio advertising campaign and with a regional local radio campaign by Offaly, Laois and Westmeath to encourage staycationers. However, the second lockdown in August significantly curtailed the impact of this promotion. As a result, an additional €1m promotional budget was made available to Laois, Offaly and Kildare equally, for a Failte Ireland campaign. Preparations are being made for 2021 season. COMMUNITY DEVELOPMENT: Offaly Local and Community Development Committee continues to be a leading performer in delivering nationally funded programmes. The Community Response Forum was established in response to Covid‐19 restrictions in communities and among older groups. A Community Call Helpline was established and a collaborative network of agencies worked to ensure no one was left isolated or in need. The forum encompassed Offaly Co. Co., Cathaoirleach and officials, working with GAA, HSE, An Garda Siochana, PPN, Age Friendly Alliance, Offaly Local Development Co., IFA, Alone, Volunteer Centre, TUSLA, Family Resource Centres, An Post, St. Vincent de Paul, Offaly Traveller Movement, Citizens Information and Laois/Offaly Local Link. The Council’s Community, Library, Sports and Arts Departments contributed significantly to the running of the helpline and the roll‐out of initiatives throughout the Covid‐19 period. Page 4 of 5 The Regeneration Team is engaging with communities across the county to prepare community, public realm and action plans for various initiatives. A number of applications are pending approval under TVR and RRDF schemes. HOUSING: In 2021, it is intended to maintain existing service levels. The budget continues to provide funding for assistance under the Housing Grants Schemes, subject to Department allocation. Work has commenced on the Retrofit Programme, with a number of units due to be completed by year end. Funding of €3.3m was announced for Offaly from the Retrofit Just Transition budget. Under the July Stimulus Package, funding of €403,247 was made available for returning vacant local authority housing to stock, as part of the Void management programme. The Housing Capital programme is progressing and reports are brought to Council on a regular basis regarding progress of the programme. OPERATION OF WATER SERVICES ON BEHALF OF IRISH WATER: The budget includes provision for the ongoing SLA arrangement with Irish Water as Offaly County Council provides water services on their behalf and recoupment of these costs. THANKS I wish to thank the Cathaoirleach and the elected members for their support of the management and staff of the Council over the past year. I would also like to thank the members of the Management Team, Tom Shanahan, Sharon Kennedy, Mark Connolly and Ann Dillon for their continued support and commitment.
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