Trim budget review as collections drop further

A slump in the amount of rates collected for 2010 means that Trim Town Council may have to revise its budget in September. At last week's monthly town council meeting, members were told that just 24 per cent of the rates due for this year have been paid to date. Usually 40 per cent of rates would be collected at this stage and the fall-off is having a huge impact on the council's cashflow. Town clerk Brian Murphy told the meeting that the council had received very little response to correspondence and reminders and warned that they may have to look again at their budget in September if the situation does not improve. When asked by Cllr Ronan McKenna how many "perennial offenders" there would usually be, Mr Murphy said that €90,000 to €100,000 would be uncollectable each year. Rates that are deemed uncollectable are written off but all other arrears are carried forward and pursued. Of the 221 accounts that Trim Town Council has, 40 cases have been referred for legal proceedings for unpaid rates in 2009. In 2009, €85,000 in rates was uncollectable and the estimated figure for 2010 is in the region of €95,000-€100,000. Just under €300,000 in rates was not collected in 2009 and the arrears carried forward after uncollectable rates were written off is approximately €220,000. For 2010, the amount of commercial rates levied was €821,000 and to date just €254,000 has been collected, leaving an outstanding balance, including arrears, of €790,000. Mr Murphy said that, normally, 40 per cent of rates would usually be collected by now and that they would expect to have an extra €200,000 in their bank account and this was having a huge affect on cashflow. Ratepayers who are in difficulty are being asked to contact the town council and come to some arrangement and Mr Murphy is urging ratepayers not to ignore correspondence. Many businesses are setting up standing orders to spread the cost of the rates over the year, rather than the traditonal two payments - one of which is due after the rate is struck (mid-February), and the second in July. Cllr Phil Cantwell said they needed to look at the whole issue or rates, saying that business is falling off in the middle of the town. Cllr Trevor Golden responded to Cllr Cantwell saying the town could not set two different rates. Mr Murphy explained that two different rates cannot be set but there is a provision for businesses to request a revaluation, which is done by the Valuation Office in Dublin. Cllr Ray Butler said: "This report doesn't surprise any councillors around the room. Business is struggling big time, all over. I think legal proceedings should be the last way to go. It is plain and simple - these people can't pay their rates. The business is not there." Cllr Gerry Reilly said there was going to be a major problem gathering rates and the council would be spending money going to court and paying solicitors and the day before the court, the "business is closed and they walk". He added: "We are better to sit down and talk about where they are going and how they are going to pay the rate. Thank God, there are a couple of big places in the town paying big rates that is keeping us going," he said. Cllr Reilly added that he knew of a shop that is closing in two weeks and that their first rate demand for €5,000 arrived two weeks after they opened the shop. He said they needed to work with businesses and be careful that the town doesn't end up closing businesses. Town manager Kevin Stewart said he agreed with Cllr Reilly that they needed to be careful not to do anything to shut businesses down but said they must realise that if the council doesn't collect the money, they "would shut the town down". Cllr McKenna suggested that they invite the local Chamber of Commerce for a meeting to discuss the issue and this was agreed.