Council chief outlines fears for services as income plummets

A sharp fall in rates and other income could severely impact local services provided by Meath Co Council.

The council's income from rates has decimated by Covid-19 restrictions with fears the council could face a shortfall of at least €3.8 million.

In a report prepared for the June council meeting next Monday, outlining the potential effects of the pandemic on the Council’s finances for the remainder of this year, Ms Maguire points out that rates and goods and services account for 56 per cent of the Council’s income. “Any significant fall in income from these sources will inevitably have an impact on the level of services the Council provides.”

The Chief Executive says that, while what she is outlining a “worst case scenario”, the Council needs to be prudent and plan accordingly.

She says she is very encouraged by the fact that the Government has confirmed that there will be compensation for loss of rates income, but as of now that commitment only applies for a three month period from 27th March to 27th June.

“It is clear that many businesses were in difficulty and unable to pay rates before the end of March and those problems are likely to continue well beyond June. Some businesses may not open at all this year and that will have a potentially devastating effect on short and medium term income. The estimated rates shortfall to date not yet covered by compensation commitments could be as high as €3.8 million and this could increase by as much as €2.1 million for every month restrictions continue and businesses remain closed.”

Loss of income from other sources such as housing rents, parking charges and planning fees are also affected and as of yet there is no commitment by Government to fund Councils for these losses.

In addition to the loss of income the Council has also incurred significant unforeseen extra costs this year including additional emergency accommodation, waste management costs, an increase in coroners fees, PPE and other Health and Safety equipment and the costs of adapting offices, facilities and working arrangements to safeguard the staff and the public.

The Chief Executive also points to the range of measures introduced to support small business affected by the shutdown. The Local Enterprise Offices have been very busy rolling out a number of schemes to assist businesses to survive and recover including the Covid-19 Business Loans of up to €50k, the Working Capital Scheme, the Future Growth Loan Scheme and the Sustaining Enterprise Fund. The Council is also administering the Covid-19 Restart Grant.