Council proposes expenditure increase of €10m for 2024

Donegal County Council’s spending will increase by over €10million in 2024 if its proposed budget is passed next week.

The proposed expenditure of €185,577,941 is a significant hike from the €175,555,907 approved last year.

Donegal County Council Chief Executive John McLaughlin says the budget is ‘very challenging, but positive’.

The proposed budget includes an increase of the Development Fund Initiative to €925,000 and a rise in the Members Development Fund to €296,000.

An increase of €400,000 is proposed for the Council’s housing department to employ additional staff and a special €350,000 fund to undertake maintenance in council housing estates is provided for.

A further €700,000 is being planned for tourism infrastructure, marking and business activation.

There are no plans to rise commercial rates beyond the Annual Rate of Valuation (ARV), which was advised to business and commercial property owners during a recent revaluation process.

Given there has been six consecutive years with no increases, Mr McLaughlin warned that the commercial rates would need to increase in future years and would be the subject of discussion in the next 12 months.

Mr McLaughlin said that the county ‘needs and supports businesses’, but noted that the Council, too, is a business with its own rising costs to consider.

He said that a significant ‘cost of living’ crisis that is being felt across the glove has seen an increase in the cost of the Council’s services and contracts - a shortfall in which was plugged by assistance from the government.

He said: “Without that central government assistance, it would not have been possible to bring forward this balanced budget in the manner it is being presented.

The 2023 revenue budget included a sum of €2,629,314 in respect of a special allocation from the government in respect of inflation. This was a once-off allocation and is not repeated for 2024. The Council will now have to absorb the full effects of the increased energy prices without that central support, something the Chief Executive said would be a ‘challenge’.

The draft budget includes a funding allocation in the sum of €1,750,000 to offset the increased costs arising from the agreement on pay and conditions with respect to retained fire fighters

Mr McLaughlin touched on the issue of defective concrete blocks which he said ‘continues to dominate discussion in Donegal and further afield’.

A submission has been made to the government by the Council seeking approval and funding in respect of 1,200 social houses owned by the local authority which have defective concrete blocks. “It is understood to be at an advanced stage,” Mr McLaughlin said.

In relation to social housing, he said that the pressure has ‘greatly increased’ and efforts are being made to ‘ramp up’ the delivery of such housing..

Mr McLaughlin added: “The provision of homeless services which was quite rare in Donegal in the past is fast becoming an issue in Donegal and a programme of services must be provided.”

Elected members will meet to discuss the draft budget in Lifford on Wednesday, December 6.