Galway county's local property tax rate will remain the same for next year after councillors voted to reject a 15 per cent at the local authority's plenary meeting at GMIT on Monday morning.
The councillors' decision come after chief executive of the county council Kevin Kelly had advised the chamber that a 15 per cent increase to the LPT was needed to counteract the expected loss in revenue of between €1.5 million and €2 million for 2020 due to the pandemic.
Council under financial pressure
The increase of the LPT rate would have resulted in an extra €2.2million being added to the council's coffers, costing the average taxpayer between €30 and €47 per annum.
Mr Kelly said; "We need to increase local property tax to maintain services and [meet] general expectations. Our overall financial position has been considered in detail for past six years. We have less resources than practically every local authority in the country.
.
"It is anticipated loss [of income] is between €1.5 and €2 million in 2020. I ask to do this so Galway County Council to [increase the LPT by 15 per cent] so we don't have to reduce expenditure in other areas."
While acknowledging the financial pressures that the local authority is under, local councillors were unanimous in their opposition to any increase of the LPT rate.
'We are on the Titanic, a sinking ship for the last six years'
Fianna Fáil councillor Martina Kinane said to comprehend an increase in the LPT rate was "crazy".
"I cannot comprehend increasing [the LPT rate] for the situation people of Galway and country are in. I acknowledge there is less revenue and less staff," she said. "We are on the Titanic, a sinking ship for the last six years. We can go through minutes for last six years; if we were a business we would close down [but] to comprehend an increase is crazy."
'We shouldn't the used to bridge shortfall from central Government'
Athenry councillor Gabe Cronnelly said citizens should not have been punished for shortfall in local authority funding.
"We have been underfunded prior to Covid, after Covid, and to expect people to be punished for shortfall from central Government is unacceptable," he said. "I won't be supporting any increase. We have a rural county and a lot of rural areas get nothing from the LPT. It is a cash cow and shouldn't the used to bridge shortfall from central Government. Something needs to be done."
'We find ourselves back here, year in, year out, expressing the same disappoinments. Is the nuclear option [of not passing a budget], the only option left to send to Dublin?'
County cathaoirleach James Charity [pictured below] concurred with Cllr Cronnelly's sentiments saying the people of Galway cannot be used to plug the budget deficit gap.
He said; "I appreciate the circumstances the local authority finds itself in but can we really look to our own citizens to plug a gap? My only conclusion is no; especially in last few months incomes of people have been decimated; the overall picture is job uncertainly; the potential of a recession. We can't look to our own citizens to plug gaps.
.
"We find ourselves back here, year in, year out, expressing the same disappoinments. Is the nuclear option [of not passing a budget], the only option left to send to Dublin, 'We won't put up with this any longer'."
Head of finance at the county council, Ger Mullarkey, said while he agreed with the councillors' grievances, the local authority faces serious consequences when it comes to balancing the budget because of the rejection of an increase to the LPT rate.
