A new system to pay rates may have to be introduced as City Hall is still owed €11 million in rates from last year, according to Fine Gael councillor Brian Walsh.
At Monday’s city council meeting, councillors were presented with a financial report for January-March 2010.
The report showed the council’s expenditure for the period is more than €87 million and that its income is the same. However officials explained to councillors that there were a number of areas of real concern.
The council is due to receive €16 million in rates, but so far has only received €3 million. Furthermore it is already waiting to receive some €11 million in rates from last year. As a result, City Hall is owed €24 million in rates.
Owing to the very high rents in the city, the closure of businesses, and falling retail trade, it is harder for businesses to pay rates. Pay and display charges are also down about €1 million as less people are coming into town to shop.
“This is very worrying,” city manager Joe MacGrath said. “The impact of the recession is coming home to roost in the city and we are experiencing it first hand.”
The report concluded by saying: “The adverse variances on income collection in the first quarter and the projected shortfall for the year may necessitate an adjustment in budgets for 2010.”
Cllr Walsh asked if a ‘planned payment’ system for the rates, whereby rates could be paid in instalments over a period of time, could be introduced. The manager said this could be considered.
