Elected members and city management were at loggerheads at a crunch budget meeting this week as they struggle to make up a €1.6 million deficit in the city’s finances ahead of the crucial vote next Wednesday.
![Christmas on Grand Parade. Picture: Rory Coomey]()
Christmas on Grand Parade. Picture: Rory Coomey
Proposals for a 2.9% commercial rates hike have proven unpopular with members, who fear that city businesses may not be able to absorb the hike. If the increase is rejected by members, the city may be forced to cut funding for essential services in order to plug the fiscal gap.
Members are keen to maintain funding for roads and housing, and have been told that cuts may have to be made in funding for the Glow Christmas and St Patrick’s Day celebrations if funding cannot be generated through other means.
Other areas potentially set for a cut in funding could include the Lee Sessions, the parks maintenance budget and tourism initiatives.
Independent councillor Kieran McCarthy has called for a compromise document to be brought before members ahead of next week’s vote.
He said that neither side wants to see these cuts made and added that crucial decisions have yet to be made.
Mr McCarthy said, “They’re going to have to come up with a compromise document. It is still up in the air what may be cut. There is no appetite from members or the officials to make these cuts — we have already cut down to the bone.
“Things like our libraries and our parks — we can’t afford to cut these any further.”
It is likely a smaller rates increase of 1% to 1.5% may be included in the budget to generate approximately €800,000, with the remaining funds generated by a series of small cuts across the departments.
However, no compromise has been reached as of yet.
Mr McCarthy hit out at reduced government funding for local authorities which, he said, has backed them into a corner.
In 2013, Cork City Council received €38,844,800 in government grants, with just €27,674,100 expected in 2017.
