Minutes of Council meetings- list.:

December, 2006

To/The Mayor and Members,

   Cobh Town Council.

__________________________________

DRAFT BUDGET  FOR  YEAR  ENDING  31ST  DECEMBER,  2007

A Chathaoirligh agus a Chomhairleoiri,

I attach for your consideration Draft Local Authority Budget for the financial year 2007.

I should like, before commenting on the Budget proper to refer to a number of developments, which have taken place or will take place, in Cobh.

1)       County Charge.

Under the Local Government Act, 2001, the method of calculating the cost of services provided by County Councils to towns changed. Previously, the County Demand was calculated by means of a set formula involving the Rate in the Pound – however, this calculation did not bear any relationship to the level of service provided by the County Council to the towns. Under the 2001 Act, County Councils are required to prepare an invoice setting out the various services and detailing the cost of these services. Extensive discussions took place between the Town Clerks in the various towns in County Cork and officials of the County Council over the past 2 years to with a view to determining the level of service provided in each town. The net effect of this change would have been that Cobh Town Council would have to pay Cork County Council the full cost of the services provided in Cobh by the County. However, I have agreed with the County Council that due to the financial difficulties that Cobh Town Council has found itself in in recent years, any implementation of this policy will have to be phased in over a number of years. This will still result in a substantial annual increase in the level of the County Charge.

2)       Capital Account Balances.

I commented in last year’s Budget Report in relation to outstanding Capital balances. At the time I outlined the importance of dealing with this issue. Although some provision was made in the 2006 Budget for repayment of some of these internal loans, the financial situation that the Council found itself in did not allow me to make suitable provision for this area. Unfortunately the situation remains the same for 2007. I have made some provision in relation to public lighting and the renovation of the Town Park. It is hoped that further work in reducing the outstanding balances can be achieved through use of development contributions. As I stated last year, a continued failure to deal effectively with this issue in future years will have implications for the Council’s ability to carry out further major capital projects.

3)       Housing.

Construction of  Houses

The construction of 3 houses on lands owned by the Council behind Russell Heights was completed during 2006. I have instructed the Town Clerk to undertake an examination of other lands in the Council’s ownership to determine whether or not they would also be suitable for similar small infill housing schemes.

Purchase of Houses

I have continued the policy of adding to the Council’s social housing stock through the purchase of good value second hand houses throughout the town. While only 1 house purchase was completed in 2006, negotiations are ongoing in respect of a number of other houses. The County Council’s Land Purchase section, which acts for the Council in relation to house purchases is currently carrying out these negotiations and it is hoped that the Council will be in a position to acquire more houses in the New Year. I feel that the purchase of suitable houses in the town remains an important part of the Council’s Social Housing Programme. As stated previously, the Council will not bid against genuine house purchasers when considering the purchase of houses.

In addition to second hand houses, negotiations are also ongoing with 2 developers in relation to their legal requirements under the Housing Strategy. The Strategy provides for a developer transferring either houses, land or a financial contribution in lieu in respect of any housing development with more than 4 units. While each individual case must be looked at on its merits, I am conscious of the members previously expressed wish that the Council’s view should be that housing units are the preferred option in each case and any negotiations with developers are carried out on that basis. I hope to be able to report on the outcome of these negotiations early in 2007.

57 Acres of Land at Ballynoe

The lack of progress on developing the Council’s landbank in Ballynoe over the past year has been frustrating. It now appears that the issue of the lack of sewerage facilities in this area is close to resolution and I have issued instructions to the County Architect’s Department to finalise a draft layout for consideration by the members at the earliest possible date. Changes in personnel in this Department have hindered their efforts to finalise this matter; however, I have expressed my view that this project needs to be treated as a priority.

Rent Scheme

As the members will be aware, the Differential Rent scheme was updated in 2005 to ensure a fairer system for our less well off tenants. It is intended, as in previous years, to carry out a fresh assessment under the scheme early in the New Year.

Central Heating

The programme to ensure that all of our houses have adequate central heating continued during 2006. Over the past 2 years, the Council has spent almost €300,000 to provide central heating for most of our elderly tenants and those in older houses. 80% of the funding for this was provided by a Department of the Environment, Heritage and Local Government scheme with the balance coming from the Council’s budget. As I am conscious that a number of further houses still require central heating, I intend providing a further €30,000 for central heating with a view to a further application for €120,000 in Departmental funding in 2007. If the application is successful, it is my hope that most houses in the ownership of Cobh Town Council will have proper heating facilities by the end of 2007, with any remaining houses dealt with in 2008.

4)       Footpaths & Roads.

The Council will continue with the on-going programme of footpath and road renewal during 2006, the resources for which will be provided both from Council funds and a Block Grant from the Department of the Environment. The Council employed a new General Operative since 2001 to allow for the carrying out of more road works under this scheme. Members should note that over the past 4 years, well in excess of €1 million has been spent in this area.

5)       Water Functions

Since 1 January 2005, all sanitary functions previously carried out by Cobh Town Council are now the responsibility of Cork County Council. As part of the Local Government Fund allocation received by this Council is designed to compensate the Council for the cost of providing a water and sewerage supply to its domestic customers, it is necessary that the element of this fund which provides for the funding of this work be transferred to the County Council. Similarly to 2006, the figure is included in Table B with the County Charge.

6)       Swimming Pool

For the past 20 years, the Manager’s report into the Annual Budget has made reference to the hope that the swimming pool would open in the next 12 months. Monday 28 August, 2006 saw the culmination of 20 years of effort by all of the elected members and officials of this Council when the Cobh Leisure Centre opened its doors for business. While the final account from the builders is not due to be paid until July, 2007, I have been advised by the design team which dealt with this project that the construction phase of this project was not only completed ahead of schedule, but also within the budget provided for the work. This element of the project is a matter of great satisfaction to me and reflects well on the supervision of the project by the design team, which consisted of the County Council’s Architect’s Department, JODA Consulting Engineers and James P. McGrath & Associates, Quantity Surveyors.

In line with 2006, I intend providing €20,000 for the rental of the site from the County Cork VEC. As discussed in Council meetings during 2006, I intend continuing my efforts to have this amount re-examined.

7)              Development Contributions

From 2006, the Department of the Environment, Heritage and Local Government have asked that members are advised of the current position in relation to collection of Development Contributions received under the Contributions Scheme adopted in 2004. The following is the position (up to 31 October, 2006) in relation to each of the areas provided for in the Scheme:

Roads                €   9,805

Parking              € 17,650

Water                € 25,928

Sewerage           € 20,502

Amenity             €   6,513

The Roads funding, as in previous years, has been largely spent on improvements in the roads network in the Town. Monies collected for Water and Sewerage must be retained and can only be spent by the Sanitary Authority, i.e., Cork County Council. The money collected for Parking and Amenity purposes will be required to reduce the debit capital balance in relation to the Five Foot Way.

BUDGET

The Budget for Urban services submitted provide for an expenditure of € 3,171,118, which represents an increase of €117,560 (3.85%) on the 2006 provision.

The County Charge, for 2007 has been set at €620,000 which represents an increase of €53,750 on the figure budgeted for in 2006.

The following are the proposals to meet the proposed expenditure.

a)       Local Government Fund

The Local Government Fund allocation for 2007 has been announced but is expected to be 4% higher than 2006. This would result in an allocation of €1,280,790.

b)       Rates

The effective valuation of the industrial and commercial hereditaments for 2006 is just above €11,650.  Although Cobh is one of the largest towns in Cork County, its valuation is far below that of virtually every other town in the County. The relatively low income that Cobh Town Council receives from rates in comparison to other towns puts considerable pressure on this council’s ability to provide the necessary services for the running of the town. The recent buoyant economic climate has resulted in additional pressures on local authorities and an increased level of expectation from the general public with regard to service provision. These additional demands have had to be accommodated within the existing resources of the council.  Because of its small rate base the finances of the council have and will continue to require strict financial management. However, I am also conscious of the fact that rate increases put additional pressures on businesses in this town. The 2006 Rate is 64.53. I am proposing at this stage to increase this to 67.11, which is well below the County Rate of 71.30 and which represents an increase of 4% on 2006.

c)       Council's Services.

I have increased the charges for various Council services as outlined in the various Programme Groups, so that a balanced budget can be put before you.

I will now comment on the various Programme Groups as follows;-

PROGRAMME  GROUP 1               HOUSING  &  BUILDING.

A sum of €239,671 has been provided for housing repairs and maintenance, which is an increase of €21,368 on the 2006 provision.  The planned programme of repair and maintenance which was originally put in place in 1999 will continue and, as outlined earlier in my report, will mainly be spent on the provision of Central Heating, with some funding also available for upgrading of Doors and Windows in 2007. I have also provided a figure of €7,000, which will be available to assist Residents Associations in the Council’s Estates in respect of Estate Management. This figure, which is an increase of €500 on the allocation for 2006, reflects the continuing success of Residents Associations in the Town as well as the desire of tenants in other Estates to organise themselves for the betterment of their local areas. I would hope that the Council can continue to provide assistance both of a financial and also of a practical nature in 2007.

Reference has already been made to the various housing initiatives being undertaken by the Council.

PROGRAMME  GROUP  2              ROAD  TRANSPORTATION  AND SAFETY.

A sum of €121,166, which is an increase of almost €14,000 on the allocation for 2006, has been provided in respect of the upkeep of urban roads, while €73,000 has been made available for public lighting. This figure reflects the 14% increase in ESB charges from 1 January, 2007. A figure of €12,000 has been included for Public Lighting Improvements by way of repayments towards an internal Capital Loan for the upgrading programme. Subject to the approval of the members, I have maintained the contribution of €2,500, in respect of the floodlighting at St. Colman's Cathedral.

The Road Fund Grant Allocation from the Department as is customary, will not be notified until early 2007, and the sum of €279,000 has been provisionally shown under this heading.  Major improvement works have been carried out in a variety of locations in recent years, and these works were heavily augmented by the Council's own resources. It is intended that the Council will continue to be in a position to carry out a proportion of these works by direct labour.

Road Traffic - Traffic & Parking Bye-Laws.

The implementation of the Traffic & Parking Bye-Laws has experienced some difficulties in 2005 and 2006 due to the fact that a number of retail outlets, with on-site parking, have opened outside the Town Council boundaries. Because of this, I have kept the pay parking charge at the existing level of 50c per hour; this charge is the lowest pay parking charge in County Cork. I have made the necessary financial provision for the continuing employment of the Traffic Warden.

School Wardens

A third School Warden was employed during 2006 to service the Community College and the Gaelscoil. I have therefore provided funding for the continued employment of all 3 School Wardens.

PROGRAMME  GROUP  3              WATER  SUPPLY  AND  SEWERAGE

I have commented already on the transfer of functions from Cobh Town Council to Cork County Council. Following negotiations between the County Council’s Finance Department and the Town Clerk, it is proposed that the Town Council’s contribution to the provision of Domestic Water supplies and the domestic sewage network in the town would be reduced from €291,893 to €197,717.

As Town Councils continue to be responsible for public conveniences, I have made provision for expenditure of €67,696 in respect of the operation of the two public conveniences in the Town.

PROGRAMME  GROUP  4                  DEVELOPMENT  INCENTIVES AND           

                                                                 CONTROLS   

Tourism  Promotion

The overall figure for Tourism Promotion has been maintained at €24,000. This figure represents the continued commitment of Cobh Town Council’s ongoing commitment to tourism.

Contribution to Local Groups

I have included an amount of €8,200 in respect of the promotion of Arts and Culture in Cobh. This figure includes of €5,000 to the Sirius Arts Centre which is in line with the 2006 contribution. The balance of €3,200 is in line with the allocation to local groups for 2006.

A sum of €16,200 has been provided as a contribution to Local Groups in the town, which includes the provision of €5,000 for the Community Centre Project as well as €1,300 for the Cobh Tidy Towns group. A sum of €6,000 has been provided in respect of Local Festivals – this figure includes funding for the People’s Regatta as well as a provision of an additional €2,000 in relation to the Sea Angling Festival. The amount allocated for festivals does not include the extra expenditure that the Council spends on cleaning the streets of Cobh during the Regatta weekend. This can amount to a further €1,600 - €2,000.

Millennium Project

As the members will be aware, the Council’s contribution to the Millennium Project is being financed by way of an internal Capital Loan. I have provided the figure of €15,000 by way of the repayment towards this internal Capital Loan.

Town Twinning 

I have maintained the contribution of €2,540 towards the Cobh-Ploermel Twinning group. In addition, I am allowing for a figure of €2,460 to cover any other twinning matters which may arise during 2006.

PROGRAMME  GROUP  5              ENVIRONMENTAL  PROTECTION.

As members are aware, the refuse collection service was taken over by Cork County Council in. 2005. I have made provision for the continuation of the Council’s street cleaning and litter prevention services. I have increased the provision for street cleaning from €90,245 to €98,916. Part of this increase will go towards the cost of purchasing a gum removal machine in conjunction with other local authorities.

I have been advised by Cork County Council that with effect from 1 January, 2007, they will be levying charges in respect of any street litter etc. brought to their landfills by Town Councils. I have therefore made a provision of €25,000 to cover this charge.

Burial Ground.

I have maintained the provision of funding under the heading of Burial Ground Upkeep, to facilitate the continued maintenance of the Old Church Cemetery in association with Cork County Council. This increase is subject to matching funds being made available, as has happened in previous years, from Cork County Council.

PROGRAMME  GROUP  6                 RECREATION  AND  AMENITY.

Swimming Pool.

I have already commented on the situation in relation to the swimming pool and have made a provision of €20,000 in the Budget.

Parks and Open Spaces

I have increased the funding under the heading of Operation of Facilities to €83,231 which is an increase of almost €4,200 on the 2006 allocation. The opening of the upgraded Five Foot Way during 2003 has resulted in an increased demand for funding in this area. I feel that the expenditure in this area provides good value to the Council as regards the maintenance of parks and open spaces and adds considerably to the image of the town both for its residents and also visitors to the area.

Cobh Museum

I have maintained the contribution to Cobh Museum at €2,000.

PROGRAMME  GROUP  8              MISCELLANEOUS  SERVICES.

I have maintained the level of spending in this programme generally in line with the 2006 figures. In line with 2006, I am continuing the provision of an allowance of €1,000 for the Deputy Mayor. As with the Mayor’s allowance, this allowance will be paid in two six month portions in June and December. The Department of the Environment, Heritage and Local Government have not provided for any increase in members’ salaries and the figure for 2007 is the same as that provided for in 2006.

I have provided for a sum of €55,000 being the agreed rental price in respect of the lease of Carrig House.

Support Services and Administration

The cost of Support Services, which is borne by all programme groups, is increasing by approximately 6% in 2006. This increase in costs is mainly due to payroll costs, which are increasing from approximately €360,000 to €415,000. However, insurance premiums, which have increased over the past number of years, are due to fall slightly in 2007.

SUMMARY.

I have made every effort to provide for the maintaining of Council services, while at the same time being conscious of the necessity for balancing expenditure and income. 

I recommend the adoption of the Budget by you.

I would like to express my thanks to all the Council staff for their efforts in maintaining all the services at a high standard during 2006.

I would like to avail of this opportunity of placing on record my sincere thanks to the Mayor and members of the Council, for their co-operation and courtesy to the staff and myself.

My sincere thanks are due to the Town Clerk, Páraig Lynch, and Council officials for their assistance in compiling this Budget.

Yours sincerely,

Mary O’Halloran

TOWN MANAGER