Council's funding is cut by at least 6%
THE money which Kil-kenny's two local authorities are being given by the Government for local services has been cut by at least 6%.
Kilkenny County Council will receive 20.6 million euro in 2009, a 6% decrease from last year's allocation of 22 million; and Kilkenny Borough Council will receive 1.9 million euro, a 6.76% decrease from last year's allocation of 2.1 million.
These 'general purpose grants' account for about one-third of the local authorities' annual budget, and are intended to cover the cost of "day-to-day" services.
The only good news, it seems, is that local authorities will still receive Gov-ernment money for the operation and management of water services. In the case of Kilkenny County Council, the local authority is currently undertaking a 200 million euro project to construct and improve water and sewerage facilities across the county.
"Significant funding will also be allocated for housing and water capital programmes, with the provision for water services investment being increased by 19% in this year's budget," according to John Gormley, Minister for the Environment.
Local authorities will receive some income from the new charge on 'non-principal private residences' which was set out in the Budget last month, but the Environment Minister has urged the councils "to exercise restraint in setting increases in commercial rates and local charges".
"It is important that every opportunity should be given to the business sector to remain competitive as a sound business sector is vital for the communities that depend on them," Minister Gormley said, although with development charges drying up there was no suggestion on how to make up the shortfall.
"Within the significant resources available to local authorities, they must seek to maximise cost efficiencies across the range of service provision," Mr Gormley added. "I expect management and elected members alike to use the additional time available for the preparation of their 2009 budgets as an opportunity to further promote their efficiency and value-for-money agendas."
He said details of the water services allocation would be announced as soon as possible.
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Monday 21 May 2012
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