Kilkenny property tax likely to remain same this year

Local councillors are facing tough decisions in the coming weeks as the budgetary impact of Covid and the challenges arising becomes clear.

In a recent budget workshop, the members heard that the level of uncertainty facing finances is unprecedented, and the adoption of a balanced budget for 2021 is going to be extremely challenging.

Local Property Tax will be one of the topics up for discussion at the September meeting of Kilkenny County Council today (Wednesday). A decision on this is required before the end of September.

Last year, the members opted to increase the basic rate of tax by a full 15%. The council executive is expected to seek that the current level be maintained for 2021. The total income generated from this is €1.1 million, and management have warned previously that without this income, the council will not be in a position to provide funding to various community and voluntary groups.

In regard to its capital programme, the council has outstanding commitments as well as loans to service, with significant outstanding liability as a result.

It is probable that a number of larger projects will be delayed in their delivery. In a number of areas spending has been deferred, with budget savings of more than €2.3 million identified.

In addition, the current estimated shortfall in commercial rates for 2020 is more than €8.5 million, and the estimated compensation from government for the six-month waiver is €5 million.

The ultimate extent of the shortfall will depend on how much of the balance of rates can be collected. Some businesses have not reopened, while others are trading below normal levels.

There is a possibility that the council will incur a deficit in 2020 if no further compensation from government is forthcoming.