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A number of “significant challenges” are facing Kilkenny County Council as a budget is prepared for next year, local councillors have been warned.
Inflation is already affecting the work of the council, and in the local authority’s budget for 2023 they will have ‘to do less work with the same money.’
Road works and property maintenance will be affected.
The warning came from Head of Finance with Kilkenny County Council, Martin Prendiville, who said energy costs are also increasing.
Covid measures affected the last two council budgets, Mr Prendiville said, but now inflation is “severely” hitting day-to-day budgets.
He said the council is facing increased energy costs of an extra €1.1 million on top of last year’s bills. Even with compensation of 77% by government Kilkenny County Council will have to fund approximately €300,000 of that.
Some extra financial support is coming from the government. Thankfully, Mr Prendiville told the Callan Thomastown area councillors, the national pay agreement increments are being 100% compensated by government.
However, he said, the council’s discretionary spending budget is now not enough for restoring properties that become vacant. This is costing €12,000 to €13,000 more per unit, and the council already has a shortfall of about €1 million.
The county council is in discussions with the government and hopes for an approval of extra funding for this, he said.
The council is fully aware it must fund housing maintenance, look after burial grounds, fund the library service and fire service.
Mr Prendiville said Kilkenny County Council’s spend is going to be over this year, on the payroll and non-payroll side.
The council’s income hasn’t changed, he said.
The Callan Thomastown district councillors were told that it is hoped to maintain their budgets, but this will only be possible if the county council can maintain a balanced budget.
Mr Prendiville said house maintenance and road maintenance are already suffering.
District Chairman, Cllr Matt Doran, said they hadn’t expected anything other than a “tough budget” this year.
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