Council hits first budget surplus in over 20 years

History was made at Meath County Council this year when it recorded its first budget surplus in over 20 years.

From a position in 2005 when it had an €11 million deficit, the council has a surplus of €47,000. Its total expenditure last year was €171 million and this was offset by €172m income, a development widely welcomed at the May meeting of the council.

Its accounts had gradually increased over the years through a combination of new businesses opening and adding to its rate base, and “good financial controls”, Chief Executive, Jackie Maguire said.

The surplus had been achieved without an increase in rates or local property tax, she said. The collection of rates of €44,000 represented 26 per cent of the council’s overall income.

The good financial news was tempered by caution that inflation and increasing fuel costs could have a significant impact on the council’s finances.

Its total expenditure in 2021 was €156.5m. With payroll making up one third of that (€48.6m). Operational costs were €80.2m. Included in the operational costs are contract payments for its housing and transport sections. There was an exceptional item under operational costs and that was connected to Covid supports the council had been receiving for the last two years. A rates waiver of €10m operated during last year. In 2020 the rates waiver was €18.9 million. There was a restart grant of €18.6m, also in 2020.

The council had administration costs, including communications, training costs and costs made to other bodies including East Border Region (three per cent of overall spending). Miscellaneous costs were €12.8m.

The collection of rates in 2021 hit a mark of 92 per cent. Eighty nine per cent of rates were collected and housing loans collection stood at 83 per cent. Collections overall were one per cent ahead of the previous year, giving the council one of the highest collection rates among all local authorities in the country. The council reported fixed assets as standing at €2.9 billion.

Commenting on the financial report Fianna Fail Cllr Damien O’Reilly congratulated the chief executive Jackie Maguire and financial staff Fiona Lawless and Sheila Harkin on their “very comprehensive” statement on the council’s situation for 2021.

He knew that there had been support from central Government but it was a credit to all the staff that there had been a good outcome despite all that had happened during the pandemic.

Fine Gael Cllr Gerry O’Connor also congratulated all concerned for their hard work in producing such a comprehensive financial statement.

Independent Cllr David Gilroy said there had been a lot of talk over the years about reducing the local property tax and taking €2.5 million out of the council budget but the council had not done that and this vindicated the position that had been taken.

Fianna Fail Cllr Mike Bray said the council was now in a strong position if any crisis arose over time. The council would not be “playing catch-up” and would be able to provide the services that people needed. Work would need to be done on rolling out new public lighting schemes throughout the county.

Sinn Fein Cllr Michael Gallagher said it was “great news” that the deficit had been eliminated. Labour Party Cllr Elaine McGinty said it was great to see an allowance for inflation built in to provision for public lighting schemes. Inflation seemed to be “sky rocketing” at the moment.

Council Head of Finance Fiona Lawless said that property tax had been running at about €14m over the last few years. She said the council had made a number of submissions on property tax to the department. The big issue there was the baseline which was “too low”. Whether the census was gone to have an impact on that was unknown at the moment. The council had not been given an indication whether it was going to go up or down.

The only pay award arising for the public service would be one per cent in October next. The council had a €10.5 million public for public lighting which had gone to tender.

In reply to Cllr Gallagher, she said that there would be legal fees of €3 million which included dealing with five judicial reviews against the council which were going on at the moment.