THE Covid-19 pandemic has had an unprecedented and very significant impact across the community, social and economic fabric of Kerry and it has been disproportionately felt given the reliance of the local economy on the tourism sector, local politicians have been told.
Kerry County Council Chief Executive Officer, Moira Murrell, told the annual budget meeting of the local authority – which was held on line on Monday – that the council’s finances are equally linked to the external economic conditions and this has had a severe impact on the local income levels which assist in the running of the council.
“Covid-19 has presented the council with challenges of a scale not previously seen, both in terms of assuring the continuity or our services and the financial capacity of the council to provide those services,” Ms Murrell said in a comprehensive report presented to councillors.
She said the immediacy of the negative impact of the pandemic on almost all of the council’s income sources, given the seasonal nature of the economy, differentiates it from previous times of recession where there was an opportunity to plan for adverse financial impacts and where adjustments could be made over a longer period.
“In the current environment, the council’s approach has to be to maintain existing service levels, particularly to support the county’s economy and community at this time,” Ms Murrell stressed.
She said the decision of the council in respect of the local property tax has provided critical income towards supporting those essential services.
The local government sector has engaged extensively with central government in recent months to assess and forecast the projected losses and to outline the financial risks ahead but the additional impact faced by Kerry County Council, given the importance of tourism to the county, has had to be factored in.
The primary constraints which impacted on the preparation of the draft budget included:
- The long-term impact of the pandemic on the council’s core commercial rates base which will impact on finances this year and next.
- The very limited buoyancy in rates income in the contest of Covid-19, rates harmonisation and the rates revaluation process.
- The extent to which other income sources are projected to recover in 2021 and the ongoing additional costs required to respond to the pandemic.
- The significant and unavoidable organisational wide cost increases which, in as far as possible, have been built into the existing budgets therefore presenting a tighter budget for each department 2021.
- The deferral of some non-critical works resulting in the implementation of cost containment measures and a number of non-grant funded remaining vacant in 2021.
- The need to support tourism infrastructure, arts facilities and leisure complexes which have experienced income reductions.
The council voted to adopt a draft budget of over €168 million for 2021, an increase of more than €10 million.
Over €45 million will be spent on road transport and safety next year with €36 million to go to housing and building. A further €19 million will be spent on environmental protection and services.
The councillors heard that a strategic development fund is being put in place to progress a number projects throughout the county and, in the Killarney Municipal District, the projects that will be advanced include the Flesk cycleway and walkway, the Killcummin village enhancement scheme and an upgrade of the access road to Torc mountain.
An income of €44 million is expected in commercial rates, over €57 million in State grants and it is expected that parking charges and fines will bring in over €3.1 million.
The local authority’s payroll costs continue to account for more than 43 per cent of overall expenditure.
31 councillors voted in favour of adopting the draft budget, Cllr Michael Cahill abstained and Cllr Marie Moloney was absent.
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