€7m rates loss due to Covid-19

Sligo County Council could be facing a loss of up to €7million in rates income in 2020 due to the Covid-19 pandemic.

The severe financial implications for the council may lead to a need to revise the budget, according to Head of Finance Marie Whelan who outlined the financial position during an extensive briefing by officials on the council’s response to the crisis.

Ms Whelan’s address to members at last Monday’s meeting offered a sobering analysis of the likely shortfalls in revenue, with rates and parking charges amongst the areas set to witness a severe drop.

Already, there has been evidence of a major decline in parking and fines income. The council had budgeted for €2 million in income from parking charges in 2020, but Ms Whelan said there will be a ‘ huge shortfall’ on this figure.

Rates income is set to plummet from €14 million to somewhere in the region of €7 million. This is despite a brief uplift in March, and a relatively good month in April. Ms Whelan said a drop of €7 million in rates will have ‘massive consequences’.

In addition to the loss of revenue across a variety of sectors, the council is also set to accrue further costs in certain areas such as cleaning, signage and personal protective equipment.

Ms Whelan explained that a more definitive set of figures will be brought before the council later in the year, and that it could well be the case that the council members will have to revisit the 2020 budget.

However, she said the circumstances mean it will be ‘financially challenging’, not just for Sligo but for every county in the country, and that government support will be required.

Commenting on the financial position, Council Chief Executive, Ciaran Hayes (pictured) said that there will be a ‘serious impact’ on finances and that every sector will be lobbying for support, and Sligo will be no different.

Mr Hayes also said that in terms of rebooting the economy, funding needs to be continued for public sector projects. Mr Hayes said he empathised with those with health concerns during the course of the coronavirus pandemic.

On the financial outlook, the CEO said that prior to Covid-19 the cumulative deficit was going in the right direction due to a big effort on the part of everyone.

On a positive note, Mr Hayes detailed the huge number of projects that have been completed, are ongoing or have been allocated funding across the county, including the Coolaney National Mountain Bike Centre which he said could be ‘a game changer’ for that area.

Similarly, he also said that work is ongoing with regard to the potential for a cultural plaza on Stephen Street, the designs for which he said are exciting.

There are plans for this project to go to tender later in the summer of this year with a view to being onsite in January of 2021.

There have also been discussions, he said, on a potential relocation of St Angela’s College to a site in the town. If that happens, Mr Hayes said it could provide a major boost to the urban area.