WICKLOW COUNTY COUNCIL FINANCES TAKE A BIG HIT FROM COVID-19
COVID-19 could have a significant impact on the council’s finances this year.
Members received an update on the local authority’s work during the Covid-19 pandemic during their June meeting.
They heard that no decision about service cuts would be made by the local authority until the amount of compensation available from the government was clear.
Frank Curran, Chief of Executive of Wicklow Council, told members that the council was facing an ‘unprecedented challenge’ due to Covid-19 as he outlined the council’s response to the crisis.
Mr Curran said the health and safety of council staff had been a priority. A safety committee had been put in place and council offices were reconfigured to ensure social distancing was adhered to.
Around 50 per cent of the council’s staff were now back at their desks with the remainder working from home. Mr Curran highlighted that the planning department had been working primarily from home with meetings conducted by appointment. There was a backlog but staff were ‘ready to go when the time comes’, he added.
Mr Curran outlined how different services provided by the council had worked during the lockdown, adding that a complete re-opening of all council departments was expected by July 22.
He said most council facilities had re-opened, however, the Bray to Greystones Cliff Walk remained shut as the 2m distance could not be maintained. This was under review and it was hoped that the walk could reopen in July.
He also highlighted that the Covid Community Forum had been set up and the Covid Community Call helpline had been put in place to take calls from people who needed help.
Over €80,000 had been divided among community groups. New social homes in Farrenkelly, Blessington and Baltinglass had been also been allocated during the crisis. Mr Curran said social isolation, food and digital poverty were issues of particular concern during the crisis.
In terms of commercial rates, compensation was expected from the government with a case made at a national level by the local authorities. Additional costs including the provision of personal protective equipment (PPE) had been incurred by the local authority.
Mr Curran also highlighted that a tourism survey was under way and there would be a new marketing campaign targeting domestic visitors.
The NTA was looking for proposals for the widening of footpaths and cycling lanes. Area engineers were putting together a list of suggestions which will be brought to the municipal districts. Mr Curran said the local authority were hoping for a quick turn-around on these proposals.
Vibeke Delahunt, Head of Enterprise at Wicklow County Council, also provided an update on the work of the Local Enterprise Office (LEO) during Covid-19. There had been huge demand for the services offered by the LEO from local businesses.
Brian Gleeson, Head of Finance at Wicklow County Council, said the financial impact of Covid could be ‘significant’ for the local authority.
He outlined to councillors that an amount of €32 million, representing 28 per cent of the council’s budget, had been expected to be collected in commercial rates in 2020. However, only €6.5 million had been collected by the end of May, down from €10.4 million in 2019. The value of the rates book could be severely impacted as some businesses closed while others faced declines in their trading.
Mr Gleeson said the full impact of Covid-19 on council rents was not known. An amount of €17.2 million had been expected to be collected in 2020. By the end of May, €6.3 million in rents, 37 per cent, had been collected compared with
€5.6 million or 39 per cent, up to May 2019. While the cash value was up, the budget had been increased after a rent review. Mr Gleeson noted that further negative implications in the area of council rents were possible in future.
The council also faced loss of revenue as parking charges were not enforced during the period of restrictions. There had been a fall in other areas including road opening licences, planning receipts and harbours.
Income from the Wicklow County Campus had also reduced. Mr Gleeson said the local authority was in talks with Carlow Institute of Technology about their future plans. The council was down nearly €1 million on projected income for the year.
Additional costs of €300,000 had been incurred for PPE, signage, emergency accommodation and social distancing measures.
Mr Gleeson outlined some of the areas where the local authority was anticipating compensation from the government.
€12,500 per unit could be recouped from the Department of Housing, Planning and Local Government for emergency housing works.
A commercial rates waiver scheme for the period of April to June had been announced by central government. Evidence of the loss of income caused by Covid-19 had been submitted to the government.
Mr Gleeson said any budget cuts would depend on the amount of compensation received and additional funding was being sought. He said the local authority was also looking for ‘natural savings’ from a slowdown in recruitment and a reduction in travel costs due to home working.
Mr Gleeson said that 684 applications had been received for the business restart scheme, but funding had to be received from Enterprise
Ireland before it could be paid out.
Many councillors commended council staff and management for their work during the Covid-19 lockdown.
Cllr Sylvester Bourke (FG) asked about the timelines for the payment of the business restart grants. He highlighted that a local business had spent €1,000 on perspex screens to re-open and the grant would be helpful to them.
Cllr Tom Fortune (Ind) noted that funding allocated to volunteer groups had created good will, but not all had received funding.
Cllr Gerry Walsh (FF) asked if rent collection rates were down in comparison to other years. He noted that dumping had been an issue and if enforcement measures had been taken.
Cllr Mary Kavanagh (Ind) said she had received many requests from local businesses for the council to encourage people to shop locally. She suggested a temporary parking amnesty to encourage people to visit main streets because ‘it is a disincentive to shop in a place with a charge’.
Cllr Kavanagh also asked for the 15 minutes grace period be extended to 30 minutes to allow for queuing times. The council ‘could spend a little for a big return’.
Cllr Shay Cullen (FG) said the county was facing an ‘unprecedented volume of visitors’ and parking in the county needed to be improved.
‘There’s an economic benefit to people coming’, but there is a ‘need to have things right for people to visit and make the experience welcoming’.
Cllr Lourda Scott (Green) noted residents of Direct Provision centres should be represented on the Community Forum.
Cllr John Mullen (FF) suggested that the design of public spaces and facilities should be reviewed to ensure access for younger and older people in case of another public health crisis.
Cllr Mags Crean (Ind) also noted that residents of Direct Provision centres were not represented on the Community Forum. She said that a car park in Kilcoole had only opened following a public campaign. Noting the importance of consultation with the public and local representatives, Cllr Crean also gave the example of access being restricted to a public right of way. She asked if cuts to services were required, that people were not penalised for public health costs.
Cllr Jodie Neary (SD) raised a concern that councillors were not included directly on the Community Forum. She asked that vulnerable service users should be kept to the fore during any spending reviews.
Cllr Grace McManus (SF) said the council needed to prepare for a possible rise in people seeking housing supports in the coming months.
In response to queries, Mr Curran said the Community Forum had been set up based on guidance from the government. He noted that the Department of Justice were responsible for Direct Provision Centres, and the council gave every help it can to those who are given leave to stay.
Dumping enforcement had been deemed an essential service and several cases were due to come to court.
Mr Curran said the council could look at the idea of a parking amnesty, but the revenue generated was significant. The council should have a clearer idea of the compensation it would receive from central government in the next month.
He added that staff and resources in the housing section could be increased if needed.
Mr Gleeson said the council had only received the grant for the restart scheme in the last week and payments would be made as a priority to businesses that re-opened under phases 1 and 2.
Parking charges were a substantial source of revenue for the council. Mr Gleeson said they were worth around €850,000 for June to August. There was a need to be careful as government may not give compensation for services the council decided to suspend itself.
Mr Gleeson added that the local authority would try to get as much funding as possible from the government before making any cuts to its services.
ADDITIONAL COSTS OF €300,000 HAD BEEN INCURRED FOR PPE, SIGNAGE, EMERGENCY ACCOMMODATION AND SOCIAL DISTANCING