Clare County Council’s Annual Financial Statement for 2009 shows that the local authority ended the year with a €82,000 deficit, despite initial projections of a €3 million deficit.
The Council says the projected deficit was reduced primarily as a result of income generated under the Non Principal Private Residence (NPPR) scheme, introduced nationwide in July, and payroll savings achieved by the non filling of vacant posts arising from retirements and non renewal of temporary contracts.
Salary and Wages for 2009 were €36m for 2009, compared to €37.7m incurred the previous year, giving a reduction of €1.7m.
Head of Finance Noeleen Fitzgerald explained that the 2009 Budget process was a difficult one that required the Council to make expenditure savings in order to negate both the impact of a 7% reduction in the Local Government Fund and increased cost pressures in all service areas.
She added that the financial constraint was further impacted by a €7.5m reduction in Road grant allocations for the year, announced in March 2009 and a further 3% (€0.5m) reduction in the Local Government Fund announced in June 2009.
“The half-year report for 2009 presented to Members in September 2009 predicted a potential deficit for the year of €3m if corrective action was not taken. The key areas of concern at that time were the reduction in the Local Government Fund, difficulties in collection of Rates, the change in the Roads Work programme and the reduction in income from Ballyduffbeg Central Waste Management facility”, Ms. Fitzgerald said.
She continued: “In light of the predicted deficit, the Council took decisions over the course of the year to match the day-to-day operating expenditure with available funding. The decisions taken have borne positive results for the year 2009. However, it should be noted that the key contributors to the result for the year have been the generation of income from the new charge on Non-Principal Private Residences, the adjustment of the Roads Work Programme to align to the significantly reduced funding and savings generated in payroll.”
Ms. Fitzgerald noted: “While the overall result can be considered to be positive or almost break-even, cognisance must be taken of the fact that this situation is only arrived at by virtue of the corrective actions taken by the Council in reducing its expenditure in line with available funding in 2009.”
The Council says the projected deficit was reduced primarily as a result of income generated under the Non Principal Private Residence (NPPR) scheme, introduced nationwide in July, and payroll savings achieved by the non filling of vacant posts arising from retirements and non renewal of temporary contracts.
Salary and Wages for 2009 were €36m for 2009, compared to €37.7m incurred the previous year, giving a reduction of €1.7m.
Head of Finance Noeleen Fitzgerald explained that the 2009 Budget process was a difficult one that required the Council to make expenditure savings in order to negate both the impact of a 7% reduction in the Local Government Fund and increased cost pressures in all service areas.
She added that the financial constraint was further impacted by a €7.5m reduction in Road grant allocations for the year, announced in March 2009 and a further 3% (€0.5m) reduction in the Local Government Fund announced in June 2009.
“The half-year report for 2009 presented to Members in September 2009 predicted a potential deficit for the year of €3m if corrective action was not taken. The key areas of concern at that time were the reduction in the Local Government Fund, difficulties in collection of Rates, the change in the Roads Work programme and the reduction in income from Ballyduffbeg Central Waste Management facility”, Ms. Fitzgerald said.
She continued: “In light of the predicted deficit, the Council took decisions over the course of the year to match the day-to-day operating expenditure with available funding. The decisions taken have borne positive results for the year 2009. However, it should be noted that the key contributors to the result for the year have been the generation of income from the new charge on Non-Principal Private Residences, the adjustment of the Roads Work Programme to align to the significantly reduced funding and savings generated in payroll.”
Ms. Fitzgerald noted: “While the overall result can be considered to be positive or almost break-even, cognisance must be taken of the fact that this situation is only arrived at by virtue of the corrective actions taken by the Council in reducing its expenditure in line with available funding in 2009.”
