Businesses set to face increased rate liability
PROCESS WILL RESULT IN LOST REVENUE TO COUNCIL
County Manager David O'Connor estimates that the process will cost the council at least 10 million in lost rates next year.
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Wednesday September 23 2009
MORE than 2,600 Fingal businesses, predominantly in the retail sector, will face a cumulative increased rate liability of approximately € 13 million under the revaluation process under way in the region. County Manager David O'Connor said he was extremely concerned at the impact some of the rate increases determined through the process would have on ratepayers, particularly in light of the very difficult year ahead.
He said the council's strategy of keeping rate increases to the absolute minimum over the years had ensured, not only one of the highest compliance rates in the country, but had also resulted in significant inward investment.
He has also estimated that the process would cost the council at least € 10 million in lost rates next year. He said although it was meant to be a 'revenue neutral' exercise, the process would result in significant lost revenue to the council.
' To put the critical budgetary situation we face next year into context, not alone are many of our traditional income sources declining, our core income source of commercial rates (47% in 2009), which over the past five years has increased year on year by an average of € 10m, will now decrease next year by the same amount.' He said there was no alternative source of funding to make up this 'significant deficit' in the council's budget for next year and that very difficult decisions would have to made in drafting next year's estimates.
