Athlone Town Council decides on 1% rates increase for the year ahead

Athlone Town Council has decided to increase commercial rates by 1% for 2009. The council executive had recommended a 2% rise in rates before last Friday"s annual budget meeting. In agreeing to half of that increase, the councillors followed the lead of Westmeath County Council which decided upon a 1% rates hike a day earlier. The decision means that the ratable valuation multiplier in the Athlone Town Council area will increase by 60 cent, from €60.12 to €60.72, next year. The 2009 rates came up for discussion towards the end of Friday"s two-hour budget meeting. Noting the 2% rates increase which had been provisionally included in the draft budget, the Mayor of Athlone, Cllr Egbert Moran stated that he hoped the members could compromise on the rates in a way which would not affect any of the council"s planned programmes for the new year. Councillor Kieran Molloy asked where Athlone Town Council"s rates stood in comparison with other local authorities, and also asked how much of an extra cost per week a 2% rates increase would represent to businesses in the town. Aidan Bass, Finance Administrative Officer, replied that Athlone Town Council"s rateable valuation multiplier was ranked 35th highest out of 49 local authorities. He stated a 2% increase would mean that, out of 780 rate payers in the town, 565 would see their rates increase by less than €2 per week; 113 would see an increase of between €2 and €4 per week; 45 businesses would experience a rates rise of between €4 and €6 per week; 32 would experience increased rates costs of between €6 and €10 per week, and there would be a rates cost increase of over €10 for the remaining 25 companies in the town. After a five-minute adjournment, the meeting resumed and Cllr Kieran Molloy said the members had decided on a 1% rates increase. Cllr Molloy pointed out that this was the level decided upon by the county council and that he felt it was appropriate that the same level of increase be introduced in Athlone. He stated that the one percent increase would represent an increase of €1700 per year for the highest rate payer in the town, and that it was important that the council put itself in a position where services and staff could be retained. He added that in these difficult times the local authority had to be seen to raise some money of its own. Each percentage increase in the rateable multiplier represented €45,000 in annual income for the council. Since it had budgeted for a 2% rates increase, Town Clerk John Walsh asked Cllr Molloy where the required €45,000 in savings would be made. The Fianna Fail councilor proposed savings of €10,000 each in the areas of car parking receipts and refuse charges, along with a €5,000 saving on fire safety certificates, a reduction in write-offs amounting to €10,000 and deferrals of €5,000 each in the amounts of money the council had allocated to its Athlone Art Gallery and Athlone Castle redevelopment projects. The rates increase was formally proposed by Cllr John Butler and seconded by Cllr Kevin "Boxer" Moran.