Councils bow to pressure as one per cent rates increases agreed

Commercial rates in Athlone and throughout county Westmeath will increase by only 1% in 2009 after Athlone Town Council and Westmeath County Council both agreed on the minimal increase at their budget meetings last week. The executives of both local authorities had proposed 2% increases for the town and the county, but councillors proposed savings that would make up the 1% shortfall, allowing them to push through the smaller rates increases. At Westmeath County Council"s annual budget meeting in Moate last Thursday, Fine Gael"s Cllr Mark Cooney made a proposal that would save the council the €80,000 required to allow them to agree a 1% rates increase, rather than the 2% proposed by the council. The council is predicting a massive fall in planning income, of over €500,000, and a drop in income from refuse collection of €110,000. Such is the financial difficulties in which the county council is operating that it is planning to shed up to 40 positions next year. It will not renew the contracts of 25 contract staff and is not to fill another 12 vacancies in line with a Government stipulation that pay roll be reduced by 3%. Athlone Town Council is in a slightier healthier situation. It said while income was significantly down in some areas, the inclusion of new developments in the town"s rates base had led to a buoyancy in its rates revenue of some €800,000. The council, despite the economic downturn, is keen to press on with a number of major capital projects, including the redevelopment of Athlone Castle, the construction of an art gallery at Fr Mathew Hall and the regeneration of Athlone"s west side urban streetscape. The 2% rates increase at town council level was reduced to 1%, following a proposal by Cllr Kieran Molloy.