MALLOW TOWN COUNCIL

Manager's Report & Budget 2010

A Mheara agus a Chomhairleori,

The Draft Budget for 2010 has been prepared in the most difficult economic and fiscal circumstances faced by the Council in many years.  During the course of 2009 the Council was informed of significant reductions in central funding for the Roads Grant and in the Local Government Fund. This trend will continue in 2010 and while the introduction of a new funding source in the Non-Principal Private Residence Charge and the payroll reductions introduced in the National budget will counteract the deficit to some degree, nevertheless the impact in particular of the reduction in the  Local Government Fund, as recently advised by the Department of the Environment, Heritage and Local Government, will have consequences for the Council in the delivery of essential services in the Town.

The following table illustrates the falling income from this source in recent years:

Budget 2010 announced reductions of 5-8% in pay rates across the Public Service including Local Authorities.  The total saving to Mallow Town Council in 2010 for payroll costs is estimated at €96,000 and the Council will retain 65% of this amount with the balance reverting to the exchequer.

Significant payroll cost savings were also achieved in 2009 and the full effect of these will be realised in 2010.  These include the termination of temporary contracts, non replacement of staff on leave and substantial reductions in overtime.

A Non-Principal Private Residence Charge (NPPR) was introduced by primary legislation in 2009 and the income from this source will be retained by Local Authorities.  The amount due to Mallow Town Council in 2010 is estimated at €20,000 and is included under Division A Housing & Building in the Draft Budget.

In order to support competitiveness in the local economy and to protect the interest of the community no increases are proposed in Commercial Rates or in the charges for services such as Housing, Rents, Swimming Pool Facilities, Parking Charges etc. for the coming year.

Accordingly, the Draft Budget as presented estimates total expenditure of €4,942,192 which represents a decrease of 6.4% and is the minimum necessary to support the delivery of essential services at an acceptable standard.

	Expenditure		Income
	2009	2010	2009	2010
1. Housing & Building	707,830	712,338	609,828	629,192
2. Road Transportation & Safety	1,097,731	990,452	699,952	563,956
3. Water Safety & Sewerage	68,646	61,764	3,276	3,111
4. Development Incentives & Control	248,660	195,832	86,482	28,408
5. Environmental Protection	206,766	202,701	95,025	106,973
6. Recreation & Amenity	1,118,321	990,938	464,096	433,443
7. Agriculture, Education, Health & Welfare	33,950	33,997	13,000	13,000
8. Miscellaneous Services	357,558	314,570	106,840	57,697
Total	3,839,462	3,502,592	2,078,499	1,835,780

Estimated Gross Expenditure 2010	3,502,592
Estimated Income 2010	1,835,780
Nett Expenditure on Urban Services	1,666,812
Services Provided by County Council	1,439,600
Local Government Fund Income	1,068,192
Amount to be levied 2010	2,038,220
Annual Rate on Valuation	59.06

Division A  - Housing & Building

The tender process for the pilot phase of the Refurbishment Works Programme at Sandfield Estate has commenced and it is envisaged that the works on 32 units will commence in March, 2010.  The works includes replacement of windows and doors, rewiring, provision of new kitchens and will be funded from Internal Capital Receipts.

During 2009 extensive works were completed in 29 houses under Planned Maintenance Programme and a similar Programme will be presented for the approval of Members early in 2010.  Such works will be funded also from Internal Capital Receipts.

The proposed junction improvement works at St. Josephs Road and Aldworth Heights are currently at public consultation stage and the matter will be considered by Members at the February 2010 Monthly Meeting in accordance with the requirements of Part VIII of the Planning and Development Regulations.  Thereafter, it is intended to prepare alternative plans for the development of housing on the Council lands and to progress these plans to the Planning Stage following consultation with the Department of the Environment, Heritage and Local Government.

The Architects Department, Cork County Council are currently preparing plans for the redevelopment of the Old Willis Court Site.  These units will be intended to cater for the needs of single person applicants on the Housing List. In view of the recent change in Government Policy on provision of Social Housing from new build to leasing, the Council will need to explore new alternative methods of progressing this development once the design is in place.

It is not proposed to increase the amount of weekly rent payable under the Differential Rent Scheme by Local Authority tenants in 2010.

Mallow Town Council continues to pay a proactive roll in the delivery of the RAPID Programme and match funding will be provided in 2010 towards small capital improvements works in Local Authority Estates.  These works include traffic calming, environmental works and the provision of additional car parking.

Division B  - Road Transportation & Safety

The Draft Budget as presented anticipates a reduced Grant from Central Government for Road Improvement.  Formal notification of the 2010 allocation will not be received until February and an amount of €180,000 has been included in the Draft.  A programme of works will be presented for approval of Members early 2010 and income for Development Contributions will be used to supplement the Block Grant Funding from the Department of Transport, as in previous years.

The on-street pay parking machines will become operational from 4th January next and will allow motorists to park in designated parking spaces in the Town Centre for a minimum fee of 20 cent for a duration of 15 minutes.  No increase in charges for parking on-street or in car parks is proposed for 2010.

The Draft Transportation Study will be placed on public display early in 2010.  The Study will include proposals for addressing traffic congestion in the Town through a variety of infrastructural measures and will include both short term and long term goals.  Following the public consultation process the plans and any amendments will be formally adopted by the Members in May 2010,

The commencement of the construction of the M20 Motorway including the link from the Hospital Cross is crucial to the development of the Town as envisaged in the Special Local Area Plan and the Council will seek to have the Scheme proceed to the formal Planning process early in 2010.

Division C  - Water Services

Responsibility for the provision of Water Services in the Town transferred to Cork County Council in accordance with the requirements of the Local Government Act, 2001 and this Councils contribution of €469,600 towards the costs is included in the County Charge. 

The formal Planning Process for the construction of the new Public Toilet Facility at St. James Avenue has commenced and the final date for receipt of submissions or observations is 5th February, 2010.  The matter will then be considered at the March Monthly Meeting and subject to the agreement of Members tender documents will be prepared and it is anticipated that construction work on the project will commence towards the latter end of 2010. Provision of €35,000 is included in the budget for the third consecutive year in order to provide a fund for this development.

Division D  - Development Management

The Managers Report and recommendation following consideration of submissions or observations on the amendments to the Draft Development Plan has been circulated to Members and the final date for consideration of the Report is 25th January, 2010. The new Plan will have effect 4 weeks from the day it is made.

In 2009 a significant decrease in the number of planning applications, lodged with the Council, has resulted in a considerable shortfall in fees and the provision in the Draft Budget for 2010 reflects this trend.

Members are aware of the issues which have resulted in the delay in completion of the Theatre facility.  I am, however, hopeful of a resolution to these in 2010 and will advise Members of progress in the matter as appropriate. Financial provision in the amount of €25,000 has been provided towards the cost of recruitment of a Manager for the Theatre and associated costs.

Provision has again been made for the cost of erection of and maintenance of the Christmas Lights and the contribution to Fáilte Ireland.

Division E  - Development Management

The cost of  collection and disposal of litter in the Town continues to be a serious burden on the finances of the Council and the estimated expenditure in this area for 2010 is €88,000.  Provision is also made to continue the Tidy Estates Competition in 2010 and an amount of €6,000 has been provided for this purpose.

The recent incident of flooding in the Town was successfully managed and the benefits accruing from Phase I of the Munster Blackwater Mallow North Drainage Scheme were seen to full effect.  A financial provision of €20,000 is provided in 2010 towards the cost of the implementation of the flood control measures which is carried out jointly with Cork County Council staff and the Council will recoup an estimated sum of €15,000 from the Office of Public Works.

Division F  - Recreation & Amenity

The operation and maintenance of the Swimming Complex will continue to operate at a financial loss in 2010.  However, it is not intended to increase admission charges and the focus will be on measures to reduce running costs and marketing of the facility. 

During the course of 2009 Notices were issued under the Derelict Sites Act in relation to properties in a serious state of dereliction in the Town Centre an it is intended to use the legislative powers to the fullest extent in 2010 and to apply the 3% levy where no adequate response is received to the efforts to rid the Town Centre of dereliction.

Financial provision is also made in this Division towards the cost of the acquisition of the Town Park and the redevelopment of the Bathview Quarry site.

Division G  - Agriculture, Education, Health & Welfare

The principal activity in this Division is the supply of school meals and the Council recoups 50% of the costs incurred from the Department of Social & Family Affairs.

Division H  - Miscellaneous Services

Members have been advised of the proposal to relocate the Council's workshop and storage facilities to the County Council depot at Newberry rather than Quartertown Industrial Estate, as previously intended.  This decision was taken for financial reasons.  It is intended to progress the project to Planning Stage early in 2010.

The financial treatment of the savings arising from the reduction in pay costs in 2010 have been dealt with in the introduction to this report and the amount included under Miscellaneous Services for the recoupment to the exchequer is €33,600.  The remainder of this Division deals primarily with Financial Management and the costs of remuneration of Members.

Conclusion

In the preparation of the Draft Budget for 2010 the emphasis has been on the maintenance of essential services, while at the same time seeking to support economic activity in the Town by maintaining the current rates of charges for services and Commercial Rates at 2009 levels.  I consider the Draft succeeds in achieving this aim and I recommend its adoption.

Finally, I would like to thank the Town Clerk and his Staff for their assistance in the preparation of the Draft Budget for 2010.

The Draft Budget will be considered at the Statutory Budget Meeting on Monday, 4th January, 2010 at 4pm.

___________________________
MANAGER

DATE: _____________________