In a statement today civil servant with the Finance Directorate at the council Patricia McIntyre said revenue from the €100 charge will go to the council.
And if there is a shortfall, services in the county will be hit, she said.
She said income to the council included those collected locally, such as Business Rates, Non-Domestic Water Charges, NPPR charges and Planning fees. Income is also provided directly from Government Departments for specific actions such as Housing and Road maintenance and upgrade.
“A further source of Funding, provided from the Department of the Environment, Community & Local Government comes via the Local Government Fund General Purpose Grant Allocations 2012 (LGF). Circular Fin 8/2011 dated 5th December 2011 outlines the value of this for Donegal in 2012, with a gross amount of €30,945,838 being the allocation for the year (which was a reduction of 7.82% on the 2011 allocation of €33,570,767),” said the statement.
“The circular also details how this figure is made up, including retained pension related deductions and proceeds from the €100 Household Charge. (The balance of LGF funds derive from proceeds of motor taxation, i.e. car tax)
“The proportion of Donegal’s LGF, as a proportion of National LGF is some 5%. Given that there is a targeted €160 million to be collected and disbursed to Councils Nationally as part of the 2012 LGF, Donegals’ portion of such a fund can be estimated at 5% or some €8 million of the overall figure of €30, 945,838. Minister’s Hogan’s recent indications that non-realization of targeted collection figures for the Household Charge may result in Councils having to review their 2012 expenditure plans, could give rise to reductions in services that are funded through the LGF on an annual basis.
“The level and extent of any shortfall will have to be reviewed if this transpires, given the Council’s requirement to operate as a business in it’s own right, by managing expenditure within available income limits.
“Donegal County Council therefore encourages all householders to pay the Household charge by 31st March 2012 to ensure the continuation of services as planned for in the 2012 Revenue Budget and also to avoid the incurring of penalties and interest which will be liable for payment effective from 1st April.”
You can Read the Council Circular Below:
5 December 2011
Circular Fin 8/2011
Head of Finance
Donegal County Council
LGF General Purpose Grant Allocations 2012
I am directed by the Minister for the Environment, Community and Local Government to inform you that the provisional General-Purpose Grant allocation from the Local Government Fund for Donegal County Council for the year 2012 is €30,945,838. This is a reduction of -7.82% on the €33,570,767 paid from the Local Government Fund in 2011.
Pension related deductions
Since 2009 local authorities have retained the pension related deductions for their employees. While local authorities will continue to retain this income, explicit account has not been taken in the 2012 general purpose grant allocations of receipts from this source. The general purpose grant allocation for 2012 refers only to the amount paid from the Local Government Fund. A final reconciliation in respect of 2011 retained pension related deductions will be initiated in mid 2012 and a Circular will issue at that time.
The EU/IMF Programme of Financial Support for Ireland commits the Government to the introduction of a property tax for 2012. The Programme reflects the need, in the context of the State’s overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services.
In light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and accordingly, to meet the requirements in the EU/IMF Programme, the Government has decided to introduce a household charge in 2012. The household charge is an interim measure and proposals for a full property tax will be considered by the Government in due course. The Exchequer contribution to the Local Government Fund has been replaced by the income from the Household Charge for 2012.
The household charge is being set at a modest amount of €100 for 2012 and provision will be made for the payment of the charge by instalments. The legislation to underpin the household charge will contain the precise details of the charge and will be published and brought before the Houses of the Oireachtas shortly.
Rates and local charges
The General-Purpose Grant allocation continues to provide a very significant contribution towards the current expenditure needs of your authority for 2012. As part of a range of measures to aid economic recovery, the Minister is clear on the need for continued reductions in commercial rates over the coming years and again requests that local authorities exercise restraint in setting commercial rates and local charges for 2012, in order to support competitiveness in the economy, nationally and locally, and to protect the interests of communities. Local authorities have responded positively to previous requests for restraint and, in light of the current, challenging environment for business, it is strongly urged that this restraint be continued.
Queries on Allocations
Queries in relation to this circular may be made to the relevant personnel set out in the Appendix attached.
Mise le meas,
Local Government Finance Section.