DUBLIN CITY Council plans to slash its investment in Dublin's infrastructure for the next three years by more than €330 million in order to ensure it can continue to run the city through the economic downturn.
The council last year announced a budget for building infrastructure such as housing, roads, water and sewerage of just under €2.2 billion for 2008-2010.
In his budget report presented to the council last night, city manager John Tierney said this capital budget would have to be cut to €1.86 million, resulting in the shelving of several development projects in communities across the city.
However, Mr Tierney said he did not intend to increase the bin charges for the first time since their introduction, and would not cut funding for the city's services for 2009.
While the council will increase spending in 2009, it will do so at the lowest rate in several years. The council's budget for 2009 expenditure will be €928.7 million, an increase of just 1.5 per cent on 2008. This year's budget had represented a 8 per cent increase on 2007.
One of the council's main sources of funding, the Local Government Fund, has been cut this year by the Department of the Environment by just under 7 per cent from €105.5 million to €97.86 million, while Government grants remain the same at €127.47 million. The amount the council expects to earn through providing goods and services is showing an increase of just under €7 million to €379.11 million. However, the council is hoping for an increase of €15 million by increasing commercial rates by 3.3 per cent, which would bring the earnings from rates from Dublin businesses to €324.29 million.
In addition to rasing rates the council is cutting costs within its own organisation. Its payroll costs have been cut by 3 per cent, while its budgets for consultancy, advertising and public relations will all be cut by a massive 50 per cent, following a direction from the Government to all public sector organisations earlier this year.
Although council services will largely be maintained in 2009 it is the cuts in expected infrastructure projects that are likely to be of greatest concern to communities.
Regeneration and development projects which will now be deferred include the second phase of the Harp Smithfield project, the second phase of the Coolock Village improvement scheme, Lorcan Community Centre, Springfield Park, Ellenfield Park, the Kilmainham/Inchicore urban space project, the Rialto project, the Lutyens Gateway to the Memorial Gardens, the Inchicore environmental improvements, CAMAC Greenlink, Cork Street regeneration, the footbridge over the Liffey at Chapelizod, Thomas Street environmental improvements, the open space at Ballyfermot Community Civic Centre, the Dodder framework plan, paving at Ship Street, O'Rahily Parade/Moore Lane, the Killester Graveyard preservation works and School Street car park.
Mr Tierney reiterated his call for the Fire Service, which will cost the council more than €121 million in 2009, to be funded directly by the Government as the cost was "not sustainable" for the council, he said.
