DUBLIN CITY councillors will tonight vote on whether to ratify the city manager’s proposed 2009 budget, which includes major cuts to the council’s infrastructure development programme.
Councillors may make amendments to the budget, but if they increase funding in any area they must identify other cuts. With a reduction of almost 7 per cent in the Local Government Fund from the Department of the Environment, it is unlikely they will have much room to manoeuvre.
The budget contains a proposal to reduce investment in infrastructure by more than €330 million over the next three years. Projects that will be hit include the regeneration of Cork Street and improvement programmes in Coolock, Rialto, Inchicore and Smithfield.
While deferral of these projects will be a disappointment to individual councillors, it is unlikely they will get enough support from fellow councillors to reverse them.
One of the main stumbling blocks to the ratification of the budget in previous years – the bin charge – is less likely to be an issue this year as city manager John Tierney has decided not to raise the charge for the first time since its introduction eight years ago.
Mr Tierney has also said services will not be cut. The council will increase spending on services but at the lowest rate in several years. The budget for 2009 expenditure will be €928.7 million, a rise of just 1.5 per cent. This year’s budget had represented an 8 per cent increase on 2007.
The council is hoping for an additional €15 million by increasing commercial rates by 3.3 per cent, which would bring such earnings to €324.29 million.
However, several councillors have warned against taxing businesses too heavily and may seek a reduction in rates.
Payroll costs have been cut by 3 per cent, while budgets for consultancy, advertising and public relations will be cut by 50 per cent.
