Sligo Corporation faces the prospect of abolition by the Minister for the Environment following its failure to adopt its book of estimates for the coming year.
Despite a further attempt to reach agreement at a specially convened meeting on St Stephen's Day, Mr Dempsey has been informed by the Sligo county manager, Mr Hubert Kearins, that the council has failed to approve his recommendations.
At issue is the prospect of Sligo town's refuse collection service being privatised. Mr Kearins recommended the annual refuse charge be increased by £202, to a total charge of £350, to meet the high cost of transporting Co Sligo's waste to a landfill site outside Ballina, Co Mayo. Co Sligo has no landfill site.
Fianna Fβil has been seeking a deal with three Fine Gael councillors to pave the way for the adoption of the estimates.