Tralee town council, which faced dissolution, was granted a reprieve this evening when Minister for Environment, Mr Martin Cullen, gave it one more chance to agree a budget.
It was feared a commissioner would be installed to run the business of the Kerry town after the debt-ridden council failed to adopt a budget for the coming year at its fourth attempt earlier this week.
But Mr Cullen granted a time extension until January 26th after receiving a request from council members.
The minister was forced to step in after the authority racked up crippling debts through supporting a number of tourism projects, including the famine ship, the Jeanie Johnston.
Mr Cullen said he took a very serious view of the council's failure to discharge its statutory obligation to adopt its 2004 Budget within the designated timeframe.
"The adoption of a balanced budget is probably the single most important duty that the elected members are called upon to carry out each year," he said.
The Minister said he had no wish to dissolve the council but reminded it that failure to adopt a budget could under the law, result in the dissolution of the local authority and the appointment of a commissioner to carry out the council's functions.
The council refused to adopt a budget on Monday night despite knowing it faced dissolution when the deadline for agreement passed at midnight.
Loan repayments and charges of more than €700,000 for tourism projects have crippled the council's finances.
The costs include the annual repayments of €235,000 on a loan taken out two years ago to bail out the Jeanie Johnston.
The council asked for extra Government funding to help pay this debt, claiming the Jeanie Johnston is a national project, but its request was turned down.
The council's debts meant it could not afford the €250,000 cost of running its refuse collection service for the coming year.
PA