Funding for Dublin’s roads, and payments in relation to the Poolbeg incinerator, are expected to be cut by city councillors tonight to reinstate budgets for the homeless and disabled.
Councillors are set to reverse some €9 million in cuts for homeless services and housing adaptation grants proposed by city manager Owen Keegan as part of the council's 2014 budget.
Vulnerable groups
Speaking ahead of tonight's budget meeting, Dublin lord mayor Oisín Quinn said councillors would not pass a budget with the cuts proposed for the city's most vulnerable groups. "I'd rather have a pothole than people sleeping on the side of the road. You do not cut money from vulnerable people who need it."
Labour councillors, including Mr Quinn, yesterday met senior members of the Government and separately with Mr Keegan to discuss alternatives to the cuts, which are largely as a result of reductions in Government funding of €5.6 million for homeless services and €3.2 million for housing adaptation grants.
The budget of just under €30 million for the repair and maintenance of city and suburban roads will be the main casualty. Also a payment of €1.5 million for “operations” in relation to the as yet unbuilt Poolbeg incinerator will be scrapped following confirmation that the council will terminate the contract with consultancy firm RPS at the end of this month.
Mr Keegan has also agreed to revise his estimate in relation to the collection of unpaid Non-Principal Private Residence charges. While the €200 charge no longer applies, the council is continuing to collect arrears. Mr Keegan had estimated the collection of arrears would reap just €1 million, some €11 million less than last year, but has agreed to be more optimistic in his forecast.
New valuations for commercial rates paid by city businesses came into force on January 1st. Ratepayers have a right to appeal these valuations and Mr Keegan had budgeted for a €8 million loss through successful appeals. It is understood he has agreed to reduce this amount.
The details of the amounts of money to be siphoned off from each area to reinstate the homeless and disability funding will be finalised today.
They were not, as of last night, sufficient to meet the full cost of these services, but Mr Quinn said he is confident the funding gap will be bridged by tonight’s budget meeting. It is hoped that money for roads may be recouped from the Government later in the year. “Based on intensive negotiations with the city manager and representatives of the Government, I am confident we will be able to reverse these cuts. There is still a gap to close but I am confident we are going to close it.”
Mr Keegan had also proposed to increase social housing rents by €2.3 million next year. This would involve a 7 per cent rise in rents from July 1st. The increase was not being imposed to offset the council’s local property tax liability, which would be €1.7 million next year, the council said, but was being introduced in anticipation of a new national rents scheme.
Rent increase
This scheme was expected to come in 2015 to equalise rents across all local authorities and would result in a 14 per cent increase in Dublin City Council's rents, Mr Keegan said. He was proposing to apply half of that increase from July 1st next year to soften the blow. It is understood that the 7 per cent increase will not now be applied, but a lower increase in council rents remains likely.
Homeless organisations yesterday called on councillors not to pass the budget if the cuts were not reversed.
The Dublin Homeless Network, which represents 27 of Dublin's major homeless organisations – including Focus Ireland, Merchants Quay Ireland and De Paul Trust – yesterday contacted all city councillor to appeal to them to vote against the proposed cuts. Councillors of all parties, and Independents, have said they will not support the cuts.
