where does our towns money go 3

Mick Glynn

Where does all the Towns money go? – Spring 2013 Part 3

1.1 Introduction

2.1 Development Levies €8.8m

2.2 Internal Capital Reserves 4.8m

2.3 Parking Fund €3.9m

2.4 Net Assets

3.1 Bank deposits and Interest

4.1 Rates 2013

5.1 Council Budget 2013

Unit 2 Carlisle House, Adelaide Road, Bray, Co. Wicklow(086)2579505 / [email protected] / www.mickglynn.com

Mick Glynn

1.1 Introduction

There has been plenty of interest and speculation about the Towns financial position in recent months and I have decided to go through the most relevant documents and try and explain them as best I can.

As legislation is currently being prepared by the Government to abolish all town councils, the focus has now turned on the finances and more importantly the assets of each council that will be assumed by the County Councils in June 2014.

It is clearly not possible at this stage to see how the future finances of the new Municipal Districts will operate but it is helpful to have a closer look at the latest set of figures available as we get closer to the date of abolition.

Last week, Minister Hogan published a list of the amount Town Councils have on deposit. Bray Town Council were included with a balance of €16,404,077. This figure is taken from the 2010 Annual Financial Statements Balance Sheet, totalling the Bank Investments and Cash in Transit amounts.

The most current set of figures are the 2011 Annual Financial Statements.

The figure receiving the most interest is the Current Assets, totalling €27m including bank and cash balances of €18.9m. Other assets include commercial debtors of €4.6m, development debtors of €1m and other Local Authorities 3.1m.

The other headline figure that is not so interesting is the Current Liabilities and Creditors of €20m including a bank overdraft (cheques written not cashed) €3.4m, Creditors (Wicklow County Council) €7.2m, Loans Payable (Taken out for a purchase of property at Kilbride Lane) €7.4m and Developers deposits €1.6m.

If all liabilities were paid it would leave a remainder of €9.3m, the Net Assets

So, in theory if all the liabilities fell due were paid, the council have at least €9.3m to spend on the Towns services and infrastructure?

In my opinion the best way of getting clarity on what is available to spend on services and infrastructure is to look at the individual account balances and not the fixed assets. Here is an outline of the biggest accounts and a description of them.

2.1 Development Levies €8.8m

These are charges that have been collected on developments and are to go towards community infrastructure and legally must be used for the purpose intended or refunded to the developer. Here is a breakdown down in their categories; Roads 4.1m, Car Parking 1.6m, Water & Sewers 1.4 m, Civic Amenity .4m, Community/Recreation 1.33m.


Mick Glynn

2.2 Internal Capital Reserves 4.8m

This figure arises from housing units and land sold. These revenues cannot be used for anything else other than housing improvements and sanctioned by the Department of Environment. The Oldcourt Energy Efficient Works are currently being funded from this account.

2.3 Parking Fund €3.9m

Paid parking was introduced approximately 13 years ago in the Town and profits from parking have increased year on year as the scheme expanded to different parts of the Town. These revenues have been ring fenced to purchase and develop the car parks at Florence Rd and Herbert Rd, and to purchase land for a further car park at the southern end of the town.

2.4 Net Assets

So now we are in a situation that the council have a total of €17.5m identified in capital accounts with Net Assets of €9.3m – this balancing figure could be taken as the moneys paid and borrowed for land purchase in Kilbride Lane which hopefully will be funded by the Department of Environment.

3.1 Bank deposits and Interest

In the 2011 figures the council had approximately €18.9m on deposit with several financial institutions in the area, mostly high street banks at an interest rate between 3-4%. The Council received €564,000 interest on investments in 2011 and have been used to offset against long term capital projects, the Shoreline Leisure Centre, Mermaid Arts Centre, Costal Protection Scheme etc. In future years the interest accrued will be considered as current revenue going towards the day to day expenditure of running the Town.

4.1 Rates 2013

The council hopes to collect €6.6m in rates from the Towns commercial premises. The collection rate of outstanding rates has been quite successful at 93% on last year’s figures. The rateable valuation has been set at 67.66 which is 13.4% lower than Wicklow County Councils of 76.78. The difference in these two figures is going to cause a great deal of debate with the 2014 deadline looming. Looking at the 2013 projected revenue figures there was good case to answer in reducing the Rate yield by 5% but it was decided somewhat foolish when there would have to be an equalization process with Wicklow County Council in the short term.


Mick Glynn

5.1 Council Budget 2013

The adopted budget included no reduction in amounts for services on the previous and after discussions with management included a number of increases in keys areas:

Estimated Property Tax payment for Social Housing Tenants €82,500 €40,000 towards a new Bray Boxing Club facility Bray Head Loop Walk funding €7,000 €30,000 toward Wolfe Tone FC new facility €5,000 towards a Fire Fighters Memorial €100,000 towards Economic Development of the Town €5,000 towards a new bus for Bray Cancer Support €2,500 towards the Lions Club Better Bray Challenge €3,000 towards Bray Tourism / Bloomsday Festival €2,500 towards a new ‘Pride in your Estate’ competition


where does our towns money go 3

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