Chairperson's Address
Rates Estimates 2012/13
Against the backdrop of very challenging economic conditions for our ratepayers and with current inflation at 4.2%, I am pleased to advise that the district rate increase for 2012/13 will be 2.2%, the lowest rate increase ever struck by Derry City Council. In real terms this will result in an increase of 34p per week for the average domestic dwelling. Within the estimates for 2012/13 Council has made provision to deliver a capital programme of circa £65 million, and will contribute £3.8 million from the Capital Fund to City of Culture and the major lead in event, Clipper World Yacht Race, a leg of which is to be staged in the City in June 2012. Council’s contribution to City of Culture will leverage in other funding of £20 million during 2013.
The challenge for Council in this year’s estimates was to achieve a balance between investing for the future and keeping the rates increase as low as possible while continuing to provide vital local and regional services. To ease the burden on ratepayers, Council has reduced its own controllable expenditure by 0.19% through achieving efficiency savings of £437,400. This is the strategic approach which Council has adopted in recent years through the establishment of the Strategic Review Group
The Airport’s operating deficit for 2012/13 is estimated to be £3,531,300, a decrease of £109,600 on 2011/12. This is made up of subvention payable to CODA (Operations) Ltd of £2,195,100 and loan charges of £1,336,200 that continue to be paid by Council. It is pleasing to report that the subvention payable to CODA (Operations) Ltd has reduced again for a second year, giving a total reduction of £530,000 (19.45%) since incorporation of the Company. This has been achieved by implementing operational efficiencies and by extra commercial income on fuel sales, car parking, car hire and concessions which has significantly increased the income yield per passenger. Route expansion remains the priority and CODA is well positioned to exploit any opportunities that may arise when the economy recovers.
Derry City Council continues to invest in Waste Management Initiatives and is on course to achieve both the Northern Ireland targets for recycling and the EU Landfill Directive targets of diverting biodegradable municipal waste from landfill. It has been possible to hold the Waste Management budget at the same level as last year due to temporary budget savings in Waste Management contracts.
It will also be possible to fund some non-recurring expenditure such as event costs for the Olympic Torch Relay Concert and increased service provision for street cleansing, grounds maintenance etc due to the expected increased visitor numbers out of temporary budget savings in Waste Management.
Council has commenced an ambitious capital and regeneration programme of circa £65 million, which is at various stages of development from design through to progressing on site. Key capital projects include Guildhall Restoration, St Columbs Park Outdoor Event Space, Brooke Park Restoration, and North West Regional Sports Campus.
In addition, Council in this year’s estimates will contribute a further £5.2 million to the Development Fund bringing the total sum available to £13.7 million. Spend from this fund will be prioritised towards capital projects identified in the Corporate Plan 2011-2015 (including the Audit of Inequalities), which has been aligned to the City’s Regeneration Plan (One Plan).
The successful implementation of the One Plan will require significant funding from Central Government. Council and ILEX have plans to spend circa £100m on Regeneration Projects in the City over the next few years and it is hoped that now the One Plan has been recognised in the Executive’s Programme for Government 2011-2015 that funding will be committed by Central Government Departments.
Departmental bids of £498,900 have also been approved and include £40,000 to lever in £1million for a City of Culture Business Development Programme and provision for some key staffing positions including an Events Co-Ordinator and two senior posts to establish a Funding Unit that will be targeted to maximise external funding opportunities for the City.
Finally, I would also advise that the domestic regional rate and the non-domestic regional rate for 2012/13 are expected to increase by 2.2%.
As Chair of the Policy and Resources Committee, I want to record my thanks to Members and Officers for their sterling work and I propose that a district rate increase of 2.2% for domestic and non-domestic properties, which is significantly below the current rate of inflation, be accepted.