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Council strikes 4.99% district rate increase

Monday, 11 February 2008

Derry City Council has agreed a district rate increase of 4.99% for 2008/09. Cllr Mark H. Durkan, Chairman of the Policy and Resources Committee said this year's rate setting process had proved to be a very challenging one for Council. He indicated it was close to the rate of inflation at 4.3% and was anticipated to be one of the lowest among Councils in Northern Ireland.

He commented: “Derry City Council continues to work to provide services that improve the city and region and this modest increase was achieved through a joint effort by elected members and officers and is reflective of Council’s commitment to maintaining a quality level of public service, investing in capital projects and the development of services that will benefit the people living and working in the district,” he said.

While acknowledging the significant increase in the annual operating deficit for the City of Derry Airport, the chairman explained how 7.15% of the increase was related to the increased operating budget of City of Derry Airport that now stands at £3,982,200. The additional financial resources have been put in place to cover the increases maintenance costs to ensure safety compliance and to deliver the CAA Action Plan. Additional staff will be provided to ensure compliance with CAA requirements and to strengthen the commercial and passenger handling services at the airport. Security services costs have also increased at the airport. Loan charges associated with the capital safety works also represent a significant increase. The airport recorded its highest ever level of passenger throughput during 2007 with over 432,816 passengers using the facility.

“The City of Derry Airport brings significant economic benefit to the North West region and is a key economic driver for the region. It is imperative the safety works continue to ensure the facility operates to the highest safety standards and complies with CAA requirements. The Council remains committed to safeguarding the long-term future of the airport and is moving forward with the governance change to continue the successful growth of the airport offering more routes and enhanced services for the entire region,” he said.

The district rate represents a 4.99% increase in previous years. Combined with the regional rate it realises an increase for domestic and non-domestic properties of 2.45% and 3.71% respectively. In addition to the investment at City of Derry Airport, the increase provides for statutory expenditure regarding pensions (0.91%) and waste management (2.01%). The increase also provides for small number of essential departmental bids to assist with enhanced resources for community safety, additional recycling facilities, provision for 15,000 brown bins to increase the refuse collection options for households, marketing support for festivals to assist with attracting sponsorship for city events, extended opening of the Museum service during the summer months, additional funding towards CCTV and the provision of playing pavilions. The community grants and contribution towards the Derry Visitor and Convention Bureau also experienced an increase in their budget allocation.

The City Treasurer, Joe Campbell explained that reaching the rate increase of 4.99% was achievable through savings, prioritisation of key developments and the application of an additional £1.5million of reserves made possible from the finalisation of the revenue from the rates during 2006/7 (known as penny product).

“The Council has an annual budget of £34million and balances the needs of existing service provision with the investment in new projects and initiatives. During 2007 investment was made in capital projects such as the Walled City Signature Project, opening of Recycling Centres, the rest restoration and aftercare of the Culmore Landfill site and over £1m investment in the upgrading of Templemore Sports Complex and the City Baths. 2008/9 will see further progress in these areas with minimal costs to the rates with the application of financial reserves, selling surplus lands, securing external funding and making savings. This years rates estimates provides a savings target of £236,500 through a corporate target of reductions in absenteeism, overtime and mileage along with increased income targets in the area of commercial refuse charges”.

Details of the full rates report to Policy and Resources Committee is available through visiting www.derrycity.gov.uk/rates

Further press information can be obtained by contacting the Marketing and Communications Section, Derry City Council, Tel. 028 7137 6504.


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Press Information Council strikes 4.99% district rate increase Monday, 11 February 2008 Derry City Council has agreed a district rate increase of 4.99% for 2008/09. Cllr Mark H. Durkan, Chairman of the Policy and Resources Committee said this year's rate setting process had proved to be a very challenging one for Council. He indicated it was close to the rate of inflation at 4.3% and was anticipated to be one of the lowest among Councils in Northern Ireland. He commented: “Derry City Council continues to work to provide services that improve the city and region and this modest increase was achieved through a joint effort by elected members and officers and is reflective of Council’s commitment to maintaining a quality level of public service, investing in capital projects and the development of services that will benefit the people living and working in the district,” he said. While acknowledging the significant increase in the annual operating deficit for the City of Derry Airport, the chairman explained how 7.15% of the increase was related to the increased operating budget of City of Derry Airport that now stands at £3,982,200. The additional financial resources have been put in place to cover the increases maintenance costs to ensure safety compliance and to deliver the CAA Action Plan. Additional staff will be provided to ensure compliance with CAA requirements and to strengthen the commercial and passenger handling services at the airport. Security services costs have also increased at the airport. Loan charges associated with the capital safety works also represent a significant increase. The airport recorded its highest ever level of passenger throughput during 2007 with over 432,816 passengers using the facility. “The City of Derry Airport brings significant economic benefit to the North West region and is a key economic driver for the region. It is imperative the safety works continue to ensure the facility operates to the highest safety standards and complies with CAA requirements. The Council remains committed to safeguarding the long-term future of the airport and is moving forward with the governance change to continue the successful growth of the airport offering more routes and enhanced services for the entire region,” he said. The district rate represents a 4.99% increase in previous years. Combined with the regional rate it realises an increase for domestic and non-domestic properties of 2.45% and 3.71% respectively. In addition to the investment at City of Derry Airport, the increase provides for statutory expenditure regarding pensions (0.91%) and waste management (2.01%). The increase also provides for small number of essential departmental bids to assist with enhanced resources for community safety, additional recycling facilities, provision for 15,000 brown bins to increase the refuse collection options for households, marketing support for festivals to assist with attracting sponsorship for city events, extended opening of the Museum service during the summer months, additional funding towards CCTV and the provision of playing pavilions. The community grants and contribution towards the Derry Visitor and Convention Bureau also experienced an increase in their budget allocation. The City Treasurer, Joe Campbell explained that reaching the rate increase of 4.99% was achievable through savings, prioritisation of key developments and the application of an additional £1.5million of reserves made possible from the finalisation of the revenue from the rates during 2006/7 (known as penny product). “The Council has an annual budget of £34million and balances the needs of existing service provision with the investment in new projects and initiatives. During 2007 investment was made in capital projects such as the Walled City Signature Project, opening of Recycling Centres, the rest restoration and aftercare of the Culmore Landfill site and over £1m investment in the upgrading of Templemore Sports Complex and the City Baths. 2008/9 will see further progress in these areas with minimal costs to the rates with the application of financial reserves, selling surplus lands, securing external funding and making savings. This years rates estimates provides a savings target of £236,500 through a corporate target of reductions in absenteeism, overtime and mileage along with increased income targets in the area of commercial refuse charges”. Details of the full rates report to Policy and Resources Committee is available through visiting www.derrycity.gov.uk/rates Further press information can be obtained by contacting the Marketing and Communications Section, Derry City Council, Tel. 028 7137 6504.
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