Local Government Finance

Introduction

At present world economies are experiencing an economic downturn and the effects of this are having an unprecedented effect on the Irish economy. Ireland is dealing with major challenges with high rates of unemployment and the constant threat of job losses. The exchequer finances are challenged which is having a direct impact on CCC finances.

This report will focus on the challenges in relation funding revenue expenditure for CCC in 2010 and in the future. I will also discuss areas of concern in terms of level of revenue expenditure and outline issues that were taken into account in the preparation of the budget for 2010.

Section 102 of the Local Government Act 2001 states that each LA must prepare a draft budget for the next financial year setting out:

1. The expenditure necessary to carry out its functions and 2. The income estimated to accrue it.

In 2010 the total budget income for CCC is €324,706,407 a decrease of €32.9M compared to budget 2009.

Sources of Income

| |2010 |%2010 |2009 |
|Rates |90,507,300 |27.87 |94.78 |
|Local Government Fund |48,353,652 |14.89 |53.43 |
|Income from own resources |93,649,550 |28.84 |96.41 |
|Income from grants & subsidies |92,195,905 |28.40 |112.97 |

Revenue expenditure relates to day-to-day expenditure and does not produce an asset. CCC revenue expenditure is outlined below:

|Division |Expenditure |
|Housing & Building