Councillors opt not to increase property tax

Westmeath’s County Councillors have opted not to approve any increase in the local property rate for 2018.

The council executive was seeking an increase of 10 per cent in the tax on the 35,100 properties across the county liable for property tax.

At the September monthly meeting, held on Monday, council finance officer, Jimmy Dalton, read from a document prepared on behalf of the council CEO, Pat Gallagher – but councillors pointed out that householders are likely to be facing big hikes in the tax in 2019 when the property values are revised in line with recent market improvements.

The document stated that a 10 per cent increase would add €639,000 to the council’s coffers while a 3 per cent hike in the rate would have meant a €192,000 boost to the council.

However, members were also informed that the gap between the estimate of LPT payments to Westmeath in 2017, and its top-up from the central LPT pool amounts to €6.093m.

Setting out the details of why the executive was recommending a 10 per cent hike, the document said that he demand for the council’s services is growing, and that there are “significant needs in the community requiring ongoing attention”.

In addition, the council has significant loan repayment and capital provision commitments arising from past and ongoing investment in infrastructure throughout the county.

However, since 2012, the level of general purpose grant from central government has remained static.

“We have very limited opportunities to grow existing income streams and develop new ones,” councillors were informed.

For those whose houses are valued at more than €200,001, a ten per cent hike would have brought the annual charge to €445.50 per annum.

However, for the largest group of homeowners – the 38.9 per cent whose homes are valued at less than €100,001, the hike would have meant just an extra €9 on their existing payment of €90 per annum.

The second highest category in terms of numbers is that of properties valued at between €100,001-€150,000, which accounts for 36.8 per cent of the properties in Westmeath.

For those, a 10 per cent increase would have brought a payment rise of €22.50 to €247.50 per year.

Some 17.1 per cent of Westmeath’s homes are valued at between €150,001 and €200,000 and they would have been hit with a hike of €31.50, which would have left their 2018 payment at €346.50.

Just 6.6 per cent of the houses in the county are valued at greater than €200,001.

Estimating its income and expenditure for 2018, the council is projecting an income of €70.1m, up €1.6m on the present year, and expenditure is budgeted to match that, with the greatest hike coming in the payroll costs, estimated to rise by €1m.

The councillors were informed that the deadline for submissions from the public on this year’s property tax was August 4, and no submissions were actually made.