THE BUDGET for running Dublin city is to be cut by more than €45 million next year, and will include “no provision” to cope with severe winter weather, city manager John Tierney has said.
City councillors last night approved a budget for 2012 which included the introduction of charges for putting out house fires, the privatisation of bin collections and an increase in water charges for businesses. However, in a concession to businesses, commercial rates are being cut by 1.7 per cent, at a loss of about €6 million to the council.
The council is expecting a cut of 10 per cent in the Local Government Fund, one of its main sources of funding, which would bring its allocation to €54.2 million in 2012.
The local authority hopes to earn a new income stream from fire services in 2012 with the introduction of charges to households at a first-hour rate of €500 for call-outs to domestic fires and €610 for vehicle fires; and a €610 charge to attend a chimney fire. It also includes a first-hour fee of €610 for road traffic incidents. Insurance policies would cover the charges, the council said.
Water charges to businesses will be increased from €1.80 to €1.90 per 1,000 litres, which still represents a subsidy by the council of 10 cent per litre, Mr Tierney said. Householders remain exempt from water charges, but the council hopes to earn €11.5 million from the €200 non-principal private residence charge, or second home tax, next year.
It also expects to save €5.2 million through the privatisation of domestic bin collections.
In his report to councillors Mr Tierney noted the council received additional funding from central government to cope with the severe weather last winter. The council had no contingency in the 2012 budget to deal with a repeat of such extreme weather, he said.
