Galway City Council’s €39 million in public investment may lead to higher tax and commercial rates

Galway City Council’s plan to generate an additional €39 million in public investment over the next five years may lead to “reasonable increases in local property tax (LPT) and [commercial] rates”.

The proposed investment programme is in response to shortfalls in service delivery and projects arising from expenditure inflation of over 30 per cent. As well as rising operational costs, and increased demands for services.

Potential rise in tax and commercial rates

Commenting on the proposed increases in LPT and commerical rates, Leonard Cleary, Chief Executive of Galway City Council said:

“As Galway City has transformed from a large provincial town in the 1980s to a lively modern city…it is essential that the city looks at reasonable increases in LPT and rates, to retain our reputation as a high quality location to live in, visit, and to do business.

Director of Finance for Galway City Council, Helen Kilroy, said:

“Galway City Council is recommending [that] an increase in rates should be accompanied by an incentive scheme for businesses, with Galway City Council continuing to administer Government grants.

“At a practical level, this will help certain targeted categories of businesses address the rates increase. 70 per cent of businesses in Galway City would experience an increase of less than €1000 – approximately €20 per week – as a result of the proposed change.”

Elected Members will be asked to approve a 15 per cent adjustment to the LPT on 14 October. They will also vote on a proposed 15 per cent on 18 November.

“Our population is expected to grow by 40,000 by 2040, and our journey towards that future is one we undertake with ambition and excitement,” Mr Cleary said.

“Investment in our future must start now with funding for day-to-day services and beneficial projects, in order to continue as a key driver of economic development and competitiveness on the Atlantic Economic Corridor, and as a great city to live in and visit,” he added.

The proposed increases

Local authorities are funded through a combination of commercial rates, charges, LPT and State funding.

The LPT adjustment will see most households, which are in the lowest three bands of property values, pay between 26 cents and 91 cents extra per week. Galway City Council is one of the last local authorities in the country to propose an adjustment in LPT for reinvestment in the local area.

Areas targeted for investment arising from the increased revenue include derelict sites, street cleaning, the development of a city campervan facility; public toilets, the maintenance of housing, parks and footpaths, the delivery of social and affordable housing, climate action projects, and Town Hall Theatre works.