Annual Budget 2013

Amendment to Draft Annual Budget as presented to Council by the County Manager

The Draft Annual Budget was considered by Members at the Budget Meeting held on Monday 17th December, 2012. The budget was adopted as presented with the exception of the adjustments necessary to implement the following resolution:-

The Manager has provided for incomes of €3,312,400 for Revised 2012 and €2,418,000 for Budget 2013 in Division H, Sub Service - H1102 NPPR. It is proposed that this income be increased by €33,700 in Revised 2012 and €27,400 in 2013.

It is proposed to transfer the increased income in Revised 2012 of €33,700 to a Reserve from which €33,700 will be transferred as income in 2013 to A0101 - Maintenance of Local Authority Housing Units.

It is further proposed that the expenditure of €9,417,800 provided in Division A, Sub Service A0101 - Maintenance of Local Authority Housing Units be increased by €61,100 to €9,478,900 in 2013.

The proposed adjustments are set out in the table below:

To: The Mayor and Members of South Dublin County Council

Introduction

The Minister for the Environment, Community and Local Government has determined the period 24 November, 2012 to 13 January, 2013 as the prescribed period for County Councils for the holding of the 2013 Budget Meeting. The statutory Budget Meeting will be held on 17th December, 2012 and as the Budget must be adopted within a period of 21 days commencing on that date, the final date for the adoption of the Budget is the 6th of January, 2013. The Draft Budget has been prepared in the format prescribed by the Department of the Environment, Community and Local Government.

Corporate Policy Group

The Corporate Policy Group discussed the Draft Budget at meetings held on 19th November 2012 and 3rd December 2012.

Financial Context

The 2013 Budget

The Draft Budget for the year to 31st December 2013 provides for expenditure totalling €230.5M and income of €88.3M. The €142.2M balance will be funded from a combination of the Local Government Fund, Commercial Rates and Pension Related Deductions from staff remunerations. The 2013 allocation from the Local Government Fund is €16.285M and receipts from the Pension Related Deduction are projected as €3.3M. The balance of €122.6M will be levied in 2013 as Commercial Rates using an annual rate on valuation of 0.162.

Out-turn 2012

The financial budget has been monitored over the course of 2012 to ensure that the Council complies with the budgetary restrictions imposed in circular Fin. 03/2009 and extended by circular Fin. 03/2010. Expenditure remains broadly in line for 2012 but adjustments have been identified which will contribute to a reduction in overall expenditure from €237M as provided in the adopted budget to €235M. The main adjustments to the 2012 budget include additional payroll savings of €1.1M delivered during 2012, loan interest savings of €0.5M and reduced expenditure of €1.2M on the RAS and long term leasing schemes. Incomes associated with RAS and long term leasing and with loan payments including mortgage interest charges and recoupment of loan repayments relating to voluntary bodies were correspondingly adjusted in line with expenditure. Income from the Non Principal Private Residence Charge for 2012 will out-turn €1M ahead of budget. Additional costs totalling €1.6M were incurred in the area of pensions and lumpsums and income from Housing Rents and from Commercial Rates are below anticipated budgets.

It is a normal part of annual budgeting to monitor financial performance through the year and to make corrections and adjustments as the budget is delivered. Following revision, the 2012 budget is anticipated to be fully funded from 2012 income sources which will ensure that the Council does not incur a deficit for the year. The €2M in net expenditure changes in 2012 represents a 0.8% adjustment to the adopted 2012 Budget.

Economic Considerations

The challenging economic conditions have impacted considerably on the Council’s financial circumstances in recent years. Income sources have particularly suffered while at the same time demand has increased for many of the services provided by the Council. While these changes have increased demand on the Council’s financial resources significant savings have been delivered from innovation and efficiencies which have counterbalanced the reduced incomes and the increased pressure on services. Core costs such as payroll have substantially reduced over time due to a combination of pay reductions, reduced staff numbers and the implementation of constraints affecting premium payments. Payroll costs of €62.1M, representing 27% of the proposed budget, are projected for 2013 and these compare to costs of €83.6M in 2009 which reflected 29.4% of the annual budget.

The Central Bank, anticipates General Domestic Product (GDP) growth improvements of 1.7% in 2013, up from 0.5% in 2012 (in its quarterly bulletin Q4 2012) and expects “some recovery in external demand and a gradual stabilisation in activity in the domestic economy”. The bulletin expects Gross National Product (GNP) to contract by about 0.4% in 2012 but to expand by approximately 0.7% in 2013. The publication also noted that:

• the contraction and slow growth reflects a slowdown in demand from Ireland’s main trading partners which seems likely to continue into the first half of 2013.
• Domestic demand has been in decline for a number of years but is expected to stabilize in 2013.
• Domestic and external trading conditions impact significantly on employment and the Central Bank have projected a marginal overall decrease in unemployment in 2013.

The impact of these external economic factors on the local economy has influenced many aspects of this budget. These extend from the provision of a range of services and supports for local businesses and for persons seeking employment to the provision of choice based subsidised housing services.

Local Government Fund

The Local Government Fund General Purpose Grant allocation to South Dublin for 2013 is €16,285,348 reflecting a 4% reduction to the 2012 allocation. The 2013 allocation from the general purpose fund will provide funding for 7% of the operational costs for 2013. The 2012 Local Government Fund General Purpose Grant was revised during 2012 to €16,485,014 and was used to fund 7% of the revised operational budget for 2012. It represents a reduction of €478,890 to the original allocation of €16,963,904.

Household Charge

The Local Government (Household Charge) Act 2011 provided for the introduction of an annual charge of €100 which is payable by owners of residential property. Proceeds from the household charge were assigned to fund the provision of essential local services via the 2012 Local Government Fund. The Minister has indicated that a further broadening of local government finances will be achieved through the introduction of an equitable valuation based property tax which will replace the household charge in 2013. As at 5th December 2012 the owners of 52,588 properties in South Dublin were registered and compliant with their obligations in respect of the household charge. This represents a compliance of 64.3% for this charge in South Dublin County Council. I wish to thank the 52,588 households who have fulfilled their obligations regarding this charge, the proceeds of which are being used to fund local services, and I would encourage those who have yet to pay to do so.

Non Principal Private Residence (NPPR) Charge

An annual €200 charge on non-principal private residences was introduced by the Local Government (Charges) Act 2009. The charge is collected by a bureau service which operates on a shared service basis for local authorities. The service implemented a user friendly interface to allow property owners to register and pay online which has minimized administration costs associated with this collection as 75% of payments are made via the website www.nppr.ie. Significant penalties accrue if the property owner is late with payment and the combination of late payments and penalties contributed to an additional income of €991,400 in the revised budget for 2012. The NPPR charge is expected to provide an income of €2,418,000 for the council in 2013.

Commercial Rates

The provision in this budget for income from Commercial Rates has been reduced to €122,634,000 in 2013 (from €122,796,000 in 2012) arising from a reduction to the net effective valuation (NEV) of rated properties in the county. The Council has provided a number of reductions to the annual rate on valuation (ARV) or commercial rates multiplier in recent years resulting in an ARV of 0.162 for 2012 which reflects a 5.3% combined reduction from the 2009 ARV of 0.171. These reductions were achieved by using increases in the net effective valuation of the county to fund reductions to the commercial rates multiplier for each of the years 2010, 2011 and 2012. No buoyancy was available for 2013 as the NEV reflects a decrease in overall value during 2012. While it has not been possible to reduce the ARV at this time I have recommended that the ARV of 0.162 is not changed for 2013. If applied to the existing €757,000,000 NEV this will generate commercial rates income of €122,634,000 for the council representing 53.3% of the proposed Budget for 2013 and reflecting a growing dependency by the Council on income from commercial rates to fund the annual operational budget.

Adapting to Change

Overall reductions in the Public Service staff quotas have meant that South Dublin has had to alter its way of doing business, while continuing to reduce the cost of its services and the numbers of staff delivering them. Some 371 staff have left the organisation since 2009. Nonetheless, we succeeded in maintaining our high level of service delivery in 2012, despite the fact that an additional 103 staff members vacated the organisation.

Achieving this strong focus on service delivery and delivering best in class results has required the introduction of systems that expand with demand. There has been an emphasis on staff training and skills development through the Performance Management Development System (PMDS) and the competency framework model.

From a corporate perspective, significant investment in developing targeted approaches to mentoring, together with the expansion of existing continuing professional development programmes has mitigated the loss of corporate and organisational memory arising from the necessary adjustments. Putting the spotlight on workforce planning has ensured that the resources required at the frontline are available when they are needed most.

Our challenge in 2013 will be to continue to develop these approaches so that we can manage the further planned cost reductions required.

Supporting Enterprise, Economic Growth and Employment

The Council plays a key enabling role in a wide range of activities which result in a job dividend for the county. The Council is also committed to the delivery of a host of projects which aim to benefit local businesses and communities in South Dublin County. The marketing of South Dublin County as a great place to develop a business, combined with the significant level of capital investment in the arts, tourism, sports, recreation, community facilities and transport infrastructure has a very positive impact on employment supports and economic recovery. Activities supporting enterprise include:

• The Business Development and Sustainability Project which was delivered in conjunction with South Dublin Chamber
• Support for enterprise agencies and business networking events
• Provision of enterprise infrastructure such as serviced sites and planning support
• Provision of new arts/concert venues, sporting facilities and tourism products, relating to a broad range of recreation and amenity facilities
• The Connect with Energy Initiative which promotes the growth of the green economy and aims to improve business competitiveness by advising businesses on how to reduce energy costs in the workplace.

2012 also saw the development of an Economic Strategy for the Council. This strategy is geared towards maintaining the county’s position as an economic driver within the wider region and as a destination for indigenous business and foreign direct investment. It highlights the county’s character areas where economic development can be nurtured and firmly positions the protection of existing jobs and the creation of new jobs as a key priority of the Council.

South Dublin enjoys its position as an urban centre with both urban and rural village cores. It is imperative that the villages are recognised as hubs of economic and social activity. Mindful of this, the Economic strategy targets a Village Programme that encompasses thoughtful landscaping, multi-year action plans and a strong partnership between the Council and local voluntary effort. The Council will continue to support the village centres as they embrace activities which will increase footfall and achieve village enhancement.

We look forward to the introduction of the Local Enterprise Office (LEO) initiative in 2013. South Dublin County Council already houses the County Enterprise Board and its own Business Support Unit. However the LEO will preside over the expansion of this service, as it will integrate the work of both offices and lead to a stronger and more streamlined service to business in the county. Discussions with stakeholders are already underway to ensure that a comprehensive service is available from County Hall.

Placing Quality of Life at the Heart of what we do

In South Dublin County, we have reflected deeply on quality of life and well-being issues and have set ourselves ambitious targets across all our services. Each of our strategies and policies are underpinned by our core mission: to work together to improve the quality of life socially, culturally, economically and environmentally for the people of South Dublin county.

We accept that comfortable homes, access to essential reliable services, a reasonable income, a safe protected environment, the opportunity to participate in a cohesive community structure where cultural expression is encouraged and where education and life-long learning are valued, are fundamental to an individual’s quality of life and well-being. We also realise that in an increasingly globalised setting, sustainable communities require a sense of pride of place, a sense of belonging and positive self-image within a strong active community framework, which supports them through the many life cycle stages.

Our approach is inclusive and commits us to supporting the citizens of South Dublin with fairness and dignity from the cradle through childhood to working age to retirement. We have the capability to deliver to the highest possible standards and are united in seeking the best outcomes for the people that we serve. It is a value which is at the heart of everything that we do.

Transforming the Public Realm

The Council aims to empower local residents to assist the local authority in the creation and maintenance of a high quality public realm which is attractive and safe. Our innovative social credits scheme, environmental awareness programmes, the Tidy Town movements andwww.fixyourstreet.ie are simple but powerful ways through which people can make a real difference to their own area and make South Dublin County a better place in which to live, work and invest. To further this aim we will shortly publish work programmes including road sweeping, grass cutting, cleansing, graffiti removal and burial ground maintenance schedules by way of an interactive web-based application on www.sdcc.ie. This system will allow citizens to track work schedules on an estate by estate basis throughout the county, will enable a more streamlined approach to allocation, management and tracking of activity and will be backed up by the recent installation of GPS in the Council fleet. It will also support voluntary effort and will contribute significantly to a higher quality public realm experience for everyone in South Dublin County.

There will be a renewed approach to tackling dereliction within the county in 2013. We will review best practice towards removing dereliction and will develop proposals to improve public and private spaces.

Bringing them Home for the Gathering 2013

The Gathering 2013 will be an exciting celebration of Ireland. South Dublin will host in excess of 25 international sports and cultural events throughout the year, with an expected attendance of 17,000 overseas visitors to the area. This is a collaborative initiative with South Dublin County Tourism, sports organisations, local businesses, community groups, Fáilte Ireland, Gathering Ireland and Fingal Leader Partnership. The South Dublin County The Gathering 2013 was launched by the Minister of State for Tourism and Sport in the Council Chamber on 3rd October 2012 and was streamed live across the world on www.thegatheringdublin.com.

Our Libraries: Welcoming and Democratic Spaces

The Library Development Plan 2012-2016 was adopted by the Elected Members in October 2012. Significant achievements were delivered during the lifetime of the previous plan including innovative buildings, services and programmes, along with national and international awards which will provide a platform for further developments.

Managing growing demands for service within the shifting socio-economic landscape of the next five years will be challenging. Addressing the infrastructural deficit of library buildings is identified as one of the most significant challenges of the current plan. Eight core strands underpin our 2012-2016 plan, encapsulating a wide variety of twenty first century library activities ranging from collection management to culture, the arts, heritage, innovation and creativity, services for young people, literacy and information, libraries for the Digital Age, all supported by an energetic, capable library team.

A new model of public library is emerging in South Dublin with library buildings becoming centres of learning for local communities and library staff who work beyond the walls of the physical building as leaders in interagency initiatives. Partnering with agencies such as the County Childcare Committee, CDVEC, CDI and ITT Dublin and many others has allowed Libraries deliver innovative services ranging from pre-school literacy programmes, exam support for Leaving Cert students, digital inclusion programmes for people aged 70+ and in-school training in identifying quality information sources using the library service award-winning website as a template.

South Dublin Libraries won Library Service of the Year at the 2012 Chambers Ireland Awards.

At the instigation of the previous Mayor, Councillor Caitríona Jones, the Connect Education conference entitled The Future’s not what it used to be was held on the 10th October in the Dublin West Education Centre and organised by South Dublin County Council and the Children’s Services Committee. It was attended by more than 80 people with speakers including school principals, lectures from third level institutions, librarians and the educationalist, Lord David Putnam. The presentations challenged traditional ways of teaching and learning and examined how non-traditional players, including local authorities, can energise learning and teaching for the 21st century.

The Mayor’s Initiative 2012/2013

The Mayor’s Initiative ensures that the priorities set out by each Mayor during his/her term in office are mainstreamed into our day to day activities. In 2012, the Mayor decided to focus on the proposed emergency homeless accommodation project for the county and to highlight the issue of mental health and wellbeing. Much progress has been made to date on both of these initiatives, with South Dublin County’s first supported temporary accommodation unit (STA), due to be operational from March 2013.

In addition, the Council has assisted the development of two Jigsaw Projects in the county with the locating of the Tallaght Jigsaw in County Hall and the Clondalkin Jigsaw based in Neilstown. Developed by Headstrong - the Jigsaw model is an innovative approach for organising and delivering services and supports to enhance the mental health and well-being of young people.

An Age-Friendly County

In October this year South Dublin received it’s designation as a WHO Age Friendly County. This followed an in-depth consultation process with older people and agencies and the development of the Age Friendly Strategy by the Age Friendly County Alliance. The Bealtaine Festival, the new exercise equipment in our Parks and the many projects and events that take place in our libraries across the county are all part of the Strategy. The future plans include the establishment of an Older Person’s Forum, a Business of Ageing Forum, and the development of Age Friendly Towns and Businesses across South Dublin. The actions included in the Age Friendly County Strategy will ensure that South Dublin continues to grow as a safe, healthy and positive place to live and a great county in which to grow older.

Celebrating the European Year of the Citizen 2013

The European Year of Citizens 2013 will provide an opportunity for South Dublin County Council to support a range of initiatives that will encourage people to participate in civic society and promote active citizenship. Activities will be organised as much as possible at the grass-roots level, by citizens and civil society organisations themselves and facilitated by the local authority. In the past the Council has organised events such as Meet your Local Politician or Town Hall Talks. This concept will be further developed in 2013 to encourage more citizens to identify issues of common concern and promote local democracy in the county.

Local Government Reform

Local Government Efficiency Review (LGER) / Shared Services

The Interim Report submitted to the Local Government Efficiency Review (LGER) Implementation Group by the CCMA in July 2012 showed that €830m in financial savings has already been delivered at local government level between 2008 and 2012 through efficiency gains and reductions in expenditure and staff numbers. Importantly these savings were achieved while maintaining front line services and supporting local enterprise and local communities. The savings achieved in South Dublin over the period is €56.7m. This reform process is continuing with an ambitious programme of shared service projects across the 34 local authorities. The sector has established a national LGER Office to lead the process and South Dublin has supported this office through the allocation of staff since its inception.

The sharing of services across the local government sector holds enormous potential not only for the delivery of cost savings and efficiency gains but for actually enhancing the quality and range of services available to citizens and businesses.

South Dublin County Council is the lead authority on the development of business cases for Accounts Payable, Fix Your Street (now a national service) and Internal Audit.

Meanwhile a national shared approach is being prepared for services such as Treasury Management, Payroll and Transactional HR. This will continue to be a feature for delivery of local government services in the future and will provide centres of excellence as well as freeing up valuable staff resources and expanding the opportunity to respond to a changing work environment.

Putting People First: An Action Programme for Effective Local Government 2012-2014

This action programme outlines government policy for reform and development right across the local government system. Putting People First reinforces Local Government as the primary means of public service at local level harnessing the commitment of elected members and officials. The programme aims to ensure that Local Government is better placed to enhance the well being and quality of life of citizens and local communities, while delivering maximum value for money. The reforms place strong emphasis on accountability as the bedrock of a properly functioning system of local democracy, providing more effective engagement with citizens.

It covers four main themes:

• Structures that Work for Communities
• Funding Accountability and Governance
• Economic Development and Job Creation
• Delivering Services Efficiently

The Final Report of the Local Government / Local Development Steering Group was also published in 2012. This will lead to the introduction of Socio- Economic Committees (SEC) who will replace existing County Development Boards and will ensure greater integration and oversight of social development and economic drivers within the county. As a precursor to this and in the interest of positioning the county, a merger of the two local development companies has been led by the Council and with their co-operation will come into place on 1st January 2013. The new partnership company’s headquarters will be in County Hall. It is anticipated that South Dublin will lead on the establishment of the SEC in 2013.

Establishing a National Water Authority

The creation of a National Water Authority was agreed in the EU-IMF Memorandum of Understanding. The proposal to operate Irish Water was won in April 2012 by Bord Gáis. An initial transition strategy envisages that an interim board will be in place this year, that Irish Water is to be established under its own statute by mid-2013 and that it would acquire statutory responsibility for water services in mid-2013.

The public utility company Irish Water will be an independent state-owned subsidiary of Bord Gáis. It is proposed that Irish Water will take over the water investment maintenance programmes of the 34 existing local authorities.

From an operational perspective, it is envisaged that local authorities will be engaged as agents of Irish Water for a considerable period of time.

The Local Government Sector has established a transition office to enable an adequate response to the emerging utility company and to ensure that due diligence is effectively managed. South Dublin County Council has made a staff resource available to the new transition office.

An Innovative Organisation

During 2012, South Dublin County Council continued to be recognised at national level for its commitment to public service improvement. These awards are a tribute to the co-operation of the Elected Members and Staff in their dedication to delivery of quality services and facilities and putting the citizen at the centre of our services:

Fix Your Street won an award at the Taoiseach’s Public Service Excellence Awards Ceremony in Dublin Castle on the 21 June 2012. These awards are held every two years to recognise and reward examples of excellence in the delivery of public services.

Fix Your Street accepted 3 e-Government awards winning the following categories:

• Open Source
• People’s Choice
• Judges Special Merit

South Dublin County Council won the Innovative Planning Practices and Procedures award at the Irish Planning Institute’s National Planning Awards for the development of the Strategic Environmental Assessment Monitoring Scheme for the County Development Plan.

Tallaght Stadium won the Airtricity Pitch of the Year Award for the second time in the four seasons that the Stadium has been open. The Stadium also won Best Sporting Facility in the LAMA Awards.

South Dublin County Council won two awards at the prestigious Chambers Ireland 9th Annual Excellence in Local Government in the following categories:

• Best Library Service Ready2Read promoting Early Literacy Development and
• Outstanding Customer Service award for Choice Based Letting Scheme: Empowering the Customer

Pride of Place is an all island competition aimed at recognising improvements made by local communities to create civic pride in their area in partnership with their local authority. Six South Dublin entrants were in the final and three groups came second in their respective categories:-

• St Dominic’s Community Centre, Avonbeg
• RAMS – Retired Active Mens Society, Newcastle
• Clondalkin Tidy Towns Group

European Access City Award

Tallaght has been included in the final shortlist of seven cities for the Access City Award 2013. The Access City Award is an innovative competition between European cities which was launched in 2010 to promote accessibility in the urban environment. Tallaght was shortlisted for displaying a high level of accessibility both within its built facilities i.e. Tallaght Stadium, the County Library and County Hall and across its external urban environment i.e. Sean Walsh Park Accessible Recycling and Sensory Garden and the Tallaght Zip.

As a county, South Dublin has achieved many prestigious awards and a branding campaign of the Award Winning County will be initiated between Tallaght Hospital, the Institute of Technology and the Council in 2013.

Conclusion

I would like to thank the Mayor, Councillor Cathal King, his predecessor Councillor Caitríona Jones and each of the Members of the Council for their co-operation and support on so many issues during 2012. I would also like to thank the Members of the Corporate Policy Group for their co-operation and assistance in formulating the Budget. I look forward to continuing to work in partnership with the Elected Members on the delivery of high quality public services for all the citizens of South Dublin County.

I want to pay tribute to the staff and management of the organisation who have risen to every challenge put before them in difficult circumstances to ensure that high quality public services continue to be delivered to the people and businesses of South Dublin County. I wish to acknowledge all of the work of the previous County Manager, Joe Horan and all of the retired staff who have contributed so much to the development of this county.

The preparation of the Annual Budget is a detailed and demanding task, so I want to express my appreciation to all of the Management Team and staff who worked with me on this budget.

In particular I wish to thank Clodagh Henehan, Head of Finance, Patricia McLoughlin, Financial Management Accountant, Sinéad Dunne, Professional Accountant and all staff who assisted with the preparation of the Council Budget 2013.

Finally I recommend the adoption of this Budget for 2013 as presented and the determination of the general annual rate on valuation of 0.162.

Philomena Poole

County Manager

Table of Expenditure & Income Budget 2013/Budget 2012

Income and Expenditure from Divisions 2004-2013

Sources of Expenditure Comparison with Previous Year

Table of Sources of Expenditure 2013/2012

Sources of Income Comparison with Previous Year

Table of Sources of Income 2013/2012