Councillors clash over cash reserves as Mid Ulster rate struck

The average rate payer in Mid Ulster is set to see an increase of around £16 on their yearly bill after the local council struck their annual rate last night.

At a special meeting of Mid Ulster District Council, councillors were presented with papers that proposed a 4.94% increase.

The documents stated that 2.83% of that rise was as a result of the decision to strike a rate of 0% for last year's figure.

Due to the NI Executive's decision not to increase the Regional Rate for 2022/23, councillors were told rate payers would see an actual increase in their rates of 2.09% if the proposals were accepted.

However, on the evening there were two counter proposals to the documents presented, as Sinn Féin's Cathal Mallaghan opened with a proposal of 3.9%.

“The decision this council took last year has turned out to be quite a mistake when you see how the numbers stack up here,” he said.

“It has cost us 2.83% before any other pressures are taken into consideration.

“I want to make a proposal we strike a rate of 3.9% and I am suggesting the officer team look at using more of the rates support grant to offset the cost.

“The indication was that the average household across Mid Ulster would see an increase of £20, and by doing this we can reduce that to just above £16. It may sound like not a lot, but it's something.”

The proposal was seconded by the SDLP's Cllr Christine McFlynn, who said the Council had to avoid dipping too far into their cash reserves.

“If we use our cash reserves, very quickly they will run out. Last year Council struck a 0% rate and we're seeing the results of that this year,” she said.

“All our citizens are seeing an increase in energy costs, but the Council have those costs as well, so it's costing a lot to run our services. We just can't run on fresh air.”

DUP councillor Derek McKinney took issue with last year's 0% rise being described as a 'mistake'.

“I disagree with comments about a bad decision last year. When we see our cash reserves raising by around £4m from last year,” he said.

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“The Chief Executive talked about ambitions, I don't think in his wildest dreams he intended to be £4m up in cash reserves from this time last year.

“£3-4 million extra in the piggy bank from last year – how can they say a 0% increase was a bad decision?”

The DUP's Cllr Kim Ashton then proposed a rate of 2.11%, a proposal was seconded by UUP councillor Walter Cuddy, who pointed to the Council's increasing reserves as proof they could afford it.

“Our bank balance was in the region of £27 million surplus at the beginning of the year,” he said.

“With paying all our bills and doing all the Chief Executive wanted to do throughout the year, we still have an increased cash reserve of several million pounds.

“There are significant increases across the board for households to manage, and I wouldn't want to be adding us onto that list.”

Chief Executive Adrian McCreesh then addressed the meeting, saying it was important to strike a balance between capital projects and and prudent spending.

“Managing a council budget is a delicate balance between having the reserves needed to deliver your capital aspiration, and ours is significant,” he said.

“We have a further 10 planned projects to commence for the year 22-23 and thereafter we have 14 projects in the ether for 23-24.

“These are all huge capital projects that will serve our communities, our generation and hopefully our children and grandchildren.”

A vote on the proposal to strike a rate of 3.9% was then taken, passing by 25 votes to 14. With the mitigation of reduced regional rate, rate payers will see an increase of 1.69%.

A Council spokesperson said the decision meant they were likely to have one of the lowest rates of all Northern Ireland councils in 2022-23.

“The overall rates which residents pay is based on the district rate set by local councils and the regional rate which is set by the NI Assembly,” they said.

“In Mid Ulster, only 42% of the domestic rates paid go towards funding council services and facilities. 58% funds the services provided centrally.

“This means the overall aggregate rate increase for Mid Ulster ratepayers (that is, the total of the district rate and regional rate) is estimated to be 1.69% (domestic) and 1.82% (non-domestic).

“The new rate struck is anticipated to mean that local ratepayers will have the second lowest rates in Northern Ireland, with just over £16 added to the yearly bill of an average ratepayer.”

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