Galway city business rates - services / value-for-money

Mrs OBumble

It was claimed in another thread that rates in the city-centre are too high, and this is causing businesses to close.

Do you agree? If so, what city council services do you think should be cut in order to lower rates? Of if you think they aren't getting good value-for-money in delivering services, how could they do so more cheaply?

youngrun

https://www.galwaycity.ie/uploads/downloads/budgets_financials/Draft%20Annual%20Budget%202020.pdf

Budget for the City 2020 is here
37 m in rates income forecast
99m expenditure

You could argue its a combination of factors responsible for closure and rates is never the biggest cost for a business.

What else would fund the city

how about household rates - everyone pays up

Del2005

youngrun wrote: »

how about household rates - everyone pays up

There's already household rates they are called the LPT.

timmyntc

Del2005 wrote: »

There's already household rates they are called the LPT.

From above link:
City collects €4.2million in LPT. ~4% of the overall budget.

youngrun

timmyntc wrote: »

From above link:
City collects €4.2million in LPT. ~4% of the overall budget.

One could argue that the citizens of the city should pay more than 4% of the cost of running the city

youngrun

Mrs OBumble wrote: »

It was claimed in another thread that rates in the city-centre are too high, and this is causing businesses to close.

Do you agree? If so, what city council services do you think should be cut in order to lower rates? Of if you think they aren't getting good value-for-money in delivering services, how could they do so more cheaply?

Outsource parts of the service and get the private sector onboard to reduce cost and charge more for services . Eg Car parks, Traffic wardens

Merge the City and County council

Whereisgalway

youngrun wrote: »

Outsource parts of the service and get the private sector onboard to reduce cost and charge more for services . Eg Car parks, Traffic wardens

Merge the City and County council

Reduce the number of councillors

timmyntc

youngrun wrote: »

Outsource parts of the service and get the private sector onboard to reduce cost and charge more for services . Eg Car parks, Traffic wardens

Merge the City and County council

IIRC Galway county council are in much worse shape financially than city council.
If that were to happen, expect LPT rates to drop further and more money to be funnelled out of the city to the county.

inisboffin

Isn't a merge of City and County Councils on the cards to happen soon?

gordongekko

inisboffin wrote: »

Isn't a merge of City and County Councils on the cards to happen soon?

Seanad voted against it

flazio

It's been bad enough that towns like Loughrea, Tuam and Ballinasloe lost their municipal councils, to lose the county council to the city will probably kill them off completely.

Del2005

timmyntc wrote: »

From above link:
City collects €4.2million in LPT. ~4% of the overall budget.

And who do the businesses get the money for their rates off?

Mrs OBumble

youngrun wrote: »

One could argue that the citizens of the city should pay more than 4% of the cost of running the city

Where do you think the rest comes from, ie who pays the parking fees, the central govt takes that pay for local govt allocations.

Geuze

Are retail rents not a bigger problem that rates?

Retail rents are higher than Edinburgh, Birmingham and Manchester.

ben.schlomo

Geuze wrote: »

Are retail rents not a bigger problem that rates?

Retail rents are higher than Edinburgh, Birmingham and Manchester.

Second time you've said that. What's your source?

Shelflife

The problem with the rates system is that there is no incentive on the County Councils to be efficient. They simply add on any budget overrun onto the rates bill to the businesses.

In Mayo the rates have risen by 23% over the last 5 years. When you consider that inflation is running at less than 1% per year and there is no clear increase in services you have to wonder at the effectiveness of the CCs to run their counties in an efficient manner.

Not many businesses can afford a 23% increase in costs with nothing to show for it. There are still plenty of smaller businesses out there who are just making a reasonable wage, any increase in rates simply comes out of their pocket.

Geuze

ben.schlomo wrote: »

Second time you've said that. What's your source?

I was preparing materials on the high price level in Ireland and what causes it.

I found an estate agents report on rents. (sorry, wrong)

Hold on while I have a look.

Found it - National Competitiveness Council 2019 report on Cost of Doing Business in Ireland

http://www.competitiveness.ie/

http://www.competitiveness.ie/Publications/2019/Cost%20of%20Doing%20Business%202019.html


See here, chapter 4:

http://www.competitiveness.ie/Publications/2019/Cost%20of%20Doing%20Business%202019%20Report.pdf

See Figure 4.6.

Geuze

ben.schlomo wrote: »

Second time you've said that. What's your source?

The ultimate source is:

Source: Cushman and Wakefield, Retail Market Snapshots

Geuze

ben.schlomo wrote: »

Second time you've said that. What's your source?

Galway prime retail rents are even higher than London (City) rents, although not as high as London (West End).

Geuze

Shelflife wrote: »

In Mayo the rates have risen by 23% over the last 5 years. When you consider that inflation is running at less than 1% per year and there is no clear increase in services you have to wonder at the effectiveness of the CCs to run their counties in an efficient manner.

Where are you seeing a 23% increase?

https://www.housing.gov.ie/local-government/administration/finance/2004-2019-annual-rates-valuation-arv-inc-2019-base-year


2005 = 63.43

2010 = 68.76 and this remained the same through to 2017

2014 = 68.76
2015 = 68.76
2016 = 68.76
2017 = 68.76

2018 = 73.92, that is an increase of 7.5%

2019 = 75.40, that is a 2% rise


So 2019 compared to 2014 is a 9.66% rise.

Shelflife

Geuze wrote: »

Where are you seeing a 23% increase?

https://www.housing.gov.ie/local-government/administration/finance/2004-2019-annual-rates-valuation-arv-inc-2019-base-year


2005 = 63.43

2010 = 68.76 and this remained the same through to 2017

2014 = 68.76
2015 = 68.76
2016 = 68.76
2017 = 68.76

2018 = 73.92, that is an increase of 7.5%

2019 = 75.40, that is a 2% rise


So 2019 compared to 2014 is a 9.66% rise.

https://www.mayonews.ie/news/34653-mayo-businesses-hit-with-stiff-rates-hike

Mr Man

Mrs OBumble wrote: »

It was claimed in another thread that rates in the city-centre are too high, and this is causing businesses to close.

Do you agree? If so, what city council services do you think should be cut in order to lower rates? Of if you think they aren't getting good value-for-money in delivering services, how could they do so more cheaply?

What businesses are closing due to high rates?
Griffens and Deacys closing had nothing to do with rates.

Some people claim that the cost of parking is killing Galway city; however, on street parking is nearly always full.

Mrs OBumble

Mr Man wrote: »

What businesses are closing due to high rates?
Griffens and Deacys closing had nothing to do with rates.

Some people claim that the cost of parking is killing Galway city; however, on street parking is nearly always full.

Indeed. Pretty much why I started the thread.

Interesting that parking seems to be the one suggestion for outsourcing so far.