LPT Adjustment to Fund additional €7m investment in Public Services in Galway City

Facilities funded by GCC including Westside pitches and running track, a tennis court, new footpaths and Rocky Road Memorial Garden

The Elected Members of Galway City Council have agreed a 15% adjustment in the Local Property Tax (LPT), which the Local Authority says will fund increased investment of €7 million in public services over the next five years. 

Marking the first LPT increase in Galway City since the introduction of the tax in July 2013, the additional €7 million generated over the 5-year term will be invested across the city in: 

  • footpath development and repair; 
  • sports facilities including pitch maintenance and clubs; 
  • community centres, participation, and community development officers; 
  • arts grants/ programmes, festivals and twinning; 
  • local improvement schemes; and 
  • residential amenity grants and taking in charge of estates.   

The adjustment will cost the majority of households, which are in the lowest three bands of property values, between 26 cents and 91 cents to their LPT payment per week. 

“Since the introduction of Local Property Tax in 2013, Galway City Council has not taken any variation of the local adjustment factor. In real terms, this means revenue has effectively decreased by over 20% in this period,” explained Leonard Cleary, Chief Executive of Galway City Council. “At the same time, Galway is the fastest growing city in Ireland over the past 50 years, with an expected growth by 40,000 by 2040”.

Welcoming the decision of the Elected Members, Mr. Cleary commented, “The additional revenue generated by the LPT adjustment will enable Galway City Council to further enhance its delivery of the vital services that sustain and support our city. The people of Galway will see this investment on the ground in their communities, in improved footpaths, well-maintained community facilities, more estates being Taken in Charge, and arts and tourism events”.

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

Under the Finance Act, local authorities have the authority to vary the base rate of Local Property Tax by a maximum of +/- 15%, subject to the agreement of the Elected Members. 

Any decision to vary the local rate must be by resolution of the members of Galway City Council and notified to Revenue and the Minister for Housing, Local Government and Heritage by 15 October 2024.

 

RESOLUTION of Galway City Council – Meeting on the 14 October 2024:

Consideration of rate of Local Property Tax under Finance (Local Property Tax) Act 2012 (as amended).   

That Galway City Council determines, in accordance of the provisions of Section 20 of the FINANCE (LOCAL PROPERTY TAX) ACT 2012 (as amended) to include the Local property Tax (Local Adjustment Factor) Regulations 2022, that the basic rate of local property tax should be varied upwards by 15 per cent with effect from the next local property tax liability date for a five year period, from 2025 to 2029 inclusive, in respect of relevant residential properties situated in the administrative area of Galway City Council. 

The monies raised shall be ringfenced for expenditure in the following categories for the next five years, and any funding not expended as allocated within any given year shall be carried forward to the following year:

FUND CATEGORIES: AMOUNT

Additional Footpath Investment and Repair Fund;

  • Investment in footpath development and repair. 
  • The fund to be evenly divided across the three Wards following assessment by Operational executive and consultation /decision on the programme of work with Elected Members at Local Electoral Area Meetings. 
 €250,000.

Additional Sports Facilities Investment Fund;

  • Investment in sports facilities including Pitch Maintenance and Clubs. 
  • The fund to be evenly divided across the three Wards following assessment by the Sports executive. 
 €90,000. 

Additional Community Development Services;

  • Community Centres in the three Wards - enhanced services with extended opening hours daily and weekends (operational costs). 
  • Recruitment of three Urban Community Development Officers (one per Ward under the Community Development Department) to support local community groups in building volunteer capacity, animating participation in grant projects and supporting Elected Members in engagement with community volunteers. 
  • Community Participatory Budget (New Heading with Policy to be adopted by the Community Development Strategic Policy Committee within 12 months) – (€25,000)
 €47,350

Additional Arts & Tourism Investment Fund;

  • Arts Grants (€50,000) 
  • Arts Programmes (€50,000)
  • Festivals and Twinning Fund (€10,000)
  • The fund to be invested following assessment by the Arts Executive. 
 €110,000

Additional Local Improvement Scheme (LIS);

  • To support prioritised local initiatives /projects in each Ward.
  • This additional LIS investment to be evenly divided between Elected Members (18 x €20,000). Each Councillor to have LIS Annual Budget of €30,000 
  • Each Local Area Committee has a governance role on overseeing LIS investment, which involves receiving proposals on the list of projects prioritised by each Elected Member and agreeing same in line with best practice. 
 €360,000

Residential Estates Fund / Additional Taking in Charge (TIC) Investment Fund; 

  • To support Residential Estates being taken in charge (€70,000)
  • Residential Amenity Grants (€25,000)
  • The fund to be evenly divided across the three Wards following assessment by the Operational /Planning executive and consultation /decision on the programme of work with Elected Members at Local Electoral Area Meetings. 
 €95,000.

 

Total: 

 

€1,402,350. 

 

Note: The reference to “Additional” LPT funds above relies on the adoption of baseline funding for these categories as part of Budget 2025.