Mayo councillor questions authority's multi-million euro 'underspend'
A multi-million euro 'underspend' by Mayo County Council last year has been questioned by an elected representative.
Transfers from the authority's revenue account to its capital account amount to €22,456,173, the annual financial statement for the year shows.
The best part of €12m of that represents underspend or buoyancy in various areas, claimed Councillor Peter Flynn. Yet they are being told 'there is no money' when they talk about projects in their municipal districts, he told the monthly full meeting of the local authority yesterday.
His proposal to adjourn adopting the annual statement for a month pending a full overview of key projects, including progress and delivery dates and funding for them, was agreed.
The transfer is to fund future major projects, the finance director explained in response.
Total income for the year was €381.3m, with expenditure of €368.2m, councillors were told.
Commenting on the extensive report, Councillor Flynn said they only discovered that morning, in an email, the details of just over €22 million that was transferred from day to day operations into the capital fund.
“It is clear there is significant money that was underspent in 2024,” he said.
Every time they spoke about key projects or municipal district spend, 'the first answer we get is there is no money'. But there was a significant amount either raised as additional income or underspent, he said.
From the figures, from the €22m there was the best part of €12m which represented underspend or buoyancy in various areas, said Councillor Flynn.
In interacting with staff and management, “you would get the feeling that Mayo County Council is on the verge of bankruptcy, but it is clear there is significant underspend and buoyancy, which has significant implications for future years,” said Councillor Flynn.
“Why are we facing difficulties looking for funding.”
Areas of additional income or cost savings included Lough Lannagh holiday village (€215,000), €1.5m in recoverable rates and €1.4m in payroll costs - 'no surprise given every department is understaffed', he set out.
The best part of €12.5m was being transferred into a kitty, which, he said, is fine as long as they know it's going to be spent on the projects that matter to them and will make a difference to the county. And he asked for a report on this.
Councillor Harry Barrett was 'shocked' to see administration of homeless services was €3m over budget at €5m.
There are 217 people homeless in the county, with working people contacting councillors as they can't afford €1,650 for rent, he said.
They are in limbo, earning too much for a social house and not enough to get a mortgage, and his motion that the council declare a housing emergency in the county was supported. The council is also to write to the housing minister for emergency funding for the direct building of social and affordable houses in the county.
Councillor Johnny O'Malley was unhappy about the email setting out a €15 million surplus.
In Westport, the councillors were asked to contribute €70,000 of their money for a car park project, yet the council has €15 million to be spent.
This was an 'abuse' of councillors and the money they get to allocate to making roads safe, removing corners, and drainage work, he stated. And he proposed the four local councillors withdraw their funding and let it come out of the €15m.
Explaining the transfer, director of finance Peter Duggan said a rates revaluation appeals fund of €2.7m was provided as a statutory obligation, over which they have no control.
Some €13.3m of the transfer was set out in the budget to fund various projects. The balance was match funding for other significant projects, including climate action and Pathfinder projects (€4m) and the Castlebar sports campus (€4-5m).
They had to set aside what they can to fund projects as they can't continue borrowing, and he had set out in the email where all these reserves will be spent in broad terms.