Introduction

At present world economies are experiencing an economic downturn and the effects of this are having an unprecedented effect on the Irish economy. Ireland is dealing with major challenges with high rates of unemployment and the constant threat of job losses. The exchequer finances are challenged which is having a direct impact on CCC finances.

This report will focus on the challenges in relation funding revenue expenditure for CCC in 2010 and in the future. I will also discuss areas of concern in terms of level of revenue expenditure and outline issues that were taken into account in the preparation of the budget for 2010.

Section 102 of the Local Government Act 2001 states that each LA must prepare a draft budget for the next financial year setting out:

1. The expenditure necessary to carry out its functions and 2. The income estimated to accrue it.

In 2010 the total budget income for CCC is €324,706,407 a decrease of €32.9M compared to budget 2009.

Sources of Income

| |2010 |%2010 |2009 | |Rates |90,507,300 |27.87 |94.78 | |Local Government Fund |48,353,652 |14.89 |53.43 | |Income from own resources |93,649,550 |28.84 |96.41 | |Income from grants & subsidies |92,195,905 |28.40 |112.97 |

Revenue expenditure relates to day-to-day expenditure and does not produce an asset. CCC revenue expenditure is outlined below:

|Division |Expenditure | |Housing & Building |43,105,991 | |Road Transportation & Safety |76,966,194 | |Water Supply & Sewerage |62,832,198 | |Development Management |27,395,229 | |Environmental Services |56,545,492 | |Recreation & Amenity |15,491,386 | |Agriculture, Education, Health, Welfare |27,160,171 | |Miscellaneous |15,209,746 | |Total Expenditure |324,706,407 |

When CCC finance department sat down to begin the process of preparing budget 2010 it was always going to be a difficult task. It was prepared bearing in mind expenditure would inevitably have to be reduced as CCC income reduces and also keeping in line with the County Managers strategy as set out in budget 2009 of working towards reshaping and refocusing CCC priorities as income falls.

The priorities for Budget 2010 include:

• Complying with statutory obligations...

-97 000 1 10 10.3 100m 102 105 110.6 110.8 112.97 125.3 13 133.2 14.89 142.9 15 150 15m 160 171 191 194 195 1972 1975 198 1985 1996 1997 2 2.5 20 200 2001 2005 2008 2009 2010 209 22 22.0 229 23.4 24.7 253 27 27.87 274 28.40 28.84 3 3.5 30 300 31/12/2009 31st 32 32.9 324 33m 353 386 395 3m 3rd 4 4.3 4.5 40 407 43 48 491 492 5 50 507 53.43 53m 545 55 550 56 6.1 62 649 652 7.5 7.9 706 74.75 746 76 7m 8.6 832 9.0 9.2 9.5 90 90.5 905 92 92.0 93 94.78 95 96.41 966 991 9m abil abolish accept account accru achiev act action activ add adequ advantag advertis affect agricultur aid alloc allow almost alreadi also alway amen annual anoth anticip approx approxim area around aspect asset assum attent author autumn avail awar back balanc bantri base basi bear begin better beyond bill bin boarder book bord bottlehil budget build buoyanc buoyant busi buttev came campaign carri carryout ccc central certain challeng chang charg choic circumst citizen clear close collaps collect come commerci commiss common communiti compar compat compet competit complet compli concern conclus condit constant construct continu contract contribut cork cost could council counti countri coupl cours creat credit currenc current custom cut daili day day-to-day deal decemb declar decreas definit demand depart dept derryconnel deterior develop differ difficult difficulti diploma direct discuss dispos divis domest donerail doubt downturn draft drink drive drop due earli earlier econom economi educ effect effici elect emerg employ enabl ensur environ environment epa equiti esri essenti estim even ever everi except exchang exchequ exist expect expenditur experienc extern face facil fact fall fee figur fill financ financi first focus fold follow forc form fourth frozen function fund futur gate generat ger get give given go goe good govern grant grey group handl happen hard harsh head health help high hit home hous household howev huge idea identifi impact imper implement implic inadequ includ incom increas indecon industri inevit inform infrastructur initi innishannon inspect interim intranet introduc introduct invest ipa ireland irish issu job juli keep kept kilbrin known kpmg la lack landfil lead least level levi lg liabl licens like line list live local look loss lot low lower lump m made maintain mainten major make man manag mani march market mccarthi mean measur member met mid mind miscellan money monitor month mr much must nation necessari necessarili need negat nesc new next non note notic novemb nppr nua number oblig obvious offer open oper option order otherwis outgo outlin outsourc overtim owner paid paper past pay payer payment payrol penalti pension peopl per phase place plan plant point polici pollut pose possibl potenti power practic pre prepar present pressur previous price principl prioriti prioritis privat probabl proceed process produc product programm project properti propos provid provis prsi public publish purchas put qualiti quarter queri rate rathcormac reach recent recognis recommend recoup recov recreat reduc reduct refer refocus reform regim reintroduc relat remain renew replac report requir reshap resid resourc result retir revenu review right road rwss safe safeti sale sat save scandinavian scarc scenario scheme schull season second section sector see seen self serious serv servic set sever sewerag shape shift shown signific similar simplic sinc site skibbereen snip sourc special ss staf staff state statutori strain strategi stream stretch subsidi subtl success suggest sum suppli support sure sustain switch sympathet system take taken target task tax taxat temporari term termin thereaft therefor think third though thought threat three throughout time timefram total tough toward transport travel treat treatment trend tri ultim unchang undoubt unemploy unit unpreced us usag use user vacanc valu valuat variabl vat view vol wages/salaries wast water watergrasshil way weight welcom welfar white will willing winter work world would wsip wss wwtp www.corkcoco.ie www.environ.ie www.finance.gov.ie year youghal