Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The development of a local authority budget is a phased process. The first step is the preparation of the draft local authority budget, an internal working document prepared under the direction of the chief executive. That forms the basis of the initial discussions with the CPG and the members of the local authority. It will set out in broad terms the necessary local authority expenditure for the year, including the central management charge and including an amount to be provided as a general municipal allocation. The draft local authority budget will be balanced by the amount of rates to be levied. The format of this document, which will be set out in regulations, will be based on the current budget with a number of minor amendments.

The proposed amendment provides that the level of the general municipal allocation will be set with due regard to the broader needs of the local authority and the resources available to it. In providing for the general municipal allocation, the chief executive must consider the non-discretionary expenditure that must be met as a first call on the resources of the local authority. When agreement has been reached on the parameters set out in the draft local authority budget, including the overall level of the general municipal allocation, the chief executive will proceed to determine the amount to be made available to each of the municipal districts.

The municipal districts will have their priorities and populations may differ significantly among them. They will have a fair and equitable distribution of the general municipal allocation to each municipal district, as provided for in my amendment No. 107. The chief executive is required to have regard to each municipal district including, when appropriate, the population of each municipal district when making that allocation.

With the general municipal allocation for each district determined a draft budgetary plan for the individual municipal districts will be drawn up. The draft budgetary plan will set out the general municipal allocation and provide a basis for discussion with the municipal district members on how they wish to allocate that amount to services and sub-services. The municipal district members will consider the draft budgetary plan and may, by resolution, make amendments to that plan.

Whether to provide further discretionary funds to enhance the level of essential services or provide for local initiatives are decisions for the members of each municipal district to make. The members at district level may vary the level of local charges, for example, on parking or leisure charges, thereby increasing or decreasing the level of discretionary funding available in the district. This final step sees the chief executive completing the allocation of the central management charge and the general municipal allocation to divisions. In allocating the general municipal allocation to divisions the chief executive shall take account of the draft budgetary plan adopted by the municipal district.

The draft local authority budget will reflect the broad overall parameters agreed at the outset with the CPG and the outcome of the draft budgetary plans adopted by the municipal district members. The draft local authority budget will be published prior to the budget meeting at which it will be available to the public and for adoption by the members of the local authority.

While it might seem like a long, drawn out process, it is not as cumbersome as it sounds from what I just read out. It is trying to include the municipal district members in the process and include their priorities based on criteria and a needs and resources model that will take account of the population they serve and the services they need.