£15 rates rise to spur vital growth

That’s a 30 pence per week hike and means the average domestic rates bill will increase to £465.88 in 2019/20.

The council’s Chief Executive, John Kelpie, said the vast majority of the percentage increase would help fund new services, capital developments and a range of catalyst projects underpinning a prospective Derry and Strabane City Deal, which is being negotiated at present.

Of the agreed increase, 0.37 per cent represents unavoidable statutory pressures - such as pay and pensions - while 3.11 per cent represents investment in new services and projects linked to a City Deal.

Mr. Kelpie said: “Last year we received the green light from the Chancellor regarding the bid for a City Deal and much work has been ongoing behind the scenes in pursuit of what will be a transformational investment in the City Region.

“The proposals incorporate the strategic leisure aspirations and ambitious town centre regeneration projects set out in the Strategic Growth Plan for Derry & Strabane and a portfolio of critical catalyst infrastructure, innovation and skills projects required to develop and improve our City region.

"This year’s rates proposal will ensure the necessary staffing resources and provide capital match funds of £20m as a leverage tool to ensure the central government investment required to bring these key projects to fruition.”

The council’s Lead Finance Officer, Alfie Dallas, said the council would be striking a below inflation rate if it wasn’t significantly investing in the strategic growth of the city.

He explained: “In very simple terms, the rates increase of 3.46 per cent is made up of four elements. 0.11 per cent represents the baseline position; 0.26 per cent disappointingly relates to further central government grant cuts and 0.64 per cent relates to investment in new services and initiatives.”

“The remaining 2.45 per cent is targeted completely towards investment in growth and capital development closely aligned to Council’s ambitious City Deal proposition,” said Mr. Dallas.

The Mayor of Derry City and Strabane, John Boyle, said: “Investment in growth is essential and we must continue to build on the significant progress that has been made so far in realising the objectives of our Strategic Growth Plan.

“Work also continues on securing a City Deal for the NW City Region and in preparing ourselves for the major changes we can anticipate in terms of enhancing our infrastructure and other major capital developments. We can’t stand still – we must continue to progress Council’s strategic capital projects, provide contributions towards Council’s City Deal proposals, and the leveraged investment that will secure, as well as address a number of new service demands.”

His proposal, to make and fix a District rate of 31.0748p in the Pound for Non-Domestic properties and of 0.4845p in the Pound for Domestic properties for the year ending, March 31, 2020, won overwhelmingly support.

Thirty four of the 35 councillors present backed the rate with only Independent Councillor, Gary Donnelly, abstaining from the vote.

Sinn Féin Councillor Eric McGinley said: “Since the inception of the new council Sinn Féin has endeavoured to strike an annual rate which balances the need for meeting statutory pressures and investing in growth but without placing unreasonable demands on homeowners and businesses.”

He added: “We believe it is very important to note that over 90 per cent of the proposed rates increase is based around service developments, new initiatives and - particularly - our Capital Plan/ City Deal investment.

“Our ambition over the course of the next council term is to deliver strategic projects worth over £220m. These projects include leisure, culture, tourism and town centre regeneration and their completion will significantly change the physical and economic landscape within this council area.”

SDLP Councillor Martin Reilly said a balance had been struck that would enable key investments to be made without overburdening property owners.

“Today’s paper reaches into every District Electorial Area and that’s what ratepayers want to see happening. It shows that this Council is meeting the needs of its citizens,” said Colr. Reilly.

He remarked that the £1.30 per month average increase had set a “fair balance between what we want to see delivered and not being too onerous on ratepayers.”