‘Financial position is critical and risk of insolvency remains’

The financial position of Derry City and Strabane District Council is critical and the risk of insolvency remains as a result of the COVID-19 crisis and lockdown.

That was the stark assessment delivered to elected members of the local authority at a virtual briefing from senior council officers on Thursday evening.

Councillors were told that notwithstanding an allocation of £20.3m from the Executive to assist all Councils with financial losses and emergency expenditure, and £3.8m secured to assist with additional waste management costs, the local authority’s coffers were in a parlous state.

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Senior officers advised that the council was working closely with Government and the other Councils to agree a mechanism of accessing its share of these funds.

However, members were reminded that despite this funding, the “Council’s financial position remained critical and the risk of insolvency remains”.

“They were reassured that Council will continue to lobby for continued financial support and for a guarantee from Government that rates paid to Council is based on the estimated figure agreed as part of the 2019/20 rate setting process,” according to a report of the meeting issued by DC&SDC.

Last week the Stormont Communities Committee heard that councils were collectively projected to lose £41m in income as a result of the coronavirus pandemic over the mid-March to June 2020 period.

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It was suggested that six months was the average amount of time it would take for councils to run out of cash reserves.

The intervention by the Communities Minister Deirdre Hargey with a £20.3m financial support package has improved this situation but according to Council officers at Thursday’s meeting more support is likely to be needed before the crisis ends.

At the same meeting councillors were told that a range of Council services are set to start up again.

Site visits by officers from Building Control, Planning and Environmental Health Services at Derry City and Strabane District Council are set to resume on a limited basis from next week.

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This will only take place in accordance with the current Government guidance and where it is deemed safe to do so.

It was also agreed to resume the Registration of Births at the Derry office from next Monday, by appointment only.

In terms of the registration of deaths, the public will continue to register them remotely without having to visit the offices, while those looking to avail marriage and civil partnerships, are being advised that wedding ceremonies can only be carried out in exceptional circumstances only.

Mayor of Derry City and Strabane District Council Cllr Michaela Boyle extended her thanks to Council staff and officials for their continued public service and she also acknowledged the commitment and hard work of all elected members in providing support to their constituents during this difficult times.