Limerick City Council Limerick County Council
JULY 2012

1.0 Introduction and Progress to Date
1.1 Introduction
1.2 Overview of Progress
2.0 Merging the Management and Administrative Structures
2.1 Methodology
2.2 Appointment of New Manager
2.3 Strategic Vision
2.4 Values and Behaviour Indicators
2.5 Development of Service Unit Plans
2.5.1 Methodology for Development of Service Unit Plans
2.5.2 Results to Date of Service Unit Planning Exercise
2.6 Joint Management and Trade Union Consultative Arrangements
3.0 Economic Development and the Rebranding of Limerick
3.1 Preparation of Economic and Spatial Implementation Plan for Limerick
3.2 Economic Development Challenge and Role
3.3
3.2.1 Scope of the Challenge
3.2.2 Opportunities for the New Authority
3.2.3 Enhanced Economic Development Role for New Authority
Rebranding of Limerick
3.3.1 Limerick – National City of Culture 2014
4.0 Regeneration
5.0 Governance Arrangements for the New Authority
6.0 Consultation with the Joint Committee of Elected Members
7.0 Financial Implications of the Merger
8.0 Next Steps
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1.1 Introduction
In March 2012, the Limerick Reorganisation Implementation Group (LRIG) presented its Initial
Report to the Minister, which was prepared in accordance with the requirements of its Terms of
Reference. The purpose of this Initial Report was to:
 Identify and explore the key issues and challenges involved in merging the two Limerick local authorities and the Limerick Regeneration Agencies, in the transition phase and post the establishment of the new authority;
 Identify early priorities and “early wins” in the area of joint service delivery in advance of the new authority being established;
 Identify the changes in legislation required to enable effective interim joint service delivery arrangements and the establishment of the new authority;
 Identify the next steps in the reorganisation process.
The following were the main recommendations of the LRIG in this Initial Report:
1.
The Department of the Environment, Community and Local Government (DOECLG) immediately advance the process for the selection of a Manager/CEO Designate to lead the new authority and to act as the Manager of the two existing local authorities until June
2014;
2.
The DOECLG immediately advance with the drafting and enactment of the necessary legislation to provide for the establishment of the single authority by June 2014;
3.
The Department was requested to progress with the preparatory work required in advance of the establishment of an Electoral Area Committee to make recommendations on the number of elected members and the formation of electoral areas for the single authority in
2014;
4.
The senior management structure for the new authority be comprised of a Manager/CEO,
6 Director of Services and 1 Head of Finance, including dedicated Directorates for
Regeneration and for Economic Development;
5.
Pending the establishment of the new authority, an Office for Regeneration be set up and a
Director of Services be appointed with responsibility for this office who will report to the
Manager/CEO designate of the new authority;
6.
Limerick City and County Councils appoint a dedicated project team from existing staff to assist in the preparation of the Implementation Plan and to oversee the introduction of joint service provision.
It is intended that this Progress Report will provide the Minister with an update on developments in relation to these recommendations and other related matters that are designed to lead to the successful merger of Limerick City and County Councils in 2014. It is further intended that a comprehensive Implementation Plan detailing the operational and other measures leading to the
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establishment of the single authority in 2014 will be completed and submitted to the Minister in
November 2012.
1.2 Overview of Progress
Since the Initial Progress Report was prepared in February 2012 work has progressed on a number of fronts by a number of key players engaged on the development of the plans for the merger of the two Limerick Councils and the Regeneration Agencies.
In particular, the Joint Management Teams of the City and County Councils have been involved in:
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Developing the Strategic Vision and Values for the New Authority;
Developing Service Unit Plans for the Directorates within the New Authority Structure;
Reviewing Policies, Procedures, Processes and Practices in the two authorities and a view to the development and adoption of appropriate ones fit for the New Authority;
 Maintaining communication and consultation with staff and Trade Union representatives.
The LRIG together with the Director to the Implementation Group, have been involved in progressing work in relation to:
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Maintaining effective dialogue with DOECLG officials;
The appointment of Consultants to prepare an Economic and Spatial Implementation Plan for
Limerick;
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The identification of an Economic Development Role for the New Authority in partnership with other agencies in order that it may play a leading part in addressing the relatively high level of unemployment in Limerick;
The development of a proposal for Limerick to be designated the inaugural National City of
Culture for 2014 (which was formally awarded by the Minister for Arts, Heritage and the
Gaeltacht on 9 th July last);
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Developing proposals in relation to the structures, staffing, roles and responsibilities required to support the Limerick - National City of Culture 2014 initiative;
The successful transition from the Regeneration Agencies to the interim arrangements for
Regeneration;
Governance arrangements for the New Authority
Consulting with the Joint Committee of Elected Members;
The appointment of an independent consultant to assist the Elected Members in the preparation of a submission to a committee established by the Minister in relation to the
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 number of elected members and electoral area boundaries for the new Limerick Local
Authority;
Overseeing the consultation process between management and trade unions of both authorities through the Joint Management and Trade Union Forum;
Consulting with stakeholders, the Third Level Education Sector Institutions, the LEADER
 companies, Connect Ireland and others;
Overseeing progress on work being carried out by the Joint Management Teams (JMT) of the
City and County Councils on a range of matters relating to the merger of the two local authorities.
The following Sections set out in detail developments in relation to the above matters.
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2.1 Methodology
The senior Management Structure for the new Limerick Authority as envisaged by the LRIG was outlined in the Initial Progress Report to the Minister and approved by the DOECLG and comprises of a
Manager, 6 Directors of Services and 1 Head of Finance. There various services provided by both local authorities were then assigned to the Management Structure and agreed with the Joint Management
Teams (JMT) of the City and County Councils.
The primary focus of the Joint Management Teams over the past few months has been the design of the organisational and staffing structure required for each service unit that is fit for purpose for the
New Authority. Fig. 1 below sets out the key stages in this process.
KEY STAGES IN THE CHANGE PROCESS TIMELINE
April ‘12
April ‘12
July ‘12
Sept. ‘12
Sept. ‘12
Jan ‘13
Fig. 1 – Overview of Key Stages and Timeline in the Change Process
June ‘14
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The JMT members have been engaged in a series of workshops and planning exercises designed to contribute to the development of joint service delivery arrangements for the transition phase and for the New Authority in 2014.
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In particular, they have:
 Developed the Strategic Vision and Values Statements;
Developed Service Unit Plans with Appropriate Substructures and Staffing;
Reviewed the Policies, Procedures, Processes and Practices appropriate for the New Authority;
 Maintained communication and consulted with staff and Trade Union representatives.
Progress in relation to these matters is set out in the following Sub-sections.
2.2 Appointment of New Manager
The DOECLG and the Public Appointments Service have advanced the process for the selection and appointment of a Dual Manager/Manager Designate. This has resulted in the appointment of Mr
Conn Murray to the post and he will take up office on 15 th August 2012. This represents a
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 significant milestone in the merger project. With the New Manager in post the detail of the
Implementation Plan can be progressed as appropriate in an orderly and timely manner and key decisions can now be made.
2.3
Strategic Vision
The Joint Management Teams (JMT) of the City and County Councils developed a set of Strategic
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Vision and Values Statements for the New Authority.
The LRIG endorses the work of the JMT and notes the focus in the Strategic Vision Statement on:
The new Limerick Local Authority leading in the rebranding and the economic and cultural
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 development of Limerick;
The need to lead the economic and physical revitalisation of Limerick City Centre;
The social and physical Regeneration of disadvantaged areas in Limerick City;
The importance of the new Authority working in partnership with other public agencies, business and community interests;
The need to ensure that the hinterland of Limerick is served with good linkages to the City and the
Region to ensure vibrant and sustainable towns, villages and rural communities;
The need to ensure that the new Limerick Local Authority and its staff uphold excellence in the design and delivery of the services for which it will have statutory responsibility.
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2.4 Values and Behaviour Indicators
The six core values for the new Limerick Local Authority identified by the JMT and endorsed by the
LRIG are:
1.
Leading Innovation and Change
2.
Local Democracy
3.
Value for Money and Efficiency
4.
Recognising the Contribution of Staff
5.
Quality Customer Service
6.
Excellence and Quality.
It should be noted that Leading in Innovation and Change was seen to be a particularly important value for the new Limerick Local Authority in the light of the challenges facing local government in
Limerick.
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2.5 Development of Service Unit Plans
2.5.1 Methodology for Development of Service Unit Plans
The Joint Management Teams agreed a methodology for developing the Service Unit Plans. Key issues and challenges addressed in this process were as follows:
Analysis of current staffing structures and levels
Identification of priorities for Service Units within the New Authority Structure
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Identification of staffing structures and staffing levels required for the delivery of service objectives in the New Authority
Identification of efficiencies and cost savings with the new structures and staffing levels
 Identification of the best location for the service units for the New Authority.
2.5.2 Results to Date of Service Unit Planning Exercise
Considerable progress has been made in defining the strategic objectives and priorities for the service units for the Directorates within the new authority Structure. Some preliminary conclusions from the Service Unit Planning exercises are:
 The combined total staffing of Limerick City and County Councils is 1,100 serving a population
 of 190,000. (The preparation of the Workforce Plan will assist in identifying the options and potential for payroll savings).
There is a need for a further thorough examination of the proposed staffing for the new authority and a clear identification of the areas from which staff can be reassigned to strategic service areas such as the new Directorates of Regeneration and Economic Development and
 redeployed to other public sector agencies.
The policies, procedures, processes and practices currently operating in the City and County
Councils will need to be reviewed and analysed with a view to making recommendations on
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standardising and aligning them to the needs of the New Authority. The aim must also be to capitalise on current good practice such as ISO accreditation and ensure that this is not lost in the merger.
The completed Service Unit Plans will inform the incoming Manager and assist in the making of key decisions in relation to a number of issues including the following: o The final staff structure of the various service units; o The determination of most appropriate policies and procedures; o The timelines for merging the service units (with the exception of Water Services) in a phased manner from early to mid-2013; o The location of these service units in the New Authority (Corporate HQ for the new authority likely to be located in City Hall).
2.6 Joint Management and Trade Union Consultative Arrangements
A Joint Management and Trade Union Forum on reorganisation consisting of senior management representatives of both authorities, full-time trade union officials and staff trade union members has been established. The aim of this Forum is to provide for effective communication and consultation with staff and trade unions on all relevant matters relating to the merger of Limerick
City and County Councils.
Staff and the Trade Unions have been kept informed in relation to the development of the
Implementation Plan. In particular, they have been advised of the work in relation to the development of Service Unit Plans for the Directorates in the New Authority Structure. The Trade
Unions have also been advised of plans to conduct a review of policies, procedures, processes and practices currently operating in the City and County Councils with a view to streamlining and integrating these with a view to making them fit for purpose for the New Authority.
It is accepted that the amalgamation of the two local authorities will result in the movement of staff between the City and County. Management commits to implement this process on a voluntary basis in so far as that can be done. Where that is not possible due to service requirements, the provisions of the Public Service Agreement will apply.
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The following measures have already been decided:-
1.
Economic Development must be placed at the centre and act as a key driver for the new
Limerick Local Authority in order to attract investment and jobs to Limerick;
2.
A new properly resourced Economic Development Directorate with distinct business units is to be established within the new local authority;
3.
The CEB’s will be dissolved and responsibilities for micro-enterprise support and entrepreneurship promotion transferred to a new Local Enterprise Office (LEO) situated in the offices of the new local authority;
4.
The Opera Centre site has been acquired by Limerick City Council and will facilitate the physical regeneration of the City Centre;
5.
An Economic Development and Spatial Implementation Plan is to be prepared.
The LRIG conducted extensive research and analysis on the challenges and opportunities facing
Limerick. It concluded that the New Authority must play a leading role in the revitalisation, rebranding and economic development of Limerick. The following Sub-sections set out the main conclusions and developments in relation to:
 The appointment of Consultants to develop an Economic and Spatial Implementation Plan for
Limerick;
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The Economic Development Role of the New Authority;
The City of Culture initiative as a cornerstone of the rebranding of Limerick.
The LRIG considers that a range of further measures will be required to underpin the Economic
Development Role of the New Authority. These will be further developed in the LRIG
Implementation Plan in November 2012.
3.1 Preparation of Economic and Spatial Implementation Plan for Limerick
Following a public tendering process, GVA Grimley were appointed lead consultants with AECOM
Limited and Thinking Place Limited as part of the consortium. These consultants were appointed to deliver the following services:
“Provision of Economic & Business led multi-disciplinary consultancy services to prepare an
Economic Development and Spatial Implementation Plan for the Revitalisation of Limerick City
Urban Area. There will be three distinct but integrated elements to the proposal namely:
1.
An economic plan
2.
A spatial implementation plan providing expression of the economic proposal
3.
A marketing plan.”
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The consultants have commenced work and are engaging in:
 A comprehensive analysis of past and current plans, and
 Consultation with stakeholders through a series of meetings and workshops.
It is expected that the consultants will produce the Plan by October 2012. This Plan will provide a blueprint for attracting investment and jobs to Limerick and for the revitalisation of Limerick City
Centre. The Plan will also inform the strategy and future direction for the Economic Development role of the New Authority.
3.2 Economic Development Challenge and Role
Item 12 of the Terms of Reference of the LRIG require the:
“Identification of measures to maximise the capacity of local government to contribute to the economic development of Limerick and the Mid-West Region and in particular, to enhance the role of Limerick City as a generator of growth and a strong and dynamic focus for development of the wider region, supported by extension of the City boundary to include urbanised or partially urbanised areas in Limerick county as recommended by the Limerick
Local Government Committee, resulting in increase in the City population to around
100,000 (2006 census).”
The establishment of a new single local authority for Limerick in 2014 provides a unique opportunity for the new local authority to lead the economic recovery of Limerick and to create a new positive image of Limerick built upon its wealth of culture, sport and heritage.
The new Limerick Local Authority will have an annual budget of almost €300M and over 1,000 staff and must play an important and leading role in Economic Development in Limerick and the wider region, including the development of enterprise, the creation of employment and the revitalisation and redevelopment of Limerick City Centre and the Regeneration Areas.
A comprehensive analysis was carried out for the LRIG on the scope of the challenge and the manner in which the New Authority could lead in “Getting Limerick Working”.
3.2.1 Scope of the Challenge
In recent years relatively few new FDI investments and jobs have been delivered to Limerick and existing IDA supported companies in the Mid-West Region have seen by far the largest national decline of any region with almost 5,000 jobs being lost between 2006 and 2010. Limerick, with a large urban area at its centre, had an over-reliance on construction related employment during the construction boom of the past decade and the collapse of this sector of the economy has exacerbated the unemployment situation in Limerick.
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In the past Shannon Development brought much employment to Limerick and the Mid-West.
However, due to a reduction of its economic development role over the past decade, it has delivered very few new jobs to Limerick in recent years. The recent decision by Government to separate Shannon Airport from the DAA and to transfer the existing economic development role of Shannon Development to the IDA and Enterprise Ireland, places a greater focus on the IDA to deliver FDI jobs to Limerick. A strong Shannon Airport with regular international flight schedules to the UK, the USA and other key locations is vitally important to the economic prosperity of the
Mid-West Region and Limerick.
The relatively high level of unemployment in Limerick is a real problem that leads to other societal problems and an increase in the demands on public services including certain local government services. Addressing the problems of unemployment and attracting investment to Limerick will require the cooperation and commitment of a coalition of stakeholders. The new Limerick Local
Authority must lead this coalition in order to ensure that Limerick takes maximum advantage of investment opportunities and reinvents itself as a welcoming and attractive place to do business.
The need to create jobs to address the unemployment situation and to provide for population growth poses a great challenge. At the same time, concerted efforts must be made to retain existing employment in Limerick. If current trends in Limerick continue, the job crisis will become even more acute with employment levels continuing to fall and little new employment being created. Immediate action must be taken and Limerick must build on its existing industrial base and its strengths in order to reinvent itself as location with a new reputation which will attract inward investment. The new Limerick Local Authority must work closely with the IDA and others to define and build a knowledge-based economy which can attract global investment. The challenges facing Limerick will not be overcome easily and a strong commitment from
Government and the IDA will be required to make the changes that are needed to get Limerick working again.
3.2.2 Opportunities for the New Authority
It is vital that Limerick positions itself to take maximum advantage of those emerging and future likely trends and developments that would bring economic opportunities. Important trends and developments that Ireland can capitalise on are likely to be found in renewable energy, through demand for high quality food products, through hi-tech industry and in international traded services. All of Ireland’s key industry sectors recorded growth in total export sales in 2011, including life sciences, clean-tech, electronics, engineering, construction and timber, education services and software. Of particular note was the food sector, which is Ireland’s biggest indigenous industry growing exports by 11%. However, due to higher than world average wage costs, Irish exporters are likely to rely on products and services where the emphasis is on quality and innovation rather than on product cost alone.
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Unlike the Dublin, Cork and Galway Gateways, the Limerick-Shannon Gateway has not achieved a recognised cluster of activities in a specific sector that can drive the wider regional economy. The
Mid-West Region has some strong enterprises in sectors such as ICT, including software development, internationally traded services, logistics/supply chain management, medical devices, aviation, energy/clean-tech and the food sector. The development of a critical cluster of companies in one of these sectors would put the Mid-West economy on a much stronger footing for the future and provide the impetus for export-led growth in the Region.
The amalgamation of the two Local Authorities in Limerick provides Government with an unprecedented opportunity to place economic development at the centre of local government reform. The redefining of the Limerick City urban area with a population of 100,000 within the new authority will place a focus on the City as the driver for economic development in the Mid-
West Region and consolidate its place as Ireland’s third largest city. The business environment in
Limerick must support entrepreneurship, focus on skills, ensure that connectivity infrastructures are in place and maximise the opportunities for innovation.
More specific to Limerick, it is important to utilise such assets as it possesses in order to address the challenges posed by the current economic downturn. Limerick has important assets in its natural resources, its skill base, and in its economic and educational institutions. Limerick is well serviced by road, rail, port and air transport links. Shannon International Airport, located in the centre of the Mid-West Region, is just 20 minutes drive from Limerick City. Foynes Port in County
Limerick is the second largest port in Ireland and has potential to play a greater role in the economic development of Limerick and the Mid-West. Plassey National Technology Park and the University of Limerick, which are mutually adjacent, stand as prime examples of the kind of progress that has been achieved over the last few decades.
There is also scope for the development of industries outside of manufacturing and enterprise, for tourism, agriculture, forestry mining and renewable energy generation. It is particularly important to protect and develop natural and cultural resources in situ in a way that will sustain local rural employment and communities.
It is intended that the proposed Economic Development and Spatial Implementation Plan will identify specific economic development opportunities for Limerick, which will bring investment to
Limerick, create employment and assist with the revitalisation of Limerick City Centre.
3.2.3 Enhanced Economic Development Role for the New Authority
The new Limerick Local Authority must support economic development directly through mainstream service delivery areas such as planning, infrastructure development, etc. The new authority must also play an active role in other non-traditional service delivery areas such as promoting investment, developing a strong enterprise culture and the marketing of Limerick as a
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location for investment. It is important that Limerick provides a competitive environment that stimulates innovation and entrepreneurship, promotes and facilitates tourism, enables local companies to establish and grow, and attracts and retains foreign investment. The new local authority must be proactive rather than reactive in attracting investment and must anticipate and provide for future market investment trends.
The creation of a new Economic Development Directorate within the new Limerick Local Authority will place a focus on, and provide resources to facilitate, the development of enterprise. However, this new Directorate must be given a strong remit so that it can effectively encourage, attract and facilitate enterprise in Limerick. This remit must bring together the various state and semi-state economic development agencies and ensure that Limerick is competitive with other cities and regions in attracting investment.
It is proposed that a dedicated Economic Development SPC be established under the Economic
Development Directorate in the new Limerick Local Authority. This Economic Development SPC would consider matters connected with the formulation, development, monitoring and review of policy in relation to economic development.
3.3 Rebranding of Limerick
Limerick has in the past suffered from a poor image both nationally and internationally due to perceived high levels of crime, particularly related to the activities of city-based criminal gangs.
While much progress has been made recently in improving Limerick’s image and addressing crime, more needs to be done. Limerick’s poor image has often been cited as a reason why jobs and investment are not attracted to Limerick and the poor performance of Limerick City Centre also discouraged inward investment.
The LRIG recognises the importance of creating a new bright, positive and vibrant image for
Limerick and is advancing proposals on how this may be achieved. The designation of Limerick as
Ireland’s first National City of Culture in 2014 is an important first step in creating a new image and brand for Limerick.
3.3.1 Limerick – National City of Culture 2014
The LRIG developed a proposal for the granting the inaugural National City of Culture designation to Limerick in 2014. This proposal met with a positive response from the Minister for Arts,
Heritage and the Gaeltacht. On the 9th July 2012 the Minister officially announced that he had granted the National City of Culture to Limerick in 2014. The designation of Limerick – National
City of Culture 2014 will act as a catalyst to deliver real and credible changes, economically, physically, socially and emotionally leading to a long lasting renewal.
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The challenge for Limerick is to create a much stronger economic base that attracts and retains our young people and allows us to address the problems with social exclusion and deprivation in the City. Culture can play an important role in addressing this challenge.
Items 12 and 13 of the LRIG’s Terms of Reference require:
12.
Identification of measures to maximise the capacity of local government to contribute to the economic development of Limerick and the Mid-West Region and in particular, to enhance the role of Limerick City as a generator of growth and a strong and dynamic focus for development of the wider region, supported by extension of the City boundary to include urbanised or partially urbanised areas in Limerick county as recommended by the Limerick
Local Government Committee, resulting in increase in the City population to around
100,000 (2006 census).
13. Proposals on ways to ensure that the status, identity, character, and heritage of the city of
Limerick are maintained and enhanced within the unified authority.
The LRIG concluded that the designation of Limerick as the National City of Culture in 2014 would greatly assist the economic transformation of the City and positively change the way in which people locally, nationally and internationally view Limerick. The new single Limerick local authority will lead fundamental social transformation and economic change; it will provide the opportunity to shape, brand and promote a new Limerick.
The LRIG Vision for cultural development in Limerick City is to create a vibrant city, widely recognised as a cultural centre, where arts, culture and sport are placed firmly at the centre of economic, social and physical regeneration in a way which inspires, empowers and elevates those who live, work and visit the city.
Cultural tourism is one of the fastest growing forms of tourism. Limerick has not taken advantage of its strategic geographical location to fully develop as a tourist destination, which can also be used as a base to explore more developed tourist destinations in the West of Ireland. Developing and marketing Limerick’s cultural offering is key to attracting and retaining tourists.
According to the European Commission, 80% of the cities who received the title of European
Capital of Culture between 1995 and 2004 felt that this opportunity had been the most valuable cultural event their city had experienced as it notably helped contribute to the stimulation of local development. Moreover, the initiative was seen as a way to enhance the standing and the prestige of cities in the eyes of the general public and media and helps to promote social inclusion.
The investment in, and the marketing of Limerick’s cultural product will realise valuable economic, social and cultural benefits both in Limerick and throughout the wider region. Capitalising on its existing and future cultural economy, Limerick, as National City of Culture 2014 can attract
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investment, boost employment, drive tourism numbers, regenerate Limerick’s cityscape and create legacy projects which encourage future cultural achievements.
The LRIG argued that the Limerick – National City of Culture 2014 designation will help to:
 Drive an economic renaissance transforming levels of prosperity in the City and wider region;
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Deliver major changes in equality, good relations and social cohesion through culturally led regeneration;
Unify Limerick’s diverse Cultural Community;
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Build a sustainable cultural environment which will nourish and enhance a unique world class experience;
Unleash talent to build a proud, ambitious, creative, connected community;
Tell the world a new story.
The benefits to Limerick of the designation of Limerick – National City of Culture 2014 include:
 Significant monies attracted to the local economy;
 Employment – particularly for disadvantaged areas;
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Improved community relations, equality and social cohesion;
Perceptions of the City – an opportunity to Rebrand Limerick;
Increase in Tourism;
Improved Cultural offerings;
Increased awareness of Culture – particularly for disadvantaged areas;
 Limerick will gain a national and international reputation as a Centre of Culture.
There is a pressing need to now advance putting the proper structures and funding arrangements in place which will be required to deliver a high-quality programme of cultural events leading up to, during and beyond 2014.
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Item 10 in the Terms of Reference requires the LRIG to make:
“Arrangements locally, to be determined in consultation with the Limerick Regeneration
Agencies and in accordance with overall arrangements to be developed by the Department, to bring the administration of the two Agencies under the aegis of the local authority management as soon as is practicable to ensure the programme is not delayed, but not later than the end of their current 5 year mandate in 2012.”
The statutory remit of the Limerick Regeneration Agencies will end in July 2012. A Ministerial
Order is awaited to facilitate the orderly wind down and transfer of assets the formal handover from the Regeneration Agencies to the Interim Director of Regeneration and the New Authority.
An Interim Director of Regeneration was appointed in April 2012 and charged with responsibility in relation to the smooth transition of regeneration from the Agencies to the New Authority.
The LRIG recognised the importance to ensure that the Local Directors of Limerick Regeneration
Agencies have confidence in the manner in which Regeneration was integrated into the local authority structures in the transition phase and on the establishment of the New Authority. The
LRIG also had an interest to see that structures and processes were in place so that progress continues on the physical Regeneration of the estates in a manner that commands the confidence of all stakeholders. An amount of approximately €27.5 million is available in the current year for
Regeneration in Limerick.
In relation to the staffing for Regeneration, the Interim Director has agreed an interim staffing structure for the Regeneration Directorate with the DOECLG. This structure will be reviewed before the end of 2012.
It is important that revised governance arrangements for Regeneration are put in place. This is a matter to be considered further and conclusions and recommendations in relation to this will be set out in the Implementation Plan.
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The LRIG recognises the need for revised governance arrangements for the new Limerick Local
Authority which will provide strong political leadership to help to address the challenges which
Limerick faces and to take advantage of emerging opportunities. The LRIG acknowledges that there are many models of local government internationally. However, in Limerick the following should be provided for in any reform of local government:

Need for strong political leadership
 Need for balance between City and County

Need to define Limerick City metropolitan area with a population of around 100,000

Need to decide and define role of Mayor and Chairperson
 Need to preserve where appropriate the civic, cultural and historic traditions of both local authorities.
The LRIG continues to meet with the Joint Committee of Elected Members from both the City and
County Councils for the purpose of briefing them on developments and progress being made in relation to its Terms of Reference.
The LRIG agreed that the Elected Members would be provided with independent expert assistance to advise and facilitate their discussions on matters relating to the governance of the New
Authority. Mr Kieran Lynch, Limerick Institute of Technology, was nominated to this role and it was agreed that he would work independently with the Elected Members of the two authorities in order to prepare a joint submission to a committee established by the Minister in relation to governance arrangements including the number of elected members and electoral area boundaries for the new Limerick Local Authority
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The amalgamation of the two Limerick local authorities presents a set of unique financial challenges which must be addressed. There is a need to maximise the potential for savings from combining services, ending duplication in services, economies of scale, together with results from the workforce planning exercise and the application of best practice in organisational and operational standards. This process has been advanced considerably with the development of the
Service Unit Plans, and work on the review of financial arrangements, policies, procedures, processes and practices and workforce planning is currently underway.
The most pressing challenge is to put measures in place which will bring about a sustainable convergence of the commercial rate between the City and County Councils.
The 2012 Revenue Budgets for Limerick City and County Councils amount to €83.0M and €113.8M respectively. The funding of social and physical Regeneration projects in Limerick City is estimated at €27.5M in 2012. The total outturn capital expenditure by Limerick City Council in 2011 was
€72.5M while that of Limerick County Council was €35.5M.
The 2012 Annual Rates on Valuation (ARVs) are 74.9342 for Limerick City Council and 59.9193 for
Limerick County Council. Assuming other factors remain unchanged, the loss of income which would accrue from bringing the City ARV to that of the County would currently amount to
€6.116M. In order to balance this loss in income, cost savings or increased income must be found.
Due to current economic conditions it is highly unlikely that income will increase significantly by
2015 and may in fact reduce.
Much work has been carried out in analysing the financial position of both local authorities in order to identify where cost savings and efficiencies may be achieved. The continued reduction of staffing levels due to the embargo on recruitment is providing on-going cost savings and the preparation of the Workforce Plan will assist in aligning the human resource, service provision and financial requirements of the new local authority. There are a number of projected additional expenditure or reduced income areas for both authorities up to and beyond 2015 including:

 expenditure associated with the need by the City Council to advance essential housing maintenance works, and the proposed closure of the Gortadroma Landfill in County Limerick in 2013 which will result in a net income loss to Limerick County Council.
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The financing of the normal day-to-day activities of local government is derived from six main income sources, namely:
1.
Local Government Fund (LGF)
2.
Pension Levy
3.
Non-Principal Private Residence charge (NPPR)
4.
Grants and Subsidies
5.
Goods and Services
6.
Commercial Rates.
Central Government funding comes directly or indirectly from the first four sources indicated above with locally sourced income derived from charges for Goods and Services and Commercial
Rates.
The Local Government Fund allocation to the two Limerick local authorities has been reduced significantly in recent years. The Department for the Environment, Community and Local
Government has recently announced further reductions in the LGF due to a number of reasons including the level of compliance with payment of the household charge. An increased rate of collection of the household charge between now and year end may result in less of a reduction of the LGF allocation to the two local authorities.
Table 1 and Chart 1 below set out the income profile for LGF, Pension Levy and NPPR over the past four years.
LGF
Pension Levy
NPPR
2009
€33.23M
€2.69M
€2.41M
2010
€30.12M
€3.44M
€2.87M
2011
€27.78M
€3.24M
€2.98M
2012
Budget
€25.55M
€3.17M
€2.75M
2012
(with LGF allocation adjusted July 2012)
€23.02m
€3.17M
€2.75M
% Change
2009-2012
-30.7%
17.8%
14.0%
Total €38.33M €36.42M €34.00M €31.47M €28.94M -24.5%
Table 1 Limerick Local Authorities – LGF, Pension Levy and NPPR
Funding Profile 2009-2012
It can be seen from Table 1 and Chart 1 that the Local Government Fund allocation to the two
Limerick local authorities has been reduced by over 30% or €10.2M since 2009. The identification and implementation of over €6M in cost savings to facilitate the equalisation of commercial rates poses a real challenge which will prove very difficult to deliver assuming that other income
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streams remain at the levels set out in the 2012 Budgets of the two local authorities. However, further reductions in central government funding to the Limerick local authorities up to 2015 would require additional cost savings over and above the €6M necessary for rate equalisation and would make rate equalisation extremely difficult if not impossible to achieve over such a short period of time.
L oc al G ov ernment F und, P ens ion L ev y & NP P R
Analy s is (€'000)
40,000
36,000
32,000
28,000
24,000
2,412
2,687
33,228
2,871
3,436
30,117
2,982
3,237
27,777
2,750
3,165
25,552
2,750
3,165
23,025
20,000
2009 2010 2011 2012 B udg e t 2012 w ith L G F
Alloc a tion
Adjuste d J uly
2012
L G F Alloc a tions P e nsion L e vy NP P R
Chart 1 Limerick Local Authorities – LGF, Pension Levy and NPPR
Funding Profile 2009-2012
The reduction of commercial rates in the Limerick City Council area to that of the County Council by 2015 would provide a 20% reduction in rates and give a real boost to businesses in the city and particularly businesses in the City Centre who have been significantly impacted by the economic downturn. However, it is important that steps are taken to incrementally reduce commercial rates in Limerick City in 2013 and 2014 in order to provide confidence to the merger process and avoid a large differential having to be bridged in 2015.
Limerick City Council has a statutory remit to refund 50% of commercial rates on vacant properties, whereas Limerick County Council provides a 100% refund or write-off for vacant properties. New legislation will be required to address this anomaly.
It should be noted that the Commissioner for Valuation has commenced work on the revaluation of commercial properties in Limerick City and County. It is expected that the revised valuations will be in place for 2015, which is expected to be the first rateable year for the new authority.
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




Significant work has been carried out in developing the preparation of a detailed Implementation
Plan for the amalgamation of the two Limerick local authorities.
The immediate key next steps to be undertaken in order to finalise the preparation of the
Implementation Plan and to move towards the full merger of the local authorities are outlined below.
The key next steps in the Merging of Management and Administrative Structures are:


Completion of the review of policies, procedures, processes and practices;
Adoption of a set of policies, procedures, processes and practices appropriate to the needs of the new Limerick Local Authority;
Preparation of a detailed Workforce Plan;
Establishment of a Joint Management Team;
Establishment of a dedicated project team to deliver and monitor the Implementation Plan
(when prepared) and the merging of the two authorities ;
Preparation of the Joint Services Delivery Strategy and Operational Plans;
Maintain ongoing communication and consultation with staff and trade unions;


 Advance the preparation of a Corporate Plan for the new Limerick Local Authority.
In relation to Economic Development and the Rebranding of Limerick, the key next steps are:


Define the Economic Development Role of the new Limerick Local Authority;
Lead the preparation of the Economic and Spatial Implementation Plan;
Ensure that the Limerick – National City of Culture 2014 initiative is adequately resourced and appropriate governance structures developed;
Advance the arrangements necessary to merge relevant bodies linked with or related to local
 government, including the separate County and City Development Boards and the County and
City Enterprise Boards;
Finalise proposals to define a new city boundary resulting in an increase of population to around 100,000.
In relation to Regeneration, the key next steps are to:
 Oversee the development of a Strategic Plan for Regeneration;
 Ensure that appropriate levels of staffing are in place;
 Ensure that appropriate governance arrangements are put in place.
In relation to Financial Implications of the Merger, the key next steps are to:
 Identify and make budgetary provision for the costs of the merger;
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 Identify the potential and the options to secure savings/efficiencies arising from removal of duplication in services and processes, economies of scale, results of Workforce Planning and application of best practice in organisational and operational aspects;
Finalise a Financial Plan to identify measures required to bring about the equalisation of rates. 
In relation to the development of Governance Arrangements appropriate to the new authority, the key next steps are to:



Finalise proposals on ways to ensure that the status, identity, character, and heritage of the city of Limerick are maintained and enhanced within the unified authority;
Maintain ongoing communication and consultation with the Joint Committee of Elected
Members;
Develop arrangements to support continued effective performance of functions by the elected councils of the two authorities in the transition phase.
In relation to the relationship of the new authority with Clare County Council, the key next steps are to:
 Establish appropriate joint arrangements with Clare County Council to ensure the most effective discharge of functions in the areas which the Local Government Committee recommended for transfer to the new Limerick Local Authority.
----------
It is expected that the full detailed Implementation Plan will be submitted to the Minister in
November 2012.
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