War-driven energy crisis lumps 20pc increase on council costs

Global politics is having a significant impact on the accounts of Westmeath County Council as the ongoing war has seen a 20% leap in energy costs since Russian troops moved on Luhansk and Donetsk.

The data came to light during the May meeting of the local authority’s Finance Committee. The revenue report for the three months ending March 31 shows expenditure of €28,624,150 and income of €28,632,136, leaving a surplus of €7,987.

The report delivered by director of finance Michael Hand indicated that the outbreak of war in the Persian Gulf and the associated weaponisation of energy supplies have "triggered a large energy price shock that is reverberating across other supply chains".

Mr Hand’s report showed expenditure of €2,434,820 on energy, compared to a pre-Ukraine war spend in 2021 of €1,890,819 resulting in a post war increase in price of around €450,000 per year.

The committee heard of the revenue projections and the progress of local authority housing programmes.

The finance director said the expenditure of €2,853,850 incurred on housing grants required an increased contribution of €483,829, while expenditure of €3,583,117 incurred on the Croí Cónaithe scheme (which administers the Vacant Property Refurbishment Grant), represents 61 grant payments.

Key points arising from the financial year 2025 include the surplus on the Revenue Account of €11,757 resulting in cumulative revenue reserves of €485,292. On the income side, the government supports the local authority to the tune of €7m to compensate for pay increases.

Rental income from housing stock amounted to €10.2m for 2025 against a budget of €10m, a surplus of €200,000, while paid parking income amounted to €1,790,431 for 2025 against a budget of €1,836,200, a deficit of €45,700.

Planning fee income amounted to €417,233 for 2025 against a budget of €354,000, a surplus of about €63,000, a significant increase on the 2024 amount of €342,308.

Fire safety certificate income hit €95,463 for 2025, against a budget of €197,500, a deficit of around €102,000. On the rates front, income was €18.55m for 2025 against a budget of €18.54m, a surplus of €18,000.

Mr Hand informed members that the capital account indicated that expenditure on capital projects amounted to €82.9m in 2025 (down on 2024’s €91.9m). There were 42 projects with expenditure of more than €300,000, while in 2024 that figure was 37.

The Finance Committee was informed 136 houses were added to local authority stock in 2025, 130 of which were newly built. In addition 371 housing units, across 21 locations, were under construction as of December 31, 2025.

The local authority transferred €6.4m to the Capital Account, up from €5.1m in 2024. Development contributions income amounted to around €4,719,000 in 2025, while the 2024 figure was €3,894,000. Of that 2025 figure, €3,129,000 was standard contributions in respect of recreational, community facilities and amenities, and transport and drainage infrastructure.

The balance of €1,590,000 comprised mainly special or supplementary contributions to fund project-specific infrastructure. In 2025, €3,143,000 of the development contribution income was waived under a government scheme.

The council’s debts saw repayment of principal on borrowings of €2.55m. This included repayment of principal on mortgage loans of €1.06m and on non-mortgage loans of €1.87m. New borrowings were €0.81m, down from the €1m borrowed in 2024. The new borrowings in 2025 relate to five mortgage loans.

The last year saw income of €502,500 raised from the disposal of non-strategic assets, both lands and buildings. Eight of those transactions were under the tenant purchase scheme and yielded €767,510. Mr Hand also noted that it was a year free of a bank overdraft facility and associated costs, and that the council had a solid debt collection performance on all three major income streams; rates, rents and loans.