Reply - Q7 Development Contribution Debt

COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

South Dublin County Council Crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, November 08, 2021

QUESTION NO. 7

QUESTION: Councillor David McManus

To ask the Chief Executive for the amount outstanding in development levies currently, the amount outstanding long term where legal action may now be required and if a statement is available?

REPLY:

As at 30^th September 2021 a total of € 30,159,477.97 was outstanding in respect of Development Contributions, while €23,380,852.25 was received between 1/1/2021 and 30/9/2021. (A total of €20, 857,183.42 was received in 2020).

In accordance with the condition of planning permission Development Contributions are due prior to commencement of development, and the liability is triggered by the raising of an invoice following the submission of a statutory Commencement Notice, a notification that a person intends to carry out works.

The Council has a managed debt collection system in place and in the majority of cases, particularly where the amount of levies conditioned as part of the grant of planning permission is high, clients are accommodated on a phased payment arrangement.

Usually, the phasing arrangement is agreed along the following lines:

1/10 Units - floating payment of 10% plus one unit – phasing on sale of units
11/20 Units – floating payment of 15% plus agreed monthly instalment/phased on sale of units
20 +Units - Floating payment of 20% plus agreed monthly instalment/phased on sale of units

Clients have the option to pay through Electronic Fund Transfer / Cash Office or by Cheque and if a client experiences difficulties regarding payment every effort is made to support them to overcome any issues. The finance unit also operates a letter reminder and letter warning system, in which constant contact is made with the client to ensure payment is received and the matter resolved.

Currently, phasing arrangements are in place in respect of € 26,291,112.51 of the outstanding debt and the balance is kept under review. Payment arrangements are made based on a case by case basis depending on the circumstances involved in the individual permissions and in certain cases as appropriate, legal proceedings are initiated for recovery of the debt.

Certifiates of Compliance in respect of units are also withheld until payment in respect of the said units are made.

As at 30th September 2021 a total of € 30,159,477.97 was outstanding in respect of Development Contributions, while €23,380,852.25 was received between 1/1/2021 and 30/9/2021. (A total of €20, 857,183.42 was received in 2020).

As at 30^th September 2021 a total of € 30,159,477.97 was outstanding in respect of Development Contributions, while €23,380,852.25 was received between 1/1/2021 and 30/9/2021. (A total of €20, 857,183.42 was received in 2020).