Home and business owners in Galway city could face a 15% increase in Local Property Tax (LPT) and commercial rates next year, as part of an effort to generate additional finance, to fund a range of infrastructural projects.
Galway City Council said the proposals form part of a plan to raise €39 million over the next five years.
The money would be used to boost investment in housing, tourism, sports, arts and recreational works.
City Councillors will be asked to approve a 15% hike in LPT rates next week. A similar increase in commercial rates will be put before elected representatives in November.
The local authority said the additional funds are needed to address existing shortfalls caused by inflation and increased demand.
The Council's Chief Executive says the city needs to look at reasonable increases to ensure it is best placed to respond to challenges facing it over the next five years.
Leonard Cleary said inflation and rising operational costs since 2019 meant the council had to chose which projects could proceed and identify others that needed to be scaled back.
He said councillors now had a chance to "tackle underinvestment" by supporting the rate increases.
A planned meeting on the LPT was adjourned last week, after members failed to reach agreement on whether to proceed with raising the tax payable by all property owners in the city.
Those discussions have been rescheduled for next Monday.
The council estimates that the majority of businesses would see their rates increase by around €20 a week next year, if the proposed increase were approved.
