It's claimed Killarney is suffering because commercial rates gathered in the town are used to prop up other towns in the county.
Independent councillor Donal Grady made the claim during the Killarney Municipal District meeting, when others said they took offence to claims that the town is falling apart.
Fianna Fáil councillor Niall Kelleher said he takes offence to the narrative that Killarney is falling apart.
He commended the local authority in maintaining and improving the area.
However, Independent councillor Donal Grady disagreed, saying Councillor Kelleher mustn't have come into the town before 2014, when town councils were in operation and the town was, in his opinion, very well kept.
During a motion relating to the poor condition of some roads, Councillor Grady added there's grass overgrowing in estates all over now.
He said Killarney has suffered in recent years because over €18 million in commercial rates gathered in the town is being used to prop up other towns in the county; he didn't name which towns he believed benefited from these rates.
Councillor Kelleher and Cathaoirleach of the MD Brendan Cronin refuted Councillor Grady's claims.
