The Cathaoirleach of Kerry County Council says funding applications for projects in Listowel and Killorglin will be scaled back as a result of the vote on Local Property Tax yesterday.
Cllr Jimmy Moloney says he's been told that Rural Regeneration Development Fund applications for the two towns will now have to be scaled back.
Councillors yesterday voted for a 7.5% increase above the base rate for Local Property Tax in Kerry for 2022, having been asked by Ms Murrell to consider a 15% increase.
During a special meeting of Kerry County Council to decide the rate of Local Property Tax for next year, the council's Chief Executive said a 15% increase above the base rate would allow the council to make government funding applications for projects which require a council contribution.
Councillors asked which projects would not go ahead if the council took in less money from Local Property Tax, to which Ms Murrell replied she would not be able to make a list immediately, but some would have to be scaled back or budgeted for in a different way.
Independent councillor Donal Grady proposed a 7.5% increase above the base rate, which is the same rate as this year, and this was eventually passed by 17 councillors to 16.
Cllr Grady says it would be mad to turn down this level of funding for the county, as the average yearly increase per household is €6.72.
Cathaoirleach of Kerry County Council, and Listowel councillor Jimmy Moloney, says he's now been told that funding applications for Listowel and Killorglin will have to be scaled back, as the council now does not expect to match the required contribution for the planned projects.
Kerry County Council has not confirmed that these applications will be scaled back.
Fianna Fáil councillor Michael O'Shea, who initially backed a 10% increase but did vote in favour of the 7.5% increase, says the funding for the two towns is now in jeopardy.
This claim is disputed by Fine Gael councillor for the Listowel Municipal District, Mike Kennelly, who voted against the increase.
He denies it was a populist vote and says the funding applications are not in jeopardy.