Under the terms of the Croke Park Agreement, the council identified savings of €6.7 million from April 2010 to March, compared to the same period the previous year.
This figure is made up from payroll savings of €5.8 million and ‘non-pay’ savings of €900,000.
Mr Neely said this represents a ‘significant achievement’ in Donegal and was a good proportion of the €162 million saved nationally.
He added that the council has so far drawn down €29 million of its €48.6 million loan from the Department of Environment and Local Government.
Between mid 2008 and March of this year, staffing numbers, including town council staff, has reduced from 1,344 to 992, a reduction of 26 per cent. Of the total figure, 90 staff members work for the town councils.
Mr Neely said the reduction of staff has presented a significant challenge for the council in terms of maintaining service provision on a reduced budget. “There is little doubt that parts of the organisation are under considerable pressure as a result,” he said.
Mr Neely said the next phase of the reorganisation process will include a review of ‘outdoor activities’ and the resources available to deploy them.