Osuna will announce the destination of the money that is now released and that will be used to finance works and projects in the Social Services, Culture and Sports delegations
The Mérida City Council closes the 2021 financial year with a surplus of almost twenty million euros (19,993,849 specifically). It is what is technically considered a positive treasury remnant, a relevant accounting figure in Mérida because the City Council is still under an adjustment plan by the Ministry of Finance and its budgets have a limited scope. The remainder left by the liquidation is conceived as a subsequent appendix to the previous budget.
With the liquidation now closed, Mayor Osuna now has to decide what he is going to invest this freed-up money on. The municipal spokeswoman, Carmen Yáñez, explained this morning that in the next few days the destination of these twenty million euros will be known. But she advanced three large blocks: pending works, paying debt and a final section on social services, culture and sports.
The surplus comes fundamentally from the increase in income that enters the City Council through the OAR. Revenues have gone from seven and a half million to more than fourteen in one year. They have been doubled for urban planning licences, the construction tax and the economic activity tax. But above all, the councilor explained, because of the procedures for the photovoltaic plants that are being installed in the municipality of Mérida. The plants pay the prior income of the urban planning licenses and in the long term their contribution to the Local Treasury is consolidated with the annual IBI.
It is also necessary to add part of the remainder that was not spent from the 2020 financial year and that is now incorporated into 2021.
With the current liquidation, explained the delegate, the City Council has a borrowing capacity of fourteen million euros. That is, you can go to banks and ask for up to fourteen million euros.
Yáñez also attributes the surplus to the fact that outstanding loans have been considerably reduced. For example, the Provincial Fire Department’s Consortium has already been returned the two million euros they owed.
Since Yáñez took over the Local Treasury in 2015, the debt has been reduced by 56 million and his commitment is that at the end of the legislature it will be something testimonial.
The delegate defended the management of municipal accounts through limited budgets adjusted to the Ministry and remnants with released money. “We have reached 70% of our electoral program despite the pandemic, because, as in other campaigns, we launch relevant projects with the remainder. Everything that we have not been able to do with the Budget because we have it limited by the adjustment plan, we will process it through the loan modifications that the surplus now allows us»
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.