The mayor of Úbeda highlights the reduction of the debt of the City “from 29 to about two million euros”
Jaén.- The mayor of Úbeda highlights the reduction of the negative balance of the City Council “from 29 to about two million”
The mayor of Úbeda (Jaén), the ‘popular’ José Robles, stressed that the negative balance of City Hall treasury has been reduced “from 29 million euros in 2011 to about two million euros in 2015” and added that , to follow this trend, in May will “for the first time” have a positive remnant.
With this “hopeful data” for the municipal coffers, the alderman has affirmed that it is “the best economic management of the democratic history” of the Consistory. He has said this Tuesday in a balance of the economic management of the government team so far in mandate.
In it, as reported by the City Council in a note, recalled that at the beginning of this period suppliers charged, on average, two years since they submitted their bills, the main income of the Consistory were made only with the payment of the IBI collection at the end of each year, historical debts were kept for more than 20 years and “the drawers were full of unpaid bills”, to which the “brutal rise” of the IBI approved in 2008 of one hundred percent due to the of ten percent per year.
With this scenario, upon reaching the Mayor’s Office and “fulfilling the electoral program”, the Government was “required to reduce the tax rate that the IBI sets to achieve, when the regulations have allowed it, to reduce it to all citizens. “We have not only slowed down the one hundred percent rise that the previous corporation took us, but also lower it for all citizens,” he pointed to also allude to other taxes such as the Plusvalía or different municipal taxes.
Along with this, has valued that the term of payment to suppliers has passed from two years of the previous term to 25.5 days, which means achieving competitive prices and discounts. “If we pay better, we get cheaper prices and pay less interest, which reduces costs, lowers costs and reduces debts, we are now reliable,” Robles added.
In his opinion, this policy has achieved that the City Council “is already a model of economic management and sanitation of the municipal coffers” and this in the face of the “poor economic management” of previous legislatures. To the thread, it has commented that in the year 2008 of socialist government, the City council “needed to sign policies of credit with the banks of five million Euros, of which they have been paid in interests 219,000 euros”.
That money, he added, “was thrown into the sewer” and used to pay suppliers or municipal payrolls. On the other hand, he said that in 2014, only 600,000 euros were used for this credit policy, so the interest payment has amounted to 20,000 euros.
Up to date
On the other hand, stressed that the 13 million euros paid to suppliers have meant catch up with them, “save jobs and local businesses drowned by municipal default.” As an example “bleeding”, explained that since 1997 was due to the expropriation of the lands of the North Park and, since then, the City has only paid interest, up to a total of 96 percent of the debt. That is, for every million euros, this city council has paid 960,000 euros in interest alone, a “totally untenable situation after legislature.”
The current government team agreed in this mandate with the owners the final settlement of the debt by splitting the payment and eliminating the interest at the same time, so that by the middle of 2015 it will be fully settled. A figure that reaches 1.6 million euros. “Now you pay to pay what is owed, and what is hired is paid,” said the mayor, who has “eliminated the traditional policy of previous corporations to hire and pay others.”
Therefore, he congratulated the municipal technicians for the work done and their advice, “added to the political will and the firmness of the decisions of this government team.” “This is the right direction because nowadays the people of UB can be proud that their city council is a sustainable and trustworthy administration that pays and complies with payment deadlines,” he concluded.