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The City Council cuts its debt more than 50%, consolidated budget balance and eliminate the accumulated deficit (31/03/2016)

The debt was cut to less than half, from 105 million to 50. resource optimization consolidates the balance of municipal accounts, which closed the year with a surplus of 3,428,967 euros.

The main ballast remain the sentences against the City because of the planning agreements "trap".

Councilman Economy in the City of Lorca, Fulgencio Gil, has reported that the Consistory has managed to cut municipal debt to less than half, from more than 105 million existed as such in 2007 to 49 today, which It means a drastic reduction is above 50%.

Fulgencio Gil has emerged as especially important and positive development, the fact that the settlement of the 2015 municipal budget shows a positive result (surplus) of 3,428,967 €.

This is a very good result, considering the economic times we live in and the difficulties that plague us, especially the high level of inherited debt that it is having to face and obligations arise, among other issues, because of planning agreements "trap".

Councilman Economics pointed out that thanks to the continuous efforts of all municipal areas, which have been fully involved in improving municipal accounts is achieved that the City reach economic autonomy, ie also consolidates its self-financing, and that income has cover own expenses.

Economic independence allows us to sustain the provision of quality services with our own resources and leave the debt in a technical minimum.

This achievement confirms that optimization measures and efficiency in the economic area we have been developing over the years have been particularly beneficial to all Lorca.

In fact the effort we are making budget allows Lorca have a sound and efficient of accounts, and release resources to increase investment and improve service delivery.

Currently current revenues reached € 12,805,000, while expenditures stood at 9,817,000 €.

This difference means that once repay debt, liquidation throw a net savings of € 2,988,000.

The average payment to suppliers within the City stands at 34 days, one of the best in the region.

It is liquidation, as stated in the reports issued by the municipal general intervention complies with the principle of stability and the rule of spending, and places the municipal accounts in equilibrium, complying with the parameters set out in the Budget Stability Law and Financial sustainability.

This team of government is convinced of the need to eliminate the negative Remnant Treasury (RNT), which is the municipal accumulated deficit year after year.

Therefore it will suppress the first time in the recent history of our City.

It is clear that already has been working hard to tackle the RNT this magnitude has been reduced from 33 million to 12.7 today.

RNT suppression is made possible by a loan of 10 million and a budget amendment of 2.8 million.

Planning agreements "trap", the outstanding liability.

Fulgencio Gil has indicated that the main problem facing it today the City is paying continuous judgments resulting from planning agreements "trap" approved by the PSOE in 2005. In this regard it is facing situations very serious , responsibly.

In fact there are 594,000 euros in 2016 implementation timetable and we are looking solution for 2,521,000 non-deferred, which also will have to pay immediately.

Source: Ayuntamiento de Lorca

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