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The City of Lorca achieved a surplus of € 1,373,614.74 for 2014 and municipal debt reduced by more than 40% (21/09/2015)

The Councillor for Economy and Finance of the City of Lorca, Fulgencio Gil Jodar has announced this morning the status of the liquidation the General Account Consistory Lorca, which will be the full next Monday.

In the previous mandate and liquidation of the 2014 budget was approved, also it assumed the general account of the consolidated budget of the previous settlement accounts with the municipal Limusa, and Society Emergency Sepor data.

During 2014 it has achieved significantly improve all economic and financial parameters, consolidating the positive trend that the city is getting since 2008.

Fulgencio Gil pointed out that the reduction of municipal debt in the last seven years has risen from € 105.2 million to € 63.22 million, which means that since 2008 has managed to trim more than € 42 million, 40%.

It is a very important parameter, given that it has occurred in the context of an economic crisis and having managed two catastrophes such as the earthquakes and floods.

The mayor of Economy explained that in this period has also been very important to reduce debt with suppliers, which has managed to cut significantly, from € 40.23 million in 2007 to 7.4 at the end of year 2014. As a result, it is currently in compliance with the average payment period to suppliers legally established, which is 30 days.

Therefore, the actual magnitude of € 7.4 million are regular payments made by the City to its suppliers.

Importantly, during this time has been injected into the local economy, formed mostly by small and medium enterprises, a total of 32.84 million euros.

In addition, we eliminated burdensome means of payment that previously existed, such as endorsements and confirming, representing a significant reduction in costs and interest.

Gil Jodar has stressed that the budgetary outcome of the City of Lorca in the year 2014 is a surplus of € 1,373,614.74, ie, the difference between the net rights and obligations recognized net.

This has enabled it to reduce the deficit by € 4,188,030.39 during 2014, reaching € 12,774,510.07.

Township enterprises also have had positive results in reaching Limusa € 341,710.37 and 26,514 Sepor in 77 € instead Emergencies Society has had a negative result of 11,084, 32 €, but still, overall, is a result General Account positive for consolidated € 1,730,755.56.

The net savings of the City Council has also presented a positive sign of € 500,358.73, indicating the important efforts being made by the Consistory Lorca containment of recurrent costs, which were lower than revenue.

Economy Councilman noted that all parameters of the general account follow the law of budgetary stability and financial sustainability of the City of Lorca and the rule of spending and consolidated financial, accounting European scale is used to determine the risk level of the general government accounts, which stood at 20,935,142, € 58 for which the Consistory Lorca is far from the need to face new budget stabilization plans.

Fulgencio Gil explained that in addition, there has been an equally important external circumstance that is the need to address the repayment of amounts that once paid urban promoters SIDU 17 Conventions, which requires both the City Council and to citizens an additional effort to maintain the positive economic trend are having municipal accounts.

For this, the Consistory Lorca is condemned by the Courts of the Contentious - Administrative returning to 4,829,731 million euros plus interest and costs.

Similarly, the City must afford the payments on a number of conventions that are prosecuted and which amount to € 5,787,745.4 million.

Source: Ayuntamiento de Lorca

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