Past week, we had the pleasure of reporting the first positive economic results in the City Hall’s finances. For the first time in almost two years, when we constituted the new Government of Sitges, we were able to issue moderately positive financial reports concerning the economic condition of the City Hall: we extinguished the inherited deficit of 22 millions, we achieved net savings up to 4 million Euros during the previous accounting period and the City Hall’s global debt was reduced by 17 million Euros.
Are we supposed to be happy because of such figures? No way. The financial situation of the City Hall is still a real mess and requires correcting measures. But the figures are also good news, because we went from the horrendous financial mess inherited from the previous coalition to a financial situation in the process of recovery. The recovery is slow, but is taking speed progressively.
In July 2011, the City Hall’s financial situation was in dire straits. The situation was frankly appalling. During years, the previous government overspent wildly over their financial possibilities, and their economical and budgetary policy was totally insane. One of our main goals when we won elections was to correct the financial mess and remove the overspending trend. If we had acted otherwise, the City Hall would be entirely broke by now.
Two years ago, any supplier having deals with the City Hall had to wait 24 months to collect their invoices. Currently, just 4 months. Can you imagine what such a long term involved to any supplier selling products or services to the City Hall? Can you imagine suppliers waiting 24 months for their money in a period in which financial institutions did not grant any credit?
Two years ago, there were suppliers that avoided working for the City Hall. Such fact affected current services such as the gas of Local Police or the paint for traffic signals. Such a thing does not happen anymore.
The financial and economical state of the City Hall is still in bad shape, but shows a positive evolution. The measures to reduce and control investments and the imposition of a stricter budgetary control, allowed the City Hall to crawl out from under a failed legacy and look into the future with confidence. This is the only way possible to develop a Sitges for the people.
Along these lines, the commitment obtained from people was a determining factor. The suppliers reduced their budgets, social organizations grasped the rare economical environment affecting us all, and City Hall workers adapted themselves to the new situation. Such a collective effort, to which we must add some unpleasant measures, such as the increase of specific rates and fees, is yielding good results.
And such good results benefit not only municipal finances, but also the whole municipality. For this reason, we felt optimistic enough to announce measures to reduce tax burden on the budget and taxes in 2014. Next year, we will reduce the garbage fee in half and gains tax by 45%. And in the coming months, we will determine a reduction in property tax (IBI). Meanwhile, social and support policies directed at people and economic development will have more resources and capabilities.
Expenditure control continues to be a central policy of the municipal government. This responsible manner of using public money will allow us to maintain confidence in our future.
