Thursday, December 11, 2014

Payment Terms: from 30 months to 30 days

This week, the residents of Sitges will be able to choose five proposals among the seventy two that went past the constraints of the participatory budget. For the first time, the City Hall of Sitges will allocate a significant part of their investments (a total of 1 million Euros) to actions that will be directly chosen by the people in a clear sign of progress in democratization processes and participation of institutions. As soon as it has been possible once removed legal limitations (if we did not do that before, it was because the law did not permit it), we have launched this initiative that will channel new forms of participation and that will foster a better linkage with local government...
But today, I would like to reminisce and, with your permission, to speak about the causes that allowed the City Hall to invest one million Euros in actions decided directly by the citizens... Those are the same reasons that allowed us to announce the reduction of IBI (property tax) for 2015 from current 0,93 to 0,83, a substantial cut, far more than the proposals of opposition groups.
And such causes are not other that the radical turn of municipal finances. When we came into office, in June 2011, the City Hall was broke. The debt had reached 67 million Euros; in a municipal corporation the size of Sitges it was a catastrophe that threatened the very existence of the institution.
But three and a half years later, the picture has changed substantially. The accounts of the City Hall are sound with all the difficulties implied in the current context, but with the necessary strength to perform all the recovery and improvement measures undertaken by the government.
During the summer of 2011, payment terms of the City Hall amounted to 30 months. Now, payment term has decreased to 30 days after presentation of invoice. In the summer of 2011, the Purchasing Department of the City Hall had serious problems finding industrials wanted to make business with the City. The uncertainty hovering over pending accounts and irresponsible management led to a critical situation that placed us in an extremely difficult position. Now, the City Hall works with criteria that care for public spending.
When we came into power, we initiated a thorough rationalizing of spending,  important cuts in staff and positions of trust of the City, the improvement of management processes and debt renegotiation with banks, the municipal accounts went back to normal and, more importantly, now allow to promote new social policies, public investments and reductions of tax burden.
This is what helped us create, among other initiatives such as the plan to boost economic activity and job growth (with aid to small entrepreneurs who want to create their business in Sitges), the promotion of the Advertising Festival (which will enhance again the brand Sitges and generate economic activity). The balance of accounts also allowed to help the most vulnerable families with a “Carnet Blau” (Blue Card) (to obtain discounts and reductions in public services and tariffs) or program improvements (such as the reform of the library or the next improvement of the seafront promenade). .And now, the new participative budget of 1 million that residents will vote this week.