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The Archena City Council continues to prepare for the economic tsunami that is looming after the summer for the next three years (08/08/2020)

| The Mayor has highlighted the financial solvency that the City Council has to face the steep decline in income and increased expenses that the crisis will generate in the municipal coffers | The municipal economic management of the last two legislatures has been characterized by a triple decline:decrease in current expenditure by more than 911,000 euros;Lower taxes, 17% Real Estate Tax, 5% on average in the tax on Mechanical Traction Vehicles, and 40% capital gains tax (Increase in the Value of Urban Land), in addition to the freezing of most municipal public rates and prices.And finally, a decrease in financial expenses by 79%, going from expenses in the last full fiscal year prior to the 2015 elections of 1,157,350 euros, to an expense paid of 244,622.37 euros in the last fiscal year prior to the elections of 2018.

This has been possible due to the strong reduction of financial debt by 21% and the restructuring of municipal bank debt.Thanks to this management and despite the aggressive reduction of taxes, the city council has gone from having a negative remainder in treasury of 2,282,618, 27 euros to having a positive remainder of 918,813.30 euros, which allows us to have a period of 29-day payment to large suppliers and immediate payment to small suppliers."We are preparing for the worst, we already lived it in 2012 and 2013.

There will be a sudden drop in municipal income, our expenses are going to skyrocket, and we cannot transfer that economic-financial pressure to our neighbors, raising taxes or dismantling essential municipal services.

That is why we have created a special anticovid fund exceeding 425,000 euros to be able to face these contingencies ", declared the Mayor."From the beginning of the crisis we have reacted quickly, lowering the salaries of the Mayor and Councilors by 25%, reducing non-essential current spending by 25%, selling municipal industrial plots etc ...

because we know that as of November of this year the business closures, layoffs and defaults are going to skyrocket throughout Spain, and we want that not to happen with the same intensity and forcefulness in our municipality, "said Patricia Fernández.

Source: Ayuntamiento de Archena

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