- -The money from the local festivities will go to help people affected by the COVID-19 health crisis, with more than 120.000 euros in social aid.
- -The initial budget for this year reaches the total figure of 6.171,.209,77 euros, exceeding the initial 2019 budget by 22.20%
- -The government team allocates almost 100.000 euros in a plan to revive local trade and aids to merchants, self-employed, entrepreneurs, micro-SMEs and liberal professionals
- -The municipal government requests the Ministry of Finance to allow refinancing of the municipal debt, open the management fund and allow the municipalities to use the remaining budget.
The Mayor of Redován, Nely Ruiz, accompanied by the Councilor for Finance, Adrián Ballester, presented this morning in the plenary hall of the City Council the municipal budgets for the year 2020, which amounts to a total of 6.171.209,77 euros, and will be voted on the local plenary next Monday, June 8. The municipal accounts exceed the initial budget planned for 2019 by more than 22%, making them one of the most social in recent years, since “they are a social response by this City Council for the needs of our neighbors who they have been affected by recent events such as the DANA in last September or the ‘Covid-19’ health crisis,” said the mayor.
Social aid to affected people
For this reason, of the 601.635 euros in the subsidy expenses section, the Consulate in Redován has planned to allocate more than 120.000 euros in social aid to people affected by COVID-19. Among them, will be destined to social emergency aid, IBI or to buy school supplies.
In addition, the budget includes almost 100.000 euros in aid for people with an economic activity who has been reduced by at least 50% or have had to temporarily close. In this sense, more than eighty-nine thousand euros are allocated in aid for merchants, the self-employed and SMEs; in addition to 4.000 euros in aid to entrepreneurs in Redován and 6.000 euros for a plan to reactivate local commerce. The first mayor has indicated that “our objective is to help our merchant and business community as much as possible, and also the groups most affected by the pandemic. In addition, the occupancy rate of chairs and tables on public roads for the year 2020 has been carried out ”, he added. The subsidies section represents 8,17% of the total, with an increase of approximately 14% compared to the previous initial budget. This section includes the usual contributions made by the council to the organizational and associative fabric of the municipality.
In this regard, the City Council’s own taxes “have been frozen for another year, as it has been done since 2015”, explained the Councilor for Finance, who added at the same time that “on the line to help our neighbors we have returned part of the rate of markets and services not provided in sports during the months of confinement, with the aim of contributing to the economic stability of the people of Redován. ” The forecast for municipal tax revenues will be reduced by 18,02% compared to the previous year, with an estimate of 1.017.723,78 euros.
As for the investment chapter, this has been endowed with 1.272.243 euros, 20,62% of the total budget, and which includes the credits contributed by the Ministry of Education, corresponding to the remodeling plans of the CEIP Sagrados Corazones de Redován and IES Jaime de Sant Àngel del Plan Edificant. This item could finally be doubled in the budget liquidation, since the credits of the investments coming from the canon of the contract for the indirect management of the public service of drinking water and sewerage must be incorporated, as well as those of public administrations such as the Provincial Deputation of Alicante.
In this way, “the budget items have been adjusted to the maximum taking into account the income and real expenses of the City Council, making it a rigorous and realistic budget for the current economic situation,” explained the mayor. For this reason, the Department of the Treasury has required annual planning of each of the municipal needs to meet the most justified, although it will also “address the budgetary modifications that are necessary to comply with economic obligations and with the quality levels of provision of public services ”, Ballester has clarified.
Expense Forecasts
The Redován City Council increases staff costs for this year by 3,86% compared to the previous year, adjusted to the salary increase for public employees in 2019 and amounting to 1.649.158 euros. The section for current expenses, endowed with 2.101.655 euros, will also include credits intended for the tendering of contracts for municipal services, among which stand out the collection of urban solid waste and the cleaning of roads.
Similarly, the financial expenses section decreases by almost 25%, with 21.532 euros budgeted. In capital transfers of the State of Expenditure of the 2020 Budget it decreases 91,67% and is 3.500 euros, while the chapter dedicated to financial liabilities has an initial forecast of 469,063 euros of budget, aimed at amortizing the loan from the City Council with the entity la Caixa to face the first supplier payment plan.
Income Forecasts
Regarding the initial forecasts of income, those corresponding to direct taxes are estimated at 2.275.229 euros (7,24% more than the previous year), an increase motivated by the proliferation of properties and companies in the municipality, while, in indirect taxes, the collection will be reduced by 13,34% compared to 2019.
Likewise, regarding the income from current transfers, corresponding to the subsidies received from other public administrations, it amounts to 1.750.001 euros, “waiting to receive subsidies during the year 2020 from the Provincial Deputation of Alicante in the matter of firefighters , local development, environment or culture ”, assured the mayor of the Treasury.
Finally, the mayor of the treasury has asked the Ministry of Finance to allow them to refinance the municipal debt since the city council spends 500.000 euros of the inherited debt annually and to have an interest rate in accordance with current financial prices. He has also requested that the Ministry authorize spending the savings available to the city council on public policies to help the most disadvantaged people.
