Portal de Ceuti
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Adjustment policies and spending cuts implemented by the municipal government of Ceutí have managed to lower debt 3,624,068 euros in just half a year, representing a rebate of 8.3 percent in addition to achieving a balanced budget that has even a positive result of 130 385 euros between June and December 2012.
After winning the elections of June 2011, the People's Party won 10 of the 17 councilors who make up the corporation, the new administration got reverse the accumulation of debt, which would rebuild another 2 million additional EUR at year's end.
For the first time in many years, the year 2011 closed with a cost reduction of 2.4 million euros, a 20% reduction compared to 2010, while the total income totaled 1.4 million euros , representing an increase of 16 percent over 2010, when it generated a deficit of 2 million euros.
The deficit in 2009 was 1.4 million euros and 2008, came to 2.5 million euros.
Between saving measures implemented, the new government has transferred the management of childcare and municipal pool, for which the local treasury had to assume the gap between income and expenditure.
It also abolished the annual financial allocations to political groups like the bonus released to councilors, with no option to retrieve it.
The municipal spending adjustments carried out in 2011 and projected in the 2012 budget, allowed that last April the city of Ceuta obtaining approval from the Ministry of Finance to enter into a loan totaling EUR 14.6 million for the payment of the debt owed to suppliers and contractors of the City.
Some 1,000 Spanish municipalities have failed to formalize this loan transaction, so they are retained their shares in State revenue.
This plan, which has managed to eliminate existing debt with those creditors to December 31, 2011, both the City Council and the public company "Promotions Ceutí" could not have been executed if the City had not presented a credible adjustment plan.
His refusal would have meant the suspension of municipal activity.
The lending operation also has eliminated the accumulated debt to contractors by the municipal company "Ceutí Promotions", he had accumulated more than 5.8 million euros of debt to contractors following the financial hole created by the urban development , to settle estate fees well below cost price that supposed to municipal company.
The rigor of the adjustment plan has been reflected in the 2012 budget, with a predicted lower spending 688,000 euros to those made in 2011, which represents a saving of 6.8%, and will also face higher financial expenses arising of the loan for the payment to suppliers.
Source: Ayuntamiento de Ceutí
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