FUENGIROLA COUNCIL has reduced its debt by 75 per cent to €10.1 million.
The amount has gone down considerably from the €42 million owed at the end of 2014. The town’s Mayor, Ana Mula, has said the council’s economic policies were responsible for the achievement, claiming they were “above all transparent.”
She added, “I have a plan which is reflected in our yearly budgets and how we manage them. The approach is paying off.” Mayor Mula explained, “thanks to good economic management we even have the opportunity of running a surplus,” which allowed the council to pay off some of its loans.
The news comes after Fuengirola Council was forced in September to use €1.8 million from a contingency fund to cover a fine for delays in paying for works to the Elola Sports Centre.
A court in Malaga passed the judgment after the council delayed paying the €6.5 million bill for the project, which took place between 2005 and 2008. Opposition parties have criticised the governing team for using funds for other projects to pay the fine, although the council says it is “absolutely normal.”
The contingency fund, which was put aside to support families, is said to be running at a surplus, with a source saying, “we have made sure the money will not be needed for its original purpose and all the aid for our residents will be covered.”
Opposition party Ciudadanos said the situation was “disastrous and catastrophic,” while the governing team said the party had shown “no interest” in the issue in the council session.
Meanwhile Mijas Council has been passing its financial luck on to residents with a series of tax breaks expected to come into force next year. Payments on property tax (IBI), capital gains tax and car tax will all be reduced under the scheme after the council announced it was running a surplus.
Administrative payments for forms and other council services will also be lowered and the council said it will continue to take suggestions from residents on what they would like the surplus spent on. A spokesman for the council confirmed any tax breaks and additional spending were being carried out in a fiscally “responsible” manner.