A Problematic Inheritance: The Legacy of the Past
The current government team, made up of the Party of Socialists of Catalonia (PSC), Tots Som Sant Feliu (TTSF) and Veïns per Sant Feliu, presented a detailed report on the financial situation of the City Council for the year 2023. The mayor, Lourdes Borrell described the budget situation as an “unfavorable inheritance” from the management of the previous government.
Borrell warned that, if the situation is not reversed, there is a risk of intervention by the state administration. This intervention would imply the suspension of the granting of economic loans, the implementation of a consolidation plan for three years and the loss of autonomy in making budgetary decisions.
Measures to Reverse the Situation
To avoid intervention, the government team announced a series of measures aimed at increasing revenues and reducing expenses. These include an increase in the Real Estate Tax (IBI), which currently stands at 3.5% and is expected to increase slightly.
In addition, the government will seek to encourage the installation of companies in Sant Feliu and grant licenses for the development of economic activities in the city. “We have land that is now unoccupied, such as the padel court, which could generate income of 200,000 or 300,000 euros, but nothing has been done,” Borrell explained.
Cuts in Essential Services
The financial report also revealed cuts in public services, affecting areas such as security, health and culture. In total, 764,118.65 euros have been cut in these areas, which has generated concern among citizens.
Javier Molina, first deputy mayor, justified the cuts with the need to reduce current spending, which has decreased by 2.57% compared to the previous year. However, the opposition criticized these cuts, arguing that they affect services that are essential for the well-being of citizens.
Lack of Budget for Critical Services
The report also highlighted the lack of budget to cover the provision of some essential services, such as waste collection, street cleaning and social services. This situation has generated concern among users of these services and has highlighted the need for more rigorous budget planning.
The Reduction of the Treasury Remainder
The financial report also showed a significant decrease in the treasury remainder, which is the fund accumulated over the years. While in 2018 it amounted to 5,055,752.49 euros, in 2022 it had been reduced to 738,621.84 euros.
This reduction is attributed to the central government’s decision to allow the use of the remainder to cover current expenses during the pandemic. The Sant Feliu socialists consider that this decision has contributed to the decline of this fund.
Net Savings: A Key Indicator
Net savings is a crucial indicator to determine whether the City Council will be intervened. If net savings are negative on December 31, intervention will occur. In 2022, the net savings was 86,580.07 euros, well below the million euros that it had been since 2018.
The Evolution of Extrajudicial Recognitions of Credit
Extrajudicial recognition of credit (REC) are contracts that are processed through invoices. The use of REC has been the subject of debate among municipal political groups, with the PSC defending its illegality and Sant Feliu En Comú Podem and Esquerra Republicana arguing its legal validity.
The financial report shows a reduction in the number of RECs issued since 2021, as well as in their total amount. In the first half of 2023, the total amount of RECs amounted to 741,066.39 euros.
Projects Delayed Due to Lack of Budget
The financial report also revealed that several major projects have been delayed or canceled due to lack of budget. Among them are the rehabilitation of the Masia de la Salut and the creation of the Baix Llobregat Hotel and Tourism School.
The mayor, Lourdes Borrell, explained that these projects have been postponed due to the difficult economic situation and the need to prioritize other essential services for citizens.
Opposition Criticism
Following the presentation of the financial report, the leader of Sant Feliu En Comú Podem, Lídia Muñoz, criticized the act, calling it “political” rather than a mere presentation of data. Muñoz attributed this approach to the way the information was presented.
During Muñoz’s speech, some members of the public tried to silence her, which caused an uproar. Manel Martínez, party member and councilor, regretted the events and defended the validity and legality of the reports presented.
