A change of economic direction surprises the political forces
The economic stability of the Sant Feliu City Council has been a contested issue between the different political forces in the council. At the end of 2023, the current government called a Public Hearing to present the economic situation of the City Council for the year 2023. A situation described as complex with the possibility of intervention by the state administration. From the PSC government, TTSF and VxSF attributed the situation to the management of the former government, causing unrest among the representative groups of the former local government. Recently, in March 2024, the 2023 liquidation report was published which announces that the City Council will finally not be intervened, as its economic health is positive.
An amazing report on savings and financing capacity
The report of the comptroller of Sant Feliu de Llobregat City Council on the liquidation of the 2023 financial year shows a change with respect to the forecasts presented during the public hearing in November. Highlights the net current savings with adjustments of €259,555.17, compared to €86,580.07 in 2022. This figure avoids the risk situation that would require a restructuring plan. In addition, the treasury balance has increased significantly, reporting a better capacity of the administration to meet its short-term obligations.
Outstanding debts that worry despite good results
The report does not include the debt of more than 1 million in waste and road cleaning, due to price reviews and credit modifications during the last months of 2023 and the first of 2024. However, it highlights the financing capacity that respects the objectives set by law, although there are non-compliances in terms of payment to suppliers, especially by RECS.
Factors that have influenced the predictions of the economic situation
The general economic circumstances of 2023, such as rising interest rates and the energy crisis, affected the economic predictions of the City Council. The cost containment strategy has been key to reversing these negative predictions.
In summary, the economic situation of the Sant Feliu de Llobregat City Council has surprised the local political forces with unexpected results. Although positive changes in savings and financing capacity have been shown, there are still outstanding debts and defaults in payment terms to suppliers. The general economic context has influenced this situation, requiring expenditure containment measures to reverse the negative forecasts.
