Why didn’t we support the current government’s budgets?
ERC, last February 1, voted against the approval of the 2024 budget at the Sant Celoni City Council. In this opinion piece, the republican councillor, Fernanda Crovara, explains the reasons why this political formation decided to vote against it. Below, we detail the arguments in six points:
1. Budget increase without clear justification
The actual budgets of the last years of this council were around 22 million, but this year it has risen to 27 million without adequate justification or reasonable explanation. This unexplained increase is cause for concern.
2. Dependence on uncertain income
In this budget, a series of extraordinary revenues are estimated from collections derived from real estate developments and increases in transfers from the State. These revenues are intended to cover ordinary expenses in all areas of the City Council. However, the lack of these revenues could completely destabilize municipal finances, putting the City Council in a precarious situation that could require the approval of a budget adjustment plan.
3. Risk of speculative capital gains
The consideration of a capital gain for the sale of a municipal asset, such as Altrium, without taking into account the associated risk, the possibility that the actual sale price will be much lower than expected, especially if the seller is Sareb , thus generating a negative financial situation for the city council.
4. Increase in indebtedness without justification
After evaluating the planned investments, a total of 4.3 million euros is expected, of which 3.7 million will be financed through bank loans, approximately 700 thousand euros through grants, and no amount through own funds. Increasing the debt ratio from 43.53% to 56.59% without any significant work (since the 500,000 euros earmarked for the swimming pool comes from subsidies from the Provincial Council) does not seem reasonable. Within the investment annexes, an expenditure of 8,335,000 euros is planned for 2025. If you are currently considering applying for a loan to cover almost all of the investments for this year, how do you plan to manage it this year coming? Will they apply for double the loans, leaving the council in a very vulnerable financial position? It is important to note that the approval of this budget will take us to a debt ratio of 56.59%. If this ratio reaches 75%, the municipality will be intervened and will not be able to make any other investment until all the debt is paid. Currently, the presented budgets lead us towards this situation.
5. Suspension of important projects
The works outside the Puigdollers, a project of the Left, have been paralyzed by the new government team. This project not only aimed to improve the exterior appearance and repair the wall which is in poor condition, but also included the construction of a children’s playground. Unfortunately, due to the actions of the new government team, this project has been put on hold.
6. Lack of innovation and continuity in ideas
They ask us why we haven’t come up with new ideas. The truth is that many of our proposals are already underway, as we were part of the previous government. Although there is a Youth Council, so far we have not seen any investment in social housing for young people or in the creation of a youth centre. The initiatives that are being developed are the same as those started in the past, with the difference that they were previously managed from the areas of Economic Promotion or Social Affairs. We would have liked to support the current budgets, but we cannot be complicit in these actions of the new government.