Portal de Lorca
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Economics Councilman City of Lorca, Antonio Ibarra, today revealed that the total debt of the municipality and autonomous agencies, institutes and local companies "amounts finally to a total of 105.2 million euros."
The head of the municipal treasury has indicated that "this information means that each Lorca would have to pay almost 200,000 pesetas (1,200 €) to deal with the real situation of bankruptcy that is upon us."
The mayor of Economy has detailed the "totality of bank debt at the consolidated level is 65 million euros.
If we add to that debt which is due to suppliers, whose economic pillar stands at 40.2 million euros, total debt amounted to EUR 105.2 million mentioned above.
This figure includes the deficit in council and government, autonomous bodies, institutes and municipal enterprises.
The debt to financial institutions is another poisoned gift more and Lorca is that we will have to pay every day of the year, including Saturdays, Sundays and holidays, more than 2 million pesetas a day (€ 13,105) from 1 January 2009. "
Alderman of Economic Affairs has stated that one of the main reasons that led the City Council fired its debt to the radical extremes today was the fact that "the previous administration spent 31 million euros more in the last year power.
Also left to raise 161.3 million euros in the last 3 years of the previous term due to lack of management.
This is nonsense, because a city like Lorca can not afford to stop the entry to many millions of euros to the local police to have more streets, more modern, comfortable and secure, improve traffic, or give our parishes better services. "
Antonio Ibarra has brought to light, moreover, that "in anticipation of a detail of the lack of institutional loyalty that is boasting the PSOE, we have to report that with dates of 5 and 8 June 2007, ie after losing election and before taking office the new government team, the PSOE contracted two loans for a total of 13.14 million euros (6.5 and 6.64 million respectively). "
Drainage Plan will maintain the investment and money spent on social benefits
Economy Councilman anticipated, in relation to sanitation plan that the City must implement by law, that "this Plan, also serve to reduce debt in line with cost containment measures it envisages will to enable the city council get better manage our tax money to maintain investments and improve the services we provide to citizens, with the unshakable premise that keep the money we spend on social spending. "
Ibarra said that among the measures included in the sanitation plan is "the more realistic projection of revenue, developing budgets adjusted to reality, and an improvement in the management and collection procedures to avoid being left without charge receivables and recognized.
On the expenditure going to streamline and control costs and manage the purchase of goods and services, enhancing competition between suppliers to get cheaper deals. "
The mayor of the Economy has reported that to monitor and review the implementation of the measures of the recovery plan, we will set up a monitoring body of the plan that will cost one euro to the City, and that will be formed Consistory for 4 technicians and even the City Council.
This body will issue quarterly reports and propose corrective measures. "
Over expenditure that has the Town Hall, Ibarra said that "of 100 euros to be raised in staff costs are going 33.75, in running costs (electricity, water, telephone ...) 34.1 euros, and 6.36 banks.
These costs are almost irreducible, so are 25 euros to cover the inherited deficit and to invest in improvements and investments.
Therefore we subtracted a section in which we can hold the debt, and with the banks.
Therefore we will keep the debt continues to grow, with a gradual reduction of it, to enhance and improve the services we provide to citizens. "
Source: Ayuntamiento de Lorca
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