During the last regular full month of September held at the City of Moratalla, the PP government team approved municipal debt increased by about another 2.5 million euros, 5.5 added to the previous year approved through several concepts.
And among one of the points of the agenda adopted by the PP's absolute majority is the point concerning the ACCESSION TO THE SETTLEMENT MEASURES CONTAINED IN TITLE II OF LAW RD 8/2013 of 28 June, URGENT MEASURES AGAINST THE DELINQUENCY OF PUBLIC ADMINISTRATION AND SUPPORT LOCAL AUTHORITIES TO FINANCIAL PROBLEMS.
Or to put it more clearly: the Ministry of Finance of the Government of Rajoy will advance an amount of 1.5 million euros to the municipality on account of income should receive throughout the year 2014 from the state.
One-time and during the first quarter of next year, the PP government team advance in Moratalla have that amount of money, which otherwise would receive throughout the year, allowing reintegrate them over the next 3 years on a monthly basis at the rate of legal interest, such interest by paying annually.
That is, further increasing the running costs which it is required to pay each month and for years in exchange for short-term money, while adding to the amount owed amount and total pay more and more interest.
This, it can be a solution to a specific problem of illiquidity, joins other extraordinary measures as are already the two payment plans approved suppliers, and they will go playing an increasing role as a local finance slab , especially from January 2014 to start when amortized capital aside to pay interest (just the capital grace period of the first payment to suppliers).
But with regard to this point, no one believes that this advance payment of the Central Government itself Rajoy will come out for free, because in addition to the associated interest involves a series of conditions that could qualify as authentic economic intervention.
We had to recount for your understanding and clarification:
1st.
Reduce, by at least 5% of their operating costs under Chapters 1 and 2 of the statement of expenditure in the first financial year in which it may apply such measures and not increase in the next two years:
That is, you will have to reduce by 5% between staff costs and running costs, which in total and according to the 2013 budget totaling: 3170446.43 + 2.20.482,20 = 5430928, 63 euros.
They will have to reduce an amount of 271,546.43 euros annually, about one monthly payroll of all employees of the entity.
And if as I have said more than once and it is clear, the operating costs and is very difficult to reduce due to previous cuts on them, will they return to lower the wages to the workers?
Are they going to start cutting staff?
2nd.
Fully fund the cost of public services through the application of fees and charges to the following limits:
a) First year: the fees and charges must finance at least 50% of cost for public service.
b) Second year: finance at least 75% of cost for public service.
c) Third, to finance the entire cost of the corresponding public service.
That is, they are going to be families using those services who end up paying for them in full.
How many families of this county will be able to afford it?
Goodbye municipal nursery?
Goodbye music school?
Goodbye day center? ...
3rd.
Tax ordinances must meet the following requirements:
- They can not remove any of the taxes that come demanding for the local entity during the year 2013.
Goodbye any chance of rebate or tax exemption.
- One may adopt measures defining an increase of the total amount of contributions from each local tax.
That is, lower taxes, but leave the door open to new highs another.
- There may apply reduced rates ...
This means goodbye to tax exemptions, reductions of social in taxes and fees, etc..
- Must be approved for each year in which these measures are applicable, tax rates in the Property Tax (IBI) to ensure, at least, maintaining the overall amount of tax payable for the previous year.
Put another way, that as fall collection of the contribution for example, by increasing the tax unpaid, will recur further increases to be paid by the rest of the families in the town.
4th.
During the validity of these measures, municipalities, directly or indirectly, may not acquire, establish or participate in the creation of new agencies, partnerships, trusts, foundations or any other agency or entity.
Limit the maneuverability of the council to promote new tools that allow us to try to promote economic and social activity in the town.
5th.
In the event that the budgets are not approved shall be deemed extended the immediately preceding fiscal year.
6th.
In the event that a budget previously exisitendo extended plenary Local Corporation does not approve the budget for the fiscal year immediately following it shall be submitted to the Local Government Board, who shall have the authority for approval.
This is a real democratic attack the town, the limit and reduce the powers of the plenary, the highest political body representing the moratalleras moratalleros and the approval of the law most important and that the other conditions, such as the approval of the budgets a year (or next if extending).
7th.
The municipalities which have a level of debt that can be offset by deductions for participation in State taxes and exceed their non-interest income, net of liquidation of the financial year 2012 pesupuesto and municipalities to conclude lending operations to finance negative cash remaining for general expenses, must be submitted to binding prior report of the Ministry of Finance and Public Administration approval of municipal budgets.
Put another way, this is already a de facto intervention by the Central Government, to be binding prior approval by the Ministry of Finance, who will have the first word.
8th.
Borrowing operations to be signed within the framework of Title II of Royal Decree-Law may not be granted or guaranteed by public entities in the state sector.
Goodbye to any subsidiary financial support from the Central Government.
9th.
Prior to December 31, 2013, shall apply to the General Directorate of Land Registry, its inclusion as a priority in the cadastral regularization under the third additional provision of the Revised Text of the Law on Real Estate Cadastre.
To this end, shall accompany the application for any information available property or alterations unincorporated characteristics Cadastre.
Again he will do a review cadastral municipality with tax collection effort, not full compliance agreements previously approved even by the government team of PP, referring to the motion presented by the PSOE in Moratalla which requested a review of assessed values ​​down and matching market prices, and you can read here: CATASTRALES REVIEW OF SECURITIES IN THE MUNICIPALITY OF MORATALLA.
So much is the level of economic intervention on the council to:
- The amounts resulting from the application of the measures referred to in this article shall be paid into a bank account owned by the municipality of restricted use must be authorized, proposed by the municipality, by the General Secretariat of Regional and Local Coordination, Ministry of Finance and Public Administration
This authorization will be individualized and determined, among other things, the conditions of use of this account, specify the payments due under the same and have the control and reporting obligations of the credit institution.
Said General Secretariat Regional and Local Coordination will have access to the aforementioned bank account and, for good cause and after notifying the municipality, may order the lock.
Both banks, when the Ministry of Finance and Administrations request, as the treasury of the municipality, quarterly, sent to the Ministry of Finance and Public Administration
the detail of the movements produced in the aforementioned bank account.
THAT IS, THAT WITH ALL ARGUMENTS IN THE HIGHLIGHTS OF THESE REQUIREMENTS, WE CAN SAY THAT THE CENTRAL GOVERNMENT BEGINS TO INTERVENE MORATALLA ECONOMICALLY TO CITY HALL.
THIS WILL? BEFORE, YOU HAVE TO SAY THE POPULAR PARTY MORATALLA?
Will they continue to borrow A RATE OF 4 MILLION A YEAR, AS IS THESE TWO HAVE DONE THIS PAST YEAR TERM?
Source: PSOE Moratalla