City Council approves a loan to allocate 31 million to neighborhoods, schools, cleaning and parks
The Local Government Board of Seville has awarded the credit operation, provided for in the municipal budget and approved in the Plenary, which entails 31.3 million euros in investments for schools, public transport, cleaning, improvement of neighborhoods, parks and gardens or sports facilities.
As announced by the mayor of Seville, Juan Espadas, at the time, “the high rate of amortization and the strategy carried out in this mandate allow the City Council’s total debt to continue to be reduced and, at this time, forecast to be at 312 million euros at the end of the year, which is the lowest figure in the last 12 years. “
As reported by the Consistory in a statement, the general budget of the City of Seville for 2018 links 31.2 million euros in investments to this credit operation following the same model that was already executed in 2017.
Thus, with the operation approved this Friday are activated, among other measures, nine million euros for investment in neighborhoods of the Management of Urbanism, more than 800,000 euros for parks and gardens, 1.5 million euros in investments of Lipasam or more than three million euros for schools and municipal buildings.
These resources, moreover, are not strictly linked to the end of the year, so the investments can be executed throughout this year and the next without it being necessary to re-enter them in the budget, as he points out.
“It is an important agreement to continue advancing in the objective of improving public services that are provided to the public and respond to the demands of the population, it is a measure foreseen in the budgets, and that has been planned from the maximum rigor, efficiency and guarantee of budget stability “, explains the delegate of Finance and Public Administration, Joaquín Castillo.
In this sense, the City Council reaches this agreement in a situation of “financial consolidation and balance” and with a debt planning that places the city “with some of the lowest indebtedness rates per inhabitant of the country and with the most under the last decade. “
Thus, 2017 closed with a debt of 325 million euros, which meant a reduction of 80 million euros compared to June 2015, the beginning of the mandate. The forecast for 2018, including the credit operation approved this Friday, is to close the year with a debt of 312.2 million euros, which will have reached a new reduction of 13 million euros.
“The importance of this figure is reflected in the evolution of recent years.In 2008 the outstanding debt amounted to 420 million euros, a figure that was rising progressively to reach its highest level in 2012 with 485 million euros Since then, there has been a particularly pronounced decline in 2015 and 2016, “he explains.
It adds that this situation of consolidation and budgetary balance has allowed precisely that the public offer launched by the City Council to close the credit operation has received a total of 12 offers that reach 217.7 million euros, compared to 31.2 million of euros that were requested.
AN AVERAGE CREDIT COST OF 0.56%
Among these offers have been selected two, those offered by Caja Rural del Sur for an amount of ten million euros at a fixed interest rate of 0.50 during the amortization period and, on the other hand, that of Bankia, for an amount of 21.3 million euros with a fixed interest rate of 0.60.
This means an average credit cost of 0.56 percent, “well below the current market rates and better conditions than those achieved in recent years by the main administrations of the country.”
“We have managed with an efficient management and with a rigorous work to make compatible the reduction of the indebtedness of Seville, that in these moments is very low, with the development of formulas that allow the execution of the necessary investments for the city”, explains the delegate.