2011 Budget

Xàbia's 2011 Budget

The councillor for finance, Vicente Chorro, has presented the municipal budget for 2011 which will be approved at a council meeting on Thursday 27th January. It amounted to €37.4 million, a 2.68 % decrease on the previous year. According to the councillor the accounts are very similar to others from the legislature where cost containment has been the trend because the downturn in building means less income.


The 2011 budget contains two significant events. Firstly there is the dissolution of the he Board of Music and Dance, and its assimilation into the town hall. Now, instead of assigning a subvention, (€400,000 in 2010) and presenting the accounts separately, they are integrated into the municipal budget. Secondly there is the expenditure and revenue expected from the direct management of the underground car parks in the Old Town. These were taken over at a value of €13.3 million and contribute to the increase in interest payments (37.6 % more than in the previous exercise (at €1.6 million).

The councillor nevertheless said that the municipal finances are sufficiently healthy to deal with the debt. The town wall is not generating a deficit and its financial capacity is strong. The councillor reaffirmed that by the end of this year we could, if we wish, become indebted by a further €4 million, and by €12 million more in 2012.

He also noted that they had already paid €3 million in compensation for the expropriation of land in Capsades (resolving a dispute going back many years) and this was why the spending on real investments was down by 51.51%, despite the €1,192,338.56 to be paid this year for the car parks rescue.

Salaries still comprise a significant proportion of the budget at 37%, an increase of 0.42% over last year, despite an obligatory 5% cut in salaries. This was due to the absorption of the Board of Music and Dance and the payment of Music Conservatoire teachers' salaries.

The amount donated to NGOs has decreased to 0.1% of the budget (previously it was 0.86) and is limited to €35,000 for the improvement of housing in Sao Felipe (Cape Verde) which is connected to Xàbia through its twinned town, the Portuguese town of Palmela.

Expenditure for Municipal and social services has seen an increase of 4.32%. Although each department has cut its expenditure slightly, the increase is due to foreseen expenditure for the Music Conservatoire (€38,600) and the cost of collecting fines (now managed by SUMA - €78,000)

In relation to subventions and grants, these have gone down by 17.45% to a figure of €1,679,017.19. The decrease is partially due to the removal of the grant for the Board of Music and Dance (€433,265.75 in 2010). However, most significantly, the amount for social assistance has gone up from €150,000 to €237,076, an increase of around 60%. This heading also includes monies paid to CREAMA (€138,791), MACMA (€17,464.64), The provincial fire consortium (€187,351) the regional Sports consortium (€7,500) the Casa Mediterranea (€200,000) and the Marina Alta consortium for Waste (€12,000) and a sum of €12,000 which will be paid to Benitatxell, so that Javea residents can swim in their covered municipal pool at reduced rates. Also this year, €10,000 more will be given to UNED to reach a total of €83,000. " this is to facilitate access to university education for a growing number of students" this has increased in popularity with the launch of UNED senior.

In contrast the contribution for fiestas has decreased from between €1.5 million and €2 million in previous years, to €600,000 (€1 million with subsequent adjustments).

The finance councillor also noted that the budget allocation for the department of culture had increased because of €100,000 which was for the archaeological excavation of the Barranc del Migdia.


As for income, 62 % of that expected will be from rates (at €23.5 million). The councillor apologised that the last reduction in rates was not more substantial but this would offset a €700,000 reduction in the subvention obtained from the state. Xàbia would only be receiving €5.6 million from the State.

Revenues from indirect taxes such as building permits are estimated to be about €300,000 (0.8% of total revenues), continuing the downward trend of recent years.

Another important income heading is "Fees and other income" (15.8%), which includes most of the proceeds from the rubbish collection tax. There will be income from more houses on the registry (because they will have received their certificates of habitation) as well as an expected €100,000 for traffic fines which are the result of a new agreement with SUMA which is now administering the collection of fines.

Also the Urban car parks which were recently purchased, will be a source of revenue through the collection of charges. Lastly under the Heading of "Income from property" is €821,786 which is 6.04% more than last year due to an expected increase in the use of concessions on the beach. And the sale of land in Rafalet at will amount to €1,192,338.56 which will go towards the purchase of the Car Parks.

AMJASA, the municipal water company, presented its budget separately from the town hall and included all its staff and running costs, targeting €718,500 to be allocated to investments.

From XAD: El Edil de Hacienda.... and Las Provincias: Los presupuestos de Xàbia....

Summary of Budget

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