Budget 2009

The 2009 budget for Xàbia is 16.50% higher than last year


The Town Hall yesterday approved the municipal budget for the year 2009. At nearly 41 million euros this is an increase of 16.50% over the previous year. The opposition voted against, arguing that the debt will leave the Council with no leeway, that insufficient effort had been made on savingsand that and that the spending does not take into account investments to stimulate the local economy.

66.7% of expenditure goes to personnel and the maintenance of municipal services. The Town Hall's budget for this year amounts to € 40,822,648.68, an increase in of 16.50%. Broadly speaking, expenditure on personnel continues to be a major part of the accounts, at 32.90%, amounting to € 13,440,908. This figure has increased over the previous year due to the increase of municipal workers (2%), seniority pay and contributions to the pension funds of officials and workers.

The running costs of maintaining municipal services is another major section of the municipal budget at € 13,964,666.07, (34.20% of the total), although it has decreased by 1.95% compared to 2008.

The other major expense of the Town Hall for 2009 appears in the section on real investment, which amounts to € 7,897,369.34, (19.30% of the total), corresponding mainly to three major projects: the habilitation of the new buildings for municipal dependancies ( 3.7 million euros), payment of the remainder for the works to remodel ring roads, car parks, roads in the Old Town and the new council building (1.2 million), and channeling of the Frechinal barranco ( 2.8 million euros)

It is hoped that these investments will be financed through the Instituto de Credito Oficial (ICO).

In relation tocurrent transfers, ie, money that the Town gives to sports and cultural associations by means of agreements, this section is up 6.87% (€ 1,991,650.67), despite having the average of the agreements with the various groupings reduced by 10%

As for the money that the Town Hall levies to meet these costs, the main source of income (49%) is Real Property Tax (IBI), which this year amounts to € 19,995,000 , an increase of 9.94%, due to an anticipation of new housing entering the tax bracket and an increase in the tax itself.

Construction as a source of municipal revenue has for a few years been following a downward trend. It represents only 1.2% of total revenues. (54,55% less than last year)

Through license fees the Town Hall will obtain 5,247,340.76 € and will receive € 6,299,000, from the State while an amount of € 100,000 will be received from the Valencia authorities for the financing of the Casa de Cultura. These three represent 30.6% of total revenues.

These amounts are independent of the money received from the State Investment Fund (EIF) and the local State Investment Plan of the Government.

Finally, another important source of municipal revenue are the ICO funds mentioned above, representing 18.90% of the total amount at € 7,720,807.92.

Within the general municipal accounts are the budgets of the Board of Music and Dance (682 thousand euros) and the municipal water company AMJASA (9.5 million). This extra 9.6 million euros raises the total municipal budget to more than 50 million, although these two bodies are supposed to be economically self-sufficient.

The departments of Tourism, Economic development and Social Services had seen a reduction in their allocations.

The Town's debt has tripled over the past two years from a debt of 339 Euros per person to 843 Euros per person.

Note: Last year the Agenda21 Forum was informed about the budget before its formal presentation to the Council. This year, no such briefing had taken place.

(Extracted from Xabia al Dia: El presupuesto de Xàbia....

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