The report from the Canary Islands Municipal Financing Fund confirms the worsening of the financial health of the Mogán City Council
The municipal auditor confirms in a report that Mogán is experiencing budget instability
In the plenary session held on the morning of last Friday, March 3, the mayor of Mogán, Onalia Bueno, submitted for plenary consideration the knowledge of the liquidation of the budget of the Mogán City Council corresponding to the 2022 financial year.
This file is mandatory for all City Councils to process at the close of each budget year, as it shows the state of the public accounts.
In this file, the municipal auditor emphasizes three fundamental data: on the one hand, he highlights that, despite the fact that the remaining liquid treasury has a positive balance of 50 million euros, more than 28 million are committed, and another 13 are destined to cover collections pending receipt, which means that the Mogán City Council only has about 9 million euros, freely available, to finance general expenses. That is to say, Mogán only has 9 million euros to finance unforeseen expenses, which in turn implies a great weakening of its financial capacity.
On the other hand, the auditor indicates that Mogán's debt goes from 1,02% to 35,93%, or in other words it increases by 16,7 million euros, as well as that Mogán enters into budgetary instability upon reaching a deficit of 9,1 million euros, meaning that the government group led by Onalia Bueno has spent more than it has earned.
It should also be noted that the 2022 budget liquidation file shows how only 59% of the planned investment expenditure has been executed, and that despite the needs of the municipality's population, there has been excess in the Services budget. Social around €600.000.
What was expressed by the municipal auditor in his budget settlement report was already advanced by the Canary Fund for municipal financing by confirming that the financial health of the Mogán City Council has worsened.
This was confirmed by two indicators, on the one hand, net savings, which plummeted to -6,6%, 12,6% percentage points below the required level, and the negative evolution of the remaining treasury, falling by 25,8 percentage points. .
Both indicators show that the economic capacity of the City Council has been reduced, losing in turn its capacity for economic action to finance public services and meet neighborhood demands. Likewise, all this translates into a decrease in the real capacity of the Corporation to meet its financial structure.
The consequence of this weakness is that the Mogan City Council must allocate 50% of the money from the Canary Islands municipal financing fund to sanitation, that is, to reduce the debt, and not to investment.
This poor economic management, which Nueva Canarias (NC) has warned about budget year after budget year, was recognized a year ago, before the municipal plenary session, by Onalia Bueno when explaining that “we all have to continue making an effort,” since The Moganero council has a lot to pay. This reality has its most immediate effect in the reduction of items in the 2023 budget. This budget has €0,00 in public investments, the support item for SMEs is reduced, the item for employment plans is reduced, reduces tourism and culture, all to compensate for the budget deficit incurred by the Mogán City Council.
Par NC, this mismanagement by the Onalia Bueno government is once again paid for by the residents of Mogán, as they balance the accounts at the expense of cutting public services.
