The Güímar City Council is currently operating under an Economic and Financial Plan due to exceeding the expenditure limit by over three million euros. This situation arises despite a budget surplus (post-adjustments) of €5,570,106, coupled with a treasury balance for general expenses of €15,285,284, a financing capacity of €8,116,546, and no public debt, as reported by the local government.
The mayor, Gustavo Pérez (CC), states that these figures “indicate the City Council is in good standing” and “we are poised to face the future optimistically, with assurance.” He asserts that entering a financial economic plan is a necessity that many municipalities will inevitably encounter. “What would be worrisome is having debts without any reserves.”
Implementing the Plan
José Miguel Hernández, councillor in charge of economy and finance, among other responsibilities, addressed this issue during the last ordinary plenary session.
In response to a query from the opposition party, the mayor from the PSOE revealed this circumstance, clarifying that the City Council would not be able to establish the municipal commercial company due to the obligation to enforce the economic and financial plan.
The memory and public society statutes received backing from the local government (CC, PSOE, and USP) with opposition abstaining (PP and NC) during the plenary held last June.
José Miguel Hernández detailed the steps taken to establish the so-called Güímar Public Company SA, until the notary denied its formation based on an opposing legal report prepared by the secretary of the Consistory.
Creation Not Feasible
During his plenary presentation, Hernández Fernández asserted that the report “contradicts” the opinions put forth by the technicians involved in the establishment process, stating that it “provides no legal argument against the procedure undertaken” and that its “rationale” lies with the intervention, which had approved the operation.
This situation necessitated the process to advance with the secretary engaged in it, and the delay now renders creation impossible, given that the economic and financial plan’s validity extends for two years according to the Ministry of Finance’s municipal guidelines. The secretary exited the plenary during José Miguel Hernández’s address.
The mayor clarified that “There is no Misallocation; the funds approved in this plenary session have been allocated properly,” although he attributes the violation of the spending rule to investments in property acquisitions.
