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At year-end, outstanding debt was 13 million euros, 84 million less than in June 2015

Benidorm reduces its debt by 4.3 million in 2020 and reinvests savings in more aid and in unique projects

20 April 2021
Benidorm reduïx en 2020 el deute en 4,3 milions i reinvertix l'estalvi en més ajudes i en projectes singulars...

Benidorm City Council reduced its outstanding debt by 4.3 million euros in 2020 and also achieved savings of 12.8 million, according to the figures transferred today by the mayor, Toni Pérez, and which appear in the settlement of the municipal budget made by the technicians of the Economic department. The mayor stressed that this reduction in debt and this savings have also been obtained in a year marked by the pandemic and in which the City Council “has mobilized many resources to help the homes that are experiencing the worst and the tissue productive of the city ”. Specifically, "14 million euros in 12 months".

The mayor has reported that, as he already anticipated weeks ago, practically half of this savings will be used to increase aid to families and the productive fabric against Covid-19; Items that each add up to 3 million euros.

Likewise, as advanced today, "just over 5 million euros of that savings achieved in 2020" will be used to finance the part that corresponds to the City Council in unique projects that have subsidies from European funds, such as "those included in the EDUSI or those of energetic sustainability co-financed by the Institute for the Diversification and Saving of the Energy (IDAE) ”. Toni Pérez explained that "in order not to lose those European funds that have been so hard to achieve, it is essential that the City Council comply and contribute the money that corresponds to it."

As the mayor recalled, "the 2021 budget included investments amounting to 15 million euros to be financed with bank loans." However, "of that amount, more than 5 million euros will be contributed from the savings obtained and not through loans."

The proposal to allocate the savings for 2020 to aid and unique projects, which will be voted on Monday in plenary session, "includes a new investment" for 2021: "renew the catenary of the Paseo de Levante", which has already accumulated "30 years old "And that" it has been fading little by little. As the mayor has detailed, this action plans to "renew the entire technological system" of this lighting and will entail "a reduction in consumption" and "an improvement in the image" of the first line of Levante.

In addition, it is a project "highly demanded by residents", even within the Participatory Budget, and which is also included in the Tourism Sustainability Plans 2020-2023, which reach 2.9 million, for which the City Council has received a grant of 1.9.

Toni Pérez has clarified that this action, valued at 2,050,000 euros, corresponds "to a first phase" and will be financed through a loan, which the City Council can request thanks to "the good economic management" made by the City Council both in this legislature and in the previous one.

In fact, "from June 15, 2015 to December 31, 2020, the municipal debt has been reduced by 84 million euros," from 97,072,000 to 13,020,000 euros. Thus, while 5 years ago the debt per inhabitant was 1,406 euros, at the end of 2020 it was 185 euros.

The mayor has promised that "at the end of the legislature, and although now we can request loans, the bank debt will be below those 13 million euros with which we close 2020".

Rising in aid

The initial document of the municipal budget for 2021 contemplated, within “expandable” items, allocating 2.5 million euros to aid to families against Covid-19, and the same amount to aid to the self-employed and companies. Once the savings for 2020 have been recorded, both increase their financial endowment by 3 million euros, thus reaching 5.5 million each. In addition, the economic resources of the Department of Social Welfare grow by 100,000 euros.

EDUSI projects

Among the unique projects to which 5 million euros from last year's savings will be allocated, are, among others, the youth hostel and interpretation center of the Parque de la Séquia Mare; the creation of the El Moralet Green Circuit; or the rehabilitation and generation of new spaces around the Plaza de Toros to house the central library, a hotel for associations and a large youth center. All these projects have an execution period of several years and are included in the Sustainable and Inclusive Urban Development Strategy (EDUSI).

Also, among these unique projects, is the installation of photovoltaic panels in buildings and municipal facilities, or the improvement of energy efficiency in more than 50% of the lighting in Benidorm. Both projects, also multi-year, are co-financed by IDAE.