The Nerja Council reports that it is now in excellent economic and financial health after posting its first positive cash balance for 18 years.
The Council apparently ended 2009 with a positive cash balance of €1.7 million. The payment of last year’s budget shows net savings of €3,470,000 and an adjusted budget of €9,734,000 according to Councillor José Miguel García.
The Council say that various austerity and other measures have put the municipality into a good financial position and that the payment of salaries, suppliers and other items will, as a result, be no problem.
The opposition PSOE, however, estimate the actual municipal debt to be in the region of €15 million and criticise the lack of support given to local businesses. The PSOE claim that many businesses have been slow to submit requests for payment and and a large number are struggling economically, particularly after having suffered a 6% tax increase.
The PSOE is also critical of an €8.5 million credit requested by the Council and the sale of the water company for almost €1,000 million.
In addition, they point out that the Council received almost €15 million from Medgroup for the construction of a golf course, money which Medgroup have been trying to recover, but no-one seems to know where that money has actually gone.
Businesses may be struggling and going under at an alarming rate, but at least there is the consolation of knowing that the politicians are OK. As always.