The Chamber of Faro passed the year «with no delays in payments to suppliers, nor late payments», something that «is a novelty in 10 years of municipal management», announced the municipality.
In addition to finally being able to assume the status of “good payer”, the city council also achieved a substantial reduction in the total debt. In the last year alone, a reduction in liabilities of close to 9 million euros was achieved.
Taking stock of the last financial years, the municipality's debts fell from 71,7 million euros in 2010 to 43,8 million at the end of 2015, which means a "39 percent reduction in five years".
The city of Faro has been subject to a profound financial restructuring, which led to several adjustments to reduce expenses, which included a reduction in the number of local authorities, renegotiation of contracts and the extinction of part of the existing municipal companies.
In between, the Chamber of Faro resorted to the Support Plan for Local Authorities (PAEL), under which he took out a loan of nearly 17 million euros, which, with the 5,7 million he borrowed from the bank, served to clear all overdue debts, more than 90 days old.
All of this helped what had long been a goal assumed by the municipal executive: always pay on time. «This reality allows the Chamber to finally be able to assume, with full right, the status of a credible partner with its suppliers, council associations and banking entities. Effectively, today, everyone recognizes that the Chamber of Faro he is a good person, a creditor of all trust, and this is reflected in the prices charged by his partners and in the fulfillment of the deadlines for the execution of the contracts signed with them", stressed the Chamber of Faro, in a press release.
As for the municipality's accounts, in addition to the debt reduction, there was also "a historically high budget execution rate".
“In terms of total revenue, in 2015, it reached 40,17 million euros, which is equivalent to a budget execution rate of 98,80 percent. In the years 2014 and 2010, the execution rate was 88,19 percent and 34,33 percent respectively. This is relevant data because it allows us to see that today, the Municipality's budget is a credible and transparent forecast document», according to the Chamber.
On the expenditure side, more than 34 million euros were executed, "corresponding to an execution rate of 85,39 percent". In 2010, this rate “stood at 32,70 percent”.
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