The Chamber of Faro it lowered liabilities, ended 2016 without any short-term debt and reduced payment terms last year. The municipality made a preliminary assessment of the previous year, after the first financial and economic data were known, claiming that the municipality is under the «sign of recovery» after its performance in 2016.
According to the municipality of Faro, the medium and long-term debt "was the lowest in the last ten years: 33.424.931,35 euros". Taking into account that at the end of 2015, these charges stood at 39,8 million euros and in 2014 amounted to 44,4 million euros, «in the last two years, it was possible to reduce a total of approximately 11 from medium and long-term debt. millions, which owes much to the effort and understanding of the Farenses, to whom the local authority gives fair recognition».
The autarchy also guaranteed "the inexistence of short-term debt to third parties", one of the problems that led the Chamber of Faro to approve a Financial Rebalancing Plan in 2010. On the other hand, «the average period of payments decreased from 71 to around 60 days, the days when the Municipality paid more than 300 days seem far away».
«Also well known is the data regarding the revenue execution rate, which, this time, was above 100%, having been set at 101,86%. This is a historically high value, in a Municipality where the provisional documents rarely expressed rigor and adherence to reality», added the Chamber.
And if the “machine” of the local authority seems to be, finally, well “oiled”, the economy is also behaving “in a very positive way, showing clear signs of growth”.
«Assessing the behavior of the Municipal Tax on Onerous Property Transactions (IMT), there is a growth of about 44% compared to 2015. Thus, in 2016 the Municipality collected 4.734.842,06 euros, against 3,3 million calculated in 2015. This is an indicator of the recovery of the council's real estate sector, which, for years, showed stagnation or anemic growth. In this circumstance, the urban regeneration operations, of municipal and private initiative, which we have witnessed in recent years, cannot be disconnected from this register. These allowed to qualify the public space and further enhance the rich buildings of the county, contributing to the climate of economic unwind that is currently seen in Faro», considered the Chamber of Faro.
The municipality also highlighted the performance of the general spill rate, which in 2016 was «up by 73%» compared to the previous year. "With this municipal tax, which is levied on the taxable income of legal persons, the municipality collected 2.085.451,86 euros in 2016. In 2015 this rate will allow it to collect about 1,2 million euros," he stated.
«These data, although provisional, are a clear sign that the economic and financial policy that has been followed, not only in the year now ended, but since 2009, has been the most adequate. After a necessarily harsh therapy, which was substantiated in the Financial Rebalancing Plan approved in 2010 to rescue the city from the shadows and the giant debt that seemed insurmountable, a realistic but ambitious policy of recovering the authority's credibility was followed; to improve its operability and, for two years, to invest in the municipality's notoriety and attractiveness and in the enhancement of public space. The results seem to be in sight», considers the mayor of Faro Rogerio Cod.
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