The Chamber of Faro paid this Monday, May 15th, 4,94 million euros for the total repayment of the loan taken out under the Financial Rebalancing Plan (PRF). The municipality says that the day is "historic" as it allows "recovering the lost autonomy" and the progress of the works of the Faro Requalify II and III.
This advance payment makes the Chamber of Faro be the first to free itself “from this mechanism created to allow municipalities with excessive indebtedness to recover their balance and meet their commitments”.
The PRF had an expected duration of 20 years and was paid in six. «From now on, the City Council will be able to decide autonomously on various matters of its management, namely the setting of municipal tax rates such as IMI, IMT or spills», says the municipality.
With the departure of the PRF, the municipality is no longer obliged to request authorization to carry out the works included in the budget. In 2016, the Government vetoed the municipality's intention to invest 3,46 million in works.
In November 2010, the Financial Rebalancing Plan was approved by the Municipal Assembly, which was approved by the Government on May 18, 2011, authorizing the Municipality to enter into a financing contract with a banking entity (BPI) for a total amount up to 48 million euros.
At the time, «the municipality was no longer able to meet its financial commitments, and the salaries of its employees were at risk».
Then, the debt was fixed at 72 million and payment terms "were so high (380 days) that the municipality often received the most forceful repairs and penalties from the Government and entities that oversee financial management", he considers this executive.
Today, according to information provided by the Chamber, “the total debt is at a healthy level (32,05 million euros), well below the average annual revenue, and payment terms are already below 60 days, a circumstance that Faro I hadn't known for more than ten years».
As a result, municipal taxes were almost all at their maximum rates since 2008, with only a small relief in the IMI, by half a percentage point, in 2017 - through an optional mechanism for municipalities in the process of reorganization or rebalancing, which Faro triggered and which was exceptionally enshrined in this year's State Budget.
According to the Chamber of Faro, "due to the prerogatives of the PRF and the Plan for Supporting the Local Economy - PAEL (contracted in 2014 and also already fully amortized through financing on more favorable terms), which forced a slimming down of the municipal structure and the cut of various expenses superfluous, the city council is more agile and its operation also costs much less to the citizens».
On the other hand, the increase in revenue, «a result mainly of the improvement in the general economic environment, allowed the municipality to greatly increase its revenue, recovering liquidity and investment capacity», concludes the note sent to the newsrooms.
Works "unblocked" with the exit of the PRF:
Faro Requalify II:
Hayward City Avenue
Reforestation of the Athletics Track Field
Landing of the Horta da Areia Field
Streets surrounding the EB1 of Alto Rhodes
Streets in Montenegro
Lethes Theater Whitewashing
Estrada da Senhora da Saúde and Rua António Belchior Júnior
Bela Salema Road (Mata Lobos to EN2)
Mill Road (Patação / Braciais)
Gorjões Road
Completion of Rua Feria Pavão and Estrada Emissora Regional do Algarve
Church Square in Montenegro
Remodeling of Playgrounds
Program Faro Requalifies III (Planned Interventions - 2017 and 2018):
Acquisition of housing for Social Housing
Requalification of the Sporting Field of Montenegro,
Construction of the Conceição Polysports,
Construction of Official Municipal Collection Center (kennel / cattery),
Requalification of Playgrounds,
Remodeling of changing rooms on sports fields,
Construction of the Mortuary House in Conceição de Faro,
Construction of 3 pre-school classrooms at EB 1 do Bom João,
Renovation of Rua do Reitor Teixeira Guedes,
Redevelopment of the Centenários neighborhood
Rehabilitation of Largo de São Pedro,
Rehabilitation of Travessa do Alto,
Repairs on EB1 in Penha, EB1 in Estoi, EB1 in Santa Bárbara de Nexe, EB1 in Conceição, EB1 in Areal Gordo and EB1 in Praia de Faro,
Repaving of the 4194 Rural Path (Falfosa Road / Parque das Cidades),
Repaving Streets in Montenegro,
Repaving Streets in Estoi,
Fire Brigade Sapadores Headquarters (preparation of execution project),
Construction of the Cultural Center of Bordeira, (preparation of an execution project),
Requalification of Alameda João de Deus (preparation of an execution project),
Requalification of the “Mata do Liceu” (preparation of an execution project),
Construction of the 7th Football Field in Penha, (preparation of an execution project).
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