Debt-free council can invest more in job creation

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The Adeje councillor for good government and finance, Epifanio Díaz Hernández, accompanied by councillors Adolfo Alonso Ferrera and Andrés Pérez Ramos, presented the council’s budget estimates for 2017. The data was proof of the council’s statement that the local economic stability will allow for increased investment in job creation and the overall well-being of the borough.

The main objectives as outlined by the local government continue to be “job creation, improvements in competitivity, innovation, growth and improvement of the tourist destination, training, and above all the well-being of the people of the borough. Our main challenge and aim is to be with and beside the people of Adeje, working to offer the best conditions for growth in the borough, where people can live and develop, this is at the heart of all of our initiatives and plans”.

Prudent financial management has marked recent years, and the surplus, which in 2015 was €18 million, allowed the local government to ensure that all outstanding public debts were paid off and make sustainable investments, and today the borough has no debt whatsoever. Last year’s income gave the council an important margin that Epifanio Díaz explained can be used for emergency situations and for development investments.

Tourism, a key part of the borough

The finance councillor told press that tourism has continued to create wealth and “we are continuing to invest in improving and renovating the local offer, because it is the economic motor that creates wealth and allows our residents a better standard of life”. He stressed that training in the sector is vital and offered through a number of different borough programmes.

Department of Communications

No Local Tax Rises In 2014

ADEJE-RUEDA DE PRENSA PRESUPUESTOS 2014 (7)The mayor of Adeje José Miguel Rodríguez Fraga, along with the councillor for finance, Epifanio Díaz Hernández, and the local group spokesperson Andrés Pérez Ramos, presented the council’s budget estimates for 2014 today (Friday December 27th).
According to the mayor “these estimates deal with three interrelated elements. Firstly we are concentrating on the creation of employment which is the area that grew most in 2013, with a a 14 % increase. Secondly we are looking at tourism, which for us is a strategic sector and the economic motor of our borough. This area has a growth rate of 6.8 %. And thirdly the we are working to make the economy more dynamic. These estimates take these three elements into consideration.”
The philosophy behind the council’s estimates for 2014 are based on the “presumption of costs and investments based on previous years and which have allowed us enter into a period of economic stability, reduce the debt and meet all the required ratios of the Municipal Finance Fund” explained mayor Rodriguez Fraga . In this regard the estimates, taking all the costs into consideration, only has a rise in the IPC of 1,43%. This indicates a cost of something in the region of 79 million euro, with a possible surplus of 4 million euro.

In the section on spending, the council is predicting a total of around 84 million euro, 2,59% less than in 2013, which the local government used to ensure that there were no increased in local direct or indirect taxes in the year ahead, nor in rates. This reduction in financial pressure on residents and businesses, along with the municipal funding, has the objective of making Adeje “more competitive and ensuring a dynamic economy for Adeje”, continued the mayor. At the same time he recognised the willingness of Adeje citizens to pay their rates and taxes and said that it was thanks to that level of civic responsibility that the council had to capacity to be flexible and invest.

The councillor for finance said that the Adeje council was meeting the requirements of the Municipal Finance Fund for the second consecutive year which assumed a net of 4 million euros, of which 50% is destined for investment and social emergencies. The capacity to invest is where the councillors have also see a 300 % growth which is generating employment and re-energising the economy. .
The finance councillor explained that they had prepared an estimates programme that was “flexible, reflecting the changing reality that we are living in, and a programme that has the capacity to react to any growth situtations that may arise”