The ruling Partido Popular in Nerja used their absolute majority to approve the definitive municipal budgets for the coming year, dismissing opposition from the minority PSOE and IU parties.
The annual budget has been set at 29.9 million euros, and this includes a 45.2% reduction in investments (down to €6.1 million) and a 38.4% increase in personnel costs (up from €10.8 million to €14.6 million.)
The main source of income for Nerja is local taxes and fees and these are set to increase by 18.5% to €18.9 million. The main areas of (reduced) investment are an underground car park at Burriana beach, a new Centro de Servicios Sociales Comunitarios, repairs to the Eagle Aquaduct, new vehicles for the Local Police and various items of cleaning equipment.
A spokesperson for the Council described the budgets as ‘balanced and realistic’ and ‘the most balanced budgets for several years’. The opposition described them as ‘inflated’ and ‘fiction’ and were critical of a proposed application for credit to fund a negative cash balance of around €7.4 million, describing it as ¡illegal’ as it increases the indebtedness of the municipality beyond the permitted ceiling. The response by the mayor, José Alberto Armijo, was that this sort of situation was ‘normal’ and that the Council will have paid off its debts by 2013.