Santiago del Teide, an example of economic management in all the Canary Islands
The city council complies with all the economic health indicators required by the Canary Islands Government for more than a decade
The governing group of the Santiago del Teide City Council reported on the economic management audit for the year 2023 that is carried out each year by the Canary Islands Government, through the Canary Islands Municipal Financing Fund, which is carried out based on the liquidation of the municipal budget.
In this sense, Mayor Emilio Navarro points out that “for more than a decade Santiago del Teide has been a benchmark in economic management in Tenerife and in all the Canary Islands, as a result of the compliance of residents and residents and the responsible and transparent management that we make of public funds. This governing group will continue to adopt the necessary measures to maintain, in future years, the path of compliance with all the indicators and conditions analyzed.”
This document once again makes it clear that the financial health of the council is unbeatable, as it once again meets all the indicators that support the good financial health of its accounts, given that they are above the levels required by the law itself.
In this sense, the report concludes that the “net savings”, which serves to measure the capacity of the council to generate self-financing, has a positive value of 16.1%, on current income, increasing by 19.8% compared to the previous year, exceeding the minimum percentage of 6%.
The “long-term debt” has a percentage of 0.00%, being below the ratio of 70% which is the maximum allowed within law 3/1999, since the council has no long-term debt, due to the total cancellation of outstanding credits.
As for the “treasury surplus”, which reflects the ability of the city council to meet its financial structure with its own resources, constituting a resource to finance budgetary modifications to finance future expenses above those initially budgeted, in the 2023 financial year it is positive, amounting to €39,074.
The treasury surplus indicator for general expenses reached 81.4% compared to 115.3% in the 2022 financial year, exceeding the 1% threshold established as a minimum.
In addition, of the three previously mentioned indicators of economic-financial health, Santiago del Teide also meets the conditions of freely available amounts such as collection management and fiscal effort. The “collection management”, which is one of the two conditions of the freely available amount, the non-compliance of which results in 50% of the Canary Islands Fund allocated for free disposal being reduced by 10%, stands at 89.3% in this year 2023, decreasing by 0.1% compared to the previous year, a percentage that is sufficient to reach the level required for this magnitude, which is 75%.
Current income per inhabitant in the year 2023 stands at €1,533, higher than the €1,300 in the year 2022, being above the average for the municipalities of the Canary Islands, which is €1,021/inhabitant. For its part, tax revenue per inhabitant in the 2023 financial year stands at €936, improving compared to 20222, which was €890, and is above the average for Canary Islands municipalities, which is €835/inhabitant in the 2023 financial year. This revenue reaches 33.5% of the total rights recognised in the municipal budget, increasing by 12.8% compared to the previous year.
The “fiscal effort”, which must be greater than 72.70%, stood at 82.8% in this 2023 financial year, so this condition is met.
Therefore, the local council is above the levels required by the Law of the Canary Islands Municipal Financing Fund and therefore must allocate 50% of the corresponding transfer for 2023 to investment or, where appropriate, may allocate 100% of the investment credit corresponding to the 2024 Fund.
