Vélez-Málaga City Council has approved an Adjustment Plan that will extend until 2041, aimed at meeting the requirements of the Ministry of Finance and reducing payment times to suppliers. The measure includes a new loan of €12.43 million that does not increase municipal debt.
Vélez-Málaga City Council has greenlit an update to its economic roadmap that will guide the financial management of the Council over the next fifteen years. The Adjustment Plan, approved in last Thursday's plenary session, sets out guidelines to reinforce economic stability and expedite payments to suppliers, following the municipality's adherence to the extraordinary payment mechanism for suppliers in 2026.
The Councillor for Finance, Manuel Gutiérrez, defended that the measure does not respond to a situation of financial imbalance, but rather to a need for improvement in administrative management. He explained that the City Council closed the 2025 financial year with nearly €29 million in treasury, reflecting a “solid” economic situation. He also highlighted that the Council had managed to prematurely cancel a loan of €8.6 million intended for paying suppliers.
A New Loan That Does Not Increase Debt
The review of the Adjustment Plan includes a new loan worth €12.43 million, although the City Council clarifies that this operation does not represent a real increase in debt. The invoices linked to this amount were already paid on June 29, in a process that allowed the payment of 2,219 invoices out of a total of 2,470 submitted.
The Council maintains that this operation is offset by the cancellation of previous loans and the elimination of another financial operation initially planned for 2027. In this way, municipal debt remains stable, while treasury improves progressively.
“What we are doing with this plan is to better organise the municipal accounts to meet the requirements of the Ministry, continue reducing payment times, and ensure the economic stability of the City Council,” Gutiérrez stated during the plenary session.
Measures to Reduce Spending and Streamline Administration
The Adjustment Plan incorporates a series of measures aimed at improving the efficiency of public spending. Among them, the reorganisation of the municipal structure and the amortisation of vacant positions stand out, as well as the reduction of spending on studies and external technical assistance when they can be undertaken with internal resources, and the review of certain salary supplements.
There is also a plan for the gradual reduction of entities dependent on the City Council and the promotion of electronic administration to expedite the processing of files and payments. The aim is to shorten the time between receiving an invoice and its payment, one of the key indicators in municipal financial management.
For the residents of Vélez-Málaga, these measures guarantee that local suppliers will be paid sooner, which in turn can translate into greater efficiency in public services. Additionally, the reduction of unnecessary expenses contributes to a more efficient management of municipal resources.
The End of the El Copo Case Will Alleviate Finances from 2028
The approved document outlines a positive evolution of municipal accounts in the coming years, with a progressive improvement in savings capacity and a steadily growing treasury. One of the factors that will contribute to this improvement will come from 2028, when payments resulting from the El Copo case judgement conclude, which will mean an annual saving of over €317,000 for municipal finances.
This judicial precedent has burdened the City Council's accounts for years, and its conclusion will free up resources that can be allocated to other areas. The Adjustment Plan ultimately aims for Vélez-Málaga to have healthier finances and a more agile operation, something that citizens will notice in the quality of services.
The next step will be to send the plan to the Ministry of Finance for validation, after which the measures will be gradually implemented. The Council is confident that the path to stability will allow it to face the coming years with solvency.
You may also like
