During 2015 the Chapala government will operate on a proposed spending budget of close to 331 million pesos (22.45 million dollars). The allocation approved by the city council on December 11 is still subject to review and ratification by the state congress.
According to details revealed by councilman Carlos Soto Pérez, who presides in the municipality’s Treasury Commission, less than half of Chapala’s financial resources derive from the collection of property taxes, levies on property ownership transfers and diverse fees for municipal licenses and permits. All other income comes from state and federal coffers.
Asked where all the money will go, Soto explained that payroll and employee benefits for city government personnel accounts for 40 percent of monthly expenditures. Another significant portion covers maintaining public services, including hefty payouts for solid waste disposal and electricity bills.Approximately 34 million pesos have been earmarked for public works projects that are currently in progress or slated for execution during 2015. Leftover funds will be applied to whittling down a debt burden that includes bank loans, legal liabilities and diverse accounts due.
City Treasurer José Guadalupe Dueñas is in the process of negotiating a pact with the Banco Nacional de Obras y Servicios Públicos (Banobras) to restructure government debt. A Banobras credit line of up to 97 million pesos holds benefits of a low interest rate and loan repayment extended over a 20-year period.
If the deal goes through, Chapala will be in a position to pay off the 63-million-peso loan from a private bank incurred by the previous administration, fund its share of public works projects and have money to spare for settling a number of pending high-price-tag labor suits.
The 2015 budget contemplates a general five-percent increase in government operating costs along with a four-percent pay raise for base-level city employees. Salaries for department heads and all other top echelon officials are frozen at amounts set five years ago.
On average property taxes for next year will run five percent above the 2014 rate, and as much as twice that amount for undeveloped rustic lots. However, some property owners will face greater increases in their tax bills due to adjustments in home values determined by recent assessments taking any new construction and the quality of building materials into account.