The Plenary has approved budget modification number T083/2026 for the municipal budget for the fiscal year 2026, which extends from 2025. The delegate for Economy and Finance explained that on 30 July 2026, during a plenary session, a request was made to join the Order Fund to obtain liquidity for financing current and capital expenses to mitigate damages caused by recent floods and other adverse weather phenomena.
On 9 September, the Ministry of Finance accepted the request, positively assessed the update of the Adjustment Plan, and authorised the financing of actions from the Order Fund amounting to €6,990,854.47. This request included a forecast of actions, some of which have already been executed while others remain pending. However, it was later confirmed that some actions could not be completed within the regulatory deadlines.
Consequently, on 6 October, the Ministry of Finance was consulted about the possibility of reallocating the initially quantified funds from those actions that could not be executed to cover personnel expenses directly resulting from the storms, which fall under the same financing scope and exceed initial estimates. To this end, Human Resources issued a new supplementary report to adjust the budget credit needs to a new distribution of funding sources, which involved reducing the applied resources to finance the financial operation linked to the Order Fund request.
On 11 November, the Ministry of Finance sent a rectified resolution, definitively enabling the proposed budget modification. The approved credit needs consist of extraordinary credits worth €512,635.50 and credit supplements amounting to €6,340,112.58, totalling €6,852,748.08. These funds will be financed through new or increased income from long-term loans received from public sector entities, amounting to the same total.
The delegate for Economy and Finance also clarified that "the actions that were already planned have either been executed or will be executed with other resources" and noted that "we have a 2025 budget that obviously cannot foresee extraordinary expenses like those caused by the storms."
Jaime Espinar, the deputy mayor coordinating Public Services, remarked that "the PSOE has been claiming since summer 2023 that there would be unpaid debts and economic problems, yet the reality is that the economic situation of the City Council has improved, along with public services and the municipal workforce. We are addressing debt payments, having already paid over €40 million, including €12.6 million in October, to the Ministry of Finance. The average payment period to suppliers has reduced from 400 days under the previous government to 60 days currently."
This budget modification specifically aims to cover the substantial hours worked by municipal staff, particularly the Local Police, Social Services, and Public Services, during the storm alerts that lasted more than a month and a half. Espinar reiterated that all this information is backed by reports and added that "the planned actions will be carried out, and we are already seeking new funding sources through European funds."
Additionally, the Plenary has initially approved budget modification T072/2026 and the extrajudicial recognition of credit in the current municipal budget for the fiscal year 2026, extending from 2025. The delegate for Economy and Finance, Francisco Delgado, explained that this modification consists of extraordinary credit needs amounting to €4,558,722.36, of which €4,431,058.19 relates to loans to Fundarte, Comujesa, and Cirjesa; the remainder is allocated to applications linked to obligations met through the supplier payment mechanism. Furthermore, the modification also includes credit supplements amounting to €5,200,814.30, which are allocated to applications linked to obligations met through the mechanism. In total, the credit needs amount to €9,759,536.66. The agreement also includes the approval of the extrajudicial recognition of credit for the operations detailed in the file, which is conditional on the final approval of this agreement.
