Estepona achieves zero debt and is set to lower property tax by 20% on average

Estepona town hall has finally achieved zero debt, after mayor José María García Urbano's office paid off the final 26 million of the 304-million-euro debt that the administration inherited in 2011. According to the mayor, this will help the town enter a new phase this August-September, implying a reduction of the IBI (property tax - similar to the UK's council tax) by 20% on average.

García Urbano made a public announcement on Thursday morning, in the presence of town hall members, as well as representatives of the business and social fabric of Estepona.

When García Urbano (who is a member of the conservative PP party) became mayor in 2011, he inherited a debt of 304 million euros, generated during previous mandates. During the administrations of the last two left-wing PSOE mayors - Antonio Barrientos and David Valadez - the town accumulated debt with public administrations, organisations, companies, suppliers and financial institutions, which made it one of the most indebted in Spain, with an average of 4,600 euros per inhabitant.

When he came into office, García Urbano launched a repayment plan, which required daily investments of 60,000 euros. Since 2011, Estepona has paid back: 90 million to suppliers; 60 million to the general treasury and the social security; 33 million to pay off unpaid invoices; 18 million to the tax agency; eight million to the water service concessionaire; six million to the regional government for the improper or unjustified use of subsidies granted to previous PSOE governments; among other debts.

The economic policy led by José María García Urbano has allowed the municipal accounts to be cleared and the transformation and urban modernisation of Estepona to be boosted.

The reorganisation of the municipal coffers will allow the resources that until now were dedicated to amortisations to be used for public investments, municipal services and aid to families and the local productive fabric.

It is in this context that García Urbano plans a tax cut of an average 20% reduction in IBI. With this, the average reduction in this tax since 2011 will be brought to 50%.

While signing the bylaw to apply this tax reduction, García Urbano received the support of the public. To consolidate the decision, the town hall presented a video of the changes planned for Estepona.