The magnitude of the net saving is an indicator of the financial situation of the local entity, its capacity to attend at maturity the financial burden of its indebtedness. It is calculated as follows: sum of income corresponding to taxes, public fees and charges, current transfers and capital income, minus expenses related to personnel, current assets, services and current transfers (expenses not covered by the Cash surplus for general expenses). This result has to be subtracted from the theoretical amortization annuity corresponding to the long-term loans and the guarantees to third parties still pending repayment. Positive net saving is a source of financing for non-financial capital expenditures.
The outstanding debt is the total pending debt that the City currently has from long-term loans with financial institutions and guarantees, that is, it is the capital pending amortization plus generated interest.
Programme classification of the expenditure budget
The programme classification of the expenditure budget informs about the purpose and objectives to be achieved with the credits: what is the spending for.
Public fees and prices
When the City Council carries out activities that particularly benefit or interest citizens, it may require public fees or prices. Also, a fee will be required when special use of public roads takes place in favor of an individual. Typical examples of activities for which a fee is required are the collection of garbage, the granting of an urban permit or a dedicated parking entrance. The person who benefits from the public domain or from a service or activity carried out by the City Council has to pay the fee. It is the City that determines by the tax ordinances the amount of the tax. The difference between a fee and a public price is that the fee is established for services only provided by the City Council (e.g. dedicated parking entrances), and the public price is used for those services that can also be provided by a private company (e.g. tickets to sports facilities, kindergartens, etc.).
Real estate tax
The IBI is a municipal tax, direct, real, objective, periodic and compulsory, which taxes the value of real estate. The owners, usufructuaries or concessionaires of any real property or property (floor, garage, store, house, office, etc...) are obliged to pay this tax. The management of this tax is shared by the municipality and the State Tax Administration.
When the City Council performs public works or establishes services from which the citizen obtains a benefit or increases the value of his assets, special contributions may be required.
Tax on economic activities
The IAE is a direct, real and obligatory tax, which taxes the performance of any type of economic activity, whether it is exercised by a natural or legal person. Those companies or entities that have obtained a net business figure equal to or greater than one million euros during the penultimate year have to pay this tax. The management of this tax is shared by the municipality and the State Tax Administration.
Tax on the increase of the value of urban land
The IIVTNU is a direct tax on the increase of value that a land has experienced while a person has owned a flat, parking lot, storage room, premises, land, etc. The tax is paid by the person selling a flat, garage, store room, shop, house, etc., because of the increase in value that the land has experienced while it has been owned. In case of inheritance or donation, it is the new owner who has to pay the tax. The management of this tax is entirely municipal.
Tax over constructions, installations and works
The ICIO is a municipal tax that a City Council can demand if it has previously approved it in the corresponding fiscal Ordinance. The ICIO must be paid for the realization within the municipal term of any construction, work or installation for which it is necessary to obtain an urbanistic license or to present a responsible declaration or a previous communication. The management of this tax is entirely municipal.
The municipal budget
The budget of a City Council is a document approved by the Plenary which specifies the expenses that will be realized during the year and the expected income during the same period. All local entities are required to approve their budget for the year in the last quarter of the previous year. In this way, on January 1 of each year they must have their budget approved. However, if at the beginning of the year they had not approved the budget, the regulations establish that the previous year's budget is automatically extended.