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Monachil allocates 2 million euros from surplus to eliminate its debt by 2027

The municipality approves its largest historical investment with treasury reserves to finance projects and pay off bank loans.

Facade of an Andalusian town hall with architectural details.
IA

Facade of an Andalusian town hall with architectural details.

The Monachil City Council has approved allocating 2.04 million euros from its positive treasury reserves to drastically reduce its financial debt and fund new investments, with the goal of achieving zero debt by 2027.

Monachil is approaching a historic milestone by mobilizing the largest investment in its history, exceeding two million euros from its surplus. This measure, approved by the governing team of PSOE and Izquierda Unida, will significantly reduce bank loans and finance key projects for the municipality, with the aim of achieving zero debt by 2027.
The operation will allocate 1.158 million euros to the direct amortization of bank loans. According to forecasts, this will leave the municipal debt at just one million euros by the end of 2026, paving the way for the complete settlement of financial obligations in the following fiscal year. Mayor José Morales has described the moment as historic, indicating that it will mark the end of over 17 years of continuous indebtedness and the closure of the Adjustment Plan.
Beyond debt reduction, 882,000 euros will be invested in various budget items. Notable projects include a future parking lot on Cuesta street (with an initial allocation of 250,000 euros), improvements to the sports area of the Manuel Robles sports center (130,000 euros for new rooms), and the implementation of the brown bin for organic waste (100,000 euros).
Other actions included in the accounts are the renovation of parks and playgrounds (30,000 euros), asphalting and paving works (30,000 euros), reinforcement of cultural, sports, and festive activities (75,000 euros), installation of awnings in the Pradera (27,000 euros), acquisition of a new municipal vehicle (38,000 euros), and contributions to the Mancomunidad Río Monachil (30,000 euros).
These economic results are based on the 2025 budget liquidation, which showed a positive treasury surplus of 4.98 million euros and a favorable budgetary result exceeding 1.3 million. The current governing team has presented ten consecutive budgets with a positive outcome, contrasting with the situation a decade ago.
José Morales attributes these achievements to the work of municipal officials and economic staff, as well as the role of the residents, which allows Monachil to undertake historic investments and prepare to close an era marked by debt.