Paradas approves extraordinary credit to invest 2025 surplus

Paradas activates the surplus mechanism to finance investments

The Paradas City Council, a municipality in the province of Seville, has taken a step toward materializing its planned investments for the next fiscal year. The Plenary of the corporation initially approved, at its ordinary session of August 13, 2026, an amendment file for credits in the form of an extraordinary credit intended to apply the 2025 budget surplus to financially sustainable investments.

The announcement was officially published on Tuesday August 18, 2026 in the Official Bulletin of the Province of Seville, number 159, Local Administration section, under reference BOP-SE-2026-159009. The notification bears the electronic signature of the Mayor-President, Rafael Cobano Navarrete, dated August 14, 2026.

Legal basis and processing of the file

The budget amendment, processed under file number 2026/CEX_01/000004, affects the municipal budget for fiscal year 2025, which is currently extended. Its initial approval complies with the regulatory framework that allows local entities to allocate the surplus from a previous fiscal year to investments that qualify as financially sustainable.

The action is based on the following provisions:

• Article 169.1 and 177 of Royal Legislative Decree 2/2004, of March 5 (Consolidated Text of the Law Regulating Local Finances), which regulates the approval of budget amendments through extraordinary credits.
• Articles 20 and 38.2 of Royal Decree 500/1990, of April 20, which develops the public information procedure for budget amendments.
• Article 170 of the Consolidated Text, which authorizes interested parties with standing to file claims before the Plenary.

Financially sustainable investments constitute a figure contemplated in the sixteenth additional provision of the Consolidated Text itself, which allows certain investment actions to be financed from the treasury surplus or surplus without the recognized obligations counting for the purposes of the spending rule, provided that the established material requirements are met.

Public information period and claims

Following its initial approval, the file has been made available to the public for a period of 15 business days, counted from the day following the date of publication in the official bulletin. Interested parties with standing may examine the file and submit any claims they deem appropriate before the Plenary of the Corporation.

The public exhibition is held at two locations:

• In the Intervention of the Paradas City Council.
• On the notice board of the Corporation, electronically accessible through the Paradas City Council’s electronic headquarters (https://sede.paradas.es/).

The public exhibition is an unavoidable requirement for the budgetary modification to acquire legal force. If no claims are submitted within the established period, the file shall be deemed definitively approved and shall enter into force once it has been published in full in the corresponding official bulletin. Otherwise, the Plenary must rule on the allegations received before proceeding with the definitive approval.

Implications for Paradas’ fiscal management

The approval of an extraordinary credit funded with budgetary surplus has a twofold meaning for the municipality. Firstly, it reflects that fiscal year 2025 closed with a positive result that exceeded initial forecasts, which is good news in terms of budgetary balance. Secondly, it enables the implementation of investments without the need to resort to debt or increase the tax burden.

The investments financed through this mechanism must strictly comply with the requirements of the sixteenth additional provision of the Consolidated Text, including their assignment to the corresponding program groups and their fit within the admitted expenditure categories. Legislative Royal Decree 2/2004 and the successive enabling reforms must be verified by the municipal Intervention as a prerequisite for definitive approval.

The accreditation of compliance with the average supplier payment period will likewise be a determining element to guarantee the compatibility of the modification with the fiscal rules in force, especially in light of the exceptional regime established by Royal Decree-Law 13/2026 for local entities regarding budgetary stability and the spending rule.

Source: Official Bulletin of the Province of Seville, No. 159, August 18, 2026, Local Administration (official reference: BOP-SE-2026-159009, CVE: BOP-SE-2026-159009).