Mexicali Mayor Gustavo Sánchez introduced Monday the city’s 2017 budget proposal that seeks to get 3.7 billion pesos or $186.9 million in revenue for next year.
During a legislative hearing the mayor acknowledged that the city has an outstanding debt of close to 2.5 billion pesos or $122.45 million.
To address the issue, Mayor Sánchez said he hopes to increase revenue and decrease expenditures in gasoline, cell phones, travel and other items.
The city will also look a renegotiation of its debt to reduce by 110 million pesos in interest payment, he said.
Mayor Sánchez told state lawmakers that the city plans to increase property taxes and other fees and services.
Bar license renewals will observe an augmentation of 20 percent for next year, he said.
Assemblyman Job Montoya asked the mayor regarding the low property taxes paid by mining companies located in southern Mexicali, to which Mayor Sánchez responded that these businesses pay only federal taxes.
The mayor told lawmakers that only three out of every five property owners pay property taxes, refraining city coffers from obtaining around 300 million pesos or $15 million per year.
Mayor Sánchez said the city is looking for alternatives to pay the 582 million pesos or $29.1 million in debt to the agency in charge of healthcare and pensions for public employees.
