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By: ObserBC
Continuing our commitment to inform citizens about the management of public resources, the Citizen Observatory of Baja California has been conducting annual Financial Statement Analyses of the Mexicali City Council, State Government, and Judiciary, among others.
It’s crucial to highlight that proper financial management of a municipality directly impacts the quantity and quality of public services provided to citizens.
In conducting these analyses, we have adopted an approach that uses simple and technical language, emphasizing graphical tools as a central element to review Revenues, Expenditures, and Public Debt.
In this instance, we present the most recent Financial Statement Analysis of the Mexicali City Council from 2015 to September 2023.
It’s evident that the financial problem of the Mexicali City Council doesn’t seem to lie in insufficient revenues, as they have shown a consistent increase year after year. Rather, the challenge lies in debt management and administrative expenses.
It’s important to note that, until 2023, the current administration of the Mexicali City Council has managed to maintain a balance between revenues and expenses, without deficit, contributing to correcting poorly planned decisions of previous administrations in the short and medium term.
We hope this analysis provides a clear and objective view of the Mexicali City Council’s financial situation, enabling an understanding of the Municipality’s challenges and anticipating improvements moving forward.
Did You Know? In 2020, as part of the justification for renegotiating Public Debt, the City Council announced savings of $75 million annually for interest payments, which were to be allocated to public investment. By 2023, the City Council announced revenues of $135 million due to the regularization of so-called ‘chocolate’ cars. However, when analyzing the budget exercised in public investment until September 2023, it was $335.11 million.
Did You Know? From January to September 2023, the Mexicali City Council received revenues of $4,854.09 million and exercised an expenditure budget of $3,460.03 million, resulting in a difference of $1,394.05 million.
Did You Know? As of September 30, 2023, the balance in the cash and equivalents account is $2,013.22 million, of which $1,554.20 million is invested in the money market and $457.80 million is available in banks.
Did You Know? In Note 4 of the Financial Statements, there’s an amount of $143,343,290 as Accounts Receivable from the State Government for pending shares from the 2023 exercise.
Did You Know? In Note 11 of the Financial Statements, under “Short-term Accounts Receivable,” as of September 30, 2023, there’s a balance of $303,980,229, including a balance in favor of the Tax Administration Service (SAT) of $239,405,005 for a Fiscal Credit for omitted ISR withholdings on salaries.
Did You Know? In Note 13 of the Financial Statements, there’s a balance as of September 30 of $25,256,417 due to an agreement with IMSS for differences from previous exercises.
Did You Know? In Note 14 of the Financial Statements, with a balance as of September 30 of $115,191,000 resulting from an agreement with ISSSTECALI for omissions in withholding and contributions from the XX City Council, an original debt of $523,789,220.
Did You Know? In Note 16 of the Financial Statements, there’s a litigation with SAT for a Fiscal Credit of $150.95 million and another of an undetermined amount with Promotora Ambiental de la Laguna S. A. de C. V. (PASA).
Did You Know? In Note 21-01 of the Financial Statements, there’s a Fiscal Contributions backlog of $1,224.88 million. Of these, $823.62 million correspond to Debtors of the Property Tax, which, compared to the balance as of December 31, 2022, $597.50, shows an increase in debtors of $226.17 million during 2023.
Did You Know? In Note 21-02 of the Financial Statements, there’s a balance of $106.02 million corresponding to the donation of lands to the City Council for which the transfer of ownership has not been executed.
Did You Know? At the beginning of the 2023 Fiscal year, an authorized Public Investment Budget of $324.45 million was prepared, later modified to $522.88 million, and by September 30, 2023, $335.11 million has been exercised.
Visit our website to review and learn more about this and other financial analyses conducted by OBSERBC, A.C. www.obserbc.org
