The City Council of Palencia has reached an agreement with the local party ¡Vamos Palencia! concerning the municipal budget for 2025. Álvaro Bilbao, the councillor for Urbanism, Urban Agenda, Environment, Works, and Mobility, stated that the negotiations were complex but ultimately led to a satisfactory agreement for all parties involved.

Key components of the budget include a significant investment of €500,000 in the 'Palencia a Pie y Accesible' plan aimed at improving sidewalks and surfaces in various neighborhoods, and €220,000 allocated to the 'Yo Compro en Palencia' initiative, which targets the revitalization of local commerce.

Mayor Miriam Andrés is set to present the final draft at a press conference next week.

The budget's approval is assured due to the support from ¡Vamos Palencia! and the abstention of an IU councillor, who recently became non-affiliated and opposed backing the government’s financial plan.

The agreement encompasses a range of measures including €500,000 for the 'Palencia a Pie y Accesible' plan to enhance accessibility in local neighborhoods.

An additional €15,000 is earmarked for a study to expand the segregated bike lane network, with projections for up to €750,000 to be allocated in 2026 based on the findings of this study.

This commitment towards sustainable mobility responds to an increasing public demand for alternatives to private vehicles.

In terms of environmental and community initiatives, the pact also includes €85,000 to establish urban gardens in neighborhoods to promote sustainability and community involvement.

Another €85,000 is designated for maintaining and improving playgrounds, addressing the needs of families in the area.

Furthermore, €200,000 will be invested in establishing an Office for Attracting Companies and Investments, aimed at generating employment and attracting investment, alongside €50,000 for a feasibility study on an ecopark at Monte El Viejo and €30,000 for urban improvement works.

To support local businesses, the 'Yo Compro en Palencia' initiative will see an increase in funding by €20,000 compared to 2024, solidifying its role as a key program for neighborhood businesses.

The 'Palencia Ciudad de los Cuidados' cluster will receive €100,000, an increase of €50,000 from the previous year, highlighting its significance in advancing the region as a hub for care services.

Adjustments in taxation have also been agreed upon to balance the budget.

Water service charges, sewerage, and purification fees will rise by 5.5%, although a 20% reduction will be provided for families with incomes below €21,000.

Waste collection and treatment costs will reflect 100% of expenses associated with water consumption, also with a 20% discount for qualifying households.

Additionally, the budget includes waivers on the Construction, Installations, and Works Tax (ICIO) for Official Protection Housing (VPO) and an updated 50% ICIO reduction aimed at fostering job creation for businesses.

Plans to reduce the Municipal Property Tax (IBI) rate in 2026 have also been outlined to lessen fiscal pressure on residents.

Marta Font, spokesperson for ¡Vamos Palencia!, expressed satisfaction with the agreement and reiterated the priorities of her party.

She highlighted the 'Palencia a Pie y Accesible' plan as a significant achievement, particularly regarding improvements to the access of the Carrión River, an essential area for the city.

Font also recognized the establishment of the Office for Attracting Companies as vital for economic growth and noted the additional €20,000 allocated to the 'Yo Compro en Palencia' initiative, which will support long-term loyalty for local commerce.

Additionally, she emphasized the potential of the 'Palencia Ciudad de los Cuidados' cluster and the importance of the Palentine Women's Day, which is expected to become a notable cultural event.