Isabela generates resources despite state funding cuts, mayor says

Isabela Mayor Miguel “Ricky” Méndez Pérez

By THE STAR STAFF

Isabela Mayor Miguel “Ricky” Méndez Pérez, in his Report of Achievements and Activities for fiscal year 2024-2025 presented to the full Municipal Legislature last week, stated that, as has been publicly reported, the elimination of the inventory tax will affect all 78 municipalities in Puerto Rico.

“In our case, this represents $2.1 million less, which adds to the battle that the municipalities have been waging against the cuts imposed by the [Financial Oversight and Management] Board and the state government. I am referring specifically to the elimination of the Equalization Fund and the Contribution in Lieu of Taxes,” the mayor said. “In both cases, there was a promise to replace those revenues, but the state did not fulfill its promise.”

“While the central government is cutting revenue for municipalities, it is maintaining monumental burdens, such as the pension payments (known as PayGo), which in Isabela amount to $1,000,031 annually, in addition to the $180,560 annual payment to the Health Insurance Administration (ASES) for the Vital plan,” Méndez Pérez added. “This is a reality that not everyone is aware of.”

Faced with this reality, he said, Isabela took responsible action.

“We didn’t stand idly by and instead implemented several initiatives during the 2024-2025 fiscal year,” the mayor noted. “Thanks to your approval, municipal legislators, we were able to counteract this decrease in resources in our finances. These initiatives include: regulations on short-term rentals and use (like Airbnb), as well as contributions to the Isabela Welfare Fund from the sale of luxury residences.”

The Municipality of Isabela has already implemented amendments to its construction tax ordinance for projects, with particular attention to large-scale projects that may be funded with federal funds within the municipal jurisdiction. Amendments to property tax rates for both movable and immovable property are also in effect.

During the presentation to municipal legislators, recognition was given to the funds granted by the central government for specific purposes, such as essential services programs, totaling $3,816,719.68. Those funds cover public property upkeep, the third shift for paramedics, aid for damages caused by Tropical Storm Ernesto, and the “low-income assistance” program, also known as “blueroof” assistance, for roof damage.

“Likewise, we have funds from Law 53 on solid waste disposal and legislative contributions from the Senate president [Thomas Rivera Schatz] for the development of infrastructure projects, for which we thank both the Senate president and Governor Jenniffer González for their support,” Méndez Pérez said.