Municipal taxes on the rise: each Menorcan will now pay 937 euros per year

CitadelEach resident of Menorca will pay an average of €937 in taxes and fees to their local council this year. This figure is growing year after year, driven by the increase in public services and the need for local government to increase current revenue to cover the expenses of running the municipal machinery. The largest expense is personnel costs. Up to €603 of each taxpayer's contribution, almost two-thirds of the total, will go towards paying the salaries of the more than one thousand civil servants and public employees who work in local government in Menorca. Personnel costs, which until a few years ago rarely exceeded 30% of the municipal budget, are now approaching 40% in many cases. The growing needs of the population, especially in home care and social services, and, above all, the mandatory regulation of positions within the administration, explain this increase. At least three of the island's eight municipalities—Ciutadella, Es Mercadal, and Alaior—are beginning to implement this year the Job Classification System (RPT), negotiated over a decade ago with union representatives to accurately reflect the functions each employee performs. This "getting our house in order," as Ciutadella Mayor Llorenç Ferrer puts it, will entail an extraordinary expenditure of €2.7 million for the municipality starting in 2027. This, combined with the professional development component of the RPT, must be permanently incorporated into the municipal budget. "During 2026, we must work to secure new or increased sources of current revenue to sustain these commitments," the mayor added. In 2027, the manure ordinance will be increased, and other "outdated" fees will be revised upwards. Increased revenue from building permits is also expected. This is in addition to the measures already implemented this year, with increases in sewage, slaughterhouse, and towing fees, as well as the motor vehicle tax. Another half a million euros will be collected in property tax (IBI), and the recent transfer of tax management to the Balearic Islands Tax Agency (ATIB) is expected to boost revenue from traffic fines, including the installation of mobile speed cameras to catch more drivers committing infractions. Even so, per capita spending on personnel in Ciutadella will still be the lowest of the island's eight municipalities this year, at 519 euros per inhabitant. The City Council will allocate nearly 17 million euros, just a portion of the almost 31 million euros it expects to collect in taxes and fees. Spending in this area will indeed be above the Menorca average, as each resident will pay €947 in municipal taxes. The other two municipalities that will also implement the Employment Position List will likewise require their residents to pay more taxes. Es Mercadal, which allocates €4.1 million of its €13.2 million budget to personnel, expects to collect €8.5 million in taxes, an average of €1,315 per inhabitant. Apuesta has increased its personnel budget by 18.7%. Alaior, which has almost double the population of Es Mercadal, has also increased its budget, but will collect only slightly more in fees and taxes, €8.7 million, at a rate of €848 per citizen.

The other city council that recently reached an agreement with its civil servants is that of Maó, the only one, however, that has not yet been able to approve this year's budget due to the Socialist government's minority status and the conditions imposed by Ara Maó from the opposition to secure the necessary votes. For now, the mayor, Héctor Pons, has extended the 2025 budget, a plan that already includes an agreement with 102 of the 345 City Hall employees to regulate their career development and supplement their salaries with bonuses for training and productivity. However, each resident of Maó will only pay them an average of 578 euros, a very significant portion of the 822 euros that the City Council will collect in fees and taxes to reach the more than 25 million euros it needs. Sant Lluís is the Menorcan municipality that charges its residents the most, up to €1,520 per inhabitant in taxes, €806 of which will go to pay town hall employees. Next on the list is Migjorn Gran, the smallest municipality, which has also increased the tax burden on its citizens, who will pay €1,388 per person, €906 of which goes to public employees. Ferreries, on the other hand, is the municipality that requires the least amount of out-of-pocket spending on public services. Each resident will pay only €763 in taxes this year, €635 of which will go to pay civil servants. Es Castell will also be an exception among the municipalities of Menorca. Contrary to the norm, the tax burden will be reduced, as the plan is to lower property tax revenue by €100,000 and reduce the manure tax. Residents will have to contribute an average of €758, of which €707 will go towards municipal workers' salaries. In this context, investments are being reduced, at least those committed with municipal funding, and are now being carried out primarily with financing from other levels of government or European funds. It is clear that local councils do not always have enough staff to process projects and grant applications, and end up abandoning them. Even with higher salaries, there are never enough civil servants.