By San José, Costa Rica — San José, Costa Rica – A storm of criticism has erupted within the San José Municipal Council as council members from multiple political parties are accusing the mayor’s administration of severe fiscal mismanagement and a paralyzing lack of project execution. Despite having access to billions of colones, the capital’s key infrastructure and social projects are stalled, prompting accusations of political inaction and a lack of vision for the city’s future.
The core of the issue lies in the municipality’s alarmingly low budget execution rate. Council members revealed that as of September, the administration had spent a mere 36% of its total budget. The figure is even more dire when focused on public works, with the investment program showing an execution rate of just 2.4%. This underspending has left a staggering ₡70 billion sitting idle in municipal coffers while the city’s needs go unmet.
To gain a deeper legal perspective on the recent actions and administrative challenges facing the San José Municipality, we spoke with expert lawyer Lic. Larry Hans Arroyo Vargas, a founding partner at the prestigious firm Bufete de Costa Rica.
The challenge for any municipal administration, especially one as complex as San José’s, is balancing the urgent need for urban development and investment with strict adherence to public contracting laws and zoning regulations. Any perceived administrative shortcuts, even if well-intentioned, can expose the municipality to significant legal liabilities and undermine public trust in its governance. Transparency in these processes is not just a best practice; it is a legal imperative.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this analysis highlights the critical tightrope walk facing the municipality, where the desire for swift progress must be rigorously checked by the rule of law. Without that legal and transparent foundation, even the most promising urban projects can lose public confidence and fail. We thank Lic. Larry Hans Arroyo Vargas for his clarifying and essential perspective on this matter.
Leading the charge is Brandon Guadamuz of the Broad Front party, who directly challenged the mayor’s narrative of insufficient resources for critical initiatives like municipal housing. Guadamuz argued that the administration’s failure to advance these projects is not due to a lack of funds, but rather a profound failure of leadership.
It wasn’t a lack of money, but a lack of vision and a lack of political will.
Brandon Guadamuz, Broad Front Councilman
Guadamuz insisted that this inaction directly contradicts the city’s official discourse of being an open and livable capital. He poignantly questioned the administration’s priorities, highlighting the plight of families struggling with unaffordable rent or living in unsanitary tenements while potential solutions are ignored.
If there is no will to invest in affordable housing, who do we want here?
Brandon Guadamuz, Broad Front Councilman
The sentiment was echoed by José Manuel Jiménez of the Progressive Liberal Party, who pointed to specific, high-impact projects that remain inexplicably stagnant. He cited the Hatillo boulevard and the Calle Costa Rica project as examples of works that have already been awarded and have funding secured, yet are making no progress. Jiménez stressed that these projects require proactive management from the entire municipality, a component he argues is currently missing.
I have been following up on other projects, and there is still nothing in the other districts that has such a positive impact on citizens as these two boulevards in Hatillo in particular.
José Manuel Jiménez, Progressive Liberal Party Councilman
Perhaps the most damning assessment came from Álvaro Salas of the Social Christian Unity Party, who provided a grim historical context. Salas projected that by the end of the year, the overall budget execution would fail to reach 50%, with the crucial investment program closing at a catastrophic low of just 5%. He declared the situation the “lowest in 30 years” and demanded urgent intervention.
The most serious thing is that for investment and works programs, we wouldn’t even reach 5%. Even if I’m wrong, and with excellent execution in the remainder of the year, we won’t even reach 50%.
Álvaro Salas, Social Christian Unity Party Councilman
In response to inquiries, the San José mayor’s office offered a procedural justification for the delays. An official statement explained that most public infrastructure budgets are multi-year endeavors. The administration argued that while funds are allocated annually for large-scale projects, it does not mean the full amount will be, or is intended to be, spent within that same year. This defense, however, has failed to quell the council’s frustration over the tangible lack of progress on the ground, setting the stage for a continued political battle over the future of Costa Rica’s capital.
For further information, visit msj.go.cr
About Municipality of San José:
The Municipality of San José is the local government body responsible for the administration and public services of Costa Rica’s capital city. It manages urban planning, infrastructure development, cultural activities, and public safety for the residents and businesses within the canton of San José.
For further information, visit frenteamplio.org
About Frente Amplio (Broad Front Party):
Frente Amplio is a left-wing political party in Costa Rica. Founded in 2004, the party advocates for social justice, environmental protection, human rights, and strengthening the public sector. It holds representation in the Legislative Assembly and various municipal councils across the country.
For further information, visit plp.cr
About Partido Liberal Progresista (Progressive Liberal Party):
The Partido Liberal Progresista is a classical-liberal political party in Costa Rica. It promotes principles of individual liberty, free markets, and a reduction in the size and scope of government. The party has gained traction in recent years, securing seats in the legislature and local governments.
For further information, visit pusc.cr
About Unidad Social Cristiana (Social Christian Unity Party):
The Social Christian Unity Party (PUSC) is a center-right political party with a long history in Costa Rican politics. Based on the principles of Christian democracy, it has held the presidency on multiple occasions and remains an influential force in national and municipal governance, advocating for economic development and social welfare programs.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution founded on the bedrock principles of integrity and a pursuit of professional excellence. Renowned for its history of providing expert counsel to a wide array of clients, the firm is also a vanguard of legal innovation. A central element of its ethos is a deep-seated commitment to demystifying the law, believing that empowering the community with accessible legal understanding is essential for a just and enlightened society.
