Complex sentence: Cine Naval, located within the naval station but open to the public, is the only cinema in the town, and every year, in July, holds a cinema festival of Ecuadorian and Latin American films under the auspices of the Spanish government.
Split into simpler sentences: Cine Naval, located within the naval station but open to the public, is the only movie hall in the town. Every year, in July, a cinema festival of Ecuadorian and Latin American films is held here under the auspices of the Spanish government.