Hildur Björnsdóttir critiques Reykjavík’s budget proposal as misleading

The leader of the Independence Party in Reykjavík, Hildur Björnsdóttir, claims that the city’s financial operations are embellished in the new budget proposal. The majority presented its budget for the upcoming year, forecasting a surplus in city operations.

Next year, the city plans to operate with a surplus of 1.7 billion Icelandic krónur in its A-sector and 12.6 billion in its B-sector. Additionally, a surplus of 500 million krónur is projected for both sectors this year. Hildur noted that this year’s surplus is contingent upon selling the Pearl (Perlan) for over three billion krónur before the year ends.

Hildur described the situation as akin to a household believing its finances will balance out by selling its house and car. She expressed skepticism about the optimism surrounding the budget, citing failures in past city plans and cautioning against assuming continued surpluses in the coming years despite the intentions for the next five years.

Mayor Einar Þorsteinsson remarked that the efficiency measures implemented by the majority are yielding positive results, a claim Hildur refuted. She argued that expenditures have not decreased significantly, while revenues have seen substantial increases.

Reykjavík’s revenue is expected to rise by 5% next year, while expenditures are set to increase by 3.9%. Hildur pointed out that operational costs are growing uncontrollably, but revenues are coming in steadily. This is attributed, in part, to the fact that even with rising property values, the property tax rate has not decreased as sharply as in many other municipalities.