Kópavogur opposition leader challenges claims of sound finances

Einar Jóhannes Guðnason, leader of the Centre Party in Kópavogur, says it is an empty phrase to describe the municipality’s finances as sound, as Mayor Ásdís Kristjánsdóttir did in a statement earlier on Thursday, mbl.is reports.

The operating result for Kópavogur’s A section was negative by 222 million Icelandic krónur. The municipality had budgeted for a deficit of 485 million krónur, making the result 263 million krónur better than forecast.

Guðnason says the accounts conflict with claims made by the majority coalition of the Independence Party and Progressive Party ahead of this spring’s municipal elections.

“During the municipal elections, the majority repeatedly praised itself for not taking out loans. Representatives of the majority made these claims while knowing that Kópavogur had taken on more than 2.5 billion krónur in new long-term loans earlier in the year,” he said.

He also questioned what the mayor meant by describing the finances as sound.

“Now an operating result in the red is presented under the banner of ‘sound finances’, an empty phrase that deserves closer examination. What makes the finances sound? Is it that the municipality unexpectedly recorded 550 million krónur in revenue from building rights, even though this was an anticipated source of income?”

Guðnason acknowledged that, given current economic conditions, it would be unrealistic to demand that the majority run the municipality with a surplus. He said the result was in fact reasonable in the circumstances.

“However, it is reasonable to demand honesty. The upcoming budget process must include efforts to cut spending, because we cannot rely indefinitely on land revenues and new borrowing,” the statement said.