Hafnarfjörður caps 2027 fee increases at 2.5%

Hafnarfjörður’s town council has decided that general fees will not rise by more than 2.5% in 2027. The decision will serve as a guiding principle for the municipality’s budget planning, mbl.is reported.

Orri Björnsson, chair of the town council, said the measure was intended to help bring inflation down. It also responds to a call from the Association of Local Authorities in Iceland to keep increases in general fees within 2.5%.

Björnsson said inflation was raising the cost of the municipality’s inflation-indexed debts, making it difficult to balance its budget. He said reducing inflation was also important for families and residents of Hafnarfjörður.

The council also reversed a change to sibling discounts at the town’s preschools. Approved on September 17 and due to take effect on November 1, the change could have meant fee increases of around 17% for some families, Björnsson said.