Slumping building-rights sales force Hafnarfjörður to tighten spending

Hafnarfjörður municipality must impose significant spending restraint after building-rights sales fell sharply, mbl.is reports.

The A-section of the municipal treasury recorded a deficit of 2.36 billion krónur in the first half of the year, despite a budget forecast for a surplus of 435 million krónur. Costs in the education and family affairs departments also exceeded projections.

The municipality will need to reassess priorities and postpone some planned measures as it prepares its 2027 budget.

Town council chair Orri Björnsson said tax revenues had grown in line with forecasts, or slightly more, while other expenditure had followed the budget. He said the deficit must now be addressed, but stressed that increases to municipal fees would be capped at 2.5%.