Garðabær says it must streamline spending, but plans remain under review

Garðabær needs to make savings, but has not yet decided on specific measures, including possible layoffs, Mayor Almar Guðmundsson told mbl.is. The municipality’s first-half budget proposals are due to be presented next week.

The municipality recorded a deficit of 617 million in the first half of the year, against a projected surplus of 147 million. Guðmundsson said the economic environment was challenging for local authorities and that he believed Garðabær needed to streamline its operations.

“I think we need to make savings, but the budget has to be completed first,” he said. After the proposals are presented, they will be considered for four weeks before the final budget is approved in early December.

Other municipalities in the capital region have announced job cuts this week. Reykjavík has laid off 50 employees and is reducing its workforce by a total of 130 full-time equivalent positions, including earlier cuts this year. Hafnarfjörður has announced that 23 jobs will be eliminated, with about 18 employees laid off. The municipality reported a loss of two billion after budgeting for a surplus of 900 million, and is considering selling assets.

Kópavogur reported a first-half deficit of 222 million, smaller than the 485 million deficit forecast in its budget. Mayor Ásdís Kristjánsdóttir told mbl.is that the municipality did not plan to make layoffs.