Múlaþing forecasts surplus and plans 1.64bn kr investment

Múlaþing is budgeting for a 566 million króna surplus in 2027 and net investments of 1.64 billion króna, according to a budget proposal reported by Morgunblaðið.

The surplus is forecast for the A and B sections of the municipality’s finances. Operating cash flow is projected at 1.711 billion króna, or 13.3 per cent of revenue. The debt ratio is expected to be 90.5 per cent, with a substantial decline anticipated in the following years. General municipal fees will rise by no more than 2.5 per cent, and loan repayments are expected to exceed new borrowing in the coming years.

Consolidated revenue is forecast at 12.8 billion króna in 2027, up 3.7 per cent from this year’s estimated result. Municipal income tax revenue is projected to rise by 6.4 per cent and account for about 37 per cent of total revenue. Grants from the Equalisation Fund are expected to total 3.6 billion króna, an increase of 2.1 per cent.

Wages and related costs are budgeted at 6.9 billion króna, up 5.9 per cent year on year, mainly because of collective agreements. The municipality estimates that 51 króna of every 100 króna in tax revenue goes to schools.

Net investments are forecast at 6.4 billion króna over 2027 to 2030. The municipality expects about 4.2 billion króna in grants during that period, including support from the Harbour Improvement Fund and the Avalanche Fund.

Planned projects for next year include expanding the Culture House in Egilsstaðir and work on the primary school building in Seyðisfjörður. Extending Strandarbakki harbour in Seyðisfjörður is also expected to receive substantial funding. Múlaþing comprises Borgarfjörður eystri, Seyðisfjörður, Hérað and Djúpivogur.