Kópavogur forecasts 335 million króna surplus and 2.5% fee rise

Kópavogur expects an operating surplus of 335 million króna next year, excluding income from land-use rights sales, and plans to raise most municipal fees by 2.5% from the start of the year. The figures are in the city’s 2027 budget proposal, reported by mbl.is.

The proposal, submitted to the city council for its first reading on Tuesday, also includes a three-year plan for 2028 to 2030. No further fee increases are planned during 2027.

The city expects an operating surplus of 209 million króna for its A-section municipal fund. Cash flow from operations across the municipal group is forecast at 5.4 billion króna, while its debt ratio is projected to be 77.7%. The city said total debt would remain almost unchanged in real terms despite construction projects and pension obligations.

The budget does not include revenue from land-use rights sales, although land allocations are planned. Kópavogur has used this approach in its budget planning since 2011.

Construction is due to begin on a new preschool at Naustavör, a combined preschool and primary school in Vatnsendahvarf, and an extension to Kópavogur School. A library and cultural centre are also due to open in Smáralind, with planning to begin for a new library in Kórinn.

The property tax rate on commercial premises is set to fall, while the rate for residential property will remain unchanged. The municipal income tax rate will also stay the same. Residential property valuations in Kópavogur are forecast to rise by an average of 1%, while the budget assumes inflation of 3.6% next year. The city said property taxes would therefore decrease in real terms. Older people and recipients of disability pensions will continue to receive income-based property tax discounts.

Home-care payments to parents are set to increase to 121,462 króna, and payments will begin when a child is 14 months old, rather than 15 months. The city also plans education grants for primary school employees studying to become teachers or classroom support staff, and assistant managers at after-school centres, where literacy and homework support will be priorities.

The city said there was uncertainty over state funding for the implementation of the welfare legislation, and stressed the need to maintain continuity of services for children and families. Preparations will continue for short-term stays for disabled children. Services for older people will put greater emphasis on early support and coordinated care, while weekend opening at community centres will continue to be developed with users.

Opening hours at Salalaug swimming pool will be extended at weekends, and scheduled midnight openings will be introduced at Kópavogslaug swimming pool. The city also plans to increase contributions to its maintenance fund.

Mayor Ásdís Kristjánsdóttir said limiting fee increases to 2.5% was intended to ease pressure on households and reduce inflationary pressures.