Akureyri Local Authorities Expect Vast Deficit in 2009

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Akureyri Local Authorities Expect Vast Deficit in 2009

Local authorities in Akureyri, Iceland’s northern capital, are predicting a deficit of ISK 1 billion (USD 9 million, EUR 6 million) next year. Therefore local tax and property tariffs will increase as well as food prices at schools and admissions to swimming pools and ski slopes.

View of Akureyri. Copyright: Icelandic Photo Agency.

Also as part of the rationalization measures, the salaries of the mayor, town councilors and members of committees will decrease by ten percent, Morgunbladid reports.

For the first time, representatives of all parties in the Akureyri town council participated in making the budget. They said their goal had been to defend the basic services during these economic difficulties.

“We especially looked towards protecting the operations of the elementary schools and playschools in town, as well as the social services, and also protect jobs and labor-intensive operations as much as possible,” a statement from the town council reads.

Tariffs for kindergartens and after-school programs will not increase, although the price of meals will be higher next year.