The Reykjavík City Council approved the city's budget tonight. The budget aims to improve the Reykjavík Municipal Treasury's position faster than previous plans anticipated. Mayor Einar Þorsteinsson presented the budget proposal for the first time.
The 2025 budget and five-year plan for 2025-2029, approved by the City Council at 11:02pm after more than 11 hours of discussion, projects a positive operating result of nearly 1.3 billion krónur for A operations. This result is expected to improve throughout the planning period, in line with financial policy goals.
Sharp prioritization and investment in city residents
"This is an ambitious plan that invests in the people of our city, families, their welfare and safety - and looks to the future," said Mayor Einar Þorsteinsson at the start of the City Council discussion around noon today. He said the big picture shows Reykjavík is reaching its goals from the last budget faster than expected and thanked city staff and managers for their invaluable contribution.
Disciplined financial management and realistic plans
The Mayor said that actions taken to address the difficult financial situation at the beginning of the term have paid off. "We continue to grow out of the problem we've been dealing with since the start of the term. Few believed we could turn a 16 billion króna deficit into a surplus in such a short time, but it has been achieved through disciplined financial management and cooperation within the majority."