Capital Region Municipality in Trouble Skip to content

Capital Region Municipality in Trouble

The municipality Álftanes outside Reykjavík is facing serious financial difficulties. It was announced at a public meeting on Thursday night last week that the town council will look into the possibility of an immediate merger with other municipalities.

From Álftanes. Photo by Páll Stefánsson.

Additionally, the local tax will increase by ten percent and the real property tax from 0.28 percent to 0.40 percent—on top of the tax increases planned by the government—as stated in an agreement with the Ministry of Transport, Morgunbladid reports.

“This increase and this situation are at the worst time and the worst possible circumstances in society,” said Mayor of Álftanes Pálmi Thór Másson.

The former Mayor Sigurdur Magnússon was booed at when he tried to speak at the meeting and approximately one third of attendees rose from their seats and walked to the entrance of the sports hall where the meeting was held when he took the chair.

According to the agreement with the Ministry of Transport, Álftanes is to be operated without deficit in 2013.

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