Sipoo municipality proposes budget with deficit and increased debt

The municipality of Sipoo has proposed a budget for the upcoming year that includes a deficit of approximately 1.7 million euros and an increase in the municipality's total debt. To finance investments and loan repayments, the municipality plans to take on additional borrowing, which is expected to increase the debt stock by about 25 million euros next year. By the end of 2027, the total debt is projected to reach 163 million euros, or 6,953 euros per resident.

Micaela Röman, chair of the municipal board, described the proposal as a balancing act between maintaining high-quality services and stabilizing the economy. She noted that rising interest costs and previous investment decisions are placing significant pressure on the budget. Consequently, some planned investments have been postponed.

Municipal Director Mikael Grannas attributed the financial situation to weakened tax revenues and lagging plot sales rather than the cost structure itself. While income tax rates are not proposed to change, a slight increase in property tax rates is suggested.