Progress
Figure 1. Net Municipal income tax (without Equalizing fund) in Fjarðabyggða, Múlaþingib, Vopnafjarðahreppur, and Fljótsdalshreppur municipalities in the years 2002-2020 in price level index for 2020.
a Fjarðabyggð in its current form was established with the merger of the municipalities Fjarðabyggð, Mjóafjarðarhreppur, Austurbyggð (previously Búðahreppur and Stöðvarhreppur) and Fáskrúðsfjarðarhreppur in 2006. In the year 2018, Breiðdalshreppur merged into Fjarðabyggð. Figure 1 shows the net municipal income tax sum in Fjarðabyggð and its preceding municipalities from 2002-2022.
b Múlaþing in its current form was established with the merger of the municipalities Seyðisfjörður, Borgarfjörður, Djúpivogur, and Fljótsdalshérað in 2020. Figure 1 shows the sum of the net municipal income tax in Múlaþing and its preceding municipalities from 2002 to 2022.
Updated: October 17, 2023
Source: Icelandic Association of Local Authorities
Metrics, Targets and Monitoring Protocol
What is measured?
Municipal income tax changes in selected municipalities (Project effect: indirect).
Monitoring Protocol
Municipalities in East Iceland will make this data available annually.
Target
Not applicable
Changes of indicator
This indicator was originally number 15.1. It was then named Financial Status of municipalities and can be found under that number in documents of the project from 2005 and 2006.
The indicator number has been changed twice.
| Year | Nr. | Indicator name |
|---|---|---|
| 2020 | 3.2.1 | Local tax income |
| 2007 | 3.5a | Financial Status of Municipalities |
The criterion for part a was originally defined as: "The ratio of total municipal revenue that came from the construction and operation of Fljótsdalsstöð power plant and Fjarðaál smelter". When monitoring started in 2005 the criterion was changed to "Changes of municipal income tax in selected municipalities". The reason was that information was unavailable for the former criterion but the revised one is available in yearbooks of municipalities.
Baseline
| Municipalities | Income (thousands of ISK) | Expenses (thousands of ISK) | Income/Expenses ratio |
|---|---|---|---|
| Austur-Hérað | 894.708 | 910.107 | 0,983 |
| Norður-Hérað | 109.820 | 111.838 | 0,982 |
| Fellahreppur | 168.986 | 181.159 | 0,933 |
| Austurbyggð | 431.413 | 477.795 | 0,903 |
| Fáskrúðsfjarðarhreppur | 20.269 | 19.638 | 1,032 |
| Fjarðabyggð | 1.407.409 | 1.419.177 | 0,992 |
| Fljótsdalshreppur | 38.530 | 39.158 | 0,984 |
| Borgarfjarðarhreppur | 61.371 | 58.737 | 1,045 |
| Breiðdalshreppur | 107.225 | 128.387 | 0,835 |
| Djúpavogshreppur | 209.948 | 228.598 | 0,918 |
| Mjóafjarðarhreppur | 10.807 | 11.560 | 0,935 |
| Seyðisfjarðarkaupstaður | 404.161 | 424.244 | 0,953 |
| Skeggjastaðahreppur | 41.933 | 50.079 | 1,037 |
| Sveitarfélagið Hornafjörður | 958.469 | 1.031.925 | 0,929 |
| Vopnafjarðarhreppur | 320.146 | 366.972 | 0,872 |
Source: Samband íslenskra sveitarfélaga. Annual report for Municipalities 2003.
| Municipalities | Income (thousands of ISK) | Expenses (thousands of ISK) | Income/Expenses ratio |
|---|---|---|---|
| Fljótsdalshérað | 1.173.514 | 1.203.104 | 0,975 |
| Fjarðabyggð | 1.869.898 | 1.928.170 | 0,970 |
| Fljótsdalshreppur | 38.530 | 39.158 | 0,984 |
| Borgarfjarðarhreppur | 61.371 | 58.737 | 1,045 |
| Breiðdalshreppur | 107.225 | 128.387 | 0,835 |
| Djúpavogshreppur | 209.948 | 228.598 | 0,918 |
| Seyðisfjarðarkaupstaður | 404.161 | 424.244 | 0,953 |
| Vopnafjarðarhreppur | 320.146 | 366.972 | 0,872 |
| Total | 4.184.793 | 4.377.370 | 0,956 |
Updated: November 20th 2017
Source: Samband íslenskra sveitarfélaga (only in Icelandic).
Rationale for Indicator Selection
The Fjardaal and Karahnjukar projects will likely increase revenues from municipalities through increased income and property taxes from direct and indirect employment in the area. The municipalities' expenditure, however, will also likely increase as the additional employees, their families, and others attracted to the local area require municipal services. The main services which must be discharged by the municipalities according to Icelandic law are:
- Social services
- Technical services
- Education, culture, sports and recreation
- Infrastructure, environment, and planning
- Operation of harbors (where appropriate)
- Water works, district heating systems, and other utilities
From phase I/II report on indicators and baseline from April 2005