Tartu's city budget is nearly 330 million euros, which is 5% higher than last year. The city government made 44 proposals for budget changes, while opposition parties submitted 16 proposals.
Tartu Deputy Mayor Martin Bek says that 600,000 euros will be added to operating income. Additionally, 1.4 million euros will be allocated to investment subsidies. Child and adult caregiver support will be increased by 114,000 euros.
The construction of the Emajõgi riverside promenade will receive more funding. The reconstruction of Laia and Turu streets will not receive funding, while the development of Paju Street will. The renovation of the Friendship Bridge will receive 900,000 euros.
The Friendship Bridge and Siuru are major investments. The construction of Siuru will receive up to 10 million euros, while the renovation of the Friendship Bridge will receive nearly 6 million euros. Härma High School will get 4.1 million euros for reconstruction.
The renovation plan for Veeriku School is progressing. The design tender will be announced in spring. The budget allocates 51.8 million euros for investments, with a budget deficit of 13.25 million euros.
Opposition parties made 16 amendment proposals, some of which were partially considered. Tartu City Council Finance Committee member Artjom Suvorov says the city budget is in chaos.
"We have been living on borrowed money in recent years. Previously, the debt burden was 30 million euros, now it's almost 200 million. This year, we are taking out a 30 million euro loan, of which 20 million will go to debt servicing," said Suvorov.
Finance Committee Deputy Chairman Daniel Kõiv said Tartu's budget is on the verge of bankruptcy. "As a city, we cannot invest because the number of residents is declining," said Kõiv.
According to Bek, the budget is being managed as efficiently as possible. "The income tax reform reduces the tax burden on working-age people. Urban development without loans is unthinkable," said Bek.
Tartu's city budget will have its second reading in the city council on Thursday.