Tartu council adopts city's budget for 2025

TALLINN – The Tartu City Council on Thursday approved the city's budget for next year, which amounts to just over 291 million euros.

The city's operating income is budgeted at 248.3 million euros. Personal income tax receipts are estimated to total 144.9 million euros, 6.7 million euros more than this year. Subsidies from the state and other institutions are planned to reach 66.5 million euros, while 30.1 million euros is to be earned from the sale of goods and services. Land tax revenue is estimated at 3.3 million euros, and the city stands to collect some 2.5 million euros in local taxes -- parking fees, road closure charges and advertising tax.

Operating expenditure will amount to 230.9 million euros, of which 128.7 million euros will go to education. To ensure the long-term financial viability of the city, operating expenditure has been cut by 12.9 million euros. All areas have contributed to the reduction in operating expenditure by cutting about 10 percent of their expenditure. The city's operating result is estimated to increase by 16.9 million compared to this year's budget to 17.4 million euros.

Investment revenue will total 13.6 million euros and investment expenditure 43.1 million euros. The city plans to borrow 29.2 million euros next year. Tartu's total borrowings are budgeted to amount to 181.4 million euros at the end of next year and its net debt burden to 153.9 million euros, which is within the allowed limit.

The largest investment is the reconstruction of the Sõpruse Bridge, for which 5.2 million euros has been earmarked in 2025, with the total project cost amounting to 18.5 million euros. An amount of 14.9 million euros will be invested in the construction, renovation, and design of streets, bridges, and bike and pedestrian paths.

An amount of 5.1 million euros has been earmarked for the reconstruction of kindergartens, and 1.9 million euros for improving the conditions in general education schools

The budget for the design of the Siuru Cultural Center, its surroundings and infrastructure amounts to 3.1 million euros. It is planned to draw up spatial development visions for the Jaamamõisa and Ropka-Teguri area in order to create opportunities for multifunctional urban space and good living conditions.

The size of Tartu's budget for this year was 305.3 million euros when approved. In June, the council adopted a supplementary budget of 15.7 million euros.