The committee monitoring the state of finances among Iceland’s municipal governments is working on ten cases of severe council debt.

The committee has, since last year, gone through the finances of the ten worst-placed local governments in Iceland and taken a final decision on four of the ten.

Alftanes near Reykjavik is in the worst position with over ISK 2.1 million (USD 16,200) of debt for every municipality resident. The committee has appointed a financial regulator in the municipality which carefully budgets all outgoings in an effort to balance the books.

A special contract has also been written up with the leaders of Bolungarvik in the Westfjords which will ensure a financial reorganisation of the council’s business and the plans in force in Sandgerdi and Reykjanesbaer are thought to be adequate to bring stability, RUV reports.

There are six remaining: Kopavogur, Hafnarfjordur, Borgarbyggd, Grundarfjordur, Fjardarbyggd and Fljotsdalsherad. These are the local authorities with the most severe budget imbalances says Olafur Nilsson, the committee head. Investment in recent years and obligations outside of direct financing, such as long term rental contracts on buildings, are the main problem, he says. The impressive new sports hall and swimming pool in Alftanes are a good example.

The committee continues to monitor these six municipalities but hopes it will not need to intervene, Nilsson said.

There are currently 79 local authorities in Iceland.

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