Tartu City Council will triple its loan volume in next year's budget and the funds will mostly be spent on investments, it said on Monday.
In total, the city plans to spend €55.5 million on investments next year, a note in the draft text said. The majority of costs will be covered by loans.
This year, the city's loan burden is €17.1 million but this will rise to €51 million in 2023.
In 2023, €41.3 million will be allocated for new developments, €9.8 million for refinancing existing debts, and €4.8 million on debt servicing obligations.
The biggest investments will be Pärli School (€10.6 million), Hellik Kindergarten (€3.1 million), changing existing streets lamps to LED (€2.8 million) and the renovation of Karlova School (€2.7 million).
Additionally, €2 million has been allocated for the construction of Põhja puiestee and Muuseumi tee, €1.8 million for the reconstruction of the Kalda tee 40 building and the same amount for fixing the stairs on the embankment between Kaarsilla and Rahu bridge.
One million euros has been set aside for improving cycle lanes.
Under next year's budget, expenses will increase by 11.2 percent and revenue by 8.6 percent.
The city will spend €210.5 million on core activities, including paying salaries, €208.5 million on expenses, and €51 million on loan obligations.
The document will be presented to the council on Monday.
Editor: Mait Ots, Helen Wright