The four parties in Tallinn's ruling coalition – the Reform Party, Isamaa, Eesti 200 and the Social Democratic Party (SDE) – have yet to finalize and submit next year's city budget to the city council for review. The allocation of around €10 million has been the subject of hours of discussion every day this week as well.

Isamaa has one expectation for this money, while the remaining three have their own.

"As for the last few million euros, the three of us have had to wait on Isamaa's decision regarding what they want to do with the additional revenue from the state land tax hike," Tallinn Deputy Mayor Pärtel-Peeter Pere (Reform) said Wednesday, following the latest round of budget discussions.

"So far, Isamaa has had a very different view from ours regarding how to use this money," he continued. "I suppose we've managed to get closer to one another, and we're getting closer and closer to an agreement."

Fellow Deputy Mayor Karl Sander Kase (Isamaa) said after Wednesday's meeting that he felt they had been closer to reaching an agreement the day before. "But I do believe we can come to an agreement by next week," he added.

One major ongoing dispute involves the land tax. Isamaa wants to allocate the remaining millions to offset the land tax hike. Pere, however, argued that this taxpayer money could be used more wisely.

"Regarding state taxes – do we want to start offsetting VAT or some other tax too?" he asked. "Perhaps Tallinn could start offsetting the car tax too. These are the type of absurd academic questions that arise when a local government starts equating its financial capacity with that of state taxes. You have to understand that money is finite; that Tallinn's budget is finite too. Money doesn't grow on trees. If we agree to allocate money as subsidies without there being any needs-based criteria, then it would be a great pity if we didn't have enough money to pay, for example, for snow removal, teachers' raises or street cleaning."

Kase noted that he wasn't pleased that their coalition partner has taken these disputes to the media, but did confirm that there are ongoing disagreements over the land tax.

"The Land Tax Act passed by the Riigikogu could effectively mean up to a 50 percent increase in land tax next year," the Isamaa deputy mayor stressed. "We discussed that during coalition talks too, and right now, we're looking for a way to spare Tallinn residents from this tax hike."

There are other issues involved too, he noted.

"Today we've reached an almost viable solution for next year's land tax issue, but again, this isn't the only issue," Kase explained. "There are other considerations that still need to be addressed as well."

Snow removal still a hot topic

On top of avoiding tax hikes and maintaining the current land tax rate, another matter included in the coalition agreement is that the city will take over responsibility for sidewalk snow removal as quickly as possible. Kase said that they should be fulfilling what has been included in the agreement.

"This is a matter of honoring the coalition agreement," he explained. "If we have a stated goal to take over responsibility for snow removal as quickly as possible, then our expectation is that we will move in that direction, and be able to fulfill that [goal]."

Pere, who recently apologized for getting Tallinn residents' snow removal hopes up too high, nonetheless emphasized that snow removal remains a priority for the Reform Party.

"But if we want to use the money for other things, such as distributing it as direct subsidies, not according to need – I'm talking about the land tax here – then it becomes a question of choices and agreements, of course," Pere said.

"But [to fund] both things – the question is, what decisions are we going to make with taxpayer money?" he continued. "The Reform Party stands for better, higher quality and more extensive snow removal. We always have stood for this, and we will continue to do so."

Kase noted that people will understand that not all plans could be implemented for the upcoming winter, but that more should be planned for next winter.

"We're already taking a huge step forward this winter," Kase said. "But in terms of winter 2025, the goal is still to relieve homeowners of the obligation to clear city-owned sidewalks. The goal, after all, is to fulfill this goal in the coalition agreement. We're already relatively close to reaching an agreement on this."

Pere: Coalition only getting stronger

Despite these disagreements in drawing up the current coalition's first full-scale city budget – following two previous supplementary budgets – both Pere and Kase are confident an agreement will be reached and the city budget submitted to the city council. They're also confident that the coalition is doing well.

"Politics is the art of compromise, and agreements must be reached," said Pere. "I've said multiple times this summer and fall that for the Reform Party, the most important thing in this city administration is the transition to Estonian-language education, and for that we are willing to reach agreements and make compromises."

"It's worth being optimistic because budget talks are held in good faith that an agreement will be reached – otherwise there's no point in these talks," said Kase. "We hope to reach an agreement by next week."

He added that Tallinn city leaders have spent long hours together this week to work on the budget. "I'd hope for a good conservative willingness to cooperate, not digs via the media," Kase said.

Regardless, the Reform deputy mayor believes that the coalition is actually only getting stronger.

"We've had a new coalition in Tallinn since spring," Pere said. "It's holding; it's only getting stronger. We've gained new members on Tallinn City Council over the summer and fall. We're doing well."

--

Follow ERR News on Facebook and Twitter and never miss an update!