Tomislav Tomašević: Zagreb is one of the few cities that did not have a deficit

In a recent statement, Zagreb's mayor, Tomislav Tomašević, highlighted that the city has managed to avoid a budget deficit for the year 2025, positioning itself as one of the few Croatian cities to achieve this feat. During a press conference, he discussed the city’s financial performance based on the upcoming report on the execution of the municipal budget, which will be presented during a meeting of the City Council later this week. This report underscores Zagreb's ability to maintain fiscal stability despite challenges faced by other municipalities across Croatia. Tomašević pointed out that several other cities, including Split, Karlovac, Velika Gorica, Petrinja, Kutina, Osijek, Vinkovci, Šibenik, Zadar, Sisak, and Našice, all experienced significant deficits last year. He noted that these cities are predominantly under the management of the Croatian Democratic Union (HDZ). His comments reflect a broader contrast between Zagreb's financial health and the struggles of its counterparts. Despite the decline in revenue for Zagreb's municipal holding company, Tomašević emphasized that the success of public enterprises should be measured more by their operational efficiency than by the growth of their revenues. He mentioned that the holding company has been profitable for three consecutive years after previously operating at a loss for three years in a row. Additionally, both the holding company and the city have seen improvements in their credit ratings, indicating stronger financial standing. The mayor also addressed concerns regarding the drop in profits for the holding company, noting that the primary goal of public enterprises is to provide quality services at lower costs rather than maximizing profits. In contrast, private companies typically prioritize profit maximization for their owners. Tomašević explained that excessive profits in public entities can be detrimental, emphasizing the importance of maintaining affordability and service quality for citizens. Addressing traffic issues caused by infrastructure renewal projects at the intersection of Savska Street and Ulica Grada Vukovara, one of Zagreb's busiest areas, Tomašević acknowledged the inconvenience faced by pedestrians who had to navigate construction sites. He defended the timing of the work, stating that the city follows professional traffic planning guidelines. He argued that large-scale projects cannot be entirely confined to summer months, as such limitations would raise questions about why similar work isn't conducted beyond the summer season. Reflecting on the city's long-term neglect of communal infrastructure, Tomašević stated that Zagreb is addressing the consequences of decades of insufficient investment. The city is currently renovating overhead and underground utilities, roads, gas pipelines, water pipes, and tram tracks. These efforts are necessary due to the extensive damage caused over four decades of minimal investment. Approximately 55 percent of the city's water supply is lost due to leaks in the network, highlighting the urgency of ongoing infrastructure repairs. Tomašević further revealed that municipal companies requested twice as many works as were permitted to ensure that traffic could continue to function reasonably well. Despite these constraints, the city remains committed to continuing infrastructure improvements throughout the year, with the most demanding tasks concentrated during the summer months. This approach aims to balance the need for essential maintenance with minimizing disruption to daily life in Zagreb.