2027 budget in the red but multipliers unchanged

Context

TL;DR

• 2027 deficit: 14,7 million francs
• Expected net investments: 97 million
• Multipliers confirmed: 80% and 85%

Key facts

• Subject → City of Lugano
• Decision → approved by the Municipal Executive
• Next review → City Council
• Ordinary expenses → 510,8 million francs
• Ordinary revenue → 224,1 million francs
• Tax requirement → 286,7 million francs
• Tax revenue from individuals → 221 million francs
• Tax revenue from legal entities → 51 million francs

A smaller deficit

The Municipal Executive has given the green light to the 2027 Budget of the City of Lugano, which now goes to the City Council for review and approval. The accounts remain in the red, but the deficit is lower than in previous projections. The forecast points to a loss of 14,7 million francs, 4,8 million less than the 19,5 million included for the same year in the 2026-2033 Financial Plan.

The comparison with the previous multi-year projection makes the adjustment more evident: at that time, the estimated deficit was 30,1 million, thus 15,4 million higher than now forecast. For the Municipal Executive, this figure confirms the financial recovery path undertaken. It does not, however, close the matter: the Executive points out that further measures will be needed to bring the accounts back toward a lasting balance.

Budget items

As regards ordinary operations, the document sets out expenses of 510,8 million francs and revenue of 224,1 million. The amount to be covered through taxation is given as 286,7 million. Estimated tax revenue amounts to 221 million from individuals and 51 million from legal entities.

The Municipal Executive is keeping the two tax multipliers unchanged: 80% for individuals and 85% for legal entities. The choice is linked to the desire to continue rebalancing without increasing the tax burden through the multipliers and to preserve the city's attractiveness for residents and businesses.

The plan also provides for 97 million in net investment in 2027. The sum includes the deferred payment of part of the balance due for the purchase of PalaRaiffeisen. Self-financing is estimated at 16,6 million, while the overall result comes to negative 80,4 million. The same presentation therefore highlights the need to monitor the evolution of debt and the sustainability of investments.

The 2026 update

The Municipal Executive also announced that the projected closing of financial year 2026 is expected to result in a surplus in current operations. The signal is positive, but it does not amount to a structural rebalancing of the city's finances, which will still require time and further measures. The Budget incorporates the recovery measures already decided by the Executive and requested by the City Council. It does not, however, include the measures needed to offset from 2028 the financial consequences of the popular votes held in 2025, according to current financial planning.

Operational details

What changes, and what remains outside

The confirmation of the multipliers should be read separately from the overall result. For individuals, the multiplier remains at 80%, while for legal entities it remains at 85%, as indicated by the City for 2027. The decision does not eliminate the projected deficit, but avoids pursuing rebalancing through an increase in the multipliers. This is the rationale the Municipal Council links to protecting attractiveness for residents and businesses.

The second element concerns the difference between an improvement in estimates and a return to balance. Moving from a projection of 30,1 million to a projected deficit of 14,7 million represents a significant correction, but the budget remains negative. Any surplus in current operations in 2026 should therefore be regarded as a positive signal regarding the closing of the financial year, not as the solution already achieved for the overall financial picture.

For those reading as cross-border commuters, the news has a precise scope: the source does not address a G permit, AVS, LPP, LAMal, tax refunds, INPS or double taxation, and does not present any changes to withholding tax. The content concerns the financial management of the City of Lugano and not a procedure concerning cross-border work.

Three comparisons to keep separate

| Comparison | Source data | Interpretation | | 2027 | Deficit of 14,7 million | Still-negative forecast | | 2026-2033 financial plan | 19,5 million for 2027 | Higher previous estimate | | Previous multi-year projection | 30,1 million | Even more unfavorable picture | | 2026 financial year | Expected surplus in current operations | Positive indication regarding the closing |

The same prudence applies to investments. The 97 million net also include the deferred payment of part of the balance for PalaRaiffeisen. Alongside this figure, the document indicates 16,6 million in self-financing and an overall result of minus 80,4 million. For the Municipal Council, the data as a whole make it necessary to continue monitoring indebtedness and the sustainability of investments.

Finally, the financial calendar has three distinct steps: the expected result for 2026, the 2027 Budget and the measures to be planned from 2028 for the financial consequences of the 2025 popular votes. The current improvement does not eliminate this sequence.

Key points

How to follow the dossier

The operational follow-up is primarily institutional. The Municipal Council has already approved the 2027 Budget, while the City Council must examine and approve it. To correctly interpret the next developments, it is useful to separate the procedure from the financial content and keep the different time horizons distinct.

Five practical checks

• 1. Check the status of the act: approval by the Municipal Council precedes examination and approval by the City Council.
• 2. Separate 2027 from 2026: the former presents an expected deficit, while the latter shows a closing trend with a surplus in current operations.
• 3. Read the multipliers by category: 80% concerns individuals, 85% legal entities.
• 4. Assess investments and their financing together: 97 million net, 16,6 million in self-financing, and an overall result of minus 80,4 million.
• 5. Keep the horizon open from 2028 onward: the Budget incorporates measures already decided, but not yet those needed to offset the financial consequences of the popular votes held in 2025.

This approach avoids two overly hasty interpretations. An improvement over previous estimates does not amount to a balanced budget, while maintaining the multipliers does not mean that the deficit has been eliminated. The source therefore links the recovery to further measures and constant monitoring of indebtedness.

For residents, businesses, and anyone following Lugano's tax matters, the available figures are aggregated and concern the City's Budget. They do not replace an individual calculation: they serve to clarify which financial approach was approved by the Municipal Council and which step now falls to the City Council. To organize the data relating to your own tax situation, consult calcolatore fiscale.

Source: tio.ch