Annual Report 2014
The operating result for the year, before exceptional items, was a surplus of approximately 409 million krónur, whereas the plan had provided for an operating surplus of 619 million.
The operating result for the year, excluding exceptional items, was a positive 409 million króna, whereas the plan had provided for an operating surplus of 619 million. This variance is attributable to an increase in the council's pension liability of 928 million krónur, which is 515 million over the forecast.
The operating result for the year was a positive 76 million króna, but among the exceptional items is an expense charge due to the outcome of the Supreme Court's judgement of 5th March 2015 that the municipality is required to pay the state corporation tax, plus interest, on the sale of a stake in HS Orka hf. in 2008, amounting to 333 million króna.
Revenues amounted to 19,648 million króna, which is 418 million above the forecast. Wages and salaries are the council's largest expenditure item, amounting to 9,985 million króna, which is 442 million króna higher than forecast. Other expenses were 7,163 million króna, which is 230 million above the budget. Profit before finance and exceptional items amounted to 1,634 million króna. Financing items amounted to 1,226 million króna, 67 million above the forecast. Operating cash flow was approximately 1,593 million króna, 478 million lower than forecast.
The town's total debt fell by 696 million króna during the year, despite an increase in pension liabilities. The debt ratio continued to fall and stood at 202% at the turn of the year, having peaked at 294% in 2009. The debt ratio was 176% at the end of the year, compared to 274% in 2009.
The running of the policy areas went well and was in line with the plan. The largest policy area is education and childcare, to which approximately 8,748 million króna was allocated. Around 2,637 million króna was allocated to social services and 1,599 million króna to youth and sports affairs.
Total assets at the end of the year amounted to a total of 48,198 million krónur, having decreased by 285 million year-on-year, and total liabilities and commitments amounted to a total of 39,766 million krónur.
The population of Hafnarfjörður was 27,818 on 1 December 2014, compared to 27,325 the previous year, an increase of 493 or 1.81%.