Continuous development and the service were protected

Hafnarfjörður's Budget for 2021 and 2022-2024 

The 2021 budget proposal will be presented to the Hafnarfjörður Town Council today, Wednesday.
25 November. The estimated operating deficit of the A and B parts of the municipality amounts to 1,221
million króna in 2021. Operating cash flow is expected to be 5.5%
of total revenue or 1.7 billion króna.

As one
and other municipalities, the City of Hafnarfjörður has had to respond to economic
and the social consequences of the Covid-19 pandemic, which has reduced
council tax revenues and a corresponding increase in social spending. Emphasis has been placed on
to minimise the impact of the pandemic on the residents of Hafnarfjörður and to prevent the economic shock
to place a permanent yoke on the municipality. This has been done through coordinated actions.
which have included targeted adjustments, moderate borrowing and the sale of assets.

Key findings of the 2021 budget:

• Operating result of A and B sections negative by
  1.221 million kronor.
• Debt ratio 114% at the end of 2021.
• Projected operating cash flow from A and B sections
  1.7 billion króna or nearly 5.51% of total revenue.
• Council tax percentage unchanged at 14.481%.
• The total property tax charge is reduced by
  lower property taxes and water and sewerage charges to accommodate
  increase in property valuation.
• It is generally assumed that the tariff
  for 2021 to remain unchanged or increase in line with the index.
• The plan provides for the sale of plots at
  worth 500 million króna.
• Estimated investments amount to a total of 4.3
  billions of kroner.
• Purchase of social housing amounts to 500
  millions of kroner.

„Although
When a global pandemic temporarily leaves its mark on the municipal budget's performance, then
The foundations are solid and the people of Hafnarfjörður have an offensive spirit. The most important thing is to defend the service.
and the interests of the residents and to ensure that the town turns defence into attack as quickly as possible.“ says
Rósa Guðbjartsdóttir, Mayor of Hafnarfjörður. „The sale of a stake in HS Veitur helps
It helps us a great deal in the recovery and prevents a debt burden from being imposed.
to the municipality. We will continue to build in Hafnarfjörður and it is planned
to invest just over four billion krónur next year, which is an increase of
more than a billion year-on-year. We take
optimistic about 2021 and looking to the future with a bright outlook.“ 

Main
Projects in 2021

Budgetary authorisation
The total for implementation in 2021 is 4,283 million króna. Work will continue.
on the development of the South Harbour, as well as an emphasis on finishing touches.
walking trail, etc. at the North Shore. Considerable work will be carried out on road construction,
e.g. at Ásvallabraut and Hamranes, as well as a planned renovation.
street lighting throughout the town. Significant investments are planned in
social housing. Preparation and development of sports facilities will continue
and include, among other things, the renovation of grass pitches and other facilities, as well as
The refurbished South Bay Pool. Effort will be put into the renovation of St.
Josefsspítala and the old Sólvangur. Then, emphasis will be placed on development in
sewage matters and maintenance of the water supply.

Borrowing requirements
2021 kept to a minimum

Despite
The 2021 budget provides for a substantial loss, which requires a loan.
year at a minimum, as the sale proceeds from the shares in HS Veitur will be paid on
in the first months of the year. Loan takings of 1,750 million króna are expected but
loan repayments amounting to a total of 2,030 million króna, or nearly 300 million
kronur in excess of borrowings. Thus, the debt ratio is expected to be around 114% in
end of 2021, whereas by comparison the ratio was 112% at the end of 2019 before
The pandemic struck.

Checkout
budget

Budget
A proposal from the City of Hafnarfjörður will be put forward for its first reading at a meeting of the city council.
Hafnarfjörður, 25 November 2020. The budget covers the coming year as well as
three-year plan for the years 2022-2024. The second reading is expected
and the budget will be approved by the town council on Wednesday, 16 December.

Attached are the draft supporting documents for the 2021-2024 financial plan:

• Explanatory Memorandum to the 2021 Budget
• Hafnarfjörður – Budget 2021-2024
• Hafnarfjörður – Policy Area Overview 2021-2024