Foundations strengthened and defence turned into an offensive

The annual report of the Municipality of Hafnarfjörður for the year 2020 was presented to the town council today.

The operating result for A and B sections of Hafnarfjörður was positive.
about 2.3 billion króna in 2020. For Section A, the result was a surplus of 1.6
billions of kroner. Despite the negative impact of the Covid-19 pandemic on tax revenues
and expenditure, the core operations of the municipal budget were sound last year. In addition to that
sale of approximately 15% of Hafnarfjörður's share in HS Veitur hf. and land sales which have
a significant positive effect on the year's operating result.

„Hafnarfjörður has faced the negative effects of Covid-19
of the pandemic by strengthening the economic foundations of the municipality,“
says Rósa Guðbjartsdóttir, the mayor. „In recent years, indebtedness
Hafnarfjörður's share is steadily decreasing, with the sale of about 15% of the town's stake in HS
The situation is such that the debt ratio of the municipal fund has not been lower for decades. This
Improved position completely changes the town's ability to tackle economic uncertainty.
due to Covid-19. Now we can turn defence into attack. We have been able to maintain
Resolutely pursuing stronger services for residents and targeted infrastructure development, and strategic policies.
further investment in the town in the coming years. A significant number of plots have
allocated in recent months, new developments are rising and older areas
to densify. Therefore, a significant increase in population in Hafnarfjörður can be expected in the coming years.
years, for the benefit of the council's operations and the town's community life.“

Profit from the sale of a stake in HS Veitur amounted to almost 2.6
million kroner after tax. Revenue from land sales amounted to 1.4 billion kroner.
On the other hand, the charge for the pension fund liability was 884 million.
higher than had been provided for in the plans and the capital items were
451 million króna higher. Operating cash flow amounted to 1.6 billion króna, or 5.2%.
of total revenue.

^{Hafnarfjörður's debt ratio continues to fall year-on-year.}   

Debt ratio
Hafnarfjörður continued to fall year-on-year. It was 101% at the end of 2020.,
compared with 112% at the end of 2019, and is therefore well below the 150% debt ratio according to
Regulations on financial criteria and supervision of local authorities' finances. New loans
amounting to 3.8 billion króna, but against this, payments of long-term liabilities totalled around 3.2 billion
billions of kroner.

Investments in the year 2020 amounted to 3.4 billion króna.
Total assets at the end of the year amounted to a total of 67 billion króna and increased by 7.4
billion kroner year-on-year. Total debts and liabilities amounted to a total of 50
billion króna and increased by 4.7 billion króna year-on-year. 

The annual accounts of the City of Hafnarfjörður are available here.