Positive results and significant development

Debt ratio below 100% for the first time in decades

A proposal for the 2022 budget will be presented.
for the Hafnarfjörður town council today, Wednesday, 10 November. Scheduled
The operating surplus of the council's A and B sections amounts to 842 million króna for the year.
2022. Operating cash flow is expected to be 2.5% of total revenue or 886
millions of kroner. The plan provides for A-section operations to be positive for
Depreciation and capital charges of approximately 1.1 billion króna and the A-section's result positive by 106
millions of kroner.

The development of infrastructure and new neighbourhoods which will lead to a significant increase in population. 

Over the past few terms, emphasis has been placed
to minimise the impact of the Covid-19 pandemic on the residents of Hafnarfjörður and prevent the economic shock
to place a permanent yoke on the municipality. At the same time, work has been carried out on
the development of infrastructure and new neighbourhoods which will lead to a significant increase
residents in the coming years. Hafnarfjörður municipality, like other municipalities, anticipates
a continued increase in collectively bargained wages and rapidly growing expenditure on social welfare
a service that carries ever-increasing weight in the town's operations. The aim is for repayments of older loans to exceed new borrowings in
Part A and that the debt ratio of the Municipality of Hafnarfjörður will be brought down to 97% by the end of the year.
2022 and it has not been lower in decades. 

„Next year's budget entails austerity
in the management and defensive response of local authorities to the economic impact of the Covid pandemic
have yielded results. Emphasis has been placed on protecting the interests of residents without
to indebt the municipality, but the City of Hafnarfjörður's treasury took out no loans in
the current financial year“ says
Rósa Guðbjartsdóttir, Mayor. „A major development is ahead in new
neighbourhoods and infill sites. Considerable population growth can be expected in
in Hafnarfjörður over the next few years. We aim to invest just over 5 billion.
króna in 2022, but as with other municipalities, increased
Wage costs have had a significant impact on the town's operations. Despite this, it is estimated
that the debt ratio of the City of Hafnarfjörður will fall below 100% by the end of 2022 and
It marks a turning point in the running of the town.“

Key findings of the 2022 budget

• Operating result
  A and B parts positive by 842 million króna
• Operating result
  A-part positive of approximately 106 million króna
• Debt ratio
  estimated at around 97% at the end of 2022
• Estimated working capital from
  Operating profit for A and B sections of 886 million króna, or 2.51% of total revenue.
• Council tax percentage
  unadjusted or 14.48%
• Property taxes on
  Residential property prices were lowered by almost 5% to offset the increase
  property valuation
• Reduction in water and sewerage charges
  Business premises that reduces the tax burden on businesses by 145 million króna 
• It is generally assumed that
  the tariff for 2022 remains unchanged or increases by 2.51%, which is within expectations
  price increases
• Estimated
  Investments amount to just over 5 billion króna
• Purchase of
  Social housing estimated at around 500 million króna
• Spending on issues
  The number of disabled people increases by 131,000 and amounts to just over 4 billion króna.
• Special injection to
  Hafnarfjörður's nursery schools in the form of increased staff benefits, a pay rise for
  Fixed overtime, allowances and training amount to around 82 million kroner.
• According to the plan, residents will
  to increase by an average of 1,500-2,000 people per year for the next four years

Main
Projects in 2022

The budget for the project is approximately 5 million.
billions of kroner in 2022. The plan emphasises prioritisation in
basic services, such as environmental matters, transport, sports facilities, housing and
sewage matters.

Road construction will continue in
A residential area in Hamranes which is currently being developed, with road construction underway in a new area.
A residential area in Ásland. The finishing of new housing estates throughout the town will be
to continue, such as the completion of paving, the construction of patios, paths, play areas and general landscaping
greening of areas. The reconstruction of pavements and footpaths in the town continues and special
Funding will be allocated to improving cycling routes in the municipality. It should also be noted that at Hvaleyrarvatn, work will begin.
work on the development in accordance with the detailed plan, with particular regard to
to improve accessibility, stopping areas, paths and car parks. Special funding is
Allocated to beautify Hellisgerði, which will be 100 years old in 2023. Renewal of street lighting with LED installation.
will be largely completed next year. Preparations for a new play- and
primary school in Hamranes. The renovation of the grass pitches on the club grounds will then be completed.
FH and Hauka next year, as well as numerous other projects.

Repayments
in excess of borrowings in Section A

The plan provides for a loan to be taken out in
Part A for around 850 million króna, but where repayments of older loans weigh
It is further assumed that lending institutions' funding will decrease by just over 200
millions of kroner in total in 2022. It is expected that 500 million kroner
borrowing for investments by the housing office, but rent payments are covered
instalments and interest on those loans. Thus
The debt ratio is expected to be around 97% at the end of 2022, but by comparison
The ratio was 112% at the end of 2019, before the Covid-19 pandemic struck.

Checkout
budget

The budget for the City of Hafnarfjörður has been laid.
to the previous discussion at the meeting of the Hafnarfjörður Town Council on 10 November 2021.
The budget covers the next year, as well as a three-year plan for 2023-2025.
It is expected that the second reading and adoption of the budget in the town council
will be on Wednesday, 8 December 2021.

• (Draft) Explanatory Memorandum to the Budget
• (Draft) Budget 2022 – 2025
• (Draft) Departmental Overview 2022-2025