Hafnarfjörður's budget approved
The financial plan for the City of Hafnarfjörður was presented for a second reading and approved at a meeting of the City Council of Hafnarfjörður yesterday, Wednesday, 8 December. The financial plan covers the coming year as well as a three-year plan for 2023-2025. The budget for capital projects for 2022 is approximately 5 billion króna. The plan places an emphasis on prioritising core services, such as environmental matters, transport, sports facilities, housing and sewerage.
- The development of new neighbourhoods will lead to a significant increase in the population in the coming years.
- A targeted response to the pandemic provides the room to manoeuvre to turn defence into attack.
- Emphasis on protecting residents' interests without incurring debt for the council.
The budget for the City of Hafnarfjörður was presented for its second reading and approved at the meeting of the Hafnarfjörður Town Council yesterday, Wednesday, 8th December. The budget covers the coming year, as well as a three-year plan for 2023-2025. The estimated operating surplus for the municipality's A and B sections amounts to 842 million króna in 2022. Operating cash flow is projected to be 2.5% of total revenues, or 886 million króna. The plan assumes that the A-section's operating surplus before depreciation and finance charges will be approximately 1.1 billion kronor, and that the A-section's result will be a positive 106 million kronor.
„With the new neighbourhoods being developed in Hafnarfjörður and moderate densification in older areas, the annual population growth for Hafnarfjörður is projected to be an average of 1,500–2,000 people over the next four years. Furthermore, we place emphasis on protecting the town's unique character, strengthening the older built-up areas and enhancing the town centre. New planning proposals for Strandgata, the planned construction of the Technical College, and a master plan for the area around Flensborg Harbour and out to the Ósæri area will promote a vibrant town life and a diverse range of services.“ says Rósa Guðbjartsdóttir, the mayor.„The council's robust financial position and dynamic development mean that the council's response to the economic impact of the pandemic is proving successful.
Hafnarfjörður is the third largest municipality in the country, with total expenditure amounting to approximately 34.6 billion krónur, an estimated wage bill of 18.2 billion krónur and an estimated financing cost of approximately 1.3 billion krónur. In 2020, the operating result was a surplus of 2,264 million króna, and in 2019 a surplus of 1,236 million króna.
Key findings of the 2022 budgetThe British
- Operating result of A and B sections positive at 842 million króna
- Operating result of Section A positive at 106 million króna
- The debt ratio was estimated at 97.71% at the end of 2022. By comparison, the ratio was 112% at the end of 2019, before Covid-19 struck.
- Projected operating cash flow from A- and B-sections of 886 million króna, or 2.51% of total revenue.
- Council tax percentage unchanged, at 14.481%
- Council Tax on residential properties reduced by almost 51% to offset an increase in property valuation.
- A reduction in water and sewerage charges for commercial premises, reducing the burden on businesses by 145 million króna.
- The tariff for 2022 is generally expected to remain unchanged or increase by 2.51%, which is within expected inflation.
- Estimated investments amount to just over five billion króna.
- Purchase of social housing estimated at around 500 million króna
- Expenditure on disability matters increases by 131% and amounts to just over four billion krónur.
- A special injection of approximately 82 million kroner for Hafnarfjörður's nurseries in the form of increased staff benefits, an increase in fixed overtime, grants and courses.
- According to the plan, the population will increase by an average of 1,500-2,000 people per year for the next four years.
Key projects in 2022
The budget for capital expenditure for 2022 is approximately 5 billion króna. The plan prioritises core services such as environmental matters, transport, facilities, housing and sewerage.
- Road construction in a residential area in Hamranes, which is currently being developed.
- Road construction in a new housing estate in Ásland
- Landscaping of new building sites across the town; completion of tarmac surfacing, construction of pavements, paths, play areas and the greening of areas.
- The renovation of pavements and footpaths in the town continues.
- Enhancement of cycling routes in the municipality
- Development at Hvaleyrarvatn concerning accessibility, rest areas, paths and car parks.
- Beautification of Hellisgerði for its 100th anniversary in 2023
- The renewal of street lighting with LED technology will be largely completed next year.
- Preparations for a new nursery and primary school in Hamranes have begun.
- Completion of the renovation of grass pitches at the FH and Hauka club grounds and other works.
Attached are the budget and supporting documents for 2022-2025:
The British